U.S. Stocks May Move Back To The Upside In Early Trading
(RTTNews) - Following the pullback seen in the previous session, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 146 points.
The markets may benefit from recent upward momentum, which has helped propel stocks higher despite concerns about the recent spike in coronavirus cases.
The U.S. reported a record 77,255 new coronavirus cases on Thursday, according to data compiled by Johns Hopkins University.
However, recent upbeat news on a potential coronavirus vaccine seemingly has traders looking toward an eventual future where the pandemic no longer weighs on the economy.
Economists had expressed caution about the economic outlook, but traders have remained unrelentingly optimistic about a V-shaped recovery.
In economic news, a report released by the Commerce Department showed a substantial increase in new residential construction in the U.S. in the month of June.
The Commerce Department said housing starts spiked by 17.3 percent to an annual rate of 1.186 million in June after jumping by 8.2 percent to an upwardly revised rate of 1.011 million in May.
Economists had expected housing starts to soar by 20 percent to a rate of 1.169 million from the 974,000 originally reported for the previous month.
The report also said building permits increased by 2.1 percent to an annual rate of 1.241 million in June after surging up by 14.1 to a downwardly revised rate of 1.216 million in May.
Building permits, an indicator of future housing demand, had been expected to jump by 5.7 percent to a rate of 1.290 million from the 1.220 million originally reported for the previous month.
After coming under pressure early in the session, stocks remained mostly lower throughout the trading day on Thursday. With the drop on the day, the Dow and the S&P 500 gave back ground after ending Wednesday's trading at their best closing levels in over a month.
The major averages all closed in negative territory but well off their lows of the session. The Dow fell 135.39 points or 0.5 percent to 26,734.71, the Nasdaq slid 76.66 points or 0.7 percent to 10,473.83 and the S&P 500 dipped 10.99 points or 0.3 percent to 3,215.57.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday, but Japan's Nikkei 225 Index bucked the uptrend and slipped by 0.3 percent. China's Shanghai Composite Index inched up by 0.1 percent, while Australia's S&P/ASX 200 Index rose by 0.4 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index has edged down by 0.1 percent, the German DAX Index is up by 0.5 percent and the U.K.'s FTSE 100 Index is up by 0.7 percent.
In commodities trading, crude oil futures are dipping $0.17 to $40.58 a barrel after falling $0.45 to $40.75 a barrel on Thursday. Meanwhile, after slumping $13.50 to $1,800.30 an ounce in the previous session, gold futures are climbing $8.90 to $1,809.20 an ounce.
On the currency front, the U.S. dollar is trading at 107.23 yen versus the 107.27 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1422 compared to yesterday's $1.1384.