U.S. Stocks May Move Back To The Upside In Early Trading
(RTTNews) - Following the pullback seen last Friday, stocks are likely to move back to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 91 points.
The markets may benefit from recent upward momentum, which has helped lift stocks to new record highs despite concerns about the spread of the delta variant of the coronavirus.
Traders remain optimistic about the outlook for the economy amid indications the Federal Reserve is not in a hurry to begin scaling back stimulus.
Positive sentiment may also have been generated after a bipartisan group of Senators unveiled a nearly $1 trillion infrastructure package.
Senate Majority Leader Chuck Schumer, D-N.Y., said he believes the Senate will vote to approve the massive bill in a matter of days.
Later this week, trading may be impacted by reaction to the Labor Department's closely watched report on the employment situation in the month of July.
Economists currently expect employment to spike by about 900,000 jobs in July after surging by 850,000 jobs in June. The unemployment rate is expected to dip to 5.7 percent from 5.9 percent.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of July.
The ISM's manufacturing PMI is expected to inch up to 60.9 in July from 60.6 in June, with a reading above 50 indicating growth in the sector.
The Commerce Department is also due to release its report on construction spending in the month of June. Construction spending is expected to rise by 0.4 percent in June after falling by 0.3 percent in May.
After coming under pressure at the start of trading, stocks remained mostly lower over the course of the session on Friday. With the pullback on the day, the major averages offset the strength seen during trading on Thursday.
The major averages all finished the day firmly in negative territory. The Dow fell 149.06 points or 0.4 percent to 34,935.47, the Nasdaq slid 105.59 points or 0.7 percent to 14,672.68 and the S&P 500 dropped 23.89 points or 0.5 percent to 4,395.26.
For the week, the tech-heavy Nasdaq slumped by 1.1 percent, while the Dow and the S&P 500 both decreased by 0.4 percent.
However, the major averages all posted strong gains for the month of July. The S&P 500 surged up by 2.3 percent, while the Dow and the Nasdaq jumped by 1.3 percent and 1.2 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Monday. Japan's Nikkei 225 Index spiked by 1.8 percent, while China's Shanghai Composite Index soared by 2 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has inched up by 0.2 percent, the U.K.'s FTSE 100 Index is up by 0.6 percent and the French CAC 40 Index is up by 0.8 percent.
In commodities trading, crude oil futures are sliding $0.84 to $73.11 barrel after rising $0.33 to $73.95 a barrel last Friday. Meanwhile, after slumping $18.60 to $1,817.20 an ounce in the previous session, gold futures are falling $5 to $1,812.20 an ounce.
On the currency front, the U.S. dollar is trading at 109.47 yen versus the 109.72 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1882 compared to last Friday's $1.1870.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.