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Stocks May Look To Regain Ground In Early Trading - U.S. Commentary

Stocks May Look To Regain Ground In Early Trading - U.S. Commentary
10/8/2013 8:56 AM ET

After ending the previous session sharply lower, stocks may attempt to regain some ground in early trading on Tuesday. The major index futures are currently pointing to modestly higher open for the markets, with the Dow futures up by 15 points.

Bargain hunting is likely to contribute to any early strength on Wall Street, as some traders may look to pick up stocks at reduced levels.

The notable losses seen on Monday extended a recent downward trend by the markets, with the Dow falling to its lowest levels in a month.

Nonetheless, any early buying interest is likely to be subdued amid the ongoing government shutdown, which is entering its eighth day.

While many traders still expect a deal to be reached in the relatively near future, lawmakers on both sides of the aisle are currently holding their ground.

Democrats continue to urge House Speaker John Boehner, R-Ohio, to bring a "clean" spending bill to the floor for a vote, while Republicans are still demanding concessions from the White House.

With the ongoing shutdown delaying many of the major economic reports, earnings news is likely to attract attention in the coming days.

Alcoa (AA) is among the companies releasing its quarterly results after the close of trading. While the aluminum giant is no longer a Dow component, the release of its results is still likely to be seen by many as the unofficial start of earnings season.

Financial giants JP Morgan (JPM) and Wells Fargo (WFC) are among the companies due to release their quarterly results later in the week.

As the ongoing government shutdown headed into its second week, stocks saw significant weakness during trading on Monday.

The major averages moved to the downside going into the close, ending the day firmly in negative territory. The Dow tumbled 136.34 points or 0.9 percent to 14,936.24, the Nasdaq plunged 37.38 points or 1 percent to 3,770.38 and the S&P 500 slid 14.38 points or 0.9 percent to 1,676.12.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday despite the negative lead from Wall Street. Japan's Nikkei 225 Index rose by 0.3 percent, while Hong Kong's Hang Seng Index advanced by 0.9 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.7 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is just below the unchanged line.

In commodities trading, crude oil futures are climbing $0.48 to $103.51 a barrel after declining $0.81 to $103.03 a barrel on Monday. Meanwhile, gold futures are sliding $6.40 to $1,318.70 an ounce. In the previous session, gold rose $15.20 to $1,325.10 an ounce.

On the currency front, the U.S. dollar is trading at 97.19 yen compared to the 96.69 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.3578 compared to yesterday's $1.3581.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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