WASHINGTON (dpa-AFX) - After moving sharply higher over the three previous sessions, stocks may give back some ground in early trading on Monday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 63 points.
Profit taking may contribute to initial weakness on Wall Street, as traders cash in on the recent gains amid renewed uncertainty about a trade deal with China.
President Donald Trump announced on Friday that the U.S. and China have reached a 'very substantial phase one deal,' although reports this morning suggest China wants another round of talks before signing the agreement.
A person familiar with the matter told Bloomberg News that China may send a delegation led by Vice Premier Liu He to finalize a written deal that could be signed at the Asia-Pacific Economic Cooperation summit next month in Chile.
Another person told Bloomberg China wants Trump to also scrap a planned tariff hike in December in addition to the hike scheduled for this week.
Trump said the deal includes up to $40 to $50 billion in Chinese purchases of U.S. agricultural products as well as Chinese concessions on intellectual property and financial services.
In exchange for the concessions by China, the U.S. agreed to hold off on an increase in tariffs originally scheduled for this week.
Trump claimed in a tweet on Sunday that China has agreed to immediately start buying large quantities of U.S. agricultural products, but the Chinese have not followed through on similar pledges in the past.
Overall trading activity may be somewhat subdued, however, as the Columbus Day holiday may keep some traders away from their desks.
The economic calendar also starts the week relatively quiet, although reports on retail sales, housing starts and industrial production are likely to attract attention in the coming days.
Stocks moved sharply higher over the course of the trading session on Friday, extending the strong upward move seen over the two previous sessions. With the rally over the past few sessions, the major averages more than offset the steep drop seen on Monday and Tuesday.
The major averages pulled back off their best levels going into the close but remained firmly positive. The Dow jumped 319.92 points or 1.2 percent to 26,816.59, the Nasdaq spiked 106.26 points or 1.3 percent to 8,057.04 and the S&P 500 surged up 32.14 points or 1.1 percent to 2,970.27.
For the week, the Dow and the Nasdaq both advanced by 0.9 percent, while the S&P 500 climbed by 0.6 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, although the Japanese markets were closed for a holiday. China's Shanghai Composite Index surged up by 1.2 percent, while Hong Kong's Hang Seng Index climbed by 0.8 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index has fallen by 0.4 percent, the German DAX Index and the French CAC 40 Index are down by 0.6 percent and 0.7 percent, respectively.
In commodities trading, crude oil futures are tumbling $1.11 to $53.59 a barrel after jumping $1.15 to $54.70 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,496.60, up $7.790 from the previous session's close of $1,488.70. On Friday, gold tumbled $12.20.
On the currency front, the U.S. dollar is trading at 108.25 yen compared to the 108.29 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1025 compared to last Friday's $1.1042.
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