Stocks may show a lack of direction in early trading on Friday following the substantial rebound seen in the previous session. The major index futures are currently pointing to a roughly flat open for the markets, with the Dow futures up by just 8 points.
Traders may be reluctant to make significant moves on the heels of the considerable volatility seen over the past few sessions.
Mixed quarterly financial results from several leading financial companies may also contribute to choppy trading on Wall Street.
Shares of Wells Fargo (WFC) are moving notably lower in pre-market trading after the bank reported a drop in second quarter earnings on weaker than expected revenues.
Financial giant Citigroup (C) may also move to the downside after reporting better than expected second quarter earnings but on revenues that came in below analyst estimates.
On the other hand, shares of JPMorgan Chase (JPM) are likely to see initial strength after the financial giant reported second quarter results that exceeded expectations on both the top and bottom lines.
Traders may also look ahead to next week, when a slew of other big-name companies are due to report their quarterly results as earnings news gets into full swing.
In U.S. economic news, a report released by the Labor Department showed an unexpected decrease in import prices in the month of June, although the report also showed a slightly bigger than expected increase in export prices during the month.
The Labor Department said import prices fell by 0.4 percent in June after climbing by an upwardly revised 0.9 percent in May.
The pullback surprised economists, who had expected import prices to inch up by 0.1 percent compared to the 0.6 percent increase originally reported for the previous month.
Meanwhile, the report also said export prices rose by 0.3 percent in June following a 0.6 percent increase in May. Economists had expected export prices to edge up by 0.2 percent.
Shortly after the start of trading, the University of Michigan is scheduled to release its preliminary report on consumer sentiment in the month of July. The consumer sentiment index is expected to come in unchanged after inching up to 98.2 in June.
Following the pullback seen on Wednesday, stocks showed a strong move back to the upside during trading on Thursday. With the rally on the day, the major averages more than offset the losses posted on Wednesday.
The tech-heavy Nasdaq outperformed its counterparts on the day, soaring 107.30 points or 1.4 percent to a new record closing high of 7,823.92. The Dow jumped 224.74 points or 0.9 percent to 24,924.89 and the S&P 500 surged up 24.27 points or 0.9 percent to 2,798.29.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index spiked by 1.9 percent, while Hong Kong’s Hang Seng Index edged up by 0.2 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has risen by 0.3 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both up by 0.4 percent.
In commodities trading, crude oil futures are climbing $0.39 to $70.72 a barrel after slipping $0.05 to $70.33 a barrel on Thursday. Meanwhile, after rising $2.20 to $1,246.60 an ounce in the previous session, gold futures are up $2 at $1,247 an ounce.
On the currency front, the U.S. dollar is unchanged compared to the 112.55 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.638 compared to yesterday’s $1.1672.
by RTTNews Staff Writer
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