Stocks may move back to the upside in early trading on Thursday, regaining ground following the pullback seen over the two previous sessions. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Traders may look to pick up stocks at somewhat reduced levels after the drop seen on Tuesday and Wednesday dragged the major averages down well off Monday’s record closing highs.
Profit taking and worries about inflation contributed to the recent pullback after a Labor Department report showed consumer prices rose at their fastest annual rate in over thirty years in October.
Overall trading activity may be somewhat subdued, however, as some traders may stick to the sidelines amid the Veterans Day holiday.
While the stock markets will open as usual on the day, banks, federal offices and the bonds markets will all remain closed.
A notable decline by shares of Disney (DIS) may also limit a rebound by the Dow, with the entertainment giant slumping by 5.7 percent in pre-market trading.
The drop by Disney comes after the company reported third quarter results that missed analyst estimates on both the top and bottom lines. Disney+ subscriptions also came in below expectations.
Extending the pullback seen in Tuesday’s session, stocks showed a notable move to the downside during trading on Wednesday. The major averages continued to give back ground after ending Monday’s trading at record closing highs.
The major averages all closed firmly in the red, although the tech-heavy Nasdaq underperformed its counterparts. While the Nasdaq tumbled 263.84 points or 1.7 percent to 15,622.71, the S&P 500 slid 38.54 points or 0.8 percent to 4,646.71 and the Dow fell 240.04 points or 0.7 percent to 36,079.94.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index rose by 0.6 percent, while Australia’s S&P/ASX 200 Index fell by 0.6 percent.
Meanwhile, the major European markets have all moved modestly higher on the day. While the U.K.’s FTSE 100 Index is up by 0.3 percent, the German DAX Index is up by 0.1 percent and the French CAC 40 Index is just above the unchanged line.
In commodities trading, crude oil futures are falling $0.63 to $80.71 a barrel after plummeting $2.81 to $81.34 a barrel on Wednesday. Meanwhile, after jumping $17.50 to $1,848.30 an ounce in the previous session, gold futures are climbing $15.50 to $1,863.80 an ounce.
On the currency front, the U.S. dollar is trading at 113.84 yen versus the 113.91 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1462 compared to yesterday’s $1.1479.
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