Futures Pointing To Modestly Lower Open On Wall Street

The major U.S. index futures are currently pointing to a modestly lower open on Tuesday, with stocks likely to move to the downside following the mixed performance seen in the previous session.

The Dow futures are down by 0.2 percent, as the blue chip index is likely to give back ground after reaching record highs in the previous session.

Traders may also look to cash in on recent strength in the broader markets ahead of the release of closely watched inflation data later in the week.

The Commerce Department is scheduled to release its report on personal income and spending in the month of July, which includes readings on inflation said to be preferred by the Federal Reserve, on Friday.

Economists currently expected the report to show the annual rate of consumer price growth was unchanged at 2.5 percent, while the annual rate of core consumer price is expected to tick up to 2.7 percent in July from 2.6 percent in June.

While the data is not likely to affect optimism the Fed will lower rates next month, it could impact expectations for how quickly the central bank cuts rates.

During his speech at the Jackson Hole Economic Symposium last Friday, Fed Chair Jerome Powell said the “time has come for policy to adjust” but noted the “timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

The major U.S. stock indexes turned in a mixed performance during trading on Monday, with the Dow reaching a new record closing high, while the tech-heavy Nasdaq saw a notable pullback after posting a strong gain last week.

The Dow pulled back well off its best levels of the session and briefly dipped into negative territory but ended the day up 65.44 points or 0.2 percent at 41,240.52.

Meanwhile, the Nasdaq slid 152.03 points or 0.9 percent to 17,725.77 and the S&P 500 fell 17.77 points or 0.3 percent at 5,616.84.

The modest gain posted by the Dow came amid strong gains by 3M Co. (MMM), Coca-Cola (KO) and Walt Disney (DIS).

On the other hand, substantial weakness among semiconductor stocks weighed on the Nasdaq, with the Philadelphia Semiconductor Index plunging by 2.5 percent.

Within the semiconductor sector, AI darling Nvidia (NVDA) slumped by 2.3 percent ahead of the release of its fiscal second quarter results after the close of trading on Wednesday.

Computer hardware stocks also showed a notable move to the downside, dragging the NYSE Arca Computer Hardware Index down by 1.3 percent.

At the same time, energy stocks turned in a strong performance as the price of crude oil surged amid geopolitical concerns after Israel and Hezbollah traded a barrage of strikes across the Lebanon border.

On the U.S. economic front, the Commerce Department released a report showing a sharp increase by new orders for U.S. manufactured durable goods in the month of July.

The Commerce Department said durable goods orders spiked by 9.9 percent in July after tumbling by a revised 6.9 percent in June.

Economists had expected durable goods orders to jump by 4.0 percent compared to the 6.7 percent plunge that had been reported for the previous month.

The substantial rebound by durable goods orders came as orders for transportation equipment skyrocketed by 34.8 percent in July after plummeting by 20.6 percent in June.

Excluding the surge in orders for transportation equipment, durable goods orders dipped by 0.2 percent in July after inching up by 0.1 percent in June. Ex-transportation orders were expected to come in unchanged.

Commodity, Currency Markets

Crude oil futures are falling $0.62 to $76.80 a barrel after surging $2.59 to $77.42 a barrel on Monday. Meanwhile, after rising $8.90 to $2,555.20 an ounce in the previous session, gold futures are sliding $11.50 to $2,543.70 an ounce.

On the currency front, the U.S. dollar is trading at 144.37 yen compared to the 144.53 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1155 compared to yesterday’s $1.1161.

Asia

Asian stocks fell broadly on Tuesday as investors waited for looming U.S. inflation figures and earnings from AI darling Nvidia.

Increased tensions in the Middle East and the Canadian government’s action to impose a large tax on Chinese-made electric vehicles also checked risk sentiment.

The dollar strengthened and Treasuries held steady ahead of PCE inflation data due later in the week that might show that U.S. consumer price increases continued to run cool in July.

Oil and gold prices were little changed in Asian trading despite Russia launching a fresh wave of deadly strikes on Ukraine.

Chinese shares ended lower as an escalation of trade tensions between Western countries and China offset data showing Chinese industrial profits grew faster in July. The benchmark Shanghai Composite Index slipped 0.2 percent to 2,848.73.

