Stocks May Extend Recent Upward Trend – U.S. Commentary
Following the rally seen in the previous session, stocks may see some 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 42 points.
The upward momentum on Wall Street comes as optimism about the upcoming earnings season has overshadowed recent trade concerns.
Snack food and beverage giant PepsiCo (PEP) released its second quarter results this morning, reporting earnings that exceeded analyst estimates.
Financial giants Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) are due to report their quarterly results before the start of trading on Friday.
Another light day on the U.S. economic front may keep some traders on the sidelines, however, with closely watched reports on producer and consumer price inflation due to be released in the coming days.
Stocks moved sharply higher over the course of the trading session on Monday, extending the strong upward move seen last Friday.
The major averages all ended the day firmly in positive territory. The Dow soared 320.11 points or 1.3 percent to 24,776.59, the Nasdaq advanced 67.81 points or 0.9 percent to 7,756.20 and the S&P 500 climbed 24.35 points or 0.9 percent to 2,784.17.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index advanced by 0.7 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has inched up by 0.1 percent, the German DAX Index is up by 0.3 percent and the French CAC 40 Index is up by 0.4 percent.
In commodities trading, crude oil futures are climbing $0.31 to $74.16 a barrel after inching up $0.05 to $73.85 a barrel on Monday. Meanwhile, after rising $3.80 to $1,259.60 an ounce in the previous session, gold futures are falling $5.70 to $1,253.90 an ounce.
On the currency front, the U.S. dollar is trading at 111.19 yen compared to the 110.85 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1715 compared to yesterday’s $1.1751.
by RTTNews Staff Writer
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