U.S. Stocks May Extend Last Friday's Rebound In Early Trading
Stocks may move to the upside in early trading on Monday, extending the significant rebound seen in the previous session. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Traders may continue to look to pick up stocks at relatively reduced levels following the weakness seen throughout most of the previous week.
Buying interest may be somewhat subdued, however, as traders look ahead to the release of earnings news from a number of big-name companies this week.
General Electric (GE), Johnson & Johnson (JNJ), Verizon (VZ), Microsoft (MSFT), AT&T (T), Boeing (BA), IBM Corp. (IBM), Tesla (TSLA), Intel (INTC) and American Express (AXP) are just some of the companies due to report their quarterly results in the coming days.
Reports on durable goods orders, fourth quarter GDP, new home sales and personal income and spending are also likely to attract attention later in the week.
Additionally, next week’s Federal Reserve meeting is likely to remain on investors’ minds amid ongoing uncertainty about the outlook for interest rates.
The Fed is widely expected to further slow the pace of rate hikes to 25 basis points at its next meeting, but the possibility of additional rate hikes continues to hang over the markets.
Shortly after the start of trading, the Conference Board is scheduled to release its report on leading U.S. economic indicators in the month of December. The leading economic index is expected to decrease by 0.7 percent in December after slumping by 1.0 percent in November.
Stocks moved sharply higher over the course of the trading session on Friday, regaining ground after posting steep losses for two straight days. Tech stocks helped lead the rebound, resulting in a particularly strong gain by the tech-heavy Nasdaq.
The major averages saw further upside going into the close, ending the session at their best levels of the day. While the Nasdaq spiked 288.17 points or 2.7 percent to 11,140.43, the S&P 500 surged 73.76 points or 1.9 percent to 3,972.61 and the Dow jumped 330.93 points or 1.0 percent to 33,375.49.
For the holiday-shortened week, the major averages turned in a mixed performance. The Nasdaq climbed by 0.6 percent, but the S&P 500 slid by 0.7 percent and the Dow tumbled by 2.7 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, with several markets closed for Lunar New Year. Japan’s Nikkei 225 Index jumped by 1.3 percent, while Australia’s S&P/ASX 200 Index inched up by 0.1 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has climbed by 0.5 percent, the French CAC 40 Index is up by 0.3 percent and the German DAX Index is up by 0.2 percent.
In commodities trading, crude oil futures are rising $0.67 to $82.31 a barrel after jumping $1.03 to $81.64 a barrel last Friday. Meanwhile, after inching up $4.30 to $1,928.20 an ounce in the previous session, gold futures are edging down $0.50 to $1,927.70 an ounce.
On the currency front, the U.S. dollar is trading at 130.36 yen versus the 129.60 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0872 compared to last Friday’s $1.0856.
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