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Stocks May Move Back To The Upside In Early Trading - US Commentary

July 22, 2014



WASHINGTON (Alliance News) - Stocks are likely to move back to the upside in early trading on Tuesday after ending the previous session modestly lower. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 55 points.

The upward momentum for the markets partly reflects a positive reaction to the latest batch of earnings news from big-name companies.

Comcast (CMCSA) and Verizon (VA) are both moving to the upside in pre-market trading after reporting better than expected second quarter earnings.

Shares of DuPont (DD) could also see early strength after the chemical giant reported second quarter earnings that matched analyst estimates and raised its quarterly dividend.

On the other hand, fast food giant McDonald's (MCD) may come under pressure after reporting second quarter earnings that fell short of estimates.

The futures saw further upside following the release of a report from the Labor Department showing that consumer prices rose in line with economist estimates in the month of June.

The Labor Department said its consumer price index rose by 0.3% in June after climbing by 0.4% in May. The increase by the index matched the consensus estimate.

Excluding food and energy prices, core consumer prices inched up by 0.1% in June after rising by 0.3% in the previous month. Economists had expected core prices to edge up by 0.2%.

Core prices increased at an annual rate of 1.9% in June, reflecting a slowdown from the 2.0% growth reported in May.

Meanwhile, traders also continue to keep an eye on any developments regarding the conflicts in Ukraine and the Middle East.

After coming under pressure in early trading on Monday, stocks regained some ground over the course of the trading session but still closed modestly lower. The pullback on the day partly offset the strength that was seen last week.

The major averages ended the day modestly below the unchanged line. The Dow dipped 48.45 points or 0.3% to 17,051.73, the Nasdaq edged down 7.44 points or 0.2% at 4,424.70 and the S&P 500 slipped 4.59 points or 0.2% to 1,973.63.



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Source: Alliance News


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