| | The major U.S. index futures are pointing to a higher opening on Wednesday, with stocks likely to regain ground following the steep drop seen over the course of the two previous sessions.
Bargain hunting may contribute to initial strength on Wall Street as traders look to pick up stocks at reduced levels following the sell-off seen early this week.
Upbeat earnings news from companies like Foot Locker (FL), BJ?s Wholesale (BJ), and Autodesk (ADSK) may also contribute to the rebound.
Buying interest may be somewhat subdued, however, as the Commerce Department recently released a report showing a much steeper than expected drop in durable goods orders in October.
Traders may also look to get a head start on the Thanksgiving Day holiday on Thursday, leading to below average trading activity.
Following the sell-off seen on Monday, stocks showed another significant move to the downside during trading on Tuesday. With the continued drop, the tech-heavy Nasdaq fell to its lowest closing level in over seven months.
The major averages ended the session off their worst levels of the day but still sharply lower. The Dow plunged 551.80 points or 2.2 percent to 24,465.64, the Nasdaq tumbled 119.65 points or 1.7 percent to 6,908.82 and the S&P 500 slumped 48.84 points or 1.8 percent to 2,641.89.
The continued weakness on Wall Street partly reflected a negative reaction to the latest batch of earnings news from companies such as Target (TGT).
Shares of Target plummeted by 10.5 percent after the retail giant reported third quarter earnings that missed analyst estimates on slightly weaker than expected comparable store sales growth.
Department store operator Kohl's (KSS) and Victoria's Secret parent L Brands (LB) also posted steep losses after reporting their quarterly results.
A continued decline by Apple (AAPL) also weighed on the markets, with the tech giant tumbling by 4.8 percent to a six-month closing low.
On the U.S. economic front, a report from the Commerce Department showed housing starts rebounded in the month of October, although the report also showed a decrease in building permits.
The Commerce Department said housing starts jumped by 1.5 percent to an annual rate of 1.228 million in October after plunging by 5.5 percent to a revised rate of 1.210 million in September.
Economists had expected housing starts to climb to a rate of 1.225 million from the 1.201 million originally reported for the previous month.
Meanwhile, the report said building permits fell by 0.6 percent to an annual rate of 1.263 million in October after surging up by 1.7 percent to an upwardly revised 1.270 million in September.
Building permits, an indicator of future housing demand, had been expected to increase to 1.267 million from the 1.241 million originally reported for the previous month.
Energy stocks showed a substantial move to the downside on the day amid a steep drop by the price of crude oil.
Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plummeted by 5.7 percent, while the NYSE Arca Natural Gas Index and the NYSE Arca Oil Index plunged by 3.9 percent and 3.3 percent, respectively.
Considerable weakness was also visible among steel stocks, as reflected by the 3.9 percent nosedive by the NYSE Arca Steel Index. The steep drop reflected concerns about the outlook for global demand.
Transportation, retail, telecom and financial stocks also saw significant weakness, reflecting another broad based sell-off on Wall Street.
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A report released by the Commerce Department showed a much steeper than expected drop in new orders for U.S. durable goods in the month of October, with the sharp decline largely reflecting a substantial decrease in orders for transportation equipment.
The Commerce Department said durable goods orders plunged by 4.4 percent in October following a revised 0.1 percent dip in September.
Economists had expected orders to slump by 2.5 percent compared to the 0.7 percent increase that had been reported for the previous month.
Excluding the steep drop in orders for transportation equipment, durable goods orders inched up by 0.1 percent in October after a revised 0.6 percent decrease in September.
Ex-transportation orders had been expected to rise by 0.4 percent compared to the 0.1 percent uptick originally reported for the previous month.
A separate report from the Labor Department showed first-time claims for U.S. unemployment benefits unexpectedly edged higher in the week ended November 17th.
The report said initial jobless claims rose to 224,000, an increase of 3,000 from the previous week?s upwardly revised level of 221,000.
Economists had expected jobless claims to slip to 215,000 from the 216,000 originally reported for the previous week.
At 10 am ET, the National Association of Realtors is scheduled to release its report on existing home sales in the month of October. Existing home sales are expected to climb by 1.0 percent in October after tumbling by 3.4 percent in September.
The University of Michigan is also due to release its final report on consumer sentiment in the month of November at 10 am ET. The consumer sentiment index is expected to be unrevised from the preliminary reading of 98.3.
Also at 10 am ET, the Conference Board is scheduled to release its report on leading economic indicators in the month of October. The leading economic index is forecast to inch up by 0.1 percent in October after climbing by 0.5 percent in September.
The Energy Information Administration is due to release its report on oil inventories in the week ended November 16th at 10:30 am ET.
Crude oil inventories are expected to rise by 2.9 million barrels after spiking by 10.3 million barrels in the previous week.
