WASHINGTON (dpa-AFX) - Following the sharp pullback seen late in the previous session, stocks may move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a significantly higher open for the markets, with the Dow futures up by 297 points.
Continued optimism about an economic recovery as states begin to reopen following the coronavirus-induced lockdowns may contribute to a rebound on Wall Street.
Early indications suggest the states that have reopened have not seen a spike in coronavirus cases, which has led to hopes the economy may rebound more quickly than many economists predict.
Buying interest may be somewhat subdued, however, as a report raising doubts about Moderna's coronavirus vaccine may keep the cheerfulness in check.
A report from STAT News questioned the validity of the results of Moderna's vaccine trial that had sent stock markets soaring on Monday.
Among individual stocks, shares of Lowe's (LOW) are moving sharply higher in pre-market trading after the home improvement retailer reported first quarter results that exceeded analyst estimates on both the top and bottom lines.
Retail giant Target (TGT) may also see initial strength after reporting better than expected first quarter results amid a spike in digital sales.
On the other hand, shares of Urban Outfitters (URBN) may come under pressure after the retailer reported a wider than expected first quarter loss on revenues that missed analyst estimates.
Stocks turned in a lackluster performance throughout much of the trading session on Tuesday before coming under pressure going into the close. The major averages all moved to the downside, partly offsetting the strong gains posted in the previous session.
The major averages ended the day just off their lows of the session. The Dow tumbled 390.51 points or 1.6 percent to 24,206.86, the Nasdaq slid 49.72 points or 0.5 percent to 9,185.10 and the S&P 500 slumped 30.97 points or 1.1 percent to 2,922.94.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index advanced by 0.8 percent, while China's Shanghai Composite Index fell by 0.5 percent.
The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.1 percent, the German DAX Index and the U.K.'s FTSE 100 Index are up by 0.4 percent and 0.5 percent, respectively.
In commodities trading, crude oil futures are climbing $0.68 to $32.64 a barrel after rising $0.31 to $31.96 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,752.70, up $7.10 compared to the previous session's close of $1,745.60. On Tuesday, gold climbed $11.20.
On the currency front, the U.S. dollar is trading at 107.65 yen compared to the 107.71 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0954 compared to yesterday's $1.0923.
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