U.S. Stocks May Move Back To The Downside In Early Trading

Stocks may move back to the downside in early trading on Friday following the rebound seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 251 points.

A notable decline by shares of Apple (AAPL) may weigh on Wall Street, as the tech giant is slumping by 3.5 percent in pre-market trading.

The drop by Apple comes after the company reported better than expected fiscal fourth quarter earnings but a steep decline in iPhone sales. Apple also failed to provide guidance for the current quarter.

Shares of Amazon (AMZN) are also seeing pre-market weakness after the online retail giant reported third quarter results that exceeded estimates but provided a disappointing forecast for operating income in the fourth quarter.

On the other hand, shares of Alphabet (GOOGL) are moving sharply higher in pre-market trading after the Google parent reported third quarter results that beat analyst estimates on both the top and bottom lines.

Lingering concerns about the recent spike in coronavirus cases may also weigh on Wall Street along with uncertainty about next week’s presidential elections.

In U.S. economic news, the Commerce Department released a report showing personal income rebounded by more than anticipated in the month of September.

The Commerce Department said personal income climbed by 0.9 percent in September after tumbling by a revised 2.5 percent in August.

Economists had expected personal income to rise by 0.4 percent compared to the 2.7 percent nosedive originally reported for the previous month.

The report also showed a bigger than expected increase in personal spending, which surged up by 1.4 percent in September. Spending was expected to match the 1.0 percent jump seen in August.

Just after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of October.

The Chicago business barometer is expected to drop to 58.0 in October from 62.4 in September, although a reading above 50 would still indicate growth.

The University of Michigan is due to release its revised reading on consumer sentiment in the month of October. The consumer sentiment index for October is expected to be unrevised from the preliminary reading of 81.2, which was up from 80.4 in September.

Following the sell-off seen on Wednesday, stocks showed a significant rebound during trading on Thursday. The major averages all moved back to the upside, with the tech-heavy Nasdaq showing a particularly strong upward move.

The major averages pulled back off their best levels late in the session but remained firmly positive. The Dow climbed 139.16 points or 0.5 percent to 26,659.11, the Nasdaq jumped 180.72 points or 1.6 percent to 11,185.59 and the S&P 500 surged up 39.08 points or 1.2 percent at 3,310.11.

In overseas trading, stock markets across the Asia-Pacific region moved notably lower during trading on Friday. Japan’s Nikkei 225 Index and China’s Shanghai Composite Index both tumbled by 1.5 percent, while South Korea’s Kospi plunged by 2.6 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is just above the unchanged line, the U.K.’s FTSE 100 Index is down by 0.3 percent and the German DAX Index is down by 0.5 percent.

In commodities trading, crude oil futures are slipping $0.14 to $36.03 a barrel after tumbling $1.22 to $36.17 a barrel on Thursday. Meanwhile, after slumping $11.20 to $1,868 an ounce in the previous session, gold futures are jumping $14.70 to $1,882.70 an ounce.

On the currency front, the U.S. dollar is trading at 104.37 yen versus the 104.61 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1682 compared to yesterday’s $1.1674.

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