U.S. Stocks May Extend Yesterday's Late-Session Pullback

(RTTNews) - After coming under pressure late in the previous session, stocks may see some further downside in early trading on Wednesday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 38 points.

A negative reaction to earnings news from big-name companies like Boeing (BA) and Caterpillar (CAT) may contribute to initial weakness on Wall Street.

Boeing and Caterpillar both reported weaker than expected third quarter earnings, with Caterpillar also cutting its full-year outlook due to weak demand for construction and mining equipment.

Disappointing guidance from Texas Instruments (TXN) may also weigh on tech stocks, as the chipmaker cited the impact of ongoing uncertainty about trade.

Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Traders may look ahead to the release of reports on durable goods orders, new home sales, and weekly jobless claims on Thursday.

Further developments on the Brexit and U.S.-China trade deal fronts could also have a significant effect on the markets as the day progresses.

Meanwhile, Ford (F), Microsoft (MSFT), and Tesla (TSLA) are among the companies due to report their quarterly results after the close of trading.

Stocks turned in a lackluster performance throughout much of the trading day Tuesday but came under pressure in the latter part of the session. The major averages all pulled back into negative territory, with the tech-heavy Nasdaq showing a notable drop.

After ending the previous session at its best closing level in a month, the Nasdaq slid 58.69 points or 0.7 percent to 8,104.30. The S&P 500 also pulled back off a one-month closing high, falling 10.73 points or 0.4 percent to 2,995.99, while the Dow dipped 39.54 points or 0.2 percent to 26,788.10.

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 0.3 percent, while Hong Kong's Hang Seng Index slid by 0.8 percent.

The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.5 percent, the German DAX Index is just above the unchanged line and the U.K.'s FTSE 100 Index is up by 0.3 percent.

In commodities trading, crude oil futures are sliding $0.60 to $53.88 a barrel after jumping $0.97 to $54.48 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,494.30, up $6.80 compared to the previous session's close of $1,487.50. On Tuesday, gold edged down $0.60.

On the currency front, the U.S. dollar is trading at 108.50 yen compared to the 108.49 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1123 compared to yesterday's $1.1125.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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