– The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment suggesting a strong rebound from the oversold levels. After stocks failed to take off on a solid note on Monday despite deal announcements, some optimism may dawn on the markets, especially after China released some upbeat numbers, vouching for a continuation in the pace of the global economic recovery.
Additionally, the retail sales data for May came in line with expectations, although suggesting a weak consumer spending trend. Commodities are also rallying, as risk appetite improved following the day’s data releases.
U.S. stocks scrambled to a mixed close on Monday despite many deal announcements. After opening higher and seeing moderate buying interest for much of the morning, the major averages experienced weakness in mid-day trading amid news of S&P downgrading Greece’s credit rating. Although the major averages recovered in the afternoon, they turned mixed in late trading.
The Dow Industrials ended up 1.06 points or 0.01 percent at 11,953 and the S&P 500 Index added 0.85 points or 0.07 percent before closing at 1,272, while the Nasdaq Composite closed at 2,640, down 4.04 points or 0.15 percent.
Nineteen of the thirty Dow components closed higher, with American Express (AXP), Bank of America (BAC), JP Morgan Chase (JPM), Verizon (VZ) and Microsoft (MSFT) advancing strongly. On the other hand, Alcoa (AA), Caterpillar (CAT) and Hewlett-Packard (HPQ) declined sharply.
Among the sector indexes, the NYSE Arca Airline Index added 1.07 percent and the KBW Bank Index advanced about 1 percent. Meanwhile, the Dow Jones U.S. Basic Materials receded 1.04 percent, the NYSE Arca Oil Index fell about 1 percent, the NYSE Arca Gold Bugs Index moved down 1.35 percent and the Philadelphia Oil Service Index retreated 1.96 percent. Additionally, the Philadelphia Semiconductor Index fell about 1 percent and the NYSE Arca Networking Index receded 1.11 percent.
Currency, Commodity Markets
Crude oil futures are rising $0.26 to $97.56 a barrel after receding $1.99 to $97.30 a barrel on Monday. Gold futures are currently rising $1.10 to $1,516.70 an ounce. In the previous session, the precious metal fell $13.60 to 1,515.60 an ounce. The commodity rout in the previous session came amid an increase in risk aversion, which sent the dollar higher.
On the currency front, the U.S. dollar is trading at 80.5338 yen compared to the 80.2417 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.4442 compared to yesterday’s $1.4413.
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