Stocks are likely to move to the upside in early trading on Tuesday, adding to the strong gains posted in the previous session. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 242 points.
The upward momentum on Wall Street comes as stocks that recently benefited from the retail trading frenzy are giving back ground in pre-market trading.
Video game retailer GameStop (GME), which is seen as the poster child for the so-called “retail investor revolt,” is plummeting by more than 40 percent in pre-market trading after plunging by more than 30 percent on Monday.
Shares of AMC Entertainment (AMC) are also seeing considerable pre-market weakness after the movie theater chain ended the previous session modestly higher.
The markets may also benefit from a positive reaction to the latest earnings news, with Exxon Mobil (XOM) likely to see initial strength after reporting better than expected fourth quarter earnings.
Drug giant Pfizer (PFE) may also move to the upside after reporting fourth quarter earnings that missed estimates but raising its 2021 guidance due to the impact of its coronavirus vaccine.
Traders also remain optimistic about more fiscal stimulus after President Joe Biden met with a group of ten Republican Senators who have offered a counterproposal to his $1.9 trillion relief plan.
Senator Susan Collins, R-Maine, called the meeting “very productive” and said the two sides plan to continue negotiations.
A White House statement also described the meeting as “productive” but noted that Democrats could still use the reconciliation process to pass a relief bill without Republican support.
After showing a substantial move to the downside last week, stocks showed a significant rebound during trading on Monday. The major averages all climbed firmly into positive territory, with the tech-heavy Nasdaq showing a particularly strong advance.
The Nasdaq soared 332.70 points or 2.6 percent to 13,403.39 and the S&P 500 jumped 59.62 points or 1.6 percent to 3,773.86. The Dow underperformed its broader counterparts but still ended the day up 229.29 points or 0.8 percent at 30,211.91.
In overseas trading, most stock markets across the Asia-Pacific region saw further upside during trading on Tuesday. Japan’s Nikkei 225 Index surged up by 1 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.
The major European markets are also adding to yesterday’s gains. While the French CAC 40 Index has jumped by 1.6 percent, the German DAX Index is up by 1 percent and the U.K.’s FTSE 100 Index is up by 0.6 percent.
In commodities trading, crude oil futures are jumping $1.27 to $54.82 a barrel after spiking $1.35 to $53.55 a barrel on Monday. Meanwhile, after climbing $13.60 to $1,863.90 an ounce in the previous session, gold futures are plunging $29.60 to $1,834.30 an ounce.
On the currency front, the U.S. dollar is trading at 105.01 yen compared to the 104.93 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2039 compared to yesterday’s $1.2060.
Business News
U.S. Stocks Likely To See Further Upside After Yesterday’s Rebound
2021-02-02 13:52:22
