Stocks May Benefit From Strength Overseas - U.S. Commentary


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(RTTNews.com) - Following the mixed performance seen last week, stocks may move to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 70 points.

Early buying interest may be generated in reaction to strength in the overseas markets, which benefited from political news out of Europe.

French President Emmanuel Macron's party won a clear parliamentary majority in Sunday's election, giving him a strong mandate in parliament to pursue his pro-European Union, business-friendly reform plans.

Trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

The economic calendar for the week remains relatively quiet, although traders are likely to keep an eye on reports on new and existing home sales and leading economic indicators.

Among individual stocks, shares of Clovis Oncology ( CLVS ) are moving sharply higher in pre-market trading after the biopharmaceutical company announced positive late-stage trial data for its ovarian cancer drug.

Biotechnology company Rigel Pharmaceuticals ( RIGL ) may also see early strength on news the FDA has accepted its application for the use of Tavalisse in patients with chronic or persistent immune thrombocytopenia.

On the other hand, shares of Seattle Genetics ( SGEN ) may come under pressure after the biotechnology company said it is halting a late-stage trial of trial of vadastuximab talirine in frontline older acute myeloid leukemia patients.

Stocks turned in a mixed performance last Friday amid another round of downbeat economic data and news that online giant Amazon ( AMZN ) snapped up Whole Foods (WFM).

While the Nasdaq dipped 13.74 points or 0.2 percent to 6,151.76, the Dow edged up 24.38 points or 0.1 percent to 21,384.28 and the S&P 500 crept up 0.69 points or less than a tenth of a percent to 2,433.15.

The major averages also turned in a mixed performance for the week. Moving lower for the second straight week, the Nasdaq slid by 0.9 percent, but the Dow rose by 0.5 percent and the S&P 500 inched slightly higher.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index jumped by 1.2 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.5 percent, the German DAX Index is up by 0.9 percent and the French CAC 40 Index is up by 1 percent.

In commodities trading, crude oil futures are inching up $0.13 to $44.87 a barrel after rising $0.28 to $44.74 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,251.10, down $5.40 from the previous session's close of $1,256.50. On Friday, gold rose $1.90.

On the currency front, the U.S. dollar is trading at 111.32 yen compared to the 110.88 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1178 compared to last Friday's $1.1198.

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This article appears in: Stocks , Politics
Referenced Symbols: AMZN , CLVS , RIGL , SGEN , WFMI


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