Futures Pointing To Modestly Higher Open On Wall Street

Following the weakness seen in the previous session, stocks may move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

Optimism the U.S. economy may be able to avoid a recession may contribute to early strength on Wall Street after the Commerce Department released a report showing an unexpected surge in new orders for U.S. manufactured durable goods in the month of May.

The Commerce Department said durable goods orders shot up by 1.7 percent in May after jumping by an upwardly revised 1.2 percent in April.

Economists had expected durable goods orders to slump by 1.0 percent compared to the 1.1 percent advance that had been reported for the previous month.

Excluding a surge in orders for transportation equipment, durable goods orders climbed by 0.6 percent in May after falling by a revised 0.6 percent in April.

Ex-transportation orders were expected to edge down by 0.1 percent compared to the 0.2 percent dip that had been reported for the previous month.

Buying interest may remain somewhat subdued, however, as traders continue to express concerns about the outlook for interest rates.

Later in the week, the Commerce Department is due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Federal Reserve.

The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast interest rate hikes.

Shortly after the start of trading, the Commerce Department is due to release its report on new home sales in the month of May. New home sales are expected to dip to an annual rate of 675,000 in May after surging to a rate of 683,000 in April.

The Conference Board is also scheduled to release its report on consumer confidence in the month of June. The consumer confidence index is expected to climb to 103.7 in June from 102.3 in May.

U.S. stocks closed mostly lower on Monday, with stocks in the technology sector suffering sharp losses. Worries about tighter monetary policies and the impact of higher rates on economic growth weighed on the markets.

The major averages all closed in the red. The Dow edged down 12.72 points or less than a tenth of a percent to 33,714.71, and the S&P 500 drifted down 19.51 points or 0.5 percent to 4,328.82, while the Nasdaq ended down 156.74 points or 1.2 percent at 13,335.78.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.5 percent, while China’s Shanghai Composite Index jumped by 1.2 percent.

Meanwhile, the major European markets have all moved modestly lower on the day. While the U.K.’s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index and the German DAX Index are both down by 0.3 percent.

In commodities trading, crude oil futures are slumping $0.98 to $68.39 a barrel after rising $0.21 to $69.37 a barrel on Monday. Meanwhile, after inching up $4.20 to $1,933.80 an ounce in the previous session, gold futures are edging up $4.30 to $1,938.10 an ounce.

On the currency front, the U.S. dollar is trading at 143.48 yen compared to the 143.51 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0964 compared to yesterday’s $1.0906.

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