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U.S. Stocks May Extend Yesterday's Upward Move

wallstreet oct25 26may22 lt

Stocks are likely to move to the upside in early trading on Thursday, extending the upward move seen over the course of the previous session. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 139 points.

The upward momentum on Wall Street comes as traders continue to pick up stocks at relatively reduced levels following recent weakness.

The major averages have recently fallen to their lowest levels in over a year, but traders seem to be expressing some optimism that the markets have finally found a bottom.

Other recent bargain hunting efforts have fallen short, however, as worries about inflation, interest rates and the global economy continue to hang over stocks.

Potentially adding to the positive sentiment, the Labor Department recently released a report showing first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended May 21st.

The report showed initial jobless claims dipped to 210,000, a decrease of 8,000 from the previous week's unrevised level of 218,000. Economists had expected jobless claims to edge down to 215,000.

Meanwhile, a separate report from the Commerce Department showed economic activity in the U.S. slumped by slightly more than previously estimated in the first quarter of 2022.

The Commerce Department said real domestic product slid by 1.5 percent in the first quarter compared to the previously reported 1.4 percent drop. Economists had expected the decrease in GDP to be revised to 1.3 percent.

The slightly bigger than expected pullback came after GDP skyrocketed by 6.9 percent in the fourth quarter of 2021.

Not long after the start of trading, the National Association of Realtors is scheduled to release its report on pending home sales in the month of April. Pending home sales are expected to slump by 2.0 percent.

Stocks fluctuated over the course of the trading session on Wednesday before ending the day mostly higher. The tech-heavy Nasdaq rebounded after ending Tuesday's trading at its lowest closing level since November 2020.

The major averages all closed in positive territory, with the Nasdaq leading the advance. While the Nasdaq surged 170.29 points or 1.5 percent to 11,434.74, the S&P 500 jumped 37.25 points or 1 percent to 3,978.73 and the Dow climbed 191.66 points or 0.6 percent to 32,120.28.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Thursday. Japan's Nikkei 225 Index dipped by 0.3 percent, while China's Shanghai Composite Index rose by 0.5 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index has inched up by 0.1 percent, the German DAX Index and the French CAC 40 Index are both up by 0.8 percent.

In commodities trading, crude oil futures are climbing $0.69 to $111.02 a barrel after rising $0.56 to $110.33 a barrel on Wednesday. Meanwhile, after sliding $19.10 to $1,846.30 an ounce in the previous session, gold futures are slipping $4 to $1,842.30 an ounce.

On the currency front, the U.S. dollar is trading at 127.17 yen versus the 127.32 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0698 compared to yesterday's $1.0681.

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