U.S. Stocks May See Further Upside In Early Trading
(RTTNews) - After ending the previous session mostly higher, stocks may see some further 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 170 points.
Early buying interest may be generated in reaction to news that European Union leaders agreed on a package of measures to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic.
After four days of talks in Brussels, EU leaders agreed to the package worth 750 billion euros. Accordingly, the bloc will jointly issue debt that will be provided to member nations hit hardest by Covid-19.
Out of the 750 billion euro recovery plan, 390 billion euros will be in the form of grants and 360 billion euros of low interest rate loans. Now the deal needs to be approved by the parliaments of the 27 member states.
Upbeat earnings news from IBM Corp. (IBM) may also lead to continued strength among technology stocks, which helped lead the advance on Monday.
Shares of IBM are moving sharply higher in pre-market trading after the tech giant reported second quarter results that exceeded analyst estimates on both the top and bottom lines.
Beverage giant Coca-Cola (KO) is also likely to see initial strength after reporting better than expected second quarter results.
Stocks moved mostly higher over the course of the course of the trading session on Monday following the mixed performance last week. The tech-heavy Nasdaq showed a particularly strong upward move, reaching a new record closing high.
The major averages all closed in positive territory, although the Dow underperformed its counterparts, inching up just 8.92 points or less than a tenth of a percent to 26,680.87. The Nasdaq soared 263.90 points or 2.5 percent to 10,767.09 and the S&P 500 climbed 27.11 points or 0.8 percent to 3,251.84.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.7 percent, while Hong Kong's Hang Seng Index surged up by 2.3 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has jumped by 1.5 percent, the French CAC 40 Index is up by 1 percent and the U.K.'s FTSE 100 Index is up by 0.3 percent.
In commodities trading, crude oil futures are spiking $1.11 to $41.92 a barrel after rising $0.22 to $40.81 a barrel on Monday. Meanwhile, after climbing $7.40 to $1,817.40 an ounce in the previous session, gold futures are soaring $23.40 to $1,840.80 an ounce.
On the currency front, the U.S. dollar is trading at 107.17 yen compared to the 107.27 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1447 compared to yesterday's $1.1448.