Stocks May Open Higher On Final Trading Day Of 2016 - U.S. Commentary

(RTTNews) - After moving lower over the two previous sessions, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 44 points.

Traders may look to pick up stocks at somewhat reduced levels following the recent pullback, which dragged the S&P 500 down to its lowest levels in almost a month.

Buying interest may also be generated by traders looking to do some "window dressing" on the final trading day of 2016.

The performance of the Dow will also continue to attract attention, as traders wait to see if the blue chip index can cross the 20,000 level.

While the Dow has climbed within striking distance of the key psychological level, the pullback seen over the two previous sessions has dampened hopes the index will break through this year.

Trading activity on the day is likely to be relatively subdued, however, with some traders already away from their desks ahead of another long weekend.

Shortly after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of December.

The Chicago Business Barometer is expected to edge down to 57.0 in December from 57.6 in November, although a reading above 50 would indicate continued growth.

Stocks moved slightly lower over the course of the trading session on Thursday after failing to sustain an early upward move. Selling pressure remained subdued, however, limiting the downside for the major averages.

The major averages ended the day just below the unchanged line. The Dow slipped 13.90 points or 0.1 percent to 19,819.78, the Nasdaq dipped 6.47 points or 0.1 percent to 5,432.09 and the S&P 500 edged down 0.66 points or less than a tenth of a percent to 2,249.26.

In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance on Friday. Japan's Nikkei 225 Index edged down by 0.2 percent, while Hong Kong's Hang Seng Index jumped by 1 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.3 percent.

In commodities trading, crude oil futures are slipping $0.05 to $53.72 a barrel after falling $0.29 to $53.77 a barrel on Thursday. Gold futures are currently trading at $1,156.50 an ounce, down $1.60 from the previous session's close of $1,158.10 an ounce. On Thursday, gold jumped $17.20.

On the currency front, the U.S. dollar is trading at 116.95 yen compared to the 116.54 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0552 compared to yesterday's $1.0490.