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Stocks May Move To The Upside In Early Trading - U.S. Commentary


Following the mixed performance seen in the previous session, stocks may move to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 83 points.

The upward momentum on Wall Street comes following the release of a Labor Department report showing a modest increase in consumer prices in the month of February.

The Labor Department said its consumer price index rose by 0.2 percent in February after climbing by 0.5 percent in January. Economists had expected consumer prices to rise by 0.2 percent.

Core consumer prices, which exclude food and energy prices, also edged up by 0.2 percent in February following a 0.3 percent increase in January. The uptick in core prices also matched expectations.

Trading may also be impacted by news that President Donald Trump plans to replace Secretary of State Rex Tillerson with CIA Director Mike Pompeo.

After failing to sustain an initial upward move, stocks turned mixed over the course of the trading session on Monday. The mixed performance on the day came on the heels of the strong upward seen last Friday.

The major averages ended the day on opposite sides of the unchanged line. While the tech-heavy Nasdaq rose 27.51 points or 0.4 percent to a new record closing high of 7,588.32, the Dow fell 157.13 points or 0.6 percent to 25,178.61 and the S&P 500 dipped 3.55 points or 0.1 percent to 2,783.02.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.7 percent, while China's Shanghai Composite Index fell by 0.5 percent.

The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index has dipped by 0.3 percent, the German DAX Index is just above the unchanged line and the French CAC 40 Index is up by 0.3 percent.

In commodities trading, crude oil futures are dipping $0.35 to $61.01 a barrel after falling $0.68 to $61.36 a barrel on Monday. Meanwhile, after sliding $3.20 to $1,320.80an ounce in the previous session, gold futures are rising $2.90 to $1,323.70 an ounce.

On the currency front, the U.S. dollar is trading at 106.86 yen compared to the 106.42 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2366 compared to yesterday's $1.2334.

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