Nervous Markets May Search For Direction In Truncated Sesssion

(RTTNews) - The major U.S. index futures are pointing to a mixed opening on Friday, with sentiment reflecting nervousness, given the lack of any major trading cues to provide direction to the markets. Trading volume could remain light in the truncated session. With European markets also witnessing lackluster sentiment and crude oil trading at a multi-year low, it could be difficult for the domestic markets to sustain the momentum. The session could most likely witness a consolidation move, although selling could not be ruled.

U.S. stocks ended Wednesday's session higher amid the release of mixed data, with volumes light ahead of Thursday's Thanksgiving Day holiday. The major averages opened on a nervous note, but the S&P 500 Index and the Nasdaq Composite Index advanced steadily throughout the session before closing higher.

The S&P 500 Index added 5.80 points or 0.28 percent before closing at a new record closing high of 2,073, and the Nasdaq Composite ended 29.07 points or 0.61 percent higher at a fresh multi-year closing high of 4,787.

Meanwhile, the Dow Industrials languished below the unchanged line for much of the session before sneaking above the unchanged line in the final minutes of the trading. The index closed up 12.81 points or 0.07 percent at 17,828, also an all-time closing high.

Twenty-two of the thirty Dow components closed higher and one stock ended unchanged, while the remaining seven stocks retreated. Intel (INTC), Pfizer (PFE) and Verizon (VZ) gained ground in the session. On the other hand, United Technologies (UTX) and Chevron (CVX) declined sharply.

Biotechnology and semiconductor stocks were among the best performers of the session, while oil service and gold stocks retreated.

On the economic front, the Commerce Department's new home sales report showed a 0.7 percent month-over-month increase in new home sales to a seasonally adjusted annual rate of 458,000 in October from a downwardly revised 455,000 in September.

The median price of a new home was up 16.5 percent month-over-month and 15.4 percent year-over-year at $305,000. Inventories measured in terms of months of supply rose to 5.6 months from 5.5 months in September, while in absolute terms, the number of new homes available for sale climbed to 212,000 from 210,000.

A National Association of Realtors' report showed that pending home sales, which represent contracts signed for sales of existing homes, fell 1.1 percent month-over-month in October. Nevertheless, pending home sales were up 2.2 percent year-over-year.

Meanwhile, Thomson Reuters and the University of Michigan said their consumer sentiment index for November was downwardly revised to 88.8 from the mid-month reading of 89.4. While the index remains above the final October reading of 86.9, economists had expected the index to be upwardly revised to 90.0.

The results of MNI Indicators' survey of business activity in the Chicago region showed a slowdown in the pace of growth. The business barometer slid to 60.8 in November from 66.2 in October, while economists expected a more modest decline to 63.2. The new orders index slumped 11.7 points to 61.9.

The Labor Department reported that jobless claims rose to 313,000 in the week ended November 22nd from 292,000 in the previous week. The four-week average rose to 294,000 from 287,750. Continuing claims calculated with a week's lag fell by 17,000 to 2.316 million in the week ended November 15th.

A separate report from the Commerce Department said durable goods orders rose 0.4 percent month-over-month in October, belying expectations for a drop. The increase came about due to a 45.3 percent jump in orders for efense aircraft and parts. Excluding transportation, orders were down 0.9 percent, marking the biggest decline since December 2013. Non-defense capital goods orders, excluding aircraft and parts, were down 1.3 percent, the same rate of decline as in September.

Currency, Commodity Markets

Crude oil futures for January are plunging $4.22 to A 4-1/2 low of $69.47 a barrel in reaction to OPEC's decision not to trim output levels. The January futures ended Wednesday's session down $0.40 at $73.69 a barrel.

Wednesday's pullback came amid the release of the weekly petroleum status report, which showed that crude oil stockpiles rose by 1.9 million barrels to 383 million barrels in the week ended November 21st and were in the upper half of the average range.

Gasoline inventories rose by 1.8 million barrels but remained in the lower half of the average range. Meanwhile, distillate inventories fell by 1.6 million barrels, remaining near the lower limit of the average range.

Refinery capacity utilization averaged 90.3 percent over the four weeks ended November 21st compared to 89.1 percent over the four weeks ended November 14th.

