Futures Pointing To Initial Strength On Wall Street

wallstreet aug22 22nov21 lt

After turning in a mixed performance last week, stocks are likely to move to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 45 points.

Trading activity may be somewhat subdued ahead of the Thanksgiving Day holiday on Thursday, although the holiday week is typically positive for the markets.

"The last five trading days of November are traditionally positive, since 1950," Sam Stovall, chief investment strategist at CFRA, said, according to CNBC.

He added, "There's a two-thirds likelihood the market is up on the day before Thanksgiving and a 57% likelihood the day after Thanksgiving, and a 71% likelihood that it's up on Monday."

Traders are also likely to keep an eye on Washington, as President Joe Biden could announce his choice for Federal Reserve Chair as soon as this week.

Current Fed Chair Jerome Powell and Fed Governor Lael Brainard are seen as the most likely candidates, with Brainard seen as the more dovish option.

Not long after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of October. Economists expect existing home sales to slump 1.4 percent to an annual rate of 6.20 million.

Following the mixed performance seen on Thursday, the major U.S. stock indexes once again moved in opposite directions during trading on Friday. While the tech-heavy Nasdaq reached a new record closing high, the Dow moved lower for the third straight session.

The Nasdaq climbed 63.73 points or 0.4 percent to 16,057.44, but the Dow slid 268.97 points or 0.8 percent to 35,601.98. Meanwhile, the S&P 500 spent the day bouncing back and forth across the unchanged line before closing down 6.58 points or 0.1 percent at 4,697.96.

The major averages also turned in a mixed performance for the week. The Nasdaq jumped by 1.2 percent and the S&P 500 rose by 0.3 percent, while the Dow slumped by 1.4 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index fell by 0.4 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 0.4 percent, the French CAC 40 Index is down by 0.3 percent and the U.K.'s FTSE 100 Index is down by 0.2 percent.

In commodities trading, crude oil futures are slipping $0.36 to $75.58 a barrel after plunging $2.47 to $75.94 a barrel last Friday. Meanwhile, after falling $9.80 to $1,851.60 an ounce in the previous session, gold futures are sliding $11.90 to $1,839.70 an ounce.

On the currency front, the U.S. dollar is trading at 114.11 yen versus the 113.99 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1274 compared to last Friday's $1.1290.

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