The major U.S. index futures are pointing to a lower opening on Tuesday, with sentiment reflecting cautious stance of traders following Monday's run up that took the major averages around 3-month highs. Earnings news continues to be mixed. Global cues are mixed, with Asian stocks turning in strong performance for the day despite the decision of the Reserve Bank of Australia to maintain interest rates unchanged. Meanwhile, weighed down by some lackluster earnings, European stocks are turning in an insipid showing. The dollar is back higher and commodities, with the exception of crude oil, are mostly lower. The domestic markets may also track auto sales results for the month.
U.S. stocks opened higher on Monday and advanced throughout the rest of the session amid the release of mixed global private sector activity data. The Dow Industrials ended 165.22 points or 0.94 percent higher at 17,829, its highest closing level since July 22nd, while the S&P 500 Index ended up 24.69 points or 1.19 percent at a nearly 3 month high of 2,104 and the Nasdaq Composite closed 73.40 points or 1.45 percent higher at a 3-month high of 5,127. All three major averages are now higher for the year.
Twenty-five of the thirty Dow components closed higher for the session, with Chevron (CVX), Exxon Mobil (XOM), JP Morgan (JPM) and Pfizer (PFE) leading the gains. On the other hand, Visa (V) tumbled sharply.
Among the sectors, biotechnology, computer hardware and energy stocks rallied strongly. Additionally, transportation, gold, housing, semiconductor and financial stocks also found strength.
On the economic front, the Institute for Supply Management said its manufacturing PMI edged down 0.1 points to 50.1 in October, slightly above the estimated 50. Of the 18 industries surveyed, 7 reported growth.
The new orders index rose 2.8 points to 52.9, the production index was up 1.1 points to 52.9 and the order backlogs index also moved up 1 point to 42.5. However, the employment index fell 2.9 points to 47.6, moving into contraction territory.
Final estimates released by Markit showed that its U.S. manufacturing PMI rose to 54.1 in October from 53.1 in September, in line with estimates.
The Commerce Department reported that construction spending rose 0.6 percent month-over-month in September, faster than the 0.4 percent growth expected by economists. Residential construction spending rose a solid 1.9 percent, while private non-residential construction spending was down 0.7 percent. Public spending on construction climbed 0.7 percent.
Currency, Commodity Markets
Crude oil futures are rising $0.25 to $46.39 a barrel after falling $0.45 to $46.14 a barrel on Monday. Meanwhile, an ounce of gold is currently trading at $1,129, down $6.90 from the previous session's close of $1,135.90. On Monday, gold slipped $5.50.
On the currency front, the U.S. dollar is trading at 120.94 yen compared to the 120.76 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0966 compared to yesterday's $1.1016.
Asia
The major Asian markets advanced, encouraged by the rally on Wall Street, although the Chinese market saw modest weakness. The Japanese market was closed for a public holiday.
Australia's All Ordinaries Index opened higher and rose sharply in the morning before moving roughly sideways for the rest of the session. The index ended up 69.90 points or 1.34 percent at 5,291.
The market witnessed broad based strength, with telecom, IT, healthcare, financial, energy and consumer discretionary stocks advancing notably in the session.
Hong Kong's Hang Seng Index ended at 22,568, up 198.39 points or 0.89 percent, while China's Shanghai Composite ended down 8.39 points or 0.25 percent at 3,317.
On the economic front, the Reserve Bank of Australia maintained its record low interest rate for the sixth straight meeting and hinted it is prepared to ease monetary policy further. The Monetary Policy Board left its cash rate unchanged at 2.00 percent as expected by economists. The bank had lowered the rate by 25 basis points in both February and May.
Policymakers judged that leaving the cash rate unchanged was appropriate at this meeting, as the prospects for an improvement in economic conditions had firmed a little over recent months. Members noted the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.
Europe
European stocks are seeing volatility in early trading and are currently lower amid the release of some major bank earnings.
In corporate news, UBS (UBS) reported a strong increase in its third quarter profits, as provisions set aside for legal costs declined.
Standard Chartered announced plans to trim 15,000 jobs by 2018 and raise capital by $5.1 billion through a rights offering. The company also reported a loss on an operating basis for its third quarter.
BMW reported higher revenues and a profit for the third quarter, as X5 SUV sales increased. Helped by cost cuts and higher investment income, Imperial Tobacco reported double-digit growth in full year profits.
On the economic front, a report released by Markit and the CIPS showed that growth in construction activity in the U.K. slowed in line with expectations. The corresponding PMI fell to 58.8 in October from 59.9 in September.
U.S. Economic Reports
Automakers are scheduled to release their monthly sales results for October. Economists expect motor vehicle sales of 17.7 million units, down from the 18.2 million seasonally adjusted annual unit rate in September.
The Commerce Department is due to release its factory orders report for September at 10 am ET. Economists expect a 0.9 percent month-over-month drop in factory orders.
In August, factory orders fell a worse than expected 1.7 percent, with price-related weakness in petroleum and coal products serving as drags. Durable goods orders were also down 2.3 percent.
Meanwhile, data released in late October showed that durable goods orders, which make up the bulk of factory orders, fell 1.2 percent month-over-month in September. The previous month's change was also downwardly revised to a 3 percent drop from the 2 percent decline estimated initially.
Stocks in Focus
AIG (AIG) reported below-consensus bottom line results for its third quarter and also announced plans to eliminate 300-400 senior management positions.
Discovery Communications (DISCA) reported better than expected third quarter adjusted earnings but its revenues were slightly shy of estimates. The company expects low single digit growth in full year adjusted earnings per share, excluding currency.
J.M. Smucker (SJM) announced an agreement to sell its U.S. canned milk brands and operations to Eagle Family Foods Group. The unit generated annual sales of about $200 million.
Hyatt Hotels (H) reported above-consensus earnings for its first quarter but its revenues were below estimates.
Sprint (S) reported a narrower loss for its third quarter but lower revenues. The company said it plans to achieve a sustainable reduction of $2 billion or more of run rate operating expenses in fiscal 2016, excluding any transformation program costs to achieve that run rate benefit.
Activision Blizzard (ATVI) announced a deal to buy King Digital (KING) for $18 per share in cash or $5.9 billion in total. Activision also reported better than expected third quarter results and raised its full year guidance.
Tenet Healthcare (THC) reported better than expected third quarter results, but its fourth quarter and full year earnings guidance was weak.
Avis Budget (CAR) reported below-consensus third quarter adjusted earnings and lowered its full year earnings guidance.
Dollar Tree (DLTR) announced the completion of the divestiture of 330 Family Dollar Stores to Dollar Express, a company owned by Sycamore Partners. The sale was in line with the FTC diktat in relation to Dollar Tree's acquisition of Family Dollar Stores.
Applied Micro Circuits (AMCC) reported a loss for its third quarter, in line with estimates, and its revenues declined year-over-year.
Sanmina's (SANM) reported better than expected fourth quarter earnings and issued positive guidance for the first quarter.
Kellogg's (K) third quarter comparable earnings per share beat estimates, while its revenues were below estimates.
Allstate (ALL) reported better than expected third quarter operating earnings per share.
Vornado Realty (VNO) reported above-consensus funds from operations per share and its revenues also exceeded estimates.
Cablevision (CVC), CBS (CBS), Checkpoint Systems (CKP), Devon Energy (DVN), Groupon (GRPN), Papa John's (PZZA), Tesla (TSLA), U.S. Steel (X) and Zinga (ZNGA) are among the companies due to release their quarterly results after the close of trading.
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April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.