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Major Averages May Move Modestly Higher In Early Trading

After ending the previous session firmly in the red, stocks may regain some ground in early trading on Tuesday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 21 points.

The markets may benefit from a positive reaction to the latest batch of earnings news, although trading activity is likely to be somewhat subdued ahead of the Federal Reserve's monetary policy announcement on Wednesday.

Diversified manufacturer 3M (MMM) is likely to see early strength after the Dow component reported better than expected first quarter earnings. The company also tightened the guidance range for its full-year earnings.

AT&T (T) and United Technologies (UTX) also reported first quarter earnings that exceeded analyst estimates, although United Technologies' revenues fell short of expectations.

Shares of Texas Instruments (TXN) may also be in focus after the chip maker reported first quarter earnings that fell year-over-year but came in above expectations. The company also forecast second quarter results in line with analyst estimates.

Meanwhile, Netflix (NFLX) is likely to come under pressure after the company reported a narrower than expected first quarter loss but forecast slower subscriber growth for its U.S. video-streaming service.

Not long after the open, trading could be impacted by the release of reports on new home sales and consumer confidence.

by RTTNews Staff Writer

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