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Wall Street To Bounce Back At Open


Initial cues from the U.S. Futures Index suggest that Wall Street will be opening positive on Tuesday. The blacklisting of Chinese telecom provider Huawei and adding tension related to U.S. -China trade has been worrying investors.

Existing Home Sales for April and Redbook data are the major focus on economic front.

Asian shares closed mixed, while European shares are trading all positive.

As of 7.50 am ET, the Dow futures were climbing 109.00 points, the S&P 500 futures were up 14.00 points and the Nasdaq 100 futures were climbing 49.00 points.

The U.S. stocks were down on Monday. The Nasdaq plunged 113.91 points or 1.5 percent to 7,702.38, while the Dow fell 84.10 points or 0.3 percent to 25,679.90 and the S&P 500 slid 19.30 points or 0.7 percent to 2,840.23.

On the economic front, Redbook data, a weekly measure of comparable store sales at chain stores, discounters, and department stores, for the week will be revealed at 8.55 am ET. In the prior week, the Store sales were up 5.4 percent.

National Association of Realtors' Existing Home Sales for April will be published at 10.00 am ET. The consensus is for 5.370 million, up from 5.210 million in the prior month.

Chicago Federal Reserve Bank President Charles Evans will speak at the Financial Markets Conference at Fernandina Beach, Florida, followed by audience Q&A at 10.45 am ET.

Boston Federal Reserve Bank President Eric Rosengren will speak at the Economic Club of New York, in New York at 12.00 pm ET.

52-week Treasury Bill auction will be held at 11.30 am ET.

In the corporate sector, Home Depot Inc. reported 9.1 percent increase in first-quarter earnings per share. Comparable sales were up 2.5 percent, and comparable sales in the U.S. rose 3.0 percent. The company reaffirmed its sales and earnings guidance for fiscal 2019.

For the first-quarter, net earnings were $2.5 billion, or $2.27 per share, compared to $2.4 billion, or $2.08 per share, prior year. First-quarter net sales were up 5.7% to $26.38 billion from $24.95 billion, a year ago. Analysts expected revenue of $26.39 billion for the quarter.

J. C. Penney Co., Inc. reported first-quarter net loss of $154 million, or $0.48 per share, wider than a net loss of $78 million, or $0.25 per share in the prior-year quarter. Excluding items, adjusted net loss for the quarter was $147 million, or $0.46 per share, compared to an adjusted net loss of $69 million, or $0.22 per share in the year-ago quarter. Total net sales for the quarter decreased 5.6 percent to $2.44 billion from last year's $2.58 billion. Comparable sales decreased 5.5 percent for the quarter. The exit of the major appliances and in-store furniture categories had a combined negative impact of 20 basis points to comparable sales in the quarter.

Asian stock markets closed mixed on Tuesday. China's Shanghai Composite Index added 35.36 points or 1.23 percent to close at 2,905.97, while Hong Kong's Hang Seng Index fell 149.75 points or 0.54 percent to settle at 27,637.86.
The Japanese market closed lower. The benchmark Nikkei 225 Index declined 29.28 points or 0.14 percent to close at 21,272.45, after falling to a low of 21,160.43 earlier.

The Australian market closed higher for a fifth straight day, setting a fresh eleven-and-a-half year high. The benchmark S&P/ASX 200 Index added 24.00 points or 0.37 percent to close at 6,500.10. The broader All Ordinaries Index rose 19.70 points or 0.30 percent to settle at 6,584.40.

European shares are trading higher. Among the major indexes in the region, the CAC 40 Index of France is adding 25.35 points or 0.48 percent. The German DAX is up 112.20 points or 0.92 percent, the U.K. FTSE 100 Index is progressing 47.57 points or 0.65 percent. The Swiss Market Index is climbing 36.94 points or 0.39 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is up 0.57 percent.

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