After turning in a strong performance in the previous session, stocks may see further upside in early trading on Monday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Stocks may continue to benefit from optimism about the outlook for interest following last Friday’s report on producer price inflation.
While hopes the Federal Reserve will lower rates by another 50 basis points next month have largely evaporated, the data reinforced optimism the central bank will cut rates by 25 basis points.
Overall trading activity is likely to be relatively subdued, however, with some traders likely to be away from their desks due to the Columbus Day holiday.
A lack of major U.S. economic data may also keep some traders on the sidelines ahead of the release of key reports on retail sales and industrial production later in the week.
Earnings news from big-name companies, such as Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), Johnson & Johnson (JNJ), UnitedHealth (UNH), Morgan Stanley (MS) and Netflix (NFLX), is also likely to attract attention in the coming days.
Following the modest pullback seen in Thursday’s session, stocks showed a strong move back to the upside during trading on Friday. The major averages more than offset Thursday’s losses, with the Dow and the S&P 500 reaching new record closing highs.
The major averages pulled back off their best levels going into the close but remained firmly positive. The Dow jumped 409.74 points or 1.0 percent to 42,863.86, the S&P 500 climbed 34.96 points or 0.6 percent to 5,815.03 and the Nasdaq rose 60.89 points or 0.3 percent to 18,342.94.
For the week, the Dow surged by 1.2 percent, while the Nasdaq and the S&P 500 both shot up by 1.1 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday, with Japanese markets closed for a holiday. China’s Shanghai Composite Index surged by 2.1 percent, while Hong Kong’s Hang Seng Index slid by 0.8 percent.
The major European markets are also mixed on the day. While the French CAC 40 Index is down by 0.2 percent, the U.K.’s FTSE 100 Index is up by 0.1 percent and the German DAX Index is up by 0.3 percent.
In commodities trading, crude oil futures are slumping $1.50 to $74.06 a barrel after falling $0.26 to $75.56 a barrel last Friday. Meanwhile, after surging $37 to $2,676.30 an ounce in the previous session, gold futures are slipping $6.40 to $2,669.90 an ounce.
On the currency front, the U.S. dollar is trading at 149.70 yen versus the 149.13 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0909 compared to last Friday’s $1.0937.
Business News
U.S. Stocks May See Further Upside Amid Light Trading
2024-10-14 12:50:29
