U.S. Stocks May Lack Direction In Early Trading

After rebounding last Friday but still posting steep weekly losses, 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 less than a tenth of a percent.

Uncertainty about the near-term outlook for the markets may keep some traders on the sidelines following recent weakness, which saw the S&P 500 plunge into correction territory last Thursday.

Traders may also be reluctant to make significant moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

While the Fed is almost universally expected to leave interest rates unchanged, traders will look to the accompanying statement as well as officials’ latest projections for clues about the outlook for rates.

The Fed may also address President Donald Trump’s new tariffs amid concerns about the economic impact of the trade policies.

On the U.S. economic front, the Commerce Department released a report showing a modest rebound by retail sales in the month of February.

The Commerce Department said retail sales rose by 0.2 percent in February after tumbling by a revised 1.2 percent in January.

Economists had expected retail sales to climb by 0.7 percent compared to the 0.9 percent slump originally reported for the previous month.

Excluding a decrease in sales by motor vehicle and parts dealers, retail sales increased by 0.3 percent in February after falling by 0.6 percent in January. Ex-auto sales were expected to rise by 0.5 percent.

The Federal Reserve Bank of New York also released a report showing regional manufacturing activity dropped significantly in the month of March.

Following the sell-off seen over the course of Thursday’s session, stocks showed a substantial move back to the upside during trading on Friday. The major averages all moved sharply higher, with the tech-heavy Nasdaq posting a standout gain.

The major averages reached new highs for the session going into the close of trading. The Nasdaq soared 451.07 points or 2.6 percent to 17,754.09, the S&P 500 surged 117.42 points or 2.1 percent to 5,638.94 and the Dow jumped 674.62 points or 1.7 percent to 41,488.19.

Despite the significant rebound on the day, the major averages still posted steep losses for the week. The Dow plunged by 3.1 percent, while the Nasdaq and the S&P 500 tumbled by 2.4 percent and 2.3 percent, respectively.

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 climbed by 0.8 percent and China’s Shanghai Composite Index edged up by 0.2 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index is up by 0.4 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.2 percent.

In commodities trading, crude oil futures are jumping $0.83 to $68.01 a barrel after climbing $0.63 to $67.18 barrel last Friday. Meanwhile, after rising $9.80 to $3,001.10 an ounce in the previous session, gold futures are edging down $1.60 to $2,999.50 an ounce.

On the currency front, the U.S. dollar is trading at 148.84 yen versus the 148.64 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0888 compared to last Friday’s $1.0879.