After ending the previous session little changed, stocks may move to the upside in early trading on Wednesday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 69 points.
The markets may benefit from continued optimism about outlook for the global economy following yesterday’s upbeat manufacturing data.
Buying interest may remain somewhat subdued, however, as traders seem wary of making significant moves amid lingering concerns about inflation.
The Labor Department’s looming monthly jobs report may also keep some traders on the sidelines ahead of the release of the closely watched data on Friday.
Payroll processor ADP typically releases its report on private sector employment on the Wednesday before the Labor Department report, but the data was delayed until Thursday due to the Memorial Day holiday on Monday.
While the ADP report often shows stark differences from the Labor Department report, the data could still have given traders some idea of what to expect.
Later in the day, the Federal Reserve is scheduled to release its Beige Book, a compilation of economic evidence from the twelve Fed districts.
The Beige Book, which is typically released about two weeks before the next Fed meeting, could impact the outlook for monetary policy.
Stocks moved sharply higher at the start of trading on Tuesday but failed to sustain the upward move and spent the rest of the day showing a lack of direction. The major averages eventually ended the session near the unchanged line.
After jumping by more than 300 points in early trading, the Dow ended the day up just 45.86 points or 0.1 percent at 34,575.31. Meanwhile, the Nasdaq slipped 12.26 points or 0.1 percent to 13,736.48 and the S&P 500 edged down 2.07 points or 0.1 percent to 4,202.04.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index rose by 0.5 percent, while China’s Shanghai Composite Index slid by 0.8 percent.
Meanwhile, the major European markets have moved modestly higher on the day. While the French CAC 40 Index has risen by 0.3 percent, the U.K.’s FTSE 100 Index is up by 0.2 percent and the German DAX Index is up by 0.1 percent.
In commodities trading, crude oil futures are rising $0.54 to $68.26 a barrel after jumping $1.40 to $67.72 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,907.70, up $2.70 compared to the previous session’s close of $1,905. On Tuesday, gold edged down $0.30.
On the currency front, the U.S. dollar is trading at 109.72 yen compared to the 109.48 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.2184 compared to yesterday’s $1.2213.
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