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U.S. Stocks May See Further Upside In Early Trading

wallstreet nov01 24nov20 lt

After ending the previous session mostly higher, stocks are likely to see 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 329 points.

Early buying interest may be generated in reaction to news that the head of the General Services Administration has informed President-elect Joe Biden that the Trump administration is ready to begin the formal transition process.

The news eliminates some of the lingering uncertainty about the outcome of the presidential election, although President Donald Trump has indicated he will continue to challenge the results in court.

The markets may also benefit from reports Biden plans to pick former Federal Reserve Chair Janet Yellen as Treasury Secretary.

According to CNBC, Yellen is seen as more likely to focus on fixing the economy rather than the progressive Democratic agenda feared by some investors.

Recent upbeat news regarding potential coronavirus vaccines may also contribute to strength on Wall Street even as the numbers of new cases, hospitalizations and deaths continue to spike.

Shortly after the start of trading, the Conference Board is due to release its report on consumer confidence in the month of November. The consumer confidence index is expected to dip to 98.0 in November from 100.9 in October.

Following the mixed performance seen last week, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside after ending the previous session in negative territory.

The Dow jumped 327.79 points or 1.1 percent to 29,591.27, the Nasdaq edged up 25.66 points or 0.2 percent to 11,880.63 and the S&P 500 climbed 20.05 points or 0.6 percent to 3,577.59.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index spiked by 2.5 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has surged up by 1.4 percent, the U.K.'s FTSE 100 Index is up by 1.2 percent and the German DAX Index is up by 1 percent.

In commodities trading, crude oil futures are rising $0.51 to $43.57 a barrel after climbing $0.64 to $43.06 a barrel on Monday. Meanwhile, after plunging $34.60 to $1,837.80 an ounce in the previous session, gold futures are plummeting $35.10 to $1,802.70 an ounce.

On the currency front, the U.S. dollar is trading at 104.55 yen compared to the 104.52 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1870 compared to yesterday's $1.1841.

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