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Wall Street To Open Moderately Lower


Euphoria over the U.S.-China trade war truce is over and the initial trends from the U.S. Futures Index suggest that Wall Street might be opening lower on Tuesday.

There are no major economic data announcements on the day and the New York Stock Exchange and Nasdaq will be closed on Wednesday for mourning for George H.W. Bush. The bond markets also will be closed.

Asian shares finished mixed, while European shares are trading in the red.

As of 7.50 am ET, the Dow futures were down 114.00 points, the S&P 500 futures were declining 9.75 points and the Nasdaq 100 futures were losing 37.50 points.

The major averages moved roughly sideways for much of the session before closing significantly higher. The Dow surged up 287.97 points or 1.1 percent to 25,826.43, the Nasdaq soared 110.98 points or 1.5 percent to 7,441.51 and the S&P 500 shot up 30.20 points or 1.1 percent to 2,790.37.

On the economic front, Redbook for the week will be published at 8.55 am ET. The prior Store Sales was up 7.9 percent.

New York Federal Reserve Bank President John Williams will deliver opening remarks and join a panel of New York Fed economists to answer questions after the economists' presentation on forces driving labor market tightness, types of jobs gained and wage trends in the Second District, in New York, NY at 10.00 am ET.

52-week Bills auction will be held at 1.00 pm ET.

