Wall Street looks set to be on the back foot on Tuesday, as the risk aversion in the global markets intensifies. The major U.S. index futures are pointing to a lower opening. Asian stocks succumbed to a selling wave, with the Japanese market reacting to a stronger yen following a no-action by the Bank of Japan. Meanwhile, amid geopolitical and economic concerns, European stocks are also trading weak. With only a few corporate announcements and a second-tier economic data on wholesale inventories to react to, Wall Street may struggle to find a direction.
As of 6:15 pm ET, the Dow futures are slipping 101 points, the S&P 500 Index futures are receding 12.60 points and the Nasdaq 100 futures are moving down 22.75 points.
U.S. stocks went about in a directionless manner on Monday amid a lack of meaningful catalysts before closing mixed.
On the economic front, the Commerce Department is scheduled to release its wholesale inventories report for April at 10 am ET. Economists expect a 0.2 percent month-over-month increase in wholesale inventories following a 0.4 percent increase in March.
In corporate news, Diamond Foods (DMND) reported third quarter results that exceeded estimates. The company said it expects fourth quarter sales to decline more than in the third quarter, weighed down by the Nuts segment. Separately, Diamond Foods said it has appointed Raymond Silcock as Chief Financial Officer, effective June 11.
Texas Instruments (TXN) updated its second quarter guidance, expecting earnings of 39-43 cents per share on revenues of $2.99 billion to $3.11 billion. Earlier, the company expects earnings of 37-45 cents per sharer on revenues of $2.93 billion to $3.17 billion. The updated guidance range surrounded the consensus estimate.
Pep Boys (PBY) reported first quarter net earnings of 7 cents per share, higher than 2 cents per share last year. Sales rose 2.2 percent to $536.2 million, ahead of estimates.
General Mills (GIS) raised its 2013 adjusted earnings per share guidance to $2.68-$2.69 per share from $2.66-$2.68 per share, while it also reiterated its 2014 guidance of high single digit growth in adjusted earnings per share and increased cash returns to shareholders. The 2013 guidance was below estimates.
Lululemon athletica (LULU) reported better than expected first quarter results. The company's full year guidance was positive. Additionally, lululemon said that its Chief Executive Officer Christine Day will step down after a five and half year tenure.
Diodes (DIOD) raised its revenue and gross margin guidance for the second quarter. Following the amended merger agreement between SprintNextel (S) and SoftBank, DISH Network (DISH) said it believes that Sprint has tremendous value and added that it would analyze the revised SoftBank bid as it considers its strategic options.
The major Asian markets closed lower, with the exception of the Australian market, where the major average ended moderately higher as the market opened after Monday's public holiday. The Chinese market remained closed for a public holiday. The mood reflected one of caution, as traders awaited trading cues.
Unimpressed by a central bank decision to maintain status quo monetary policy chance, the yen strengthened, sending Japanese equities lower. The Nikkei 225 average opened lower and confined itself mostly below the unchanged line before closing down 196.58 points or 1.45 percent at 13,318. Australia's All Ordinaries hovered above the unchanged line for much of the session before closing up 19.60 points or 0.41 percent at 4,749. While Hong Kong's Hang Seng Index closed at 21,351, down 264.29 points or 1.22 percent, the Indonesian Jakarta Composite Index plunged over 3 percent
On the economic front, the Bank of Japan unanimously decided to retain its target of doubling the monetary base in two years, but did not announce any new steps to curb bond market volatility. The central bank said its money market operations will continue to target an expansion of monetary base at an annual pace of JPY 60-70 trillion, as announced in April. At the same time, the central bank upgraded its view of the economy.
The results of a survey by the National Australia Bank showed that business conditions in Australia improved slightly. The business conditions index rose to -4 in May from -6 in April, while the business confidence index remained unchanged at -1.
The major European stocks opened lower and are seen languishing in the red in the wake of the risk aversion that has crept into the market following the Bank of Japan rate decision. Sentiment was also hurt to some extent by the political developments in Turkey and the uncertainty surrounding a German constitutional court verdict on the legitimacy of European Central Bank's policy of bond buying. In Turkey, the anti-government protests strengthened, with the focus now shifting to the Taksim square in Istanbul.
On the economic front, a gauge of house prices in the UK rose to its highest level in three years in May, the results of a survey by the Royal Institute of Chartered Surveyors showed. The RICS house price balance rose to 5 in May from 1 in April. This was the highest reading since June 2010. U.K. manufacturing output fell 0.5 percent year-over-year in April and was down 0.2 percent from the previous month. Meanwhile, industrial production edged up 0.1 percent month-over-month compared to expectations for a flat reading.
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Business News
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.