U.S. Stocks May Regain Ground In Early Trading

After moving notably lower over the two previous sessions, stocks are likely to regain ground in early trading on Tuesday. The major index futures are pointing to a higher open for the markets, with the Dow futures up by 136 points.

Bargain hunting may contribute to initial strength on Wall Street, as traders pick up stocks at relatively reduced levels following recent weakness.

The extended decline seen during trading on Monday dragged the major averages down to their lowest levels in a month.

Buying interest may be somewhat subdued, however, as concerns about the outlook for interest rates and the economy continue to hang over the markets.

Traders may also be reluctant to make significant bets ahead of the release of the closely watched monthly jobs report on Friday.

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 rise to 97.4 in August from 95.7 in July.

The Labor Department is also scheduled to release its report on job openings in the month of June. Job openings are expected to decrease to 10.5 million in June from 10.7 million in May.

Following the sell-off seen last Friday, stocks saw further downside during trading on Monday. The major averages all came under pressure, ending the session at their lowest closing levels in a month.

The major averages ended the session off their lows but remained firmly negative. The Dow fell 184.41 points or 0.6 percent at 32,098.99, the Nasdaq slumped 124.04 points or 1 percent to 12,017.67 and the S&P 500 dropped 27.05 points or 0.7 percent to 4,030.61.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 1.1 percent, while China’s Shanghai Composite Index fell by 0.4 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has surged by 1.8 percent, the French CAC 40 Index is up by 0.7 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent.

In commodities trading, crude oil futures are tumbling $2.37 to $94.64 a barrel after spiking $3.95 to $97.01 a barrel on Monday. Meanwhile, after edging down $0.10 to $1,749.70 an ounce in the previous session, gold futures are slipping $5.40 to $1,744.30 an ounce.

On the currency front, the U.S. dollar is trading at 138.33 yen compared to the 138.72 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0020 compared to yesterday’s $0.9997.

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