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Major Averages May Open Mixed Once Again - U.S. Commentary


Mirroring the performance seen in the previous session, the major averages may move in opposite directions at the start of trading on Tuesday. The major index futures are currently pointing to another mixed open, with the Dow futures down by 34 but the Nasdaq futures up by 24 points.

A continued decline by Boeing (BA) may weigh on the Dow, with the aerospace giant falling by 3.4 percent in pre-market trading after tumbling by 5.3 percent on Monday.

The continued drop by Boeing comes after Edward Jones downgraded its rating on the company's stock to Hold from Buy, citing a possible "delay in orders" after the crash of the second of its 737 MAX jets in less than 6 months.

The Dow eventually recovered from the initial move to the downside in the previous session, joining the broader Nasdaq and S&P 500 firmly in positive territory amid a rally by tech stocks.

On the U.S. economic front, the Labor Department released a report on Tuesday showing a modest increase in U.S. consumer prices in the month of February.

The report said the consumer price index rose by 0.2 percent in February after coming in unchanged for three straight months. The uptick in consumer prices matched economist estimates.

Excluding food and energy prices, core consumer prices inched up by 0.1 percent in February after rising by 0.2 percent in January. Economists had expected another 0.2 percent increase in prices.

Stocks moved sharply higher over the course of the trading session on Monday following the notable pullback seen last week. While the major averages all moved to the upside, the Dow underperformed its counterparts due to a steep drop by Boeing (BA).

The major averages finished the session near their best levels of the day. The Dow climbed 200.64 points or 0.8 percent to 25,650.88, while the Nasdaq soared 149.92 points or 2 percent to 7,558.06 and the S&P 500 jumped 40.23 points or 1.5 percent to 2,783.30.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index spiked by 1.8 percent, while Hong Kong's Hang Seng Index surged up by 1.5 percent.

Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index and the German DAX Index are both down by 0.2 percent.

In commodities trading, crude oil futures are rising $0.45 to $57.24 barrel after climbing $0.72 to $56.79 a barrel on Monday. Meanwhile, after falling $8.20 to $1,291.10 ounce in the previous session, gold futures are rebounding $7.20 to $1,298.30 an ounce.

On the currency front, the U.S. dollar is trading at 111.15 yen compared to the 111.21 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1280 compared to yesterday's $1.1245.

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