Stocks May Move Modestly Higher In Early Trading - U.S. Commentary

(RTTNews) - Following the lackluster performance seen last week, stocks may continue to experience choppy trading early on Monday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 15 points.

Early buying interest may be generated in reaction to upbeat Chinese manufacturing data released by Caixin and Markit.

The report showed that the Chinese manufacturing index rose to 50.6 in July from 48.6 in June, with the sector expanding for the first time since February of 2015. Economists had expected a more modest improvement to 48.9.

However, traders may remain reluctant to make significant moves ahead of the Bank of England's monetary policy announcement on Thursday and the U.S. jobs report due on Friday.

Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on U.S. manufacturing activity in the month of July.

The ISM's purchasing managers index is expected to come in unchanged compared to the previous month at 53.2, with a reading above 50 indicating growth in the manufacturing sector.

A separate report from the Commerce Department is expected to show a 0.6 percent increase in construction spending June following a 0.8 percent drop in May.

Among individual stocks, shares of Ionis Pharmaceuticals (IONS) are moving sharply higher in pre-market trading after a study of a drug it its developing with Biogen (BIIB) to treat spinal muscular atrophy met its primary endpoint.

Gaming company Caesars Entertainment (CZR) may also see early strength after announcing the sale of its online games unit to a Chinese consortium for $4.4 billion in cash.

Stocks turned in another lackluster performance during trading on Friday, extending the choppy trading seen over the past few sessions. Despite the lack of direction on the day, the tech-heavy Nasdaq extended its recent upward trend to reach its best closing level in a year.

The major averages closed mixed for the fourth consecutive session. While the Dow slipped 24.11 points or 0.1 percent to 18,432.24, the Nasdaq inched up 7.15 points or 0.1 percent to 5,162.13 and the S&P 500 crept up 3.54 points or 0.2 percent to 2,173.60.

For the week, the Nasdaq jumped by 1.2 percent, while the S&P 500 edged down by 0.1 percent and the Dow fell by 0.7 percent.