Following the long holiday weekend, stocks are likely to move 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 187 points.
Traders may once again look to go bargain hunting following recent weakness in the markets, as the downturn seen last Friday dragged the major averages down to their lowest levels in over a month.
Recent bargain hunting efforts have not gained much traction, however, as concerns about the outlook for interest rates and the global economy continue to weigh on the markets.
Upcoming speeches by several Federal Reserve officials, including Fed Chair Jerome Powell, may also keep some traders on the sidelines.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of August.
The ISM’s services PMI is expected to dip to 55.1 in August from 56.7 in July, although a reading above 50 would still indicate growth.
After trending lower in recent sessions, stocks regained ground in morning trading on Friday but once again came under pressure over the course of the trading day. The major averages pulled back well off their early highs and into negative territory.
The major averages climbed off their worst levels going into the close but remained sharply lower. The Dow tumbled 337.98 points or 1.1 percent to 31,318.44, the Nasdaq plunged 154.26 points or 1.3 percent to 11,630.87 and the S&P 500 slumped 42.59 points or 1.1 percent to 3,924.26.
With the pullback on the day, the major averages closed lower for the third straight week. The Dow and the S&P 500 plummeted by 3.0 percent and 3.3 percent, respectively, while the Nasdaq dove by 4.2 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. China’s Shanghai Composite Index jumped by 1.4 percent and Japan’s Nikkei 225 Index closed just above the unchanged line, while Australia’s S&P/ASX 200 Index fell by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has advanced by 0.8 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are up by 0.3 percent and 0.2 percent, respectively.
In commodities trading, crude oil futures are inching up $0.08 to $86.95 a barrel after rising $0.26 to $86.87 a barrel last Friday. Meanwhile, after climbing $13.30 to $1,722.60 an ounce in the previous session, gold futures are edging up $1 to $1,723.60 an ounce.
On the currency front, the U.S. dollar is trading at 142.14 yen versus the 140.60 yen it fetched on Monday. Against the euro, the dollar is trading at $0.9922 compared to yesterday’s $0.9929.
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