U.S. Stocks May Lack Direction In Early Trading

After ending yesterday’s choppy trading session mostly higher, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down 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 a strong September, which is historically a weak month for stocks.

Traders may also be reluctant to make significant moves in early trading ahead of the release of the Institute for Supply Management’s report on manufacturing activity in the month of September.

The report, which is due to be released shortly after the start of trading, is expected to show the ISM’s manufacturing PMI inched up to 47.5 in September from 47.2 in August. A reading below 50 would still indicate contraction.

The Labor Department is also due to release its report on job openings in the month of August. Job openings in August are expected to come in unchanged from July at 7.67 million.

Later in the week, the Labor Department’s closely watched monthly jobs report is likely to be in the spotlight, as traders look for additional clues about the outlook for the economy and interest rates.

Economists currently expect the report to show employment rose by 140,000 jobs in September after climbing by 142,000 jobs in August, while the unemployment rate is expected to hold at 4.2 percent.

Stocks showed a lack of direction over the course of the trading session on Monday before eventually ending the day mostly higher. The major averages all finished the day in positive territory following the mixed performance seen last Friday.

The Dow inched up 17.15 points or less than a tenth of a percent to a new record closing high of 42,330.15, while the Nasdaq climbed 69.58 points or 0.4 percent to 18,189.17. The S&P 500 also rose 24.31 points or 0.4 percent to a new record closing high of 5,762.48.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday, with several major markets closed for holidays. Japan’s Nikkei 225 Index jumped by 1.9 percent, while Australia’s S&P/ASX 200 Index slid by 0.7 percent.

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

In commodities trading, crude oil futures are sliding $0.83 to $67.34 a barrel after edging down $0.01 to $68.17 a barrel on Monday. Meanwhile, after slipping $8.70 to $2,659.40 an ounce in the previous session, gold futures are climbing $17.40 to $2,676.80 an ounce.

On the currency front, the U.S. dollar is trading at 143.74 yen compared to the 143.63 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1074 compared to yesterday’s $1.1135.