(RTTNews) - After ending the previous session notably lower, stocks are likely to 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 S&P 500 futures up by 0.4 percent.
The futures advanced following the release of a closely watched Labor Department report showing consumer prices in the U.S. decreased by much more than expected in the month of June.
The Labor Department said its consumer price index fell by 0.4 percent in June after climbing by 0.5 percent in May. Economists had expected consumer prices to edge down by 0.1 percent.
The report also said the annual rate of consumer price growth slowed to 3.5 percent in June from 4.2 percent in May, coming in below economist estimates for a 3.8 percent jump.
Meanwhile, the Labor Department said core consumer prices, which exclude food and energy prices, came in unchanged in June after rising by 0.2 percent in May. Economists had expected core prices to increase by another 0.2 percent.
The annual rate of growth by core consumer prices slowed to 2.6 percent in June from 2.9 percent in May, while economists had expected the pace of growth to slip to 2.8 percent.
The data is likely to ease recent concerns about the outlook for inflation and the possibility of higher interest rates.
Technology stocks are likely to see a significant rebound after tumbling on Monday, as reflected by the 1.2 percent jump by the tech-heavy Nasdaq 100 futures.
However, a steep drop by shares of IBM Corp. (IBM) is likely to weigh on the Dow, with the tech giant plummeting by 22.1 percent in pre-market trading.
The nosedive by IBM comes after the company reported preliminary second-quarter results that fell short of expectations.
Stocks showed a notable move to the downside during trading on Monday, giving back ground following the upward move seen over the two previous sessions. The major averages all moved lower, with the tech-heavy Nasdaq showing a significant pullback.
The Nasdaq and the S&P 500 ended the day just off their lows of the session. The Nasdaq slumped 408.43 points or 1.6 percent to 25,873.18 and the S&P 500 slid 60.05 points or 0.8 percent to 7,515.34. The narrower Dow posted a more modest loss, dipping 138.37 points or 0.3 percent to 52,498.64.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.7 percent, while China's Shanghai Composite Index jumped by 1.4 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index is down by 0.8 percent, the French CAC 40 Index is down by 0.7 percent and the U.K.'s FTSE 100 Index is down by 0.4 percent.
In commodities trading, crude oil futures are surging $1.94 to $80.08 a barrel after soaring $6.73 to $78.14 a barrel on Monday. Meanwhile, after plunging $108 to $4,005.70 ounce in the previous session, gold futures are jumping $96.60 to $4,102.30 an ounce.
On the currency front, the U.S. dollar is trading at 161.75 yen compared to the 162.42 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1448 compared to yesterday's $1.1381.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
