12th Nov 2014 14:04
WASHINGTON (Alliance News) - Stocks are likely to come under pressure in early trading on Wednesday after ending the previous session slightly higher. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 73 points.
Profit taking may contribute to some early weakness following the recent strength on Wall Street, which has lifted the Dow and the S&P 500 to record highs.
Weakness among banking stocks may also weigh on the markets amid news that US and UK regulators have hit the companies with penalties for alleged currency market manipulation.
UBS (UBS), HSBC (HSBC), Citigroup (C), JP Morgan Chase (JPM), and Royal Bank of Scotland (RBS) have been fined a total of USD3.4 billion.
Disappointing guidance from Macy's (M) may also generate some negative sentiment, as the retail giant cut its full-year outlook despite reporting better than expected third quarter earnings.
Renewed geopolitical concerns could also lead to some selling pressure amid conflicting reports regarding Russian combat troops entering Ukraine.
On the economic front, the Commerce Department is scheduled to release its report on wholesale inventories in the month of September at 10 am ET.
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