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Current Futures: Dow -18.00, S&P +0.90, NASDAQ -9.50
U.S. markets are currently trading mixed, even though earlier in the day, the futures market showed some signs of strength.
The major U.S. market indexed traded mixed since investors are unsure if the rally started in March is still sustainable as the macroeconomic pictures become clearer. Most investors expected to see a V-shape recovery, characterized by a strong contraction and recovery phase. However, TheLFB-Forex.com Trade Team argues that the recovery might take the shape of U or W, both portraying a long recovery phase, something that does not justify the recent rally.
Most U.S. sectors traded mixed on Tuesday, whereas the only sectors that advanced were the real estate and the commodity stocks. Over the last few weeks, the raw materials companies have often appeared in the spotlight since crude oil has more than doubled its price this year. Moreover, on Tuesday the raw materials sector was pulled higher after the dollar index lost 1.30%, the biggest daily drop in the last few months. The real estate sector advanced after a report showed that existing home sales rose for the third consecutive month in May, but despite this, the actual number was below market expectations.
Boeing posted the biggest decline in the Dow Jones and in the S&P 500 indexes, after it delayed the first flight of its new 787 plane for the fifth time in a row. Moreover, this news dragged lower most airline companies, as the fundamentals of this particular sector do not look very healthy.
On Tuesday, the Dow Jones Index lost 14.44 points (0.17%) to 8,324.57, while the S&P 500 index gained 1.06 points (0.12%) to 894.10
Crude oil for July delivery was recently trading at $68.70 per barrel, higher by $1.20.
Gold for July delivery was recently trading up by $4.40 to $925.40.
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