logo
  

U.S. Stocks May See Further Downside In Early Trading

wallstreet oct29 01jul22 lt

Stocks are likely to move to the downside in early trading on Friday, extending the pullback seen over the past several sessions. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 131 points.

Concerns about the possibility of tighter monetary policy triggering a global recession are likely to continue to weigh on the markets.

Central banks from around the world have signaled their intent to continue to raising interest rates in an effort to fight inflation while acknowledging they can't guarantee a "soft landing" for the economy.

A steep drop by shares of Micron Technology (MU) is likely to weigh on the semiconductor sector, with the chipmaker tumbling by 4.5 percent in pre-market trading.

The slump by Micron comes after the company reported better than expected fiscal third quarter earnings but provided disappointing revenue guidance.

Overall trading activity may be somewhat subdued, however, as some traders look to get a head start on the long Fourth of July weekend.

Shortly after the start of trading, the Institute for Supply Management is due to release its report on manufacturing activity in the month of June.

The ISM's manufacturing PMI is expected to dip to 54.9 in June from 56.1 in May, although a reading above 50 would still indicate growth.

The Commerce Department is also scheduled to release its report on construction spending in the month of May. Construction spending is expected to rise by 0.4 percent in May after edging up by 0.2 percent in April.

Stocks fluctuated after an early sell-off on Thursday but maintained a negative bias throughout the session. The major averages all finished the day notably lower after ending Wednesday's trading narrowly mixed.

After falling nearly 600 points in early trading, the Dow regained some ground but still closed down 253.88 points or 0.8 percent at 30,775.43. The Nasdaq also tumbled 149.16 points or 1.3 percent to 11,028.74, while the S&P 500 slumped 33.45 points or 0.9 percent to 3,785.38.

The steep drop on the day capped off the worst first half for the S&P 500 since 1970, with the index plummeting by 20.6 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index dove by 1.7 percent, while China's Shanghai Composite Index dipped by 0.3 percent.

Meanwhile, the major European markets are turning in a lackluster performance on the day. While the French CAC 40 Index is just above the unchanged line, the German DAX Index is down by 0.2 percent and the U.K.'s FTSE 100 Index is down by 0.3 percent.

In commodities trading, crude oil futures are surging $3.12 to $108.88 a barrel after plunging $4.02 to $105.76 a barrel on Thursday. Meanwhile, after falling $10.20 to $1,807.30 an ounce in the previous session, gold futures are tumbling $22.40 to $1,784.90 an ounce.

On the currency front, the U.S. dollar is trading at 135.36 yen versus the 135.72 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0418 compared to yesterday's $1.0484.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Specialty athletic retailer Foot Locker, Inc. reported Friday a second-quarter net profit that plunged from last year, hurt by a sales decline amid markdowns. Quarterly sales met Street estimates. The company also trimmed it adjusted earnings and sales growth guidance for the full-year 2022. Google's hundreds of employees have signed a petition sent to executives demanding extension of abortion care benefits to contract workers. The workers also called to halt donations given to anti-abortion politicians and to expand travel benefits. The petition, circulated by the Alphabet Workers Union, has been signed by over 650 employees at Google's parent company Alphabet Inc. Apple Inc. has released an emergency security update noting that some of its iPhones, iPads and Macs had certain vulnerabilities. The tech major said the flaws potentially allow full admin access to devices. The models affected by the issue include iPhone 6S and later models, several models of the newer iPads, and Mac computers running macOS Monterey and above. The flaws also affect the iPod Touch
Follow RTT