The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment reflecting relief over housing starts showing an increase and earnings reports of retailers showing some degree of robustness. These positive catalysts are likely to lead to bargain hunting following the lean patch witnessed in the markets recently. The markets may also focus on the industrial production report to be released shortly before the markets open.
U.S. stocks turned in another lackluster session on Monday, as economic data continued to disappoint. The major averages opened lower, weighed down by a manufacturing sector report, whose inner details were largely negative. After the release of insipid builder confidence data, the major averages staged a recovery only to move about in a lackadaisical manner before closing mixed.
The Dow Industrials ended down 1.14 points or 0.01% at 10,302 and the S&P 500 Index ended little changed at 1,079, while the Nasdaq Composite added 8.39 points or 0.39% to close at 2,182.
Eighteen of the Dow components closed lower, with most of the decliners posting modest to moderate losses. On the other hand, Cisco (CSCO) rebounded by 2.57% and Intel (INTC) gained 1.67%.
Among the sector indexes, the NYSE Arca Airline Index rallied 2.39%, the NYSE Arca Gold Bugs Index gained 1.69% and the NYSE Arca Disk Drive Index rose 2%.
On the economic front, the New York Federal Reserve's empire state manufacturing survey showed that conditions among manufacturers in the region improved, albeit at a slower than anticipated pace. The headline business conditions index rose to 7.1 in August from 5.1 in July.
However, the new orders index fell to a 14-month low of -2.7 from 10.1 and the shipments index slipped to a 16-month low of -11.5, while the 6-month outlook index declined to 35.7 from July's 41.3. However, the bright spot was the employment indexes. The number of employees index almost doubled to 14.3 and the average workweek index rose to a positive 7.1 from a negative 9.5.
The results of the National Association of Home Builders builder confidence survey showed that the housing market index slipped 1 point to 13 in August, while economists had expected the index to stay put at 14. The current sales conditions index and the sales expectations index declined 1 point and 3 points, respectively to 14 and 18, while the index measuring prospective buyer traffic remained unchanged.
Currency, Commodity Markets
Crude oil futures are rising $0.78 to $76.02 a barrel after declining $0.15 to $75.24 a barrel on Monday. Gold futures are currently trading down $0.90 at $1,227.10 an ounce. In the previous session, gold had climbed $9.60.
Among currencies, the U.S. dollar is trading at 85.32 yen compared to the 85.325 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2886 compared to yesterday's $1.2827.
Asia
The major Asian ended Tuesday's session mixed, with most markets in the region showing a lackluster performance amid a lack of domestic economic data. The markets adopted a "wait and see" attitude ahead of the release of a few key economic reports from the U.S. later in the day.
Japan's Nikkei 225 average opened sharply lower, but it pared back most of its loss over the course of the session to close moderately lower. The index closed down 34.99 points or 0.38% at 9,162.
Refiner Inpex slipped 4.42% and Nippon Suisan declined 4.50%. Financial, chemical and resource stocks also came under selling pressure. The technology space revealed mixed sentiment, while telecom, utility and real estate stocks closed mostly higher.
The minutes of the August monetary policy meeting of the Reserve Bank of Australia showed that members of the policy board felt at this month's meeting that a wait-and-see stance was warranted, given the fall in core inflation in the June quarter. The members also felt that holding interest rates steady was justifiable given a more uncertain outlook for the global economy.
Hong Kong's Hang Seng Index languished below the unchanged line for the better part of the session before recovering in late trading. The index closed up 25.31 points or 0.12% at 21,137. Index heavyweights HSBC Holdings and China Mobile rose moderately. However, most other financial stocks saw weakness. The property space showed mixed sentiment.
Australia's All Ordinaries showed some indecision in early trading before advancing steadily over the course of the remainder of the session. The index closed up 37.80 points or 0.85% at 4,503. The market witnessed broad based buying interest, although the gains were more modest.
Europe
The major European averages are moving uniformly higher on Tuesday following the mixed performance on Monday. The French CAC 40 Index and the German DAX Index are rising 0.89% and 1.12%, respectively, while the U.K.'s FTSE 100 Index is advancing 0.88%.
In corporate news, U.K. buyout vehicle Resolution said its pre-tax profit from continuing operations for the first-half rose to 139 million pounds from a loss of 7 million pounds last year. The company's results were boosted by the performance of Friends Provident, which saw 42% sales growth to 458 million pounds.
On the economic front, the European Central Bank released the current account data, which showed that the euro area's current account deficit narrowed to 4.6 billion euros in June from a 7.4 billion-deficit in May.
The consumer price inflation report released by the U.K. Office for National Statistics showed that consumer prices rose 3.1% year-over-year in July following a 3.2% increase in the previous month. The core inflation rate slowed notably to 2.6%. The increase was in line with expectations. On a monthly basis, consumer prices fell by 0.2% in July following a 0.1% increase in June.
