November 28, 2020

Market and Financial News Aggregator

U.S. Stocks May See Initial Strength On Upbeat Earnings News

3 min read

After coming under pressure over the course of 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 234 points.

Early buying interest may be generated in reaction to some upbeat earnings news, with Disney (DIS) and Cisco (CSCO) moving notably higher in pre-market trading after reporting their quarterly results.

Disney is up by 3.4 percent in pre-market trading after the entertainment giant reported a much narrower than expected fiscal fourth quarter loss on revenues that exceeded analyst estimates.

Shares of Cisco are also seeing significant pre-market strength after the networking giant reported fiscal first quarter results that beat expectations on both the top and bottom lines.

Early buying interest may be somewhat subdued, however, as traders continue to express concerns about the economic impact of the recent spike in coronavirus cases.

On the U.S. economic front, the Labor Department released a report showing producer prices increased by slightly more than anticipated in the month of October.

The Labor Department said its producer price index for final demand rose by 0.3 percent in October after climbing by 0.4 percent in September. Economists had expected prices to inch up by 0.2 percent.

The bigger than expected increase in producer prices was partly due to a jump in food prices, which surged up by 2.4 percent in October amid a spike in prices for fresh and dry vegetables.

Excluding food and energy prices, core producer prices crept up by 0.1 percent in October after rising by 0.4 percent in September. Core prices were expected to edge up by 0.2 percent.

Shortly after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of November. The consumer sentiment index is expected to inch up to 82.0 in November from 81.8 in October.

After turning in a lackluster performance early in the session, stocks showed a significant move to the downside over the course of the trading day on Thursday. The major averages all slid firmly into negative territory as the day progressed.

The major averages climbed off their worst levels going into the close but remained notably lower. The Dow tumbled 317.46 points or 1.1 percent to 29,080.17, the Nasdaq slid 76.84 points or 0.7 percent to 11,709.59 and the S&P 500 slumped 35.65 points or 1 percent to 3,537.01.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index fell by 0.5 percent, while China’s Shanghai Composite Index declined by 0.9 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index has slid by 0.7 percent, the French CAC 40 Index and the German DAX Index are both up by 0.1 percent.

In commodities trading, crude oil futures are sliding $0.73 to $40.39 a barrel after falling $0.33 to $41.12 a barrel on Thursday. Meanwhile, after climbing $11.70 to $1,873.30 an ounce in the previous session, gold futures are jumping $14.20 to $1,887.50 an ounce.

On the currency front, the U.S. dollar is trading at 104.72 yen versus the 105.13 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1820 compared to yesterday’s $1.1806.

For comments and feedback contact: editorial@rttnews.com

Business News




2020-11-13 08:48:02


Read more from source here…

Leave a Reply