The major U.S. index futures are currently pointing to a modestly lower open on Monday, with stocks likely to move to the downside after ending last Friday?s holiday-shortened session narrowly mixed.
Traders may look to cash in on recent strength in the markets, which has seen the major averages move higher for four straight weeks amid optimism about the outlook for interest rates.
Any selling pressure is likely to be relatively subdued, however, as traders may be reluctant to make significant moves ahead of the release of some key economic data in the coming days.
The Commerce Department’s report on personal income and spending may be in the spotlight, as it includes readings on inflation said to be preferred by the Federal Reserve.
Economists currently expect the report to show the annual rate of consumer price growth slowed to 3.1 percent in October from 3.4 percent in September. Core price growth is expected to slow to 3.5 percent from 3.7 percent.
The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, may also attract attention along with remarks by Fed Chair Jerome Powell.
Traders will be looking for additional clues about the outlook for interest rates, with optimism the Fed is done raising rates contributing to the recent strength on Wall Street.
Stocks turned in a lackluster performance throughout the trading session on Friday, as many traders continued to enjoy the Thanksgiving Day holiday. Despite the choppy trading, the Dow and the S&P 500 ended the day at their best closing levels in well over three months.
The major averages finished the session narrowly mixed. While the Nasdaq edged down 15.00 points or 0.1 percent to 14,250.85, the S&P 500 crept up 2.72 points or 0.1 percent to 4,559.34 and the Dow rose 117.12 points or 0.3 percent to 35,390.15.
For the holiday-interrupted week, the Dow jumped by 1.3 percent, while the S&P 500 advanced by 1.0 percent and the Nasdaq climbed by 0.9 percent.
The choppy trading on Wall Street comes as many traders remained away from their desks following Thursday’s holiday, with the markets closing three hours earlier than usual.
A lack of major U.S. economic data also kept some traders on the sidelines ahead of next week’s reports on personal income and spending, new home sales, consumer confidence, manufacturing activity and more.
Most of the major sectors finished the day showing only modest moves, contributing to the lackluster close by the broader markets.
Airline stocks showed a significant move to the upside, however, with the NYSE Arca Airline Index climbing by 1.3 percent.
Notable strength was also visible among tobacco stocks, as reflected by the 1.2 percent gain posted by the NYSE Arca Tobacco Index.
Pharmaceutical and networking stocks also saw some strength on the day, while computer hardware stocks moved to the downside.
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