Futures Pointing To Continued Strength On Wall Street

Stocks are likely to move to the upside in early trading on Tuesday, adding to the gains posted in the previous session. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

A positive reaction to some of the latest earnings news may generate early buying interest, with shares of Bank of America (BAC) moving notably higher in pre-market trading after the financial giant reported better than expected second quarter earnings.

Health insurance giant UnitedHealth (UNH) is also likely to move to the upside after reporting second quarter earnings that exceeded analyst estimates.

On the other hand, shares of Morgan Stanley (MS) are seeing significant pre-market weakness even though the company reported better than expected second quarter earnings.

Traders are also digesting the latest U.S. economic news, including a Commerce Department report showing U.S. retail sales came in unchanged in the month of June.

The Commerce Department said retail sales came in flat in June after rising by an upwardly revised 0.3 percent in May.

Economists had expected retail sales to come in unchanged compared to the 0.1 percent uptick originally reported for the previous month.

Excluding a sharp drop in sales by motor vehicle and parts dealers, retail sales climbed by 0.4 percent in June after inching up by 0.1 percent in May. Ex-auto sales were expected to creep up by 0.1 percent.

The Labor Department released a report on Tuesday showing import prices in the U.S. were unexpectedly flat in the month of June.

The report said import prices were unchanged in June after dipping by a revised 0.2 percent in May. Economists had expected import prices to rise by 0.2 percent compared to the 0.4 percent decrease originally reported for the previous month.

Meanwhile, the Labor Department said export prices declined by 0.5 percent in June after falling by a revised 0.7 percent in May.

Export prices were expected to edge down by 0.1 percent compared to the 0.6 percent decrease originally reported for the previous month.

Not long after the start of trading, the National Association of Home Builders is scheduled to release its report on homebuilder confidence in the month of July. The housing market index is expected to inch up to 44 in July from 43 in June.

The Commerce Department is also due to release its report on business inventories in the month of June. Business inventories are expected to rise by 0.3 percent.

U.S. stocks closed on a firm note on Monday, with two of the three major indices moving on to record fresh highs thanks to strong buying at several counters from across various sectors.

Optimism about interest rate cuts by the Fed and rising prospects of former President Donald Trump winning the upcoming presidential elections rendered the mood positive on Wall Street.

The Dow ended up 210.82 points or 0.5 percent at 40,211.72 after scaling a new high at 40,351.10. The S&P 500, which climbed to a new high of 5,666.94, settled at 5,631.22, gaining 15.87 points or 0.3 percent, while the Nasdaq ended with a gain of 74.12 points or 0.4 percent at 18,472.57, after hitting a high of 18,641.53.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.2 percent and China’s Shanghai Composite Index inched up by 0.1 percent, while Hong Kong’s Hang Seng Index slumped by 1.6 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has slid by 0.7 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both down by 0.4 percent.

In commodities trading, crude oil futures are tumbling $1.43 to $80.48 a barrel after slipping $0.30 to $81.91 a barrel on Monday. Meanwhile, after climbing $8.20 to $2,428.90 an ounce in the previous session, gold futures are rising $9 to $2,437.90 an ounce.

On the currency front, the U.S. dollar is trading at 158.77 yen compared to the 158.06 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0881 compared to yesterday’s $1.0894.