The major U.S. index futures are pointing to a lower opening on Tuesday, with sentiment reflecting the return of skepticism, especially after stocks ran up sharply in the previous week in the wake of some encouraging economic data. Global cues aren't encouraging, as the Asian stocks showed tentativeness, while the European markets are receding sharply after reports suggested that recent European stress test results understated government debt holdings of banks. In the absence of any major catalysts, stocks may show a lack of direction and may at the best see some consolidation move.
U.S. stocks reversed course in the week ended September 3rd, advancing solidly as upbeat housing, jobs and manufacturing data allayed some of the lurking concerns about the economic recovery.
Last Monday, the major averages closed lower, as traders took profits on some of the previous Friday's gains. Meanwhile, the FOMC minutes released on Tuesday stirred up anxiety concerning the economic outlook, sending stocks lower.
However, the major averages showed a strong comeback on Wednesday after the Institute for Supply Management's manufacturing index rose unexpectedly. Although stocks showed some tentativeness in morning trading on Thursday, they advanced in the afternoon, with positive pending home sales serving as a positive catalyst. The major extended their gains on Friday after a report showing smaller than expected job losses encouraged traders.
For the week ended September 3rd, the Dow Industrials added 2.93%, the S&P 500 Index rose 3.75% and the Nasdaq Composite Index moved up 3.72%.
Among the sector indexes, the NYSE Arca Airline Index rallied 6.73%. The Dow Jones Transportation Average, the NYSE Arca Oil Index, the S&P Retail Index and the NYSE Arca Biotechnology Index rose over 4% each,, while the KBW Bank Index and the Philadelphia Housing Sector Index both gained over 5%.
Currency, Commodity Markets
Crude oil futures are moving down $1.60 to $73 a barrel after declining 0.57 or 076% to $74.60 a barrel in the week ended September 3rd. Last Monday, oil retreated, snapping a 3-session winning streak, as equity markets retreated.
The commodity retreated sharply on Tuesday in reaction to the bleak economic outlook relayed by the FOMC minutes. Oil fell over $2.75-a-barrel. However, oil bounced back on Wednesday, recouping most of the previous session's losses, as some encouraging economic data increased the risk appetite of traders.
Oil rose yet again on Thursday, as the positive data flow continued, sending the black gold up by over $2-a-barrel. Profit taking led to some selling in the commodity on Friday despite the encouraging jobs data. Consequently, oil cut most of the losses it suffered early in the week before closing moderately lower.
Gold futures, which closed the previous week up $12.30 or about 1% at $1,250.20 an ounce, are currently rising $1.20 to $1,252.80 an ounce.
Among currencies, the U.S. dollar lost ground against the yen in the week ended September 3rd, losing 1.19% and settling at 84.2125 yen. The dollar also fell against the euro, receding 0.89% for the week to $1.2876.
The U.S. dollar is currently trading at 83.745 yen and is valued at $1.2747 versus the euro.
Asia
The major Asian markets showed a lack of direction for much of Monday's session before closing on a mixed note.
Japan's Nikkei 225 average languished below the unchanged line for the better part of the session before closing down 75.32 points or 0.81% at 9,226. A majority of stocks declined in the session, with auto parts retailer Clarion leading the slide with an over 9% loss. Fuji Heavy Industries, Meiji and Toshiba were among the other notable decliners.
In a central bank decision from the region, the Bank of Japan announced at the end of its two-day policy meeting today that it is maintaining its key interest rate at near-zero levels. It also promised to take more policy actions if judged necessary to kick start the deflation-ravaged economy.
The policy board of the central bank, led by Governor Masaaki Shirakawa unanimously decided to leave the uncollateralized overnight call rate unchanged at 0.10% and pledged to maintain an extremely accommodative financial environment. Rates have been frozen at their record low since December 2008.
Europe
The major European markets are trading lower, with the French CAC 40 Index and the German DAX Index moving down 1.21% and 0.72%, respectively, while the U.K.'s FTSE 100 Index is receding 0.83%.
A report released by the German Federal Ministry of Economics and Technology showed that German factory orders fell by 2.2% month-over-month in July after recording a revised 3.6% increase in June. Economists had expected 0.5% growth.
U.S. Economic Reports
The unfolding week has a very light economic calendar, with the jobless claims report to be released on Thursday the sole economic report of any significance. Traders may also closely watch the Beige Book due to be released on Wednesday. The Commerce Department's trade balance report and wholesale inventories report, the Federal Reserve's consumer credit report and the Treasury auctions of 3-year and 10-year notes and 30-year bonds round up the other economic events of the week.
If the Beige Book, which gives anecdotal evidence of economic conditions since the last FOMC meeting, shows further deterioration, then it may prompt the Fed to announce quantitative easing.
The trade deficit isn't likely to improve significantly, as oil imports are expected to have increased both in volume and value terms. The muted outlook for exports also does not hold much promise.
Stocks in Focus
AMR (AMR) is likely to be in focus after it said that its American Airline unit reported an August load factor of 84.6%, down 0.1 points year-over-year. The airline's traffic rose 3.1% and its capacity increased 3.2%.
Beckman Coulter (BEC) may see some activity after it announced the resignation of its president and CEO Scott Garrett, effective September 6th, 2010. The company announced the appointment of Robert Hurley as interim President and CEO while also saying that it has initiated a search for a successor.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.