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U.S. Stocks Poised To Reach New Record Highs In Early Trading

wallstreet oct26 11feb20 lt

After turning higher over the course of the previous session, stocks are likely to see some further 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 101 points.

Stocks are poised to reach new record highs as traders continue to shrug off concerns about the economic impact of the deadly coronavirus outbreak.

Several companies have already warned about the impact of the virus, but traders seem confident the U.S. economy is strong enough to withstand the negative effects.

Traders are still likely to keep an eye on Federal Reserve Chairman Jerome Powell's testimony before the House Financial Services Committee later this morning.

In prepared remarks, Powell noted some of the uncertainties around trade have diminished following the signing of the phase one U.S.-China trade deal but noted risks to the outlook remain.

"In particular, we are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy," Powell said.

Powell pointed out that the U.S. economy has recently appeared resilient to global headwinds, with economic activity increasing at a moderate pace over the second half of last year.

Among individual stocks, shares of Sprint (S) are soaring in pre-market trading amid news T-Mobile (TMUS) has won court approval for its $26.5 billion takeover of the telecom company.

Toy maker Hasbro (HAS) is also likely to see initial strength after reporting fourth quarter earnings that came in well above analyst estimates.

On the other hand, shares of Under Armour (UAA) are likely to come under pressure after athletic apparel maker reported an unexpected fourth quarter loss and warned the coronavirus outbreak could hurt its full-year results.

Stocks recovered from an initial drop and moved mostly higher over the course of the trading session on Monday. With the turnaround on the day, the Nasdaq and the S&P 500 ended the session at new record closing highs.

The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow climbed 174.31 points or 0.6 percent to 29,276.82, the Nasdaq jumped 107.88 points or 1.1 percent to 9,628.39 and the S&P 500 advanced 24.38 points or 0.7 percent to 3,352.09.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. China's Shanghai Composite Index rose by 0.4 percent, while Hong Kong's Hang Seng Index jumped by 1.3 percent. The Japanese markets were closed for a holiday.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index is up by 0.7 percent and the German DAX Index is up by 0.9 percent.

In commodities trading, crude oil futures are climbing $0.92 to $50.49 a barrel after sliding $0.75 to $49.57 a barrel on Monday. Meanwhile, after climbing $6.10 to $1,579.50 an ounce in the previous session, gold futures are slipping $2.70 to $1,576.80 an ounce.

On the currency front, the U.S. dollar is unchanged compared to the 109.77 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0901 compared to yesterday's $1.0911.

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