U.S. Stocks May Show A Lack Of Direction In Early Trading

After trending lower over the past few sessions, stocks may show a lack of direction in early trading on Friday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than a tenth of a percent.

A lack of major U.S. economic data may keep some traders on the sidelines ahead of the release of several key reports next week.

While the Commerce Department is due to release its revised reading on wholesale inventories in the month of July, the data typically does not impact the markets.

Next week will see the release of key reports on consumer and producer inflation as well as reports on retail sales, industrial production and consumer sentiment.

The data could have a significant impact on the outlook for interest rates ahead of the Federal Reserve’s next monetary policy meeting on September 19-20.

The Fed is widely expected to leave interest rates unchanged this month, but the data could affect expectations for the November meeting and beyond.

Stocks came under pressure in early trading on Thursday but regained some ground over the course of the session. The major averages all climbed well off their lows of the session, although the tech-heavy Nasdaq continued to post a notable loss.

The Nasdaq slumped 123.64 points or 0.9 percent to 13,748.83 and the S&P 500 fell 14.34 points or 0.3 percent to 4,451.14. Meanwhile, the narrower Dow climbed into positive territory and ended the day up 57.54 points or 0.2 percent at 34,500.73.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index tumbled by 1.2 percent, while China’s Shanghai Composite Index edged down by 0.2 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is down by 0.2 percent, the U.K.’s FTSE 100 Index is just above the unchanged line and the French CAC 40 Index is up by 0.2 percent.

In commodities trading, crude oil futures are climbing $0.69 to $87.56 a barrel after falling $0.67 to $86.87 on Thursday. Meanwhile, after edging down $1.70 to $1,942.50 an ounce in the previous session, gold futures are inching up $5.70 to $1,948.20 an ounce.

On the currency front, the U.S. dollar is trading at 147.35 yen versus the 147.30 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0708 compared to yesterday’s $1.0696.

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