After ending the previous session mostly higher, stocks may move back to the downside in early trading on Tuesday. The major index futures are currently pointing to lower open for the markets, with the Dow futures down by 133 points.
Traders may look to cash in on yesterday’s gains, which lifted the Dow toward the high end of the trading range seen over the past few weeks.
Concerns about the near-term outlook for the markets may also weigh on Wall Street, as some analysts warn the markets have come too far too fast in light of the ongoing coronavirus pandemic.
Most major companies have reported better than expected quarterly results this earnings season, but buying interest has been somewhat subdued amid worries about valuations.
Nonetheless, overall trading activity may be light as traders look ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.
Economists currently expect employment to jump by 980,000 jobs in April after surging up by 916,000 jobs in May. The unemployment rate is also expected to dip to 5.8 percent from 6.0 percent.
Payroll processor ADP will provide a preview of the jobs data on Wednesday with the release of its report on private sector employment in April.
A report released by the Commerce Department this morning showed the U.S. trade deficit hit a new record high in the month of March.
The Commerce Department said the trade deficit widened to $74.4 billion in March from a revised $70.5 billion in February.
The trade deficit was nearly in line with estimates, as economists had expected the deficit to widen to $74.5 billion from the $71.1 billion originally reported for the previous month.
Shortly after the start of trading, the Commerce Department is scheduled to release its report on new orders for manufactured goods in the month of March. Factory orders are expected to jump by 1.3 percent.
Stocks moved mostly higher during trading on Monday, although the tech-heavy Nasdaq bucked the uptrend. The advance on the day lifted the Dow back within striking distance of last month’s record highs.
The major averages finished the day mixed. While the Nasdaq fell 67.56 points or 0.5 percent to 13,895.12, the Dow climbed 238.38 points or 0.7 percent to 34,113.23 and the S&P 500 rose 11.49 points or 0.3 percent to 4,192.66.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday, with the Japanese and Chinese markets still closed for holidays. Hong Kong’s Hang Seng Index advanced by 0.7 percent, while Australia’s S&P/ASX 200 Index climbed by 0.6 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index has inched up by 0.1 percent, the French CAC 40 Index is down by 0.3 percent and the German DAX Index is down by 1.5 percent.
In commodities trading, crude oil futures are climbing $0.85 to $65.34 a barrel after advancing $0.91 to $64.49 barrel on Monday. Meanwhile, after jumping $24.10 to $1,791.80 an ounce in the previous session, gold futures are falling $5.50 to $1,786.30 an ounce.
On the currency front, the U.S. dollar is trading at 109.11 yen compared to the 109.07 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2024 compared to yesterday’s $1.2064.
Business News
U.S. Stocks May Give Back Ground In Early Trading
2021-05-04 12:52:10