The most actively traded February gold futures are currently sliding $11.70 to $1,186.30 an ounce after edging down $0.30 to $1,197.50 an ounce on Wednesday.

Among currencies, the U.S. dollar is trading at 118.31 yen compared to the 117.61 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.2486 compared to Wednesday's $1.2467.

Asia

The major Asian markets ended mixed, with the Japanese, Chinese, Indian, Singaporean and Taiwanese markets advancing, while most other markets in the region declined. The Japanese market benefited from the weakening of the yen, while the Australian market suffered the onslaught of falling oil prices.

The Japanese Nikkei 225 average opened higher and advanced steadily throughout the remainder of the session before closing up 211.35 points or 1.23 percent at 17,460, its highest closing level since November 14th, 2014.

A majority of stocks advanced, led by export stocks, while some resource stocks moved to the downside.

Meanwhile, Australia's All Ordinaries languished below the unchanged line throughout the session before closing down 83.30 points or 1.55 percent at 5,298.

The market witnessed broad based weakness, with energy stocks plunging sharply in reaction to the sharp retreat in crude oil prices.

Hong Kong's Hang Seng Index ended at 23,988, down 16.83 points or 0.07 percent, but China's Shanghai Composite Index rallied 52.32 points or 1.99 percent to 2,683.

On the economic front, a slew of economic data released from Japan presented a mixed picture. The annual core consumer price inflation data released by Japan's Ministry of Economy, Trade and Industry showed that price growth slowed to 2.9 percent in October from 3 percent in September. Excluding the impact of a tax hike implemented in April, core consumer prices were up 0.9 percent, the slowest increase in about a year.

Separate Japanese reports showed that consumer spending declined year-over-year in October, the jobless rate unexpectedly eased to 3.5 percent, housing starts fell less than expected and retail sales rose 1.4 percent year-over-year, in line with expectations.

Preliminary estimates released by Japan's Ministry of Economy, Trade and Industry showed that industrial production in Japan unexpectedly rose in October. Industrial production rose a seasonally adjusted 0.2 percent month-over-month, belying expectations for a 0.6 percent drop.

Data released by the Reserve Bank of Australia showed a 0.6 percent month-over-month increase in private sector credit in October, faster than the 0.5 percent rise in September.

Europe

European stocks opened lower and are continuing to see weakness, as traders capture the mood in Asia and react to some domestic economic data.

On the economic front, consumer confidence in the U.K. stagnated at depressed levels in November, the results of a survey by the GfK Institute showed. The consumer confidence index remained unchanged at -2 in November, in contrast to expectations for a modest improvement to -1.

The results of house price survey by the Nationwide Building Society showed that U.K. house prices rose 0.3 percent month-over-month in November, slower than the 0.5 percent increase in October. Annually, prices were up 8.5 percent.

German retail sales rose a calendar-and-seasonally adjusted 1.9 percent month-over-month in October, according to preliminary figures released by the German Federal Statistical Office. Economists had expected 1.5 percent growth. The increase was the biggest since June 2011, when sales grew 2.6 percent.

Preliminary estimate released by Eurostat showed that annual inflation in the eurozone slowed to a 5-year low of 0.3 percent in November. The inflation rate was in line with estimates. Separately, Eurostat announced that the Eurozone unemployment rate held steady at 11.5 percent in October for a second straight month since August. That was also in line with economists' expectations.

U.S. Economic Reports

There are no important economic reports due for release in today's session.

Stocks in Focus

FedEx's (FDX) FedEx Freight unit announced that city and road drivers in Louisville have voted against representation by the Teamsters union and in favor of continuing their direct relationship with the company.

Target (TGT) reported that it kicked off the holiday season with a strong early start to Black Friday weekend, as guests across the U.S. shopped early deals and turned out for the 6 p.m. store openings. The company also reported that its free shipping offer on Target.com continues to drive record breaking online sales.

Ryanair said its order to buy up to 200 Boeing (BA) 737 MAX aircraft has been approved by 99.93% of shareholders who voted at its EGM in Dublin this morning. If finalised and if all options are exercised, this deal would be worth more than $22 billion at current list prices.