(RTTNews) - Stocks may early weakness on Wednesday, giving back some ground after moving notable higher in the previous session. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 14 points.
Profit taking may contribute to initial weakness on Wall Street, as traders cash in on yesterday's gains amid lingering concerns about the trade dispute between the U.S. and China.
Traders largely shrugged off the escalating trade war on Wednesday, but uncertainty about the impact on the global economy is likely to continue to weigh on their minds.
With the widely anticipated tariff announcements in the rearview mirror, traders may also start looking ahead to next week's Federal Reserve meeting.
The Fed is widely expected to raise interest rates by another quarter point, although traders are likely to keep a close eye on the accompanying statement for clues about future rate hikes.
On the U.S. economic front, a report released by the Commerce Department showed a sharp increase in new residential construction in the U.S. in the month of August, although the report also showed a steep drop in building permits during the month.
The Commerce Department said housing starts spiked by 9.2 percent to an annual rate of 1.282 million in August from the revised July estimate of 1.174 million.
Economists had expected housing starts to jump by 5.7 percent to a rate of 1.235 million from the 1.168 million originally reported for the previous month.
Meanwhile, the report said building permits tumbled by 5.7 percent to an annual rate of 1.229 million in August from a revised 1.303 million in July.
Building permits, an indicator of future housing demand, had been expected to edge down by 0.1 percent to a rate of 1.310 million from the 1.311 million originally reported for the previous month.
Stocks moved mostly higher during trading on Tuesday, as traders shrugged off concerns about the escalating trade war between the U.S. and China. The strength on the day came on the heels of the pullback seen on Monday.
The major averages ended the day firmly in positive territory but off their highs of the session. The Dow climbed 184.84 points or 0.7 percent to 26,246.96, the Nasdaq advanced 60.32 points or 0.8 percent to 7,956.11 and the S&P 500 rose 15.51 points or 0.5 percent to 2,904.31.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index surged up by 1.2 percent.
The major European markets have shown more modest moves to the upside on the day. While the French CAC 40 Index has risen by 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.2 percent.
In commodities trading, crude oil futures are slipping $0.14 to $69.71 a barrel after jumping $0.94 to $69.85 a barrel on Tuesday. Meanwhile, after falling $2.90 to $1,202.90 an ounce in the previous session, gold futures are climbing $6.40 to $1,209.30 an ounce.
On the currency front, the U.S. dollar is trading at 112.31 yen compared to the 112.36 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1675 compared to yesterday's $1.1667.
Source : https://markets.businessinsider.com/news/stocks/stocks-may-give-back-ground-in-early-trading-u-s-commentary-1027547592554