WASHINGTON (dpa-AFX) - Stocks may move to the downside in early trading on Wednesday, giving back ground following the strength 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 133 points.
The downward momentum on Wall Street comes after the rally seen in the previous session lifted the Nasdaq and the S&P 500 to new record closing highs.
Traders may look to cash in on yesterday's gains amid lingering concerns about the economic impact of the recent spike in new coronavirus cases.
Negative sentiment may also be generated in reaction to a report from payroll processor ADP showing private sector employment in the U.S. increased by less than expected in the month of November.
ADP said private sector employment rose by 307,000 jobs in November after climbing by an upwardly revised 404,000 jobs in October.
Economists had expected employment to increase by 410,000 jobs compared to the addition of 365,000 jobs originally reported for the previous month.
'While November saw employment gains, the pace continues to slow,' said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
On Friday, the Labor Department is scheduled to release its more closely watched employment report, which includes both public and private sector jobs.
Selling pressure may be somewhat subdued, however, as traders remain optimistic about potential coronavirus vaccines.
The U.K. has approved the vaccine candidate developed by Pfizer (PFE) and BioNTech (BNTX), with the vaccine expected to be rolled out next week.
Later in the day, the Federal Reserve is scheduled to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.
Following the pullback seen on Monday, stocks showed a strong move back to the upside during trading on Tuesday. With the upward move on the day, the Nasdaq and the S&P 500 reached new record closing highs.
The major averages finished the session off their best levels of the day but still firmly positive. The Dow climbed 185.28 points or 0.6 percent to 29,823.92, the Nasdaq surged up 156.37 points or 1.3 percent to 12,355.11 and the S&P 500 jumped 40.82 points or 1.1 percent at 3,662.45.
In overseas trading, most stock markets across the Asia-Pacific region ended Wednesday's trading little changed. Japan's Nikkei 225 Index inched up by 0.1 percent, while China's Shanghai Composite Index edged down by 0.1 percent.
Meanwhile, European stocks are moving mostly lower on the day, although the U.K.'s FTSE 100 Index has bucked the downtrend and rose by 0.2 percent. The French CAC 40 Index is down by 0.5 percent and the German DAX Index is down by 0.7 percent.
In commodities trading, crude oil futures are slipping $0.19 to $44.36 a barrel after sliding $0.79 to $44.55 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,825.90, up $7 compared to the previous session's close of $1,818.90. On Tuesday, gold spiked $38.
On the currency front, the U.S. dollar is trading at 104.56 yen compared to the 104.33 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.2073 compared to yesterday's $1.2071.
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