Following the recession seen in the previous session, stocks may show a lack of direction in early Wednesday trading. Major index futures are now showing a nearly flat open. market, The Dow futures are down only 11 points.
Traders may be reluctant to make significant moves in the uncertainty about the short-term outlook for the market following the downtrend seen in the last few sessions.
The Dow finished its previous session with the lowest closing price in almost two months, while the tech-heavy Nasdaq fell in four consecutive sessions.
Trade could be affected by a response to a report on industrial production from the Federal Reserve Board in August, just before the start of trade. Industrial production is expected to increase by 0.5%.
Meanwhile, traders may look forward to future reports on retail sales and consumer sentiment, as well as next week’s Fed meeting.
Futures were less responsive to reports from the Ministry of Labor that unexpectedly showed a fall in US import prices in August.
The Ministry of Labor said import prices fell 0.3% in August after an upwardly revised 0.4% rise in July.
The fall surprised economists who expected import prices to rise 0.3%. This is consistent with the rise originally reported last month.
Meanwhile, export prices rose 0.4% in August, after a 1.1% rise, which was revised downward in July, according to the report.
Economists expected export prices to rise 0.5% compared to the 1.3% surge initially reported last month.
Another report from the Federal Reserve Bank of New York showed an unexpected recovery in the pace of growth in manufacturing activity in the region in September.
Shares turned upward at the start of trading on Tuesday, but were under pressure during the session. As the day progressed, the key average fell sharply from its initial highs and slipped firmly into the negative territory.
After recording five consecutive losses on Monday, the Dow fell 292.06 points (0.8%) to 34,577.57, the lowest closing price in almost two months. The S & P 500 fell 25.68 points (0.6%) to 4,443.05 and the Nasdaq fell 67.82 points (0.5%) to 15,037.76, the fifth consecutive decline.
In overseas trading, the stock market in the Asia-Pacific region fell sharply on Wednesday. Japan’s Nikkei 225 Index fell 0.5%, while China’s Shanghai Composite Index fell 0.2%.
On the day of the event, major European markets are also on a downward trend. France’s CAC 40 index fell 0.7%, while Germany’s DAX index and UK’s FTSE 100 index fell 0.2% and 0.1%, respectively.
In commodity trading, crude oil futures jumped from $ 1.26 to $ 71.72 a barrel after rising $ 0.01 to $ 70.46 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $ 1,803.40, down $ 3.70 compared to the closing price of $ 1,807.10 in the previous session. On Tuesday, gold rose $ 12.70.
On the currency side, the US dollar is trading at 109.36 yen, compared to 109.69 yen at the end of the New York stock exchange on Tuesday. Against the euro, the dollar is trading at $ 1.1814 compared to yesterday’s $ 1.1803.
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US stocks may show a lack of direction in early trading
Source link US stocks may show a lack of direction in early trading