U.S. Stocks May Show A Lack Of Direction In Early Trading

Following the modest pullback seen in the previous session, stocks may show a lack of direction in early trading on Monday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.

Traders may be reluctant to make significant moves as they await additional news on debt ceiling negotiations after talks broke down last Friday.

President Joe Biden and House Speaker Kevin McCarthy, R-Calif., are reportedly due to hold talks on raising the debt ceiling later in the day.

A lack of major U.S. economic data may also keep some traders on the sidelines ahead of the release of some key data in the coming days.

The Commerce Department’s report on personal income and spending is likely to be in focus, as it includes a reading on inflation said to be preferred by the Federal Reserve.

The minutes of the Fed’s latest monetary policy meeting are also likely to attract attention, as traders look for additional clues on the outlook for interest rates.

After an early move to the upside, stocks moved mostly lower over the course of the trading session on Friday. The major averages pulled back off their early highs and into negative territory after moving sharply higher over the two previous sessions.

The Nasdaq and the S&P 500 reached nine-month intraday highs in early trading but ended the day in the red. The Nasdaq dipped 30.94 points or 0.2 percent to 12,657.90 and the S&P 500 edged down 6.07 points or 0.1 percent to 4,191.98, while the Dow fell 109.28 points or 0.3 percent to 33,426.63.

Despite the modest pullback on the day, the major averages all moved higher for the week. The Nasdaq surged by 3.0 percent, the S&P 500 jumped by 1.7 percent and the Dow rose by 0.4 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index advanced by 0.9 percent, while Hong Kong’s Hang Seng Index jumped by 1.2 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.’s FTSE 100 Index is nearly unchanged, the French CAC 40 Index and the German DAX Index are both down by 0.4 percent.

In commodities trading, crude oil futures are inching up $0.05 to $71.60 a barrel after slipping $0.31 to $71.55 a barrel last Friday. Meanwhile, after jumping $21.80 to $1,981.60 an ounce in the previous session, gold futures are falling $5.10 to $1,976.50 an ounce.

On the currency front, the U.S. dollar is trading at 138.24 yen versus the 137.98 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0825 compared to last Friday’s $1.0805.