Following the pullback seen in the previous session, stocks are likely to move back to the 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 105 points.
Early buying interest may be generated in reaction to news that China has cut quarantine times for international travelers in a big step toward easing Covid-19 controls.
The news has contributed to pre-market strength among travel and casino stocks, with Wynn Resorts (WYNN) and Las Vegas Sands (LVS) showing significant moves to the upside.
Banking stocks are also likely to see early strength after several financial giants, including Morgan Stanley (MS), Goldman Sachs (GS), Bank of America (BAC) and Wells Fargo (WFC), raised their dividends after passing the Federal Reserve’s annual stress tests.
Traders may also continue to pick up stocks at relatively reduced levels following recent weakness, although lingering concerns about a potential recession may keep buying interest somewhat subdued.
Not long after the start of trading, the Conference Board is due to release its report on consumer confidence in the month of June. The consumer confidence index is expected to drop to 101.0 in June from 106.4 in May.
U.S. stocks closed lower on Monday after spending much of the day’s session in negative territory as investors largely stayed cautious, reassessing the expected path of Federal Reserve interest rate hikes amid falling inflation expectations.
The major averages all ended in the red, with the Nasdaq posting a more pronounced loss. The Dow ended down by 62.42 points or 0.2 percent at 31,438.26, coming off the day’s high of 31,598.59.
The S&P 500 settled lower by 11.63 points or 0.3 percent at 3,900.11, while the Nasdaq closed lower by 83.07 points or 0.7 percent at 11,524.55.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index climbed by 0.7 percent, while China’s Shanghai Composite Index advanced by 0.9 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 0.8 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both up by 1.2 percent.
In commodities trading, crude oil futures are climbing $1.35 to $110.92 a barrel after jumping $1.95 to $109.57 a barrel on Monday. Meanwhile, after dipping $5.50 to $1,824.80 an ounce in the previous session, gold futures are inching up $0.90 to $1,825.70 an ounce.
On the currency front, the U.S. dollar is trading at 136.19 yen compared to the 135.46 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0550 compared to yesterday’s $1.0584.
Business News
Futures Pointing To Initial Strength On Wall Street
2022-06-28 12:50:09
