Profit Taking May Lead To Another Early Pullback On Wall Street

The major U.S. index futures are currently pointing to a lower opening on Friday following the upward move seen for five consecutive sessions.

Profit taking may contribute to initial weakness on Wall Street along with concerns about the ongoing government shutdown and skepticism about a potential trade deal between the U.S. and China.

Stocks managed to recover from an early downward move on Thursday, however, as recent upward momentum helped the major averages extend their recent winning streak.

Early trading may be impacted by reaction to a report from the Labor Department showing a slight drop in consumer prices in the month of December.

After recovering from an early move to the downside, stocks moved mostly higher over the course of the trading day on Thursday. With the turnaround on the day, the major averages closed higher for the fifth consecutive session.

The major averages ended the day just off their highs of the session. The Dow advanced 122.80 points or 0.5 percent to 24,001.92, the Nasdaq rose 28.99 points or 0.4 percent to 6,986.07 and the S&P 500 climbed 11.68 points or 0.5 percent to 2,596.64.

The initial weakness on Wall Street came as traders cashed in on recent strength on Wall Street as assessments of trade talks between the U.S. and China showed no significant breakthroughs.

A statement from the office of U.S. Trade Representative Robert Lighthizer said the meetings were held as part of an agreement between President Donald Trump and Chinese President Xi Jinping to engage in 90 days of negotiations with a view to achieving needed structural changes in China.

The statement said the talks included discussions on China’s pledge to purchase a substantial amount of U.S. goods and services but did not provide details about the tone or outcome of the meetings.

“The United States

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