By RTT News,
January 31, 2014, 08:59:00 AM EDT
(RTTNews.com) - After ending the previous session notably higher, stocks are likely to show a substantial move back to the downside in early trading on Friday. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 161 points.
While upbeat earnings news contributed to the strength in the markets on Thursday, a negative reaction to the latest batch of quarterly results is likely weigh on the markets in today's trading.
Shares of Amazon ( AMZN ) are seeing significant weakness in pre-market trading after the online retail giant reported weaker than expected fourth quarter results after the close of trading on Thursday. The company also warned of a possible operating loss in the current quarter.
Toy maker Mattel ( MAT ) is also likely to come under pressure in early trading after reporting fourth quarter earnings and revenues that came in below analyst estimates.
Disappointing guidance from Wal-Mart ( WMT ) is also likely to generate some selling pressure, as the retail giant said it now expects its fourth quarter underlying earnings to be at or slightly below the low end of its previously forecast range.
On the other hand, shares of Google ( GOOG ) are moving higher in pre-market trading after the online search giant weaker than expected fourth quarter earnings but on stronger than expected revenue growth.
Traders will also be digesting a report from the Commerce Department showing that personal spending increased by more than expected in December even as personal income came in nearly unchanged.
The Commerce Department said personal income inched up by less than a tenth of a percent in December after rising by 0.2 percent in November. Economists had been expecting another 0.2 percent increase.
At the same time, the report said personal spending climbed by 0.4 percent in December following a 0.6 percent increase in the previous month. The spending growth exceeded economist estimates for a 0.2 percent uptick.
Not long after the open, trading could also be impacted by the release of reports on Chicago-area business activity and consumer sentiment.
Stocks moved sharply higher during trading on Thursday, partly offsetting the substantial weakness seen in recent sessions. Bargain hunting contributed to the strength on Wall Street along with some upbeat earnings news.
The major averages ended the day firmly in positive territory but off their highs for the session. The Dow climbed 109.82 points or 0.7 percent to 15,848.61, the Nasdaq soared 71.69 points or 1.8 percent to 4,123.12 and the S&P 500 jumped 19.99 points or 1.1 percent to 1,794.19.
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