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

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

Uncertainty about the outlook for the markets may keep some traders on the sidelines following yesterday’s weakness, which saw the S&P 500 pull back off its record highs.

Traders may also be reluctant to make significant moves ahead of earnings news from Nvidia (NVDA), as the AI darling is due to report its quarterly results after the close of trading next Wednesday.

Next week will also see the release of the Federal Reserve’s preferred readings on consumer price inflation, which could impact the outlook for interest rates.

Nonetheless, while the broader markets may lack direction, a steep drop by shares of UnitedHealth (UNH) is likely to weigh on the Dow.

The Dow futures are down by 0.6 percent, as UnitedHealth is plunging by 12.4 percent in pre-market trading after a report from the Wall Street Journal said the Justice Department has launched an investigation into the health insurance giant’s Medicare billing practices in recent months.

Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of January.

Existing home sales are expected to tumble by 2.8 percent to an annual rate of 4.12 million in January after jumping by 2.2 percent to an annual rate of 4.24 million in December.

The University of Michigan is also due to release its revised reading on consumer sentiment in the month of February. The consumer sentiment index for February is expected to be unrevised from the preliminary reading of 67.8, which was down from 71.1 in January.

After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Thursday. The major averages climbed well off their early lows but remained firmly in negative territory.

The S&P 500 fell as much as 1.0 percent in early trading but ended the day more moderately lower, down 26.63 points or 0.4 percent at 19,962.36. The Nasdaq also slid 93.89 points or 0.5 percent to 19,962.36 after tumbling as much as 1.3 percent.

The narrower Dow posted a more significant loss, slumping 450.94 points or 1.0 percent to 44,176.65 amid a steep drop by Walmart (WMT).

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday, Hong Kong’s Hang Seng Index spiked 4.0 percent, China’s Shanghai Composite Index advanced by 0.9 percent and Japan’s Nikkei 225 Index rose by 0.3 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index is up by 0.6 percent, the German DAX Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent,

In commodities trading, crude oil futures are falling $0.49 to $71.99 a barrel after rising $0.38 to $72.48 a barrel on Thursday. Meanwhile, after jumping $20 to $2,956.10 an ounce in the previous session, gold futures are sliding $13.70 to $2,942.40 an ounce.

On the currency front, the U.S. dollar is trading at 150.42 yen versus the 149.64 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0473 compared to yesterday’s $1.0501.