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U.S. Stocks May Open Higher On Upbeat Earnings News

wallstreet july26 15oct19 lt

With the spotlight shifting to corporate earnings news, stocks may move 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 79 points.

Corporate news has recently taken a backseat to developments on the trade front but is likely to attract attention as earnings season ramps up in the coming days.

Financial giant JPMorgan Chase (JPM) may help lead an early advance on Wall Street after reporting third quarter results that exceeded analyst estimates on both the top and bottom lines.

Shares of UnitedHealth (UNH) are also likely to see initial strength after the health insurer reported better than expected third quarter results and raised its full-year guidance.

Citigroup (C) and Johnson & Johnson (JNJ) also reported third quarter earnings that beat estimates, while Goldman Sachs (GS) may move to the downside after reporting earnings that missed expectations.

In economic news, the Federal Reserve Bank of New York released a report unexpectedly showing a modest acceleration in the pace of growth in regional manufacturing activity in the month of October.

The New York Fed said its headline general business conditions index edged up to 4.0 in October after dipping to 2.0 in September, with a positive reading indicating an increase in regional manufacturing activity.

The modest uptick came as a surprise to economists, who had expected the general business conditions index to slip to 0.8.

Following the rally seen to close out last week, stocks showed a lack of direction throughout the trading day on Monday. The major averages spent the day bouncing back and forth across the unchanged line.

Eventually, the major averages ended the session modestly lower. The Dow dipped 29.23 points or 0.1 percent to 26,787.36, the Nasdaq edged down 8.39 points or 0.1 percent to 8,048.65 and the S&P 500 slipped 4.12 points or 0.1 percent to 2,966.15.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index soared by 1.9 percent, while China's Shanghai Composite Index fell by 0.6 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index has slipped by 0.3 percent, the German DAX Index and the French CAC 40 Index are up by 0.4 percent and 0.5 percent, respectively.

In commodities trading, crude oil futures are edging down $0.13 to $53.46 a barrel after tumbling $1.11 to $53.59 a barrel on Monday. Meanwhile, after climbing $8.90 to $1,497.60 an ounce in the previous session, gold futures are inching up $0.30 to $1,497.90 an ounce.

On the currency front, the U.S. dollar is trading at 108.31 yen compared to the 108.40 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1006 compared to yesterday's $1.1027.

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