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U.S. Stocks May See Initial Strength On Upbeat Best Buy Earnings, Guidance

wallstreet july19 22nov22 lt

Stocks may move to the upside in early trading on Tuesday, regaining ground after ending the previous session mostly lower. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.3 percent.

Early buying interest may be generated amid a positive reaction to earnings news from consumer electronics retailer Best Buy (BBY).

Shares of Best Buy are surging by 8.4 percent in pre-market trading after the company reported better than expected third quarter results and raised its full-year guidance.

Apparel retailer Abercrombie & Fitch (ANF) is also likely to see initial strength after reporting an unexpected third quarter profit on sales that beat analyst estimates.

Abercrombie & Fitch CEO Fran Horowitz also said the company is "cautiously optimistic" about the holiday shopping season.

On the other hand, shares of Zoom (ZM) may come under pressure after the video conferencing platform reported better than expected third quarter results but provided disappointing guidance.

Overall trading activity may remain somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.

Reports on durable goods orders and new home sales may attract attention on Wednesday along with the minutes of the latest Federal Reserve meeting, although many traders will already have headed out for the Thanksgiving Day holiday.

After ending last Friday's choppy session mostly higher, stocks moved back to the downside during trading on Monday. The tech-heavy Nasdaq showed a particularly steep drop after ending the preceding session little changed.

The major averages all finished the day in negative territory, although the Dow posted a relatively modest loss, edging down 45.41 points or 0.1 percent to 33,700.28. The Nasdaq slumped 121.55 points or 1.1 percent at 11,024.51 and the S&P 500 slid 15.40 points or 0.4 percent to 3,949.94.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index tumbled b1.3 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index has advanced by 0.7 percent, the German DAX Index is up by 0.2 percent and the French CAC 40 Index is up by 0.1 percent.

In commodities trading, crude oil futures are jumping $1.34 to $81.38 a barrel after edging down $0.07 to $80.04 a barrel on Monday. Meanwhile, after falling $14.80 to $1,739.60 an ounce in the previous session, gold futures are rising $6.10 to $1,745.70 an ounce.

On the currency front, the U.S. dollar is trading at 141.41 yen compared to the 142.14 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0269 compared to yesterday's $1.0242.

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