U.S. Stocks May Give Back Ground Following Recent Upward Move

(RTTNews) - Stocks may move to the downside in early trading on Friday, giving back ground after trending higher over the past few sessions. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.3 percent.

Traders may look to cash in on the recent strength in the markets, which saw the S&P 500 reach new records despite some relatively choppy trading.

The futures remained in negative territory after the Commerce Department released a closely watched report showing consumer prices increased in line with estimates in the month of July.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after climbing 0.3 percent in June. The uptick matched expectations.

The annual rate of growth by the PCE price index in July came in unchanged from June at 2.6 percent, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index rose by 0.3 percent in July, matching the increase seen in June as well as expectations.

The annual rate of growth by the core PCE price index ticked up to 2.9 in July from 2.8 percent in June. The slight acceleration also matched estimates.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

Traders are also likely to keep an eye on developments in Washington, D.C., where a District Court Judge is scheduled to hold a hearing on Federal Reserve Governor Lisa Cook's request to temporarily block President Donald Trump's attempt to remove her from her position.

Not long after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of August. The Chicago business barometer is expected to pull back to 45.2 in August after jumping to 47.1 in July.

The University of Michigan is also due to release its revised reading on consumer sentiment in the month of August. The consumer sentiment index for August is expected to be unrevised from the preliminary reading of 58.6, which was down from 61.7 in July.

After showing a lack of direction early in the session, stocks moved mostly higher over the course of the trading day on Thursday. The major averages added to the gains posted in the two previous sessions, with the S&P 500 reaching another new record closing high.

The major averages ended the day just off their highs of the session. The Nasdaq climbed 115.02 points or 0.5 percent to 21,705.16, the S&P 500 rose 20.46 points or 0.3 percent to 6,501.86 and the Dow edged up 71.67 points or 0.2 percent to 45,636.90.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index dipped by 0.3 percent, while China's Shanghai Composite Index increased by 0.4 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index is down by 0.3 percent, the U.K.'s FTSE 100 Index is down by 0.2 percent and the German DAX Index is down by 0.1 percent.

In commodities trading, crude oil futures are slipping $0.22 to $64.38 a barrel after climbing $0.45 to $64.60 a barrel on Thursday. Meanwhile, after jumping $25.70 to $3,474.30 an ounce in the previous session, gold futures are edging down $4.60 to $3,469.70 an ounce.

On the currency front, the U.S. dollar is trading at 147.37 yen versus the 146.93 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1653 compared to yesterday's $1.1683.