Futures Pointing To Initial Weakness On Wall Street
(RTTNews) – Following the mixed performance seen in the previous session, stocks may move to the downside in early trading on Monday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.
Concerns about rising Middle East tensions may weigh on Wall Street after Israel launched deadly airstrikes on targets in the heart of Lebanon’s capital Beirut for the first time in years.
Traders may also look to cash in on the strong gains posted thus far in September, which is historically a weak month for the markets.
Going into the day, the tech-heavy Nasdaq is up by 2.3 percent for the month, while the Dow and the S&P 500 are up 1.8 percent and 1.6 percent, respectively.
Overall trading activity may be somewhat subdued, however, as traders look ahead to remarks by Federal Reserve Chair Jerome Powell this afternoon.
Powell is due to speak on the economic outlook before the National Association for Business Economics’ Annual Meeting at 1 pm ET.
The Labor Department’s monthly jobs report is likely to be in the spotlight later in the week, while reports on manufacturing and service sector activity may also attract attention.
Shortly after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of September.
The Chicago business barometer is expected to inch up to 46.2 in September from 46.1 in August, but a reading below 50 would still indicate contraction.
Stocks turned in a mixed performance during trading on Friday, with the major averages ending the day on opposite sides of the unchanged line. The Dow rose to a new record closing high, but the Nasdaq and the S&P 500 gave back ground.
While the Dow pulled back well off its highs of the session, the blue chip index still ended the day up 137.89 points or 0.3 percent at 42,313.00. The Nasdaq fell 70.70 points or 0.4 percent to 18,119.59 and the S&P 500 edged down 7.20 points or 0.1 percent to 5,738.17.
Despite the mixed performance on the day, the major averages all moved higher for the week, The Nasdaq jumped by 1.0 percent, while the Dow and the S&P 500 both climbed by 0.6 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a starkly mixed performance during trading on Monday. Japan’s Nikkei 225 Index plunged by 4.8 percent, while China’s Shanghai Composite Index skyrocketed by 8.1 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has tumbled by 1.7 percent, the German DAX Index is down by 0.8 percent and the U.K.’s FTSE 100 Index is down by 0.6 percent.
In commodities trading, crude oil futures are inching up $0.02 to $68.20 a barrel after climbing $0.51 to $68.18 a barrel last Friday. Meanwhile, after tumbling $26.80 to $2,668.10 an ounce in the previous session, gold futures are slipping $7.80 to $2,660.30 an ounce.
On the currency front, the U.S. dollar is trading at 142.80 yen versus the 142.21 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1192 compared to last Friday’s $1.1162.