At 11 am ET, the Treasury Department is scheduled to announce the details of next week?s auctions of two-year, five-year, and seven-year notes.
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Shares of Foot Locker (FL) are moving sharply higher in pre-market trading after the sportswear and footwear retailer reported third quarter results that beat expectations on both the top and bottom lines.
Design software developer Autodesk (ADSK) is also likely to see initial strength after reporting better than expected third quarter results and providing upbeat guidance for the current quarter.
Shares of BJ?s Wholesale (BJ) may also move to the upside after the wholesale retailer reported third quarter earnings and revenues that exceeded analyst estimates.
On the other hand, shares of Deere & Co. (DE) are seeing notable pre-market weakness after the heavy equipment maker reported fiscal fourth quarter earnings that missed expectations. | | | | | Become a Shareholder in High Times The Original Voice of Cannabis. Join our investor community and help shape the emerging cannabis industry.
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European stocks are rebounding on Wednesday after media reports suggested that Italian Deputy Prime Minister Matteo Salvini might be willing to compromise on a budget criticized by the European Union.
The European Commission is due to publish its assessment of Italy's draft budgetary plans later in the day.
While the French CAC 40 Index has advanced by 0.5 percent, the German DAX Index and the U.K.?s FTSE 100 Index are up by 1 percent and 1.1 percent, respectively.
Renault shares have jumped in Paris. The French automaker has appointed interim leaders to manage the company and oversee its share of a globe-spanning alliance with Nissan Motor following the arrest of Chairman and CEO in Japan.
Johnson Matthey has also soared 7.2 percent after the company said it expects its full-year earnings to be at the upper end of expectations.
On the other hand, home improvement retailer Kingfisher has moved sharply lower. After reporting flat sales for the third quarter, the company said it would exit Russia, Spain and Portugal.
Software group Sage Group is also posting a steep loss after warning of lower margins this year. Drugmaker Indivior has also plummeted after losing a U.S. court ruling in a case against Dr Reddy's Laboratories.
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Asian stocks ended mixed on Wednesday, with the Chinese and Hong Kong markets finishing modestly higher, while markets elsewhere across the region closed mostly lower on worries about corporate earnings and slowing global growth.
China's Shanghai Composite Index rose 0.2 percent to 2,651.51 and Hong Kong's Hang Seng Index gained 0.5 percent to finish at 25,971.41.
Meanwhile, Japanese shares ended modestly lower after reaching three-week lows earlier in the day amid falling oil prices and worries about weak global growth.
The Nikkei 225 Index fell as low as 21,243.38 in early trading before recouping most of its losses to end the session down 75.58 points or 0.4 percent at 21,507.54. The broader Topix Index closed 0.6 percent lower at 1,615.89.
Sumitomo Corp, Inpex, Credit Saison, Dentsu, Takeda Pharma and Olympus slumped 3-9 percent. Department store operator Takashimaya plummeted 16 percent after unveiling fund raising plans.
On the other hand, Nissan Motor climbed 0.4 percent after recent steep losses following the arrest of its chairman Carlos Ghosn. Tech stocks also rebounded, with Advantest climbing 4.5 percent and Tokyo Electron rallying 4.9 percent.
Australian stocks hit a 15-month low before ending off their worst levels, dragged down by mining and energy stocks. The benchmark S&P/ASX 200 Index dropped 29.00 points or 0.5 percent to 5,642.80, while the broader All Ordinaries Index ended down 37.10 points or 0.6 percent at 5,722.10.
Mining heavyweights BHP Billiton and Rio Tinto fell over 3 percent as base metal prices fell on worries about global growth amid ongoing uncertainty over the U.S.-China trade war.
Woodside Petroleum, Origin Energy and Santos lost 2-4 percent after oil plunged as much as 7 percent on Tuesday to enter a bear market on worries about rising global supplies and fears of an economic slowdown.
Retail conglomerate Wesfarmers nosedived 27.7 percent after the demerger of its supermarket division Coles Group.
Meanwhile, Reject Shop soared 14 percent after the discount retailer said it would consider a "somewhat opportunistic" A$78 million takeover bid for it from Allensford.
The big four banks rose between half a percent and 1.2 percent, while investment bank Macquarie Group declined 1.9 percent. In the tech space, Afterpay Touch Group fell more than 5 percent and Computershare lost 3 percent.
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Crude oil futures are jumping $1.21 to $54.64 a barrel after plunging $3.77 to $53.43 a barrel on Tuesday. Meanwhile, after falling $4.10 to $1,221.20 an ounce in the previous session, gold futures are climbing $5.80 to $1,227 an ounce.
On the currency front, the U.S. dollar is trading at 112.93 yen compared to the 112.77 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1413 compared to yesterday?s $1.1370.
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