WASHINGTON (dpa-AFX) - Stocks are likely to move to the upside in early trading on Monday, extending the strong upward move seen over the course of the previous week. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 68 points.
The markets may continue to benefit from recent upward momentum, which helped propel the S&P 500 to new record highs last week. The Dow has also moved within striking distance of a new record high.
Buying interest may be somewhat subdued, however, as rising tensions between the U.S. and Iran may keep some traders on the sidelines.
Traders may also be reluctant to make significant moves ahead of the highly anticipated G20 summit in Osaka, Japan, later this week.
U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet during the summit in an effort to kick start stalled trade negotiations.
Reports on new home sales, consumer confidence, durable goods orders, and personal income and spending may also attract attention in the coming days as traders attempt to gauge the likelihood of an interest rate cut at the next Federal Reserve meeting in late July.
Following the notable upward move seen in recent sessions, stocks showed a lack of direction over the course of the trading day on Friday. The major averages spent the day bouncing back and forth across the unchanged line.
Reflecting a late move to the downside, the major averages ended the day modestly lower. The Dow edged down 34.04 points or 0.1 percent to 26,719.13, the Nasdaq slipped 19.63 points or 0.2 percent to 8,031.71 and the S&P 500 dipped 3.72 points or 0.1 percent to 2,950.46.
Despite the slight pullback on the day, the major averages moved significantly higher for the week. The Nasdaq surged up by 3 percent, while the Dow and the S&P 500 jumped by 2.4 percent and 2.2 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region saw modest strength during trading on Monday. Japan's Nikkei 225 Index inched up by 0.1 percent, while China's Shanghai Composite Index edged up by 0.2 percent.
Meanwhile, European stocks have moved mostly lower on the day. The German DAX Index has slid by 0.6 percent and the French CAC 40 Index is down by 0.1 percent, although the U.K.'s FTSE 100 Index is just above the unchanged line.
In commodities trading, crude oil futures are climbing $0.50 to $57.93 a barrel after rising $0.36 to $57.43 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,409.60, up $9.50 from the previous session's close of $1,400.10. On Friday, gold rose $3.20.
On the currency front, the U.S. dollar is trading at 107.37 yen compared to the 107.32 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1389 compared to last Friday's $1.1369.
Copyright RTT News/dpa-AFX