Profit Taking May Lead To Weakness On Wall Street

The major U.S. index futures are pointing to a lower opening on Wednesday, with stocks likely to give back ground after climbing to record highs in the previous session.

Profit taking may contribute to early weakness on Wall Street, as traders cash in on the upward move seen over the past few sessions.

Nonetheless, trading activity may be somewhat subdued as traders look ahead to the release of key economic data in the coming days.

Reports on consumer prices and weekly jobless claims are due to be released on Thursday, with data on retail sales, industrial production and consumer sentiment is scheduled for Friday.

Stocks moved mostly higher during trading on Tuesday, adding to the strong gains posted on Monday. With the upward move, the major averages all climbed to new record closing highs.

The major averages finished the day moderately higher. The Dow rose 61.49 points or 0.3 percent to 22,118.86, the Nasdaq climbed 22.02 points or 0.3 percent to 6,454.28 and the S&P 500 advanced 8.37 points or 0.3 percent to 2,496.48.

The continued strength on Wall Street came as traders continued to react to indications that the damage from Hurricane Irma was not as bad as feared. Easing international tensions also generated buying interest.

Commodity, Currency Markets

Crude oil futures are climbing $0.44 to $48.67 a barrel after inching up $0.16 to $48.23 a barrel on Tuesday. Gold futures, which slipped $3 to $1,332.70 an ounce in the previous session, are rising $4.80 to $1,337.50 an ounce.

On the currency front, the U.S. dollar is trading at 109.97 yen compared to the 110.17 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1985 compared to yesterday’s $1.1967.


Asian stocks ended mixed on Wednesday despite U.S. stocks hitting record highs overnight on expectations that a tax reform plan will get passed this year.

Chinese shares posted modest gains to finish near 20-month highs after a survey showed investors were optimistic about economic conditions in August.

The benchmark Shanghai Composite Index inched up 6.05 points or 0.2 percent to 3,385.54, while Hong Kong’s Hang Seng Index fell 78.16 points or 0.3 percent to 27,894.08.

Japanese shares rose for a third consecutive session as the dollar extended its sharp rally against the yen on easing concerns over North Korea and U.S. hurricanes. The Nikkei 225 Index rose 89.20 points or 0.5 percent to 19,865.82, and the broader Topix index closed up 0.6 percent at…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *