Following the mixed performance seen in the previous session, stocks may move to the upside in early trading on Wednesday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 66 points.
The markets may benefit from the release of some upbeat U.S. economic data, including a report from the Labor Department showing a significant pullback in first-time claims for unemployment benefits in the week ended December 19th.
The report said initial jobless claims slid to 803,000, a decrease of 89,000 from the previous week's revised level of 892,000.
Economists had expected jobless claims to come in unchanged compared to the 885,000 originally reported for the previous week.
The unexpected pullback came after jobless claims reached their highest level since early September in the previous week.
The Commerce Department also released a report showing new orders for U.S. manufactured durable goods increased by more than expected in the month of November.
The report said durable goods orders climbed by 0.9 percent in November after spiking by an upwardly revised 1.8 percent in October.
Economists had expected durable goods orders to rise by 0.6 percent compared to the 1.3 percent jump that had been reported for the previous month.
Meanwhile, the Commerce Department released a separate report showing a steep drop in U.S. personal income in the month of November.
The report said personal income slumped by 1.1 percent in November after falling by a revised 0.6 percent in October. Economists had expected personal income to dip by 0.3 percent.
Uncertainty about a coronavirus relief package approved by Congress may also lead to cautious trading after President Donald Trump slammed the bill as a "disgrace" in a video posted on Twitter on Tuesday.
Trump called on Congress to amend the bill to increase the direct payments to individuals to $2,000 from $600 and "get rid of the wasteful and unnecessary items."
Democrats expressed support for increasing the size of the direct payments, but the idea is likely to face resistance in the Republican-controlled Senate.
The stimulus is attached to a government spending bill that Trump needs to sign by Monday to avoid a government shutdown.
Shortly after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of November.
Economists expect new home sales to dip by 0.3 percent in November, matching the modest decrease seen in October.
The University of Michigan is also due to release its revised reading on consumer sentiment in the month of December.
The consumer sentiment index for December is expected to be downwardly revised to 81.3 from a preliminary reading of 81.4, which was up from 76.9 in November.
Stocks turned in a relatively lackluster performance during trading on Tuesday following the recovery from the early sell-off seen on Monday. The Dow and the Nasdaq moved in opposite directions, while the S&P 500 spent the day lingering near the unchanged line.
The major averages eventually closed mixed for the second straight day. While the Nasdaq climbed 65.40 points or 0.5 percent to 12,807.92, the Dow fell 200.94 points or 0.7 percent to 30,015.51 and the S&P 500 dipped 7.66 points or 0.2 percent to 3,687.26.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index advanced by 0.8 percent.
The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has inched up by 0.1 percent, the French CAC 40 Index is up by 0.7 percent and the German DAX Index is up by 0.8 percent.
In commodities trading, crude oil futures are edging up $0.04 to $47.06 a barrel after slumping $0.95 to $47.02 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,873, up $2.70 compared to the previous session's close of $1,870.30. On Tuesday, gold fell $12.50.
On the currency front, the U.S. dollar is trading at 103.51 yen compared to the 103.64 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.2179 compared to yesterday's $1.2163.
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