The major U.S. index futures are pointing to a modestly higher opening on Tuesday, with stocks poised to extend the upward move seen in the previous session.
Stocks moved mostly over the course of the trading session on Monday, adding to the gains posted last week. With the upward move on the day, the major averages reached new record closing highs.
The major averages ended the day firmly in positive territory. The Dow advanced 152.51 points or 0.7 percent to 22,557.60, the Nasdaq rose 20.76 points or 0.3 percent to 6,516.72, the S&P 500 climbed 9.76 points or 0.4 percent to 2,529.12.
The strength on Wall Street came following the releasing of a report from the Institute for Supply Management showing an unexpected acceleration in the rate of growth in manufacturing activity in the month of September.
The ISM said its purchasing managers index climbed to 60.8 in September from 58.8 in August, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to dip to 50.8.
"Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all growing in September," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
A separate report released by the Commerce Department showed construction spending in the U.S. increased by more than expected in the month of August.
The Commerce Department said construction spending climbed 0.5 percent to $1.218 trillion in August after plunging by 1.2 percent to $1.212 trillion in July. Economists had expected spending to rise by 0.2 percent.
However, news on Wall Street largely took a backseat following a mass shooting in Las Vegas, which has left more than 50 dead and more than 400 wounded.
Biotechnology stocks showed a significant move to the upside, driving the NYSE Arca Biotechnology Index up by 1.9 percent. With the increase, the index has reached its best closing level in over two years.
Endocyte (ECYT) posted a substantial gain after announcing the completion of an exclusive worldwide license of PSMA-617 from ABX GmbH.
Networking, chemical and electronic storage stocks also saw significant strength, while oil service and railroad stocks showed notable moves to the downside,
Commodity, Currency Markets
Crude oil futures are falling $0.29 to $50.29 a barrel after plunging $1.09 to $50.58 a barrel on Monday. Meanwhile, after slipping $2.70 to $1,273.10 an ounce in the previous session, gold futures are falling $9 to $1,275.80 an ounce.
On the currency front, the U.S. dollar is trading at 113.02 yen compared to the 112.77 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued $1.1752 compared to yesterday's $1.1733.
Asia
Asian stocks rose broadly in holiday-thinned trade Tuesday amid holidays in China and South Korea. The dollar was bolstered by upbeat U.S. economic data and tax reform hopes while oil prices slipped further in Asian deals after falling more than 2 percent on Monday amid signs of higher output.
Markets in South Korea and China remained closed for the Harvest Festival and National Day, respectively. Hong Kong's Hang Seng index was up more than 2 percent at 28,172 in late trade as trading resumed after a long holiday weekend.
Japanese shares rallied to hit two-year highs as the yen held weak in the wake of new data pointing to strength in the world's largest economy. The Nikkei average climbed 213.29 points or 1.05 percent to finish at 20,614.07, the highest level since mid-August 2015. The broader Topix index closed 0.65 percent higher at 1,684.46.
Advantest, Kansai Electric Power and Mitsui Fudosan were among the top gainers. Advertising agency Asatsu-DK Inc soared almost 20 percent after U.S. investment fund Bain Capital said it would buy all outstanding shares in the company through a tender offer.
Australian shares fell as oil retreated and QBE Insurance, the country's largest insurer, said it would increase its allowance for large individual risk and catastrophe claims.
The benchmark S&P/ASX 200 index dropped 27.90 points or 0.49 percent to 5,701.40 while the broader All Ordinaries index finished 27.10 points or 0.47 percent lower at 5,764.20.
QBE Insurance shares tumbled 3.5 percent. Woodside Petroleum, Santos and Origin Energy lost about 1 percent each as oil extended overnight losses.
Mining giant BHP Billiton edged up 0.1 percent and rival Rio Tinto gained 0.7 percent while banks Commonwealth and NAB ended down 1.6 percent and 0.7 percent, respectively. TechnologyOne plummeted 10.3 percent after lowering its annual profit guidance.
Europe
European stocks were flat to slightly higher on Tuesday to hover near 3-month highs as a sell-off in Spanish markets eased and upbeat U.S. economic data bolstered investor optimism about global economic growth.
Spanish Prime Minister Mariano Rajoy on Monday said the government will seek a joint response with other political parties to the "pro-independence challenge" in Catalonia.
The pan-European Stoxx Europe 600 index was marginally lower at 390.05 in late opening deals after rising half a percent on Monday.
France's CAC 40 index was moving up 0.2 percent and the U.K.'s FTSE 100 was marginally higher in lackluster trade, while the German market remained closed for a public holiday.
Spanish banks rebounded after steep losses on Monday, with CaixaBank rising over 1 percent.
Mining giant Rio Tinto advanced 1.3 percent on saying it has successfully completed the first fully autonomous rail journey at its iron ore operations in the Pilbara region of Western Australia.
Ferguson shares rallied 2.8 percent. The plumbing supplies group hiked dividend and announced a share buyback plan after reporting a rise in trading profit.
Bakery chain Greggs jumped 2 percent on reporting a 5 percent rise in like-for-like sales in the 13 weeks to the end of September.
Royal Dutch Shell rose half a percent on a Bloomberg report that the company and its partners Eneco Holdings NV and Mitsubishi Corp. are seeking to sell a stake in two Dutch offshore wind-farm projects.
Coca Cola HBC lost 2.6 percent after announcing the death of its CEO, Dimitris Lois.
Shire Plc slid half a percent after it sued Allergan for allegedly scheming to block doctors from prescribing its new treatment for dry eye disease.
For comments and feedback: editorial@rttnews.com