U.S. Stocks May Extend Recent Rebound In Early Trading

Stocks are likely to move to the upside in early trading on Monday, extending the rebound seen over the past several sessions. 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.

Easing concerns about the outlook for economy may lead to continued buying on Wall Street following the steep drop seen earlier this month.

Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of several key economic reports later this week.

The Labor Department is scheduled to release reports on producer and consumer price inflation on Tuesday and Wednesday, respectively, with the data likely to impact the outlook for interest rates.

The Federal Reserve is widely expected to cut interest rates next month, with CME Group’s FedWatch Tool currently indicating a split regarding the probability of a quarter or half point rate cut.

In light of recent concerns about the outlook for the economy, traders are also likely to keep a close eye on reports on retail sales and industrial production.

Following the rally seen during Thursday’s session, stocks turned in a relatively lackluster performance during trading on Friday but managed to end the day mostly higher.

The major averages finished the session off their highs of the day but still in positive territory. The Dow edged up 51.05 points or 0.1 percent to 39,497.54, the Nasdaq climbed 85.28 points or 0.5 percent to 16,745.30 and the S&P 500 rose 24.85 points or 0.5 percent to 5,344.16.

With the upward move seen over the course of the session, the Nasdaq and the S&P 500 largely offset the steep losses posted on Monday, closing only slightly lower for the week.

For the week, the S&P 500 edged down by less than a tenth of a percent and the Nasdaq dipped by 0.2 percent, while narrower Dow slid by 0.6 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday, with the Japanese markets closed for a holiday. South Korea’s Kospi jumped by 1.2 percent, while Australia’s S&P/ASX 200 Index climbed by 0.5 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.1 percent, the German DAX Index is up by 0.2 percent and the U.K.’s FTSE 100 Index is up by 0.4 percent.

In commodities trading, crude oil futures are jumping $0.86 to $77.70 a barrel after climbing $0.65 to $76.84 a barrel last Friday. Meanwhile, after rising $10.10 to $2,473.40 an ounce in the previous session, gold futures are increasing $10.30 to $2,483.70 an ounce.

On the currency front, the U.S. dollar is trading at 147.60 yen versus the 146.61 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0922 compared to last Friday’s $1.0917.