After ending yesterday’s lackluster session modestly lower, stocks are likely to come under pressure in early trading on Wednesday. The major index futures are currently pointing to initial weakness on Wall Street, with the S&P 500 futures down by 0.9 percent.
Early selling pressure is likely to be seen on Wall Street amid a negative reaction to the latest corporate earnings news.
Shares of Tesla (TSLA) are plunging by 8.9 percent in pre-market trading after the electric vehicle maker reported weaker than expected second quarter earnings.
Google parent Alphabet (GOOGL) is also seeing notable pre-market weakness after reporting second quarter earnings that beat analyst estimates but missing expectations for YouTube advertising revenue.
On the other hand, shares of Texas Instruments (TXN) may see initial strength after the chipmaker reported second quarter earnings that exceeded analyst estimates.
Shortly after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of June. New home sales are expected to climb to an annual rate of 640,000 in June after plunging to a rate of 619,000 in May.
Stocks showed a lack of direction over the course of the trading session on Tuesday, with the major averages bouncing back and forth across the unchanged line following the strong upward move seen in the previous session.
The major averages eventually ended the day modestly lower. The Dow slipped 57.35 points or 0.1 percent to 40,358.09, the Nasdaq edged down 10.22 points or 0.1 percent to 17,997.35 and the S&P 500 dipped 8.67 points or 0.2 percent to 5,555.74.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan’s Nikkei 225 Index slumped by 1.1 percent, while China’s Shanghai Composite Index fell by 0.5 percent.
The major European markets have also moved to the downside on the day. While the French CAC 40 Index has slid by 1.0 percent, the German DAX Index is down by 0.7 percent and the U.K.’s FTSE 100 Index is just below the unchanged line.
In commodities trading, crude oil futures are jumping $0.89 to $77.85 a barrel after tumbling $1.44 to $76.96 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,417.40, up $10.10 compared to the previous session’s close of $2,407.30. On Tuesday, gold climbed $12.60.
On the currency front, the U.S. dollar is trading at 153.94 yen compared to the 155.59 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0846 compared to yesterday’s $1.0854.
Business News
U.S. Stocks May See Initial Weakness On Disappointing Earnings News
2024-07-24 12:46:39
