(RTTNews) - After ending the previous session sharply lower, stocks may move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 67 points.
The markets may benefit from bargain hunting following the sell-off seen on Monday, which came amid concerns about a renewed spike in coronavirus cases.
Traders may look to pick up stocks at reduced levels, as corporate results this earnings season have come in relatively strong despite the ongoing pandemic.
Buying interest may also be generated amid persistent optimism that lawmakers in Washington will eventually reach an agreement on a new stimulus bill.
Adding to the positive sentiment, the Commerce Department released a report showing new orders for U.S. manufactured durable goods jumped by much more than expected in the month of September.
The report said durable goods orders surged up by 1.9 percent in September after rising by rising by 0.4 percent in August. Economists had expected durable goods orders to increase by 0.5 percent.
Excluding the spike in orders for transportation equipment, durable goods orders climbed by 0.8 percent in September compared to a 1.0 percent jump in the previous month. Ex-transportation orders were expected to rise by 0.4 percent.
Shortly after the start of trading, the Conference Board is due to release its report on consumer confidence in the month of October. The consumer confidence index is expected to inch up to 102.0 in October from 101.8 in September.
Following the lackluster performance seen last Friday, stocks moved sharply lower during trading on Monday. With the steep drop on the day, the major averages added to the losses posted last week.
The major averages climbed off their worst levels in afternoon trading but remained firmly negative. The Dow plunged 650.19 points or 2.3 percent to 27,685.38, the Nasdaq slumped 189.34 points or 1.6 percent to 11,358.94 and the S&P 500 tumbled 64.42 points or 1.9 percent to 3,400.97.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index closed just below the unchanged line, while Hong Kong's Hang Seng Index fell by 0.5 percent.
The major European markets have also moved to the downside on the day. While the French CAC 40 Index has slid by 0.8 percent, the German DAX Index is down by 0.2 percent and the U.K.'s FTSE 100 Index is down by 0.1 percent.
In commodities trading, crude oil futures are rising $0.19 to $38.75 a barrel after tumbling $1.29 to $38.56 a barrel on Monday. Meanwhile, after inching up $0.50 to $1,905.70 an ounce in the previous session, gold futures are slipping $2.50 to $1,903.20 an ounce.
On the currency front, the U.S. dollar is trading at 104.65 yen compared to the 104.84 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1826 compared to yesterday's $1.1810.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.