After moving sharply lower over the two previous sessions, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Bargain hunting may contribute to initial strength on Wall Street after the major averages tumbled to their lowest closing levels in five months on Thursday.
A positive reaction to the latest earnings news may also generate early buying interest, with shares of Amazon (AMZN) surging in pre-market trading after the online retail giant reported better than expected third quarter results.
Semiconductor giant Intel (INTC) is also likely to show a strong move to the upside after reporting third quarter results that exceeded analyst estimates and providing upbeat guidance.
Meanwhile, shares of Ford (F) may come under pressure after the auto giant reported disappointing third quarter results and withdrew its full-year guidance.
Energy giants Exxon Mobil (XOM) and Chevron (CVX) may also move to the downside after reporting third quarter earnings that missed analyst estimates.
On the U.S. economic front, the Commerce Department released a report showing its reading on consumer prices rose by 0.4 percent in September, matching the increase in August.
Excluding food and energy prices, core consumer prices increased by 0.3 percent in September after inching up by 0.1 percent in the previous month.
The annual rate of consumer price growth was unchanged at 3.4 percent, while the annual rate of core consumer price growth slipped to 3.7 percent in September from 3.8 percent in August.
Shortly after the start of trading, The University of Michigan is due to release its revised reading on consumer sentiment in the month of October. The consumer sentiment index for October is expected to be unrevised at 63.0, which was down from 68.1 in September.
Stocks moved notably lower over the course of the trading day on Thursday, extending the sharp pullback seen during Wednesday’s session. With the continued weakness, the major averages fell to their lowest closing levels in five months.
The major averages staged a recovery attempt in the latter part of the session but moved back to the downside going into the close. The Nasdaq tumbled 225.62 points or 1.8 percent to 12,595.61, the S&P 500 climbed 49.54 points or 1.2 percent to 4,137.23 and the Dow slid 251.63 points or 0.8 percent to 32,784.30.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index jumped by 1.3 percent, while Hong Kong’s Hang Seng Index surged by 2.1 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index is nearly unchanged, the U.K.’s FTSE 100 Index is down by 0.2 percent and the French CAC 40 Index is down by 1.0 percent.
In commodities trading, crude oil futures are jumping $1.63 to $84.84 a barrel after tumbling $2.18 to $83.21 a barrel on Thursday. Meanwhile, after inching up $2.50 to $1,997.40 an ounce in the previous session, gold futures are edging down $3.70 to $1,993.70 an ounce.
On the currency front, the U.S. dollar is trading at 149.97 yen versus the 150.40 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0542 compared to yesterday’s $1.0563.
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