U.S. Stocks May Extend Yesterday's Rebound In Early Trading

Following the rebound seen over the course of 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.

Technology stocks may continue to lead the recovery on Wall Street, with the tech-heavy Nasdaq 100 futures jumping by 0.9 percent.

Traders may continue to look to pick up stocks at relatively reduced levels after the Nasdaq fell to a two-month low last Friday. The S&P 500 also ended last Friday’s trading at its lowest closing level in well over a month.

A pullback by bond yields may also contribute to strength on Wall Street, as the yield on the benchmark ten-year note is giving back ground after reaching its highest levels in over 15 years.

Positive sentiment may also be generated in reaction to earnings news from Lowe’s (LOW), with the home improvement retailer jumping by 2.4 percent in pre-market trading.

Lowe’s reported fiscal second quarter earnings that exceeded analyst estimates and reaffirmed its full-year revenue guidance.

Not long after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of July.

Existing home sales are expected to edge down to an annual rate of 4.15 million in July after tumbling to a rate of 4.16 million in June.

Stocks moved mostly higher over the course of the trading session on Monday, regaining ground following recent weakness. Technology stocks helped lead the rebound, resulting in a substantial gain by the Nasdaq.

The Nasdaq surged 206.81 points or 1.6 percent to 13,497.59 and the S&P 500 climbed 30.06 points or 0.7 percent to 4,399.77, while the narrower Dow staged a recovery attempt from early weakness but still closed down 36.97 points or 0.1 percent at 34,463.69.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index and China’s Shanghai Composite Index both advanced by 0.9 percent, while Hong Kong’s Hang Seng Index jumped by 1.0 percent.

The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has climbed by 0.7 percent, the German DAX Index and the French CAC 40 Index are up by 1.2 percent and 1.3 percent, respectively.

In commodities trading, crude oil futures are edging down $0.10 to $80.62 a barrel after falling $0.53 to $80.72 barrel on Monday. Meanwhile, after rising $6.50 to $1,923 an ounce in the previous session, gold futures are climbing $6.80 to $1,929.80 an ounce.

On the currency front, the U.S. dollar is trading at 145.94 yen compared to the 146.22 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0878 compared to yesterday’s $1.0896.

Source: Read Full Article