Shortly after moving intensely over the course of the recently adjourned session, stocks may reluctantly show a lack of direction in the early trading incident early this week. The Major index futures are presently moving towards a seemingly flat open for the markets, with the Dow futures down by just 1 point.
Although optimism regarding the ominous fiscal cliff aided in steering stocks a bit higher early this week, lingering uncertainty regarding whether leaders in Washington can actually reach a final consensus that any further upsizing of the already ailing markets.
Traders are also coming into terms regarding Moody’s investors Service downgraded France’s government bond rating down a notch to Aa1 to Aaa. The ratings agency commented that the future probability will certainly remain on the negative perspective.
Moody’s comments regarding France’s long-term economic growth is from a negative perspective affected by multiple structural challenges and further added that the fiscal outlook is relatively uncertain as a consequential effect of worsening economic panorama.
Nevertheless, any early selling pressure is also likely to be suppressed following the release of a report from the Commerce Department expressing an unexpected rise in U.S. housing officially begins.
Among individual stocks, shares of Hewlett-Packard (HPQ) are more likely to come under pressure following PC giant having performed much better as previously expected to having adjusted fourth quarter earnings but later revealed an $8.8 billion cost of expenses related to serious accounting improprieties at newly acquired Autonomy Corporations.