U.S. Stocks May Extend Yesterday’s Rebound In Early Trading
Following the rebound seen in the previous session, stocks are likely to see further upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Traders may continue to look to pick up stocks at relatively reduced levels amid a positive reaction to some of the latest corporate earnings news.
Shares of General Motors (GM) are moving sharply higher in pre-market trading after the auto giant reported first quarter results that exceeded analyst estimates on both the top and bottom lines.
Snack and beverage giant PepsiCo (PEP) is also likely to see initial strength after reporting better than expected first quarter results.
On the other hand, shares of JetBlue (JBLU) are seeing substantial pre-market weakness after the airline reported a narrower than expected first quarter loss but lowered its 2024 revenue forecast.
Delivery giant UPS (UPS) may also move to the downside after reporting first quarter earnings that beat analyst estimates but weaker than expected sales.
Not long after the start of trading, the Commerce Department is due to release its report on new home sales in the month of March. Economists expect new home sales to rise to an annual rate of 668,000 in March after dipping to a rate of 662,000 in February.
U.S. stocks climbed higher on Monday, with those from the technology sector turning in a fine performance, as traders indulged in some bargain hunting after recent losses. Easing worries about Middle East tensions helped underpin sentiment.
The major averages all closed on a firm note. The Dow ended with a gain of 253.78 points or 0.7 percent at 38,239.98, more than 200 points off the day’s high of 38,447.16.
The S&P 500, which climbed to a high of 5,038.84, settled at 5,010.60, gaining 43.37 points or 0.9 percent, while the Nasdaq ended higher by 169.30 points or 1.1 percent at 15,451.31, off the day’s high of 15,539.00.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.3 percent, while China’s Shanghai Composite Index slid by 0.7 percent.
Meanwhile, European stocks have moved mostly higher on the day. While the German DAX Index is up by 0.9 percent, the French CAC 40 Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is nearly unchanged.
In commodities trading, crude oil futures are falling $0.72 to $81.18 a barrel. Meanwhile, gold futures are slumping $24.5 to $2,321.90 an ounce.
On the currency front, the U.S. dollar is trading at 154.79 yen compared to the 154.85 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0667 compared to yesterday’s $1.0655.
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