8th May 2018 13:58
WASHINGTON (Alliance News) - The major US index futures are pointing to a lower opening on Tuesday, with stocks likely to give back ground after ending the previous session mostly higher.
Geopolitical concerns may weigh on the markets ahead of President Donald Trump's announcement of his decision on the Iran nuclear deal.
Trump is widely expected to withdraw from the agreement, which lifted sanctions on Iran in exchange for limits on the country's nuclear program.
Overall trading activity may be somewhat subdued, however, as a lack of major US economic data may keep some traders on the sidelines.
After an early move to the upside, stocks gave back ground in afternoon trading on Monday but managed to end the day higher. With the gains on the day, the major averages extended the rally seen in the previous session.
The Dow rose 94.81 points or 0.4% to 24,357.32, the Nasdaq advanced 55.60 points or 0.8% to 7,265.23 and the S&P 500 climbed 9.21 points or 0.4% to 2,672.63.
Stocks initially continued to benefit from the upward momentum seen last Friday in response to the Labor Department's monthly jobs report.
While the report showed weaker than expected job growth in the month of April, the unemployment rate fell to its lowest level since 2000.
The jobs report reinforced expectations that the Federal Reserve will raise interest rates next month, although subdued wage growth has led traders to believe the Fed will not increase rates too aggressively.
The pullback seen in afternoon trading came as President Donald Trump announced via Twitter that he will reveal his decision on the Iran nuclear deal on Tuesday.
Computer hardware, biotechnology and brokerage stocks saw significant strength on the day, while telecom and tobacco stocks showed notable moves to the downside.
Commodity, Currency Markets
Crude oil futures are falling USD0.64 to USD70.09 a barrel after jumping USD1.01 to USD70.73 a barrel on Monday. Meanwhile, after slipping USD0.60 to USD1,314.10 an ounce in the previous session, gold futures are dropping USD2.40 to USD1,311.70 an ounce.
On the currency front, the US dollar is trading at 109.07 yen compared to the 109.09 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at USD1.1872 compared to yesterday's USD1.1922.
Asia
Asian stocks ended mostly higher on Tuesday as Chinese trade data topped forecasts and investors awaited an announcement by President Donald Trump on whether he will withdraw from the nuclear deal with Iran.
China's Shanghai Composite Index climbed 24.95 points or 0.8% to 3,161.60 after the release of upbeat trade figures for April. Hong Kong's Hang Seng Index surged up 408.55 points or 1.4% to 30,402.81.
Chinese exports climbed 12.9% year-over-year in April, well above the expected rise of 6.8%. Imports spiked 21.5% from a year ago, exceeding economists' forecast for an increase of 15.9%. The trade surplus totaled USD28.8 billion in April versus the expected surplus of USD25.7 billion.
Japanese shares recovered from a weak start to end modestly higher, led by banks and drug makers. The benchmark Nikkei 225 Index gained 41.53 points or 0.2% to end at 22,508.69, while the broader Topix Index closed 0.4% higher at 1,779.82.
Lender Mitsubishi UFJ Financial rose 0.9%, Sumitomo Mitsui Financial inched up 0.4% and Mizuho Financial Group gained 0.6%. Takeda Pharmaceutical Company soared 4% ahead of its announcement to buy larger rival Shire for USD62.42 billion.
On the data front, average household spending in Japan fell 0.7% year-on-year in March, the Ministry of Internal Affairs and Communications said, coming in at 301,230 yen. That missed forecasts for an increase of 1.1%.
Australian shares ended marginally higher, led by financials as Australia and New Zealand Banking Group flagged the likelihood of an additional buyback of shares to the tune of USD1 billion-$1.5 billion.
Investors also waited for the release of the annual budget amid expectations the government will announce hefty health and infrastructure spending and deliver tax cuts targeting lower and middle-income earners.
Meanwhile, market participants shrugged off soft retail sales figures for March. Retail sales remained flat in March, defying economists' forecast for an increase.
The benchmark S&P/ASX 200 Index inched up 7.40 points or 0.1% to 6,091.90, while the broader All Ordinaries Index ended 7.60 points higher at 6,183.20.
ANZ shares rose over 1%, Commonwealth advanced 1.1% and Westpac added 1.3%. Investment bank Macquarie Group rallied 1.7% to extend gains for the fourth straight session.
Healthscope jumped 3.3% after Canada's NorthWest Healthcare Properties REIT said it has taken a 10% interest in the company. Biotherapeutics company CSL climbed 1.5%.
Meanwhile, Beach Energy, Origin Energy, Woodside Petroleum and Santos dropped 1-2% as oil prices retreated from three-and-a-half-year highs ahead of Trump's decision on Iran.
Europe
European stocks are mostly lower on Tuesday even as UK markets held somewhat steady, helped by a weakening pound and deal-making news.
While the UK's FTSE 100 Index is just below the unchanged line, the French CAC 40 Index is down by 0.5% and the German DAX Index is down by 0.7%.
On the data front, reports on German industrial output, exports and UK house prices painted a mixed picture of regional economies.
Cement giant LafargeHolcim has moved lower after its first-quarter recurring EBITDA fell 7.7% on a like-for-like basis, affected by the especially harsh winter in North America and Europe.
Adecco Group has also tumbled. The staffing firm's first-quarter net income fell 26% due to one-offs and investments.
Danish hearing aid maker William Demant Holding has plummeted after warning of lower revenue.
Deutsche Post shares have also slumped. The German postal and logistics group confirmed its 2018 targets after reporting a fall in first-quarter consolidated net profit.
On the positive side, consumer products giant Unilever has rallied after commencing the first tranche of its share buyback program.
Shire PLC shares have also jumped in London after Japan's Takeda Pharmaceutical announced it had reached an agreement on the terms of a recommended offer to acquire the Irish drugmaker.
Similarly, Virgin Money Holdings has soared after receiving a preliminary and conditional proposal from CYBG.
US Economic Reports
At 1 pm ET, the Treasury Department is scheduled to announce the results of its auction of USD31 billion worth of three-year notes.
Stocks In Focus
Shares of Dish Network (DISH) are moving lower in pre-market trading after the satellite TV provider reported first quarter earnings that matched analyst estimates but on weaker than expected revenues.
Fertilizer producer Mosaic (MOS) may also see early weakness after reporting first quarter earnings that came in below expectations.
Shares of Hertz Global (HTZ) is also likely to come under pressure after the car rental company reported a wider than expected first quarter loss.
On the other hand, shares of Dean Foods (DF) are moving sharply higher in pre-market trading after the dairy producer reported better than expected first quarter results.
Drug maker Valeant Pharmaceuticals (VRX) may also see early strength after reporting first quarter revenues that exceeded estimates and raised its full-year guidance.
Related Shares:
Shire