After ending the previous session sharply higher, stocks are likely to move back to the downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 80 points.
Traders may look to cash in on yesterday’s gains amid lingering concerns about the economy, inflation and interest rates.
Lingering uncertainty about the strength of corporate earnings may also inspire some profit taking ahead of the release of quarterly results from a number of big-name companies in the coming days.
Tesla (TSLA), AT&T (T), Travelers (TRV), American Express (AXP), Twitter (TWTR) and Verizon (VZ) are just a few of the companies due to report their results before the end of the week.
Earnings season will continue to pick up steam next week, with Coca-Cola (KO), McDonald’s (MCD), Alphabet (GOOGL), Microsoft (MSFT), Boeing (BA), Pfizer (PFE), Amazon (AMZN), and Intel (INTC) among a slew of companies due to report their quarterly results.
However, any early negative sentiment on Wall Street may be partly offset by a notable advance by shares of Netflix (NFLX), with the streaming giant jumping by 4.2 percent in pre-market trading.
The advance by Netflix comes after the company reported better than expected second quarter earnings and a smaller than expected subscriber loss.
Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of June.
Existing home sales are expected to decrease by 0.6 percent to an annual rate of 5.38 million in June after slumping by 3.4 percent to a rate of 5.41 million in May.
Stocks moved sharply higher during trading on Tuesday, more than offsetting the significant downturn seen over the course of the session on Monday. The major averages jumped early in the session and saw further upside as the day progressed.
The major averages ended the session just off their best levels of the day. The Dow surged 754.44 points or 2.4 percent to 31,827.05, the Nasdaq soared 353.10 points or 3.1 percent to 11,713.15 and the S&P 500 spiked 105.84 points or 2.8 percent to 3,936.69.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index shot up by 2.7 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.
Meanwhile, the major European markets have moved to the downside over the course of the session. While the German DAX Index has tumbled by 1.4 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are down by 0.6 percent and 0.5 percent, respectively.
In commodities trading, crude oil futures are slumping $1.89 to $102.33 a barrel after jumping $1.62 to $104.22 a barrel on Tuesday. Meanwhile, after inching up $0.50 to $1,710.70 an ounce in the previous session, gold futures are edging down $1.30 to $1,709.40 an ounce.
On the currency front, the U.S. dollar is trading at 138.05 yen versus the 138.19 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.0196 compared to yesterday’s $1.0227.
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