After moving sharply higher over the two previous sessions, stocks may give back ground in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 180 points.
Profit taking may contribute to an initial pullback on Wall Street, as traders cash in on the strong gains seen to start the week.
The major averages ended Tuesday’s trading well off their highs of the session, although the Dow still ended the day at its best closing level in almost a month.
Lingering concerns about higher interest rates and the impact on the global economy may also continue to weigh on the markets.
The downward momentum on Wall Street comes despite a notable pre-market advance by shares of Netflix (NFLX), with the streaming giant surging by 10.6 percent.
The spike by Netflix comes after the company reported third quarter earnings and revenue that beat analyst estimates on strong subscriber growth.
Dow components Procter & Gamble (PG) and Travelers (TRV) are also seeing pre-market strength after reporting better than expected quarterly results, potentially limiting the downside for the blue chip index.
Later in the day, the Federal Reserve is scheduled to release its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts.
After surging early in the session, stocks gave back some ground over the course of the trading day on Tuesday but managed to close firmly positive. The major averages added to the strong gains posted on Monday, further offsetting recent weakness.
The Dow pulled back well off its early high but still ended the day up 337.98 points or 1.1 percent at 30,523.80, its best closing level in almost a month. The Nasdaq advanced 96.60 points or 0.9 percent to 10,772.40 and the S&P 500 jumped 42.03 points or 1.1 percent at 3,719.98.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index rose by 0.4 percent, while China’s Shanghai Composite Index slumped by 1.2 percent.
Meanwhile, European stocks have shown a lack of direction on the day and are currently modestly lower. While the French CAC 40 Index is just below the unchanged line, the German DAX Index is down by 0.1 percent and the U.K.’s FTSE 100 Index is down by 0.2 percent.
In commodities trading, crude oil futures are jumping $1.36 to $84.18 a barrel after tumbling $2.64 to $82.82 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,636.40, down $19.40 compared to the previous session’s close of $1,655.80. On Tuesday, gold fell $8.20.
On the currency front, the U.S. dollar is trading at 149.73 yen compared to the 149.26 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $0.9776 compared to yesterday’s $0.9858.
Business News
U.S. Stocks May Give Back Ground In Early Trading
2022-10-19 12:52:43
