Uncertainty May Lead To Choppy Trading On Wall Street - U.S. Commentary

(RTTNews) - After ending the previous session sharply higher, stocks may show a lack of direction in early trading on Friday. The major index futures are currently pointing to a roughly flat open for the markets, with the Dow futures down by just 16 points.

Uncertainty about the near-term outlook for the markets may lead to choppy trading on Wall Street on the heels of the volatility seen over the past several weeks.

While stocks sold off sharply in mid-August amid concerns about developing economies and the outlook for U.S. interest rates, the markets have shown a notable recovery since then.

The rally on Thursday lifted the Dow and the S&P 500 to their best closing levels in nearly two months, although they remain well off their highs from earlier in the year.

The markets have benefited from signs that the Federal Reserve will hold off on raising interest rates, although lingering concerns about the global economy have limited the upside.

Trading on Friday may be impacted by the Federal Reserve's report on industrial production in the month of September, which is due to be released shortly before the start of trading.

Economists expected industrial production to drop by 0.3 percent in September, extending the 0.4 percent decrease seen in August.

Not long after the open, the University of Michigan is also scheduled to release the results of its preliminary survey on consumer sentiment in the month of October.

The University of Michigan's consumer sentiment index is expected to climb to 89.5 in October from the final September reading of 87.2.

On the earnings front, multinational conglomerates General Electric (GE) and Honeywell (HON) both reported third quarter earnings that beat analyst estimates but on weaker than expected revenues.

Shares of Mattel (MAT) may also be in focus after the toy maker reported disappointing third quarter results on weaker than expected sales of its Barbie doll line.

Chipmaker Advanced Micro Devices (AMD) reported a wider than expected third quarter loss, but its revenues topped estimates.

Following the pullback seen over the two previous sessions, stocks showed a substantial move back to the upside during trading on Thursday. The rally on Wall Street came following the release of a slew of U.S. economic data.

The major averages saw further upside going into close, ending the session at their best levels of the day. The Dow surged up 217.00 points or 1.3 percent to 17,141.75, the Nasdaq soared 87.25 points or 1.8 percent to 4,870.10 and the S&P 500 jumped 29.62 points or 1.5 percent to 2,023.86.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday following the rally seen on Wall Street overnight. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index advanced by 0.8 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index has risen by 0.3 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 0.5 percent.

In commodities trading, crude oil futures are climbing $0.45 to $46.83 a barrel after rising $0.26 to $46.38 a barrel on Thursday. Meanwhile, an ounce of gold is currently trading at $1,181.90, down $5.60 from the previous session's close of $1,187.50. On Thursday, gold rose $7.70.

On the currency front, the U.S. dollar is trading at 119.16 yen compared to the 118.90 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1357 compared to yesterday's $1.1386.