After ending the previous session roughly flat, stocks may move to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the , with the Dow futures up by 101 points.
A sharp increase by the price of crude oil may contribute to strength on Wall Street following President Donald Trump's decision to withdraw from the Iran nuclear deal.
Trump harshly criticized the nuclear agreement with Iran in remarks from the White House and signed a memorandum re-imposing sanctions on Iran.
"I am announcing today that the United States will withdraw from the Iran nuclear deal," Trump said. "We will be instituting the highest level of economic sanctions."
"The United States no longer makes empty threats," added Trump, who criticized the deal throughout his presidential campaign. "When I make promises, I keep them."
On the U.S. economic front, the Labor Department released a report showing a modest uptick in producer prices in the month of April.
The Labor Department said its producer price index for final demand inched up by 0.1 percent in April after rising by 0.3 percent in March. Economists had expected prices to edge up by 0.2 percent.
Excluding food and energy prices, core producer prices rose by 0.2 percent in April after climbing by 0.3 percent in the previous month. The increase in core prices matched economist estimates.
Shortly after the start of trading, the Commerce Department is scheduled to release its report on wholesale inventories in the month of March. Wholesale inventories are expected to climb by 0.5 percent.
Stocks saw a negative bias throughout much of the trading session on Tuesday before ending the day roughly flat. The major averages closed near the unchanged line after recovering from the lows set in afternoon trading.
The major averages all ended the day showing moves of less than a tenth of a percent. While the S&P 500 edged down 0.71 points to 2,671.92, the Dow inched up 2.89 points to 24,360.21 and the Nasdaq crept up 1.69 points to 7,266.90.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. While Japan's Nikkei 225 Index fell by 0.4 percent, Hong Kong's Hang Seng Index rose by 0.4 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is up by 0.5 percent, the German DAX Index is just below the unchanged line and the French CAC 40 Index is down by 0.1 percent.
In commodities trading, crude oil futures are spiking $1.68 to $70.74 a barrel after plunging $1.67 to $69.06 a barrel on Tuesday. Meanwhile, after edging down $0.40 to $1,313.70 an ounce in the previous session, gold futures are slipping $1.60 to $1,312.10 an ounce.
On the currency front, the U.S. dollar is trading at 109.69 yen compared to the 109.13 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1881 compared to yesterday's $1.1864.
by P2PNews Staff Writer