U.S. Stocks May See Further Downside In Early Trading

(RTTNews) - After moving mostly lower over the course of the previous session, stocks are likely to see further downside in early trading on Thursday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.

The downward momentum on Wall Street comes amid a negative reaction to corporate earnings news from companies like Tesla (TSLA) and IBM Corp. (IBM).

Shares of Tesla are tumbling by 3.7 percent in pre-market trading after the electric vehicle maker reported weaker than expected third quarter earnings despite record sales.

Tech giant IBM is also seeing substantial pre-market weakness after reporting third quarter earnings that exceeded analyst estimates but slowing growth in its core cloud computing business.

On the other hand, shares of Honeywell (HON) are likely to see initial strength after the industrial giant reported third quarter results that beat estimates on both the top and bottom lines.

Ongoing concerns about rising geopolitical tensions may also weigh on Wall Street after the Trump administration announced sanctions on Russia's two largest oil companies.

The Treasury Department announced sanctions against Rosneft and Lukoil, citing Russia's "lack of serious commitment to a peace process to end the war in Ukraine."

President Donald Trump recently expressed some optimism about ending the drawn-out Russia-Ukraine war before suddenly canceling a planned meeting with Russian President Vladimir Putin.

Trump's sudden shifts in opinion, particularly with regard to trade relations with China, have recently been a key source of volatility on Wall Street.

Following the lackluster performance seen during Tuesday's session, stocks moved mostly lower during trading on Wednesday. The major averages all moved to the downside on the day, with the Dow pulling back off Tuesday's record closing high.

The major averages climbed well off their worst levels in late-day trading but remained firmly negative. The Nasdaq slumped 213.67 points or 0.9 percent to 22,740.40, the Dow slid 334.33 points or 0.7 percent to 46,590.41 and the S&P 500 fell 35.95 points or 0.5 percent to 6,699.40.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. Japan's Nikkei 225 Index tumbled by 1.4 percent, while China's Shanghai Composite Index edged up by 0.2 percent and Hong Kong's Hang Seng Index climbed by 0.7 percent.

The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.2 percent, the French CAC 40 Index is up by 0.2 percent and the U.K.'s FTSE 100 Index is up by 0.6 percent.

In commodities trading, crude oil futures are soaring $2.94 to $61.44 a barrel after surging $1.26 to $58.50 a barrel on Wednesday. Meanwhile, after tumbling $43.70 to $4,065.40 an ounce in the previous session, gold futures are jumping $53.80 to $4,119.20 an ounce.

On the currency front, the U.S. dollar is trading at 152.54 yen versus the 151.97 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1597 compared to yesterday's $1.1610.