Futures Pointing To Initial Strength On Wall Street

After ending the previous session mixed, stocks are likely to move mostly higher in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.

Ongoing optimism about the outlook for the economy may contribute to strength on Wall Street despite recent concerns about the Federal Reserve lowering interest rates slower than previously anticipated.

The Fed is still widely expected to lower rates by a quarter point next month, but CME Group’s FedWatch Tool currently indicates a 24.0 percent chance the central bank will leave rates unchanged in December.

Stocks may also benefit from an extended pullback by treasury yields, with the yield on the benchmark ten-year note continuing to give back ground after reaching a nearly three-month high on Wednesday.

In U.S. economic news, the Commerce Department released a report showing new orders for U.S. manufactured durable goods fell by more than expected in September amidReflecting a continued slump by orders for transportation equipment.

The Commerce Department said durable goods slid by 0.8 percent in September, matching a revised decrease in August.

Economists had expected durable goods orders to fall by 0.5 percent compared to the unchanged reading originally reported for the previous month.

Excluding a 3.1 percent plunge by orders for transportation equipment, durable goods orders rose by 0.4 percent in September after climbing by 0.6 percent in August. Ex-transportation orders were expected to edge down by 0.1 percent.

Shortly after the start of trading, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of October.

The consumer sentiment index for October is expected to be upwardly revised to 69.0 from a preliminary reading of 68.9, which was down from 70.1 in September.

Following the steep drop seen during Wednesday’s session, the major U.S. stock indexes turned in a mixed performance during trading on Thursday. The Nasdaq and the S&P 500 regained ground, but the narrower Dow saw further downside to close lower for the fourth straight day.

The major averages finished the day on opposite sides of the unchanged line. While the Dow dipped 140.59 points or 0.3 percent to 42,374.36, the S&P 500 rose 12.44 points or 0.2 percent to 5,809.86 and the Nasdaq advanced 138.83 points or 0.8 percent to 18,415.49.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index slid by 0.6 percent, while China’s Shanghai Composite Index climbed by 0.6 percent.

Meanwhile, the major European markets are narrowly mixed. While the German DAX Index is up by 0.1 percent, the U.K.’s FTSE 100 Index is just below the unchanged line and the French CAC 40 Index is down by 0.2 percent.

In overseas trading, crude oil futures are rising $0.67 to $70.86 a barrel after falling $0.58 to $70.19 a barrel on Thursday. Meanwhile, after climbing $19.50 to $2,748.90 an ounce in the previous session, gold futures are slipping $8.10 to $2,740.80 an ounce.

On the currency front, the U.S. dollar is trading at 151.82 yen versus the 151.83 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0838 compared to yesterday’s $1.0828.

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