By Investors Hub
The major U.S. index futures are pointing to a higher opening on Monday, with stocks likely to move back to the upside after moving lower over the two previous sessions.
Upbeat earnings news from companies such as Kimberly-Clark (KMB) and Halliburton (HAL) may contribute to early strength on Wall Street.
Trading activity is likely to be somewhat subdued, however, with traders looking ahead to the release of quarterly results from other well-known companies in the coming days.
Google parent Alphabet (GOOGL), Intel (INTC), Microsoft (MSFT), Coca-Cola (KO), Boeing (BA), and Verizon (VZ) are among the companies due to report their results this week.
Stocks moved notably lower over the course of the trading session on Friday, adding to the losses posted on Thursday. With the drop, the Dow pulled back further off the one-month closing high it set on Tuesday.
The major averages climbed off their worst levels going into the close but remained firmly negative. The Dow slid 201.95 points or 0.8 percent to 24,462.94, the Nasdaq tumbled 91.93 points or 1.3 percent to 7,146.13 and the S&P 500 slumped 22.99 points or 0.9 percent to 2,670.14.
Despite the weakness on the day, the major averages closed higher for the week. The Dow rose by 0.4 percent, while the Nasdaq and the S&P 500 climbed by 0.6 percent and 0.5 percent, respectively.
A continued decline by Apple (AAPL) weighed on the markets, with the tech giant slumping by 4.1 percent after tumbling by 2.8 percent on Thursday.
Apple remained under pressure after an analyst at Morgan Stanley warned of disappointing iPhone sales in the June quarter.
On the other hand, shares of General Electric (GE) moved sharply higher after the conglomerate reported better than expected adjusted first quarter earnings.
Industrial giant Honeywell (HON) also saw some strength after reporting first quarter results that beat estimates and raising its full-year guidance.
The downward move may have been exaggerated somewhat by below average volume, as some traders remained on the sidelines amid a lack of major U.S. economic data.
Extending a recent sell-off, tobacco stocks showed a significant move to the downside on the day. Reflecting the weakness in the sector, the NYSE Arca Tobacco Index fell by 1.6 percent to its lowest closing level in over two months.
Tobacco stocks have fallen sharply in recent sessions amid concerns about the impact of the growing popularity of alternatives such as electronic cigarettes.
Retail stocks also moved considerably lower over the course of the session, dragging the Dow Jones Retail Index down by 1.3 percent. The index continued to give back ground after ending Wednesday’s trading at its best closing level in almost a month.
Semiconductor, housing, and computer hardware stocks also saw notable weakness, moving lower along with most of the other major sectors.
Adedapo Adesanya