After showing a notable move to the downside in the previous session, stocks are likely to regain some ground in early trading on Tuesday. The major index futures are currently pointing a significantly higher open, with the Dow futures up by 69 points.
Upbeat housing data is likely to contribute to any early strength on Wall Street, with a report from the Commerce Department showing a much bigger than expected increase in housing starts in June.
The report showed that housing starts jumped 14.6 percent to an annual rate of 629,000 in June from the revised May estimate of 549,000. Economists had expected housing starts to edge up to 575,000 from the 560,000 originally reported for the previous month.
Building permits, an indicator of future housing demand, edged up by a more modest 2.5 percent to an annual rate of 624,000 from the revised May rate of 609,000.
The markets may also benefit from a positive reaction to quarterly results from IBM Corp. (IBM), which reported adjusted second quarter earnings of $3.09 per share compared to $2.62 per share last year. Analysts had been expecting the tech giant to earn $3.03 per share.
IBM also raised its full-year adjusted earnings guidance to at least $13.25 per share from at least $13.15 per share, while analysts estimate earnings of $13.22 per share.
On the other hand, Goldman Sachs (GS) reported second quarter earnings that rose to $1.85 per share from $0.78 per share a year ago but came in well below analyst estimates for $2.27 per share. The financial services giant also reported revenues that fell by more than anticipated.
In other corporate news, networking giant Cisco Systems (CSCO) announced that it expects to reduce its global workforce by 6,500 or 9 percent as part of a $1 billion annual operating expense reduction plan. The company expects to record pre-tax restructuring charges of about $1.3 billion over several quarters.
Stocks saw considerable weakness during trading on Monday, extending the downward move that was seen last week amid continued uncertainty about the U.S. debt limit as well as lingering concerns about the European debt crisis.
The major averages ended the session well off their worst levels but still closed firmly in negative territory. The Dow fell 94.57 points or 0.8 percent to 12,385.16, the Nasdaq slid 24.69 points or 0.9 percent to 2,765.11 and the S&P 500 dropped 10.70 points or 0.8 percent to 1,305.44.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's benchmark Nikkei 225 Index fell by 0.9 percent, while China's Shanghai Composite Index ended the day down by 0.7 percent.
Meanwhile, the major European markets are all moving to the upside on the day. The U.K.'s FTSE 100 Index is up by 0.5 percent, while the French CAC 40 Index and the German DAX Index are both climbing by 1.3 percent.
In commodities trading, crude oil futures are rising $1.26 to $97.19 a barrel after sliding $1.31 to $95.93 a barrel on Monday. Meanwhile, gold futures are slipping $2.50 to $1,599.09 an ounce. In the previous session, gold shone brightly, closing up $12.30 at a record closing high of $1,602.40 an ounce.
Among currencies, the U.S. dollar is trading at 78.9985 yen compared to the 79.0395 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.4197 compared to yesterday's $1.4112.
For comments and feedback contact: editorial@rttnews.com
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.