logo
Plus   Neg
Share
Email

U.S. Stocks May Move Back To The Upside In Early Trading

wallstreet1-up-032918_21may19-lt.jpg

After ending the previous session mostly lower, stocks are likely to move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 161 points.

Early buying interest is likely to be generated in reaction to news that the U.S. Commerce Department has temporarily eased trade restrictions on Chinese tech giant Huawei.

The Commerce Department issued a temporary license authorizing specific, limited engagement in transactions involving the export, re-export, and transfer of items to Huawei for 90 days.

Commerce Secretary Wilbur Ross said the temporary reprieve grants "operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services."

"In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks," he added.

The move by the Trump administration led U.S. tech giant Google to reverse an earlier decision and announce it will continue to work with Huawei over the next 90 days.

Tech stocks are likely to rebound on the news after falling sharply in the previous session amid reports of companies cutting off supplies to Huawei.

Not long after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of April.

Existing home sales are expected to climb to an annual rate of 5.35 million in April after tumbling to a rate of 5.21 million in March.

Stocks fluctuated over the course of the trading day on Monday but maintained a negative bias throughout the session. The major averages all finished the day lower, although the tech-heavy Nasdaq underperformed its counterparts by a wide margin.

While stocks climbed off their worst levels going into the close, the major averages remained stuck in the red. 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.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan's Nikkei 225 Index edged down by 0.1 percent, while China's Shanghai Composite Index surged up by 1.2 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has jumped by 1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 0.5 percent.

In commodities trading, crude oil futures are rising $0.31 to $63.41 barrel after climbing $0.34 to $63.10 a barrel on Monday. Meanwhile, after edging up $1.60 to $1,277.30 ounce in the previous session, gold futures are sliding $5.90 to $1,271.40 an ounce.

On the currency front, the U.S. dollar is trading at 110.55 yen compared to the 109.97 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1157 compared to yesterday's $1.1166.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT