Stocks May Lack Direction In Early Trading

Following the relatively lackluster performance seen in the previous session, stocks may continue to experience choppy trading on Friday. The major index futures are currently pointing to a roughly flat open for the markets, with the Dow futures down by 19 points.

Traders may be reluctant to make any significant moves as they continue to digest the Republican tax reform plan and attempt to assess the path forward for the proposal.

A report from Bloomberg News said the vast majority of economists surveyed predicted that the tax reform plan would widen the budget deficit.

The Trump administration has argued that the stronger economic growth spurred by the tax cuts would offset the cost.

The markets could benefit from window dressing, as some investors look to boost their portfolios on the final trading day of the third quarter.

On the U.S. economic front, the Commerce Department recently released a report showing personal income and spending both rose in line with economist estimates in the month of August.

The Commerce Department said personal income edged up by 0.2 percent in August after rising by a downwardly revised 0.3 percent in July.

Economists had expected income to rise by 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.

The report said personal spending also inched up by 0.1 percent in August after climbing by an unrevised 0.3 percent in July. The uptick in spending matched expectations.

Shortly after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of September.

The Chicago business barometer is expected to edge down to 58.5 in September from 58.9 in August, although a reading above 50 would indicate continued growth.

The University of Michigan is due to release its revised report on consumer sentiment in September. The consumer sentiment index is expected to be unrevised at 95.3.

Stocks turned in a relatively lackluster performance during trading on…

Read the full article at the Original Source..

Back to Top