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

wallstreet oct05 08nov22 lt

Stocks may move to the upside in early trading on Tuesday, adding to the strong gains posted in the two previous sessions. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

The markets may benefit from recent upward momentum, which has helped stocks recover from last week's pullback due largely to late-day strength.

Trading activity is likely to remain somewhat subdued, however, as traders await the results today's U.S. midterm elections.

The elections will determine control of Congress, with Republicans expected to take control of the House and possibly the Senate.

Traders are said to prefer a divided government, as times when the White House and Congress are controlled by opposite parties have historically been positive for Wall Street.

A looming report on consumer price inflation may also keep traders on the sidelines, as the data could have a significant impact on the outlook for interest rates.

Stocks turned in a lackluster performance for much of the trading day on Monday before rallying in the latter part of the session to add to the strong gains posted last Friday.

The Dow showed a notable move to the upside, ending the day up 423.78 points or 1.3 percent at 32,827.00, just shy of the two-month closing high set in late October.

The broader S&P 500 also jumped 36.25 points or 1.0 percent to 3,806.80, while the tech-heavy Nasdaq advanced 89.27 points or 0.9 percent to 10,564.52 after spending much of the session bouncing back and forth across the unchanged line.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index shot up by 1.3 percent, while China's Shanghai Composite Index fell by 0.4 percent.

Meanwhile, the major European markets have all moved modestly higher on the day. While the German DAX Index has risen by 0.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 0.1 percent.

In commodities trading, crude oil futures are slipping $0.35 to $91.44 a barrel after falling $0.82 to $91.79 a barrel on Monday. Meanwhile, after inching up $3.90 to $1,680.50 an ounce in the previous session, gold futures are edging down $3.80 to $1,676.70 an ounce.

On the currency front, the U.S. dollar is trading at 146.41 yen compared to the 146.63 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $0.9994 compared to yesterday's $1.0020.

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