RTTNews - U.S stock futures point to a lower open Tuesday morning, suggesting that traders may pause for locking gains following smart gains in the previous session after better-than-expected economic data boosted optimism about recovery.
As of 6.30 am ET, the Dow Futures were down 53.00 points, the S&P Futures were down 7.00 points, and the Nasdaq 100 futures were down 11.25 points.
On the economic front, traders will be presented with a report on Personal Income & Outlays for June from the Bureau of Economic Analysis at 8.30 a.m ET. Economists expect a 1% drop in personal income, but a modest 0.3% increase in personal spending for the month. The National Association of Realtors will release a report on pending home sales index for June at 10.00 a.m. ET. Economists estimate a 0.3% increase in the pending home sales index for June.
Automakers will be in focus ahead of the impending decision regarding the extension of the Cash for clunkers with additional assistance after having seen signs of stability in the automotive sector in July following the $1 billion assistance.
In corporate news, the top automaker in the world, Toyota Motor reported a lower-than-anticipated net loss for the first quarter. The company also issued an encouraging forecast for the full year.
Swiss Bank UBS reported a wider net loss for the the second quarter, reflecting a hefty charge for own credit on financial liabilities as well as charges related to restructuring and a unit sale. Looking ahead, the company said although market conditions improved steadily during the second quarter, its outlook remains cautious.
Earnings will continue to be on the radar of the traders, with a slew of companies including D.R Horton (DHI), Emerson Electric (EMR) and Intercontinental Exchange (ICE) slated to release their report cards before the market opens for trading. Kraft Foods (KFT), Electronic Arts (ERTS), Furniture Brands (FBN), Jones Lang LaSalle (JLL) and SPSS Inc. (SPSS) will release their results after the markets close.
On Monday, better-than-expected manufacturing sector reading from the Institute of Supply Management and a surprise increase in construction spending coupled with higher commodity prices and a slump in dollar boosted equities driving the Nasdaq and the S&P 500 past the key technical levels of 2,000 and 1,000, respectively, while the Dow registered a 3-figure gain.
The Dow closed up by 114.95 points or 1.3% at 9,287, the Nasdaq climbed by 30.11 points or 1.5% to 2,009, and the S&P 500 rose by 15.15 points or 1.5% to 1,003.
Oil Light sweet crude oil price for September delivery is presently quoted at $70.65 a barrel, down $0.93 from its previous close $71.58 a barrel in New York on Monday.
Dollar The US dollar is weakening against the Japanese yen, but it is trading slightly higher against the Euro and the Pound after the European stocks opened weaker.
World Markets The Asian markets ended in positive territory but off the day's high as traders paused for locking gains following recent gains. European markets are trading weaker, dragged down by oil stocks.
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