U.S. Stocks May Turn In Lackluster Performance In Early Trading

Following the pullback seen over the course of the previous session, the major index futures are currently pointing to a mixed open on Wall Street on Friday. While the Dow futures are down by 45 points, the Nasdaq futures are up by 18.50 points.

Stocks may resume the lackluster performance that was seen on Thursday prior to reports of President Joe Biden’s plans to raise capital gains tax rates.

While the Dow and the S&P 500 reached new record highs last Friday, the major averages have largely been rangebound over the past few sessions.

Optimism about the economic recovery has helped prop up the markets, although concerns about high valuations and surging coronavirus cases overseas have led to worries about a near-term pullback.

A notable drop by shares of Intel (INTC) may weigh on the Dow, with the semiconductor giant slumping by 2.8 percent in pre-market trading.

The decline by Intel comes after the company reported better than expected first quarter results but provided guidance below analyst estimates.

Dow components American Express (AXP) and Honeywell (HON) are also seeing pre-market weakness despite reporting better than expected quarterly earnings.

Not long after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of March.

Economists expect new home sales to spike by 14.3 percent to an annual rate of 886,000 in March after plummeting by 18.2 percent to a rate of 775,000 in February.

After turning in a lackluster performance for much of the morning, stocks came under pressure in afternoon trading on Thursday. The major averages all pulled back sharply, offsetting the strong gains posted on Wednesday.

The major averages climbed off their worst levels but still closed firmly in negative territory. The Dow tumbled 321.41 points or 0.9 percent to 33,815.90, the Nasdaq slumped 131.81 points or 0.9 percent to 13,818.41 and the S&P 500 slid 38.44 points or 0.9 percent to 4,134.98.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index fell by 0.6 percent, while China’s Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index has slumped by 0.9 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both down by 0.6 percent.

In commodities trading, crude oil futures are slipping $0.11 to $61.32 a barrel after inching up $0.08 to $61.43 a barrel on Thursday. Meanwhile, after falling $11.10 to $1,782 an ounce in the previous session, gold futures are climbing $12.20 to $1,794.20 an ounce.

On the currency front, the U.S. dollar is trading at 107.54 yen versus the 107.97 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2070 compared to yesterday’s $1.2015.