WASHINGTON (dpa-AFX) - Stocks may move to the downside in early trading on Friday, giving back ground following the rally seen in the previous session. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.3 percent.
A negative reaction to quarterly results from Amazon (AMZN) may weigh on Wall Street, as the online retail giant is slumping by 2.2 percent in pre-market trading.
The drop by Amazon comes as the company's better than expected first quarter earnings and revenue are being overshadowed by concerns about slowing growth for its Amazon Web Services cloud computing platform.
Shares of Capital One (COF) are also seeing significant pre-market weakness after the company reported first quarter earnings well below analyst estimates.
On the other hand, shares of Intel (INTC) are likely to see initial strength after the semiconductor giant reported a narrower than expected adjusted first quarter loss.
Early trading may also be impacted by reaction to the Commerce Department's report on personal income and spending in the month of March, which includes readings on consumer price inflation that are said to be preferred by the Federal Reserve.
The report said the annual rate of consumer price growth slowed to 4.2 percent in March from a revised 5.1 percent in February.
Economists had expected the rate of growth to slow to 4.6 percent from the 5.0 percent originally reported for the previous month.
The annual rate of growth by core consumer prices, which exclude food and energy prices, also slipped to 4.6 percent in March from a revised 4.7 percent in February.
Economists had expected the rate of growth to slow to 4.5 percent from the 4.6 percent originally reported for the previous month.
The report said personal income rose by 0.3 percent in March, matching the increase seen in February. Economists had expected personal income to edge up by 0.2 percent.
Meanwhile, the Commerce Department said personal spending was unchanged in March after inching up by a revised 0.1 percent in February.
Economists had expected personal spending to dip by 0.1 percent compared to the 0.2 percent uptick originally reported for the previous month.
Just after the start of trading, MNI Indicators is due to release its report on Chicago-area business activity in the month of April. The Chicago business barometer is expected to edge down to 43.5 in April from 43.8 in March, with a reading below 50 indicating a contraction.
The University of Michigan is also scheduled to release its revised reading on consumer sentiment in the month of April. The consumer sentiment index for April is expected to be unrevised at 63.5, which was up from 62.0 in March.
Stocks moved sharply higher over the course of the trading session on Thursday, with the major averages all showing significant moves to the upside after ending Wednesday's trading mixed. The tech-heavy Nasdaq led the advance, adding to Wednesday's gain.
The major averages pulled back off their highs of the session going into the close but held on to strong gains. The Nasdaq soared 287.89 points or 2.4 percent to 12,142.24, the S&P 500 surged 79.36 points or 2.0 percent to 4,135.35 and the Dow jumped 524.29 points or 1.6 percent to 33,826.16.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index shot up by 1.4 percent, while China's Shanghai Composite Index advanced by 1.1 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index has slid by 0.6 percent, the U.K.'s FTSE 100 Index is down by 0.1 percent and the German DAX Index is nearly unchanged.
In commodities trading, crude oil futures are climbing $0.62 to $75.38 a barrel after rising $0.46 to $74.76 a barrel on Thursday. Meanwhile, after inching up $3 to $1,999 an ounce in the previous session, gold futures are slipping $7.20 to $1,991.80 an ounce.
On the currency front, the U.S. dollar is trading at 136.12 yen versus the 133.97 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0972 compared to yesterday's $1.1028.
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