U.S. Stocks Likely To See Further Upside In Early Trading

After ending the previous session sharply higher, stocks may see further upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 350 points.

Easing concerns about the impact of the Omicron variant of the coronavirus may contribute to continued strength on Wall Street.

Indications the variant causes milder symptoms has helped offset worries the new strain could derail the global economic recovery.

Uncertainty about Omicron contributed to substantial volatility in the markets last week, with the major averages hitting their lowest levels in well over a month.

With the major averages still well off their recent highs, traders may continue to use the recent weakness as an opportunity to pick up stocks at somewhat reduced levels.

Intel (INTC) may help lead an early advance on Wall Street, as the semiconductor giant is soaring by 7.2 percent in pre-market trading.

The spike by Intel comes after the company announced its intention to take its self-driving car unit Mobileye public in the United States in mid-2022 via an initial public offering.

In U.S. economic news, the Commerce Department released a report showing the U.S. trade deficit narrowed significantly in the month of October amid a spike in the value of exports.

The report said the trade deficit decreased to $67.1 billion in October from a revised $81.4 billion in September. Economists had expected the deficit to narrow to $67.5 billion from the $80.9 billion originally reported for the previous month.

The narrower trade deficit came as the value of exports soared by 8.1 percent to $223.6 billion, while the value of imports climbed by 0.9 percent to $290.7 billion.

Following the rollercoaster ride seen last week, stocks showed a strong move to the upside during trading on Monday. The major averages all moved notably higher on the day, with the Dow posting a particularly strong gain.

The major averages pulled back off their best levels in late-day trading but remained firmly positive. The Dow surged 646.95 points or 1.9 percent to 35,227.03, the Nasdaq advanced 139.68 points or 0.9 percent to 15,225.15 and the S&P 500 jumped 53.24 points or 1.2 percent to 4,591.67.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index shot up by 1.9 percent, while Hong Kong’s Hang Seng Index spiked by 2.7 percent.

The major European markets have also shown strong moves to the upside on the day. While the U.K.’s FTSE 100 Index has jumped by 1.2 percent, the German DAX Index and the French CAC 40 Index are up by 2.1 percent and 2.3 percent, respectively.

In commodities trading, crude oil futures are surging $1.93 to $71.42 a barrel after spiking $3.23 to $69.49 a barrel on Monday. Meanwhile, after falling $4.40 to $1,779.50 an ounce in the previous session, gold futures are sliding $5.80 to $1,773.70 an ounce.

On the currency front, the U.S. dollar is trading at 113.68 yen compared to the 113.48 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1237 compared to yesterday’s $1.1285.

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