The results of the ZEW economic sentiment survey showed that the economic sentiment index fell to 14 in August from 21.2 in July. Economists had expected a more modest decline to 20. The current situation index, however, jumped to 44.3 from 14.6 in July.
U.S. Economic News
A report released by the Commerce Department earlier in the day showed that housing starts rose 1.7% month-over-month to 546,000 in July from a downwardly revised rate of 537,000 for June. Economists had estimated housing starts to rise to 555,000 for July from the 549,000 estimated initially for June.
The bulk of the increase was in buildings with five units or more, which came in at 95,000, while single-family housing starts fell 4.2%. Meanwhile, building permits fell 3.1% to 565,000.
Meanwhile, producer prices rose 0.2% month-over-month in July, according to a report released by the U.S. Labor Department. The increase was in line with expectations. The core producer price index climbed 0.3%, faster than the 0.1% expected by economists.
Food prices rose 0.7%, reversing some of the 2.2% drop in June, while energy prices slid 0.9%. In the pipeline, inflation continued to remain benign, with the core intermediate and crude good produces dipping 0.4% and 1.4%, respectively.
The industrial production report of the Federal Reserve is due out at 9:15 AM ET. Economists estimate 0.6% growth in industrial production for July, while capacity utilization is expected to come in at 74.5%.
Industrial production rose 0.1% month-over-month in June compared to expectations for an unchanged reading. The increase was due to a 2.7% surge in utility output, with unseasonably warm weather leading to increased electricity output. However, manufacturing output declined 0.4%, dragged down by a 1.9% drop in the production of motor vehicle and parts. Excluding the motor vehicle sector, manufacturing output increased 0.2%. Meanwhile, refinery capacity utilization remained unchanged at 74.1%.
Minneapolis Federal Reserve Bank President Narayana Kocherlakota is due to speak about the FOMC to a business leaders lunch at Northern Michigan University in Marquette, Michigan, at 12:30 AM ET.
Stocks in Focus
Earnings
Agilent (A) reported third quarter adjusted earnings of 54 cents per share compared to 15 cents per share last year. Revenues rose 31% year-over-year to $1.38 billion. Analysts estimated earnings of 48 cents per share on revenues of $1.40 billion. For the fourth quarter, the company expects non-GAAP earnings of 58-59 cents per share on revenues of $1.52 billion. The consensus estimates call for earnings of 54 cents per share on revenues of $1.50 billion. The company expects full year non-GAAP earnings of $1.94-$1.95 per share on revenues of $5.4 billion, while the Street estimates earnings of $1.82 per share on revenues of $5.38 billion.
Urban Outfitters (URBN) said its second quarter earnings rose to 42 cents per share from 29 cents per share last year, as sales rose to $552.16 million from the year-ago's $458.63 million. The results were ahead of expectations.
Home Depot (HD) reported second quarter earnings of 72 cents per share compared to 66 cents per share last year. Sales rose 1.8% to $19.4 billion. Analysts estimated earnings of 71 cents per share on revenues of $19.59 billion. The company lowered its 2010 sales growth guidance to 2.6% from 3.5%, while it expects earnings of $1.90 per share. Analysts expect sales to rise 3.40% and earnings per share of $1.89.
Abercrombie & Fitch (ANF) reversed to a second quarter profit of 22 cents per share compared to a loss of 30 cents per share last year. The year-ago results included a loss of 21 cents per share from discontinued operations. Analysts estimated earnings of 16 cents per share.
Wal-Mart (WMT) said its second quarter earnings from continuing operations rose to 97 cents per share from 89 cents per share in the year-ago period. Sales rose 2.8% to $103 billion. Analysts estimated earnings of 97 cents per share on revenues of $105.40 billion. The company raised its full year earnings per share guidance to $3.95-$4.05 from its earlier estimate of $3.90-$4, while it expects earnings of 87-91 cents per share for the third quarter. The consensus estimates had called for earnings of $4 per share for the full year and 91 cents per share for the quarter.
Other Corporate News
Fluor (FLR) may see some activity after it reported that its unit Fluor-B&W Portsmouth LLC was chosen as the prime contractor by the U.S. Department of Energy for the next phase of cleanup at the Portsmouth site in the Pike County, Ohio. The contract is valued at $2.1 billion over 10 years.
TD Ameritrade Holding Corp. (AMTD) is likely to be in focus after it said its average client trades per day fell 12% year-over-year in July, but rose 5% from June 2010.
Johnson & Johnson (JNJ) could see buying interest after a SEC filing revealed that Warren Buffett's Berkshire Hathaway doubled its stake in the company in the June quarter. However, Berkshire has reduced its holdings in Kraft Foods (KFT) and Procter & Gamble (PG).
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.