Futures Pointing To Initial Strength On Wall Street
(RTTNews) - Stocks may move to the upside in early trading on Tuesday, extending the significant rebound seen in the previous session. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 70 points.
Drug stocks could help lead the way higher on Wall Street after healthcare giant Johnson & Johnson (JNJ) was ordered to pay much less than expected in a case over the company's involvement in Oklahoma's opioid crisis.
J&J was ordered to pay the state $572 million, which is more than twice the $270 million OxyContin-maker Purdue Pharma agreed to pay in a settlement but substantially less than the $17 billion sought by Oklahoma.
Shares of J&J are moving notably higher in pre-market trading, while other opioid makers such as Teva Pharmaceutical (TEVA), Endo International (ENDP), and Mallinckrodt (MNK) are also seeing significant strength.
Buying interest may remain somewhat subdued, however, as lingering uncertainty about the U.S.-China trade dispute may keep some traders on the sidelines.
President Donald Trump has claimed top Chinese officials recently called asking for the resumption of trade talks, although Chinese Foreign Ministry spokesman Geng Shuang continues to say he has not heard of any recent call.
Geng told reporters China hopes Washington can stop its wrong actions and create conditions for talks, according to a report from Reuters.
Shortly after the start of trading, the Conference Board is due to release its report on consumer confidence in the month of August. The consumer confidence index is expected to drop to 130.0 in August after jumping to 135.7 in July.
Stocks showed a strong move to the upside in early trading on Monday and remained firmly positive throughout the session. With the upward move on the day, the major averages partly offset the steep losses posted last Friday.
The major averages moved to the upside going into the close, finishing the session near their best levels of the day. The Dow jumped 269.93 points or 1.1 percent to 25,898.83, the Nasdaq soared 101.97 points or 1.3 percent to 7,853.74 and the S&P 500 surged up 31.27 points or 1.1 percent to 2,878.38.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index shot up by 1 percent, while China's Shanghai Composite Index jumped by 1.4 percent.
Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index is just below the unchanged line, the French CAC 40 Index is up by 0.5 percent and the German DAX Index is up by 0.7 percent.
In commodities trading, crude oil futures are climbing $0.60 to $54.24 barrel after sliding $0.53 to $53.64 a barrel on Monday. Meanwhile, after edging down $0.40 to $1,537.20 ounce in the previous session, gold futures are rising $1.30 to $1,538.50 an ounce.
On the currency front, the U.S. dollar is trading at 105.79 yen compared to the 106.12 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1106 compared to yesterday's $1.1102.