U.S. Stocks May See Further Upside In Early Trading

(RTTNews) - Following the rally seen in the previous session, stocks are likely to 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.

Traders may continue to react positively to upbeat news regarding a potential coronavirus treatment and vaccine, which helped drive stocks higher on Monday.

News that U.S. and Chinese officials held a phone call yesterday to discuss the implementation of the Phase 1 trade agreement may also ease concerns about recent tensions between Washington and Beijing.

A statement from the U.S. Trade Representative said both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement.

Trading may also be impact by reaction to news of a major shakeup in the thirty Dow components, with the changes due to take effect before the start of trading next Monday.

S&P Dow Jones Indices announced that (CRM) will replace Exxon Mobil (XOM), Amgen (AMGN) will replace Pfizer (PFE), and Honeywell (HON) will replace Raytheon (RTX).

The changes to the Dow components come as Apple's (APPL) upcoming 4-for-1 stock split will reduce the index's weight in the information technology sector.

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 inch up to 93.0 in August from 92.6 in July.

The Commerce Department is also scheduled to release its report on new home sales in the month of July. Economists expect new home sales to increase by 1.3 percent.

Stocks moved significantly higher over the course of the trading session on Monday, adding to the gains posted last week. With the upward move, the Nasdaq and the S&P 500 reached new record closing highs, while the Dow ended the session at its best closing level in six months.

Going into the close of trading, the Dow and the S&P 500 reached new highs for the session. The Dow surged up 378.13 points or 1.4 percent to 28,308.46, the Nasdaq advanced 67.92 points or 0.6 percent to 11,379.72 and the S&P 500 jumped 34.12 points or 1 percent to 3,431.28.

In overseas trading, stocks markets across the Asia-Pacific region moved mostly higher on Tuesday, although China's Shanghai Composite Index bucked the uptrend and fell by 0.4 percent. Japan's Nikkei 225 Index surged up by 1.4 percent, while South Korea's Kospi spiked by 1.6 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has jumped by 1 percent, the German DAX Index is up by 0.8 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent.

In commodities trading, crude oil futures are climbing $0.28 to $42.90 a barrel after rising $0.28 to $42.62 a barrel on Monday. Meanwhile, after falling $7.80 to $1,939.20 an ounce in the previous session, gold futures are sliding $8.80 to $1,930.40 an ounce.

On the currency front, the U.S. dollar is trading at 106.44 yen compared to the 105.98 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1807 compared to yesterday's $1.1788.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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