Trading in the U.S. index futures point to a modestly lower opening by Wall Start on Tuesday after the previous session’s mixed performance. The meeting between President Joe Biden and House Speaker Kevin McCarthy (R-Calif) ended without any progress, and this should stir anxiety among traders. Retail earnings and economic data on business activity and new home sales could also guide trading in Tuesday’s session.
Cues From Monday’s Trading:
Stocks ended Monday’s session on a mixed note, as traders overcame early jitters concerning some negative tech headlines and the uncertainty surrounding a potential debt deal.
The Nasdaq Composite, which spent the better part of the session above the unchanged line, ended moderately higher. The index ended at its highest level since August 18, 2022.
The S&p 500 Index closed marginally higher, while the Dow Industrials languished in the red for a majority of the session before ending moderately lower.
Communication services, IT services and real estate stocks were among the session’s best performers, while consumer staple stocks served as drags.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +0.50% | 12,720.78 | |
| S&P 500 Index | +0.02% | 4,192.63 | |
| Dow Industrials | -0.42% | 33,286.58 |
Analyst Color:
The market’s resilience in the face of adversities has increased confidence in the near-term trajectory. Carson Group’s Ryan Detrick tweeted a data point that reinforces hopes that October lows won’t be violated.
“The S&P 500’s 200-day moving average is officially trending higher,” he said.
Going back to data from the past 50 years, this trend was evident 10 other times and not once were new lows made, Detrick said.
“In fact, a strong higher trend was the norm,” he added.
Another clue the Oct lows are in place and won’t be violated?
The S&P 500’s 200-day MA is officially trending higher.
Going back to past 50 yrs, I see 10 other times this happened and not once were new lows made.
In fact, a strong higher trend was the norm. pic.twitter.com/EmoaCb7YG6
— Ryan Detrick, CMT (@RyanDetrick) May 22, 2023
Futures Today
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -0.02% | |
| S&P 500 Futures | -0.06% | |
| Dow Futures | -0.12% | |
| R2K Futures | +0.02% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.12% to $418.30 and Invesco QQQ ETF(NASDAQ:QQQ) slipped 0.08% at $337.37, according to Benzinga Pro data.
Upcoming Economic Data:
Dallas Fed President Lorie Logan is scheduled to speak at 9 a.m. EDT.
S&P Global is due to release the results of its manufacturing and service sector surveys at 9:45 a.m. EDT. The manufacturing purchasing managers’ index is expected to edge down from 50.2 in April to 50 in May and the service sector PMI may have fallen from 53.6 to 52.6. The composite PMI, which represents both manufacturing and services sector activity, is estimated at 50, down from 53.4 in April.
The Richmond Federal Reserve’s manufacturing index for May is due to be released at 10 a.m. EDT. The headline index is expected to improve from -10 in April to -8 in May.
The Commerce Department’s new home sales report for April will be released at 10 a.m. EDT. Economists, on average, expect new home sales to come in at 663,000 units in April, down from 683,000 units in March.
The Treasury is set to auction 2-year notes at 1 p.m. EDT.
See also: Best Futures Brokers
Stocks In Focus:
- Paramount Global’s (NASDAQ:PARAA) shares rallied over 20% in premarket trading.
- PacWest Bancorp. (NASDAQ:PACW) extended its gains, adding about 15% on top of the 19.55% jump on Monday. The company announced on Monday plans to sell $2.7 billion in real estate loans.
- AutoZone, Inc. (NYSE:AZO), BJ’s Wholesale Club Holdings, inc. (NYSE:BJ), Dick’s Sporting Goods, Inc. (NYSE:DKS), Williams-Sonoma, Inc. (NYSE:WSM) and Lowe’s Companies, Inc. (NYSE:LOW) are among the companies reporting results before the market open.
- Notable among those reporting after the close are Agilent Technologies, Inc. (NYSE:A), Intuit, Inc. (NASDAQ:INTU), Palo Alto Networks, Inc. (NASDAQ:PANW), Urban Outfitters, Inc. (NASDAQ:URBN) and Toll Brothers, Inc. (NYSE:TOL).
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 0.94% to $72.69 a barrel in early European session. This comes on top of Monday’s 0.61% rally.
The yield on the benchmark 10-year Treasury note fell 0.027 percentage points to 3.746%.
The major Asian markets ended mostly lower on Tuesday, with the Japanese, Chinese and Hong Kong markets pacing the declines. European stocks were seen mixed in late-morning trading on Tuesday.
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