Japanese markets moved higher as a softer yen helped offset losses in the tech sector. The Nikkei 225 Index rose 0.5 percent to 38,288.62, while the broader Topix Index settled 0.7 percent higher at 2,680.80.

Canon, Honda Motor, Toyota, Nissan and Sony climbed 1-2 percent as the yen declined from a three-week high.

Chip-related shares fell, with Advantest and Tokyo Electron losing 1.6 percent and 0.9 percent, respectively.

Seoul stocks declined as a result of a weakening won. The Kospi dipped 0.3 percent to 2,689.25. LG Electronics dropped 0.6 percent on reports it is considering an initial public offering for its India business.

Australian markets ended lower, with banks and tech stocks leading losses ahead of the release of domestic inflation data on Wednesday.

The benchmark S&P/ASX 200 Index edged down 0.2 percent to 8,071.20, while the broader All Ordinaries Index eased 0.2 percent to close at 8,297.10.

BHP Group rose 1.3 percent after the world’s biggest miner reported full-year profit edged up 2 percent in line with analyst forecasts.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 Index slumped 1.1 percent to 12,451.11.

Europe

European stocks have edged up slightly on Tuesday ahead of key U.S. inflation figures and earnings from AI darling Nvidia due later in the week.

French politics were in focus after President Emmanuel Macron refused to name a prime minister from the left-wing New Popular Front alliance (NFP), which won the most seats in last month’s snap election.

In economic news, the German economy contracted, as initially estimated, in the second quarter due to weak household consumption and investment, official data revealed.

GDP fell 0.1 percent sequentially, in line with the flash estimate, following a 0.2 percent rise in the first quarter, according to final results from Destatis.

Meanwhile, hopes of a consumer-driven recovery in the second half of the year took another hit with German consumer confidence dropping.

A monthly survey data from the market research group Gfk revealed that the forward-looking consumer confidence index fell to -22.0 from revised -18.6 in August.

The pan-European STOXX Europe 600 Index is up 0.2 percent after snapping a three-day winning streak in the previous session amid light volume.

While the German DAX Index is up by 0.6 percent, the U.K.’s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.1 percent.

In corporate news, Sandvik AB has moved modestly higher after it agreed to acquire Universal Field Robots (UFR).

Rheinmetall AG was little changed. The German arms and automotive company said that it would start making exhaust gas recirculation valves or EGR valves for a “renowned car manufacturer.”

Miners traded higher in London, with Antofagasta and Anglo American rallying as copper prices climbed to their highest levels in nearly six weeks on U.S rate-cut optimism.

Bunzl has soared after the distribution and outsourcing group posted strong earnings and announced a share buyback plan.

Meanwhile, Daimler Truck Holding AG has fallen as Goldman Sachs downgraded its rating on the stock to Neutral” from Buy.

Associated British Foods has also slumped as Deutsche Bank cut its rating on the stock to Sell from Hold.

Swiss airport operator Flughafen Zuerich has also moved to the downside after reporting first-half results below estimates.

U.S. Economic News

Standard & Poor’s is scheduled to release its report on home prices in major metropolitan areas in the June of May at 9 am ET.

At 10 am ET, the Conference Board is due to release its report on consumer confidence in the month of August. The consumer confidence index is expected to edge down to 100.1 in August after rising to 100.3 in July.

The Treasury Department is scheduled to announce the results of this month’s auction of $69 billion worth of two-year notes at 1 pm ET.

Stocks In Focus

Shares of Trip.com (TCOM) are moving sharply higher in pre-market trading after the China-based travel company reported better-than-expected second-quarter results.

Chinese e-commerce company JD.com (JD) may also move to the upside after announcing a new $5.0 billion share repurchase program.

On the other hand, shares of CAVA Group (CAVA) are seeing significant pre-market weakness after the restaurant chain operator’s CEO Brent Schulman and several key executives and directors disclosed sales of the company’s stock.

Chocolate maker Hershey (HSY) may also move to the downside after Citi downgraded its rating on the company’s stock to Sell from Neutral.