Stocks May Move To The Downside In Light Trading - U.S. Commentary

(RTTNews) - Following the long, holiday weekend, stocks may move to the downside in early trading on Tuesday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 44 points.

Trading activity on the day is likely to remain relatively subdued, as many traders remain away from their desks following Christmas.

The economic calendar for the week also starts off relatively quiet, although reports on consumer confidence, pending home sales and Chicago business activity are due to be released in the coming days.

Volume may remain light throughout the week, although some traders may look to do some window dressing going into the end of the year.

Among individual stocks, shares of Apple (AAPL) are seeing pre-market weakness after a report from Taiwan's Economic Daily said the tech giant's first quarter iPhone X sales will drop to 30 million.

Semiconductor giant Intel (INTC) may also move to the downside after Japan's Nikkei newspaper said the company will drop out of the top slot for semiconductor sales this year.

On the other hand, shares of Sucampo Pharmaceuticals (SCMP) are likely to see early strength after the drug maker agreed to be acquired by Mallinckrodt (MNK) for $1.2 billion.

With many traders away from their desks, stocks turned in a relatively lackluster performance during trading on Friday. The major averages spent much of the day in negative territory before closing modestly lower.

The major averages ended the session in negative territory but off their worst levels of the day. The Dow dipped 28.23 points or 0.1 percent to 24,754.06, the Nasdaq edged down 5.40 points or 0.1 percent to 6,959.96 and the S&P 500 slipped 1.23 points or 0.1 percent to 2,683.34.

Despite the slight drop on the day, the major averages moved moderately higher for the week. The Dow climbed by 0.4 percent, while the Nasdaq and the S&P 500 both rose by 0.3 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday, with many markets in the region still closed. Japan's Nikkei 225 Index edged down by 0.2 percent, while China's Shanghai Composite Index advanced by 0.8 percent.

Meanwhile, the major European markets remain closed on the day in celebration of Boxing Day.

In commodities trading, crude oil futures are inching up $0.06 to $58.53 a barrel after edging up $0.11 to $58.47 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,284.60, up $5.80 from the previous session's close of $1,278.80. On Friday, gold climbed $8.20.

On the currency front, the U.S. dollar is trading at 113.30 yen compared to the 113.26 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1853 compared to last Friday's $1.1870.