Stocks May Extend Yesterday’s Pullback In Early Trading

Stocks may move to the downside in early trading on Friday, extending the pullback seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 31 points.

Uncertainty about the outlook for tax reform may weigh on the markets after Senate Republicans released their version of a tax bill.

The Senate bill includes some significant differences from the House version, including a delay in the implementation of a cut in the corporate tax rate.

While the Senate version still reduces the corporate tax rate to 20 percent from 35 percent, the new rate would not take effect until 2019. The House bill would start the 20 percent rate next year.

A number of other differences related to issues such as deductions and the estate tax have raised some questions about the outlook for tax reform.

House Republicans could pass their version as early as next week, although it remains to be seen if GOP lawmakers can overcome the differences in the two bills to get legislation to the president’s desk.

Shortly after the start of trading, the University of Michigan is scheduled to release its preliminary report on consumer sentiment in the month of November.

The consumer sentiment index is expected to edge down to 100.0 in November after jumping to a thirteen-year high of 100.7 in October.

Among individual stocks, shares of The Trade Desk (TTD) are moving sharply lower in pre-market trading after the digital ad placement company reported better than expected third quarter results but provided disappointing revenue guidance.

Residential real estate company Redfin (RDFN) may also come under pressure after reporting third quarter results that came in below analyst estimates.

On the other hand, shares of J.C. Penney (JCP) are spiking higher in pre-market trading after the department store operator reported a narrower than expected third quarter loss on better than expected revenues.

Graphics chip maker Nvidia (NVDA) is also likely to move to the upside after reporting third quarter results that beat analyst estimates on both the top and bottom lines.

Stocks climbed off their worst levels of the day but still ended Thursday’s trading firmly in negative territory. With the drop on the day, the major averages pulled back off the record closing highs set in the previous session.

The major averages more than offset the modest gains posted on Wednesday. The Dow fell 101.42 points or 0.4 percent to 23,461.94, the Nasdaq…

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