Stocks are poised to move to the upside in early trading on Tuesday, extending the advance seen in the previous session. The major index futures are currently pointing to a higher open for the markets, with the Dow up by 80 points.
A continued pullback by treasury yields may lead to further strength on Wall Street, as the yield on the benchmark ten-year note has dipped below 1.6 percent.
The drop in yields partly reflects easing worries about inflation and the possibility the Federal Reserve could begin tapering its asset purchases.
Later this week, a reading on inflation said to be preferred by the Fed could have a notable impact on both stocks and bonds.
Shortly after the start of trading, the Commerce Department is due to release its report on new home sales in the month of April. Economists expect new home sales to slump by 7.0 percent to an annual rate of 0.950 million.
The Conference Board is also scheduled to release its report on consumer confidence in the month of May. The consumer confidence index is expected to drop to 119.0 in May after jumping to 121.7 in April.
Among individual stocks, shares of Shake Shack (SHAK) are seeing significant pre-market strength after Goldman Sachs upgraded its rating on the restaurant chain’s stock to Buy from Neutral.
Adhesives and industrial coatings maker Nordson (NDSN) may also move to the upside after reporting fiscal second quarter results that exceeded analyst estimates on both the and bottom lines.
On the other hand, shares of Lordstown Motors (RIDE) are moving sharply lower in pre-market trading after the electric vehicle maker slashed its production guidance for the year and said it is seeking additional capital.
Following the mixed performance seen last week, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside on the day, with the tech-heavy Nasdaq showing a particularly strong advance.
The major averages gave back ground going into the close but remained firmly positive. The Dow climbed 186.14 points or 0.5 percent to 34,393.98, the Nasdaq surged up 190.18 points or 1.4 percent to 13,661.17 and the S&P 500 jumped 41.19 points or 1 percent to 4,197.05.
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 soared by 2.4 percent.
Most European stocks have also moved to the upside on the day. While the U.K.’s FTSE 100 Index is nearly unchanged, the French CAC 40 Index is up by 0.1 percent and the German DAX Index is up by 0.6 percent.
In commodities trading, crude oil futures are slipping $0.32 to $65.73 a barrel after soaring $2.47 to $66.05 a barrel on Monday. Meanwhile, after climbing $7.80 to $1,884.50 an ounce in the previous session, gold futures are dipping $2.10 to $1,882.40 an ounce.
On the currency front, the U.S. dollar is trading at 108.90 yen compared to the 108.75 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2257 compared to yesterday’s $1.2216.
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