After ending the previous session sharply higher, stocks are likely to see further upside in early trading on Tuesday. The major index futures are currently pointing to an initial jump on Wall Street, with the S&P 500 futures surging by 2.0 percent.
The markets may benefit from positive reaction to quarterly results from companies like Goldman Sachs (GS) and Johnson & Johnson (JNJ), which have helped ease concerns about the strength of the earnings season.
Shares of Goldman Sachs are jumping by 3.4 percent in pre-market trading after the financial giant reported third quarter results that beat analyst estimates on both the top and bottom lines.
Johnson & Johnson is also seeing pre-market strength after the healthcare giant reported better than expected third quarter results.
Netflix (NFLX) and United Airlines (UAL) are among the companies due to report their quarterly results after the close of today’s trading.
Big-name companies like Procter & Gamble (PG), IBM Corp. (IBM), Tesla (TSLA), AT&T (T) and American Express (AXP) are also due to report their results in the coming days.
Traders may also continue to hunt for bargains, as the major averages remain at relatively reduced levels even after yesterday’s rally.
Just before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of September. Industrial production is expected to inch up by 0.1 percent in September after edging down by 0.2 percent in August.
The National Association of Home Builders is also due to release its report on homebuilder confidence in the month of October shortly after the open. The housing market index is expected to dip to 44 in October from 46 in September.
Stocks moved sharply higher in early trading on Monday and continued to turn in a strong performance throughout the session. The major averages all posted strong gains on the day, with the tech-heavy Nasdaq leading the way higher.
The major averages moved roughly sideways in afternoon trading, hovering near their best levels of the day. While the Nasdaq surged 354.41 points or 3.4 percent to 10,675.80, the S&P 500 shot up 94.88 points or 2.7 percent to 3,677.95 and the Dow jumped 550.99 points or 1.9 percent to 30,185.82.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. Japan’s Nikkei 225 Index jumped by 1.4 percent and Hong Kong’s Hang Seng Index surged by 1.8 percent, although China’s Shanghai Composite Index bucked the uptrend and edged down by 0.1 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has spiked by 1.8 percent, the French CAC 40 Index is up by 1.5 percent and the U.K.’s FTSE 100 Index is up by 1.3 percent.
In commodities trading, crude oil futures are rising $0.27 to $85.73 a barrel after edging down $0.15 to $85.46 a barrel on Monday. Meanwhile, after climbing $15.10 to $1,664 an ounce in the previous session, gold futures are slipping $3.50 to $1,660.50 an ounce.
On the currency front, the U.S. dollar is trading at 148.98 yen compared to the 149.04 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $0.9847 compared to yesterday’s $0.9841.
Business News
U.S. Stocks May See Further Upside On Upbeat Earnings News
2022-10-18 12:48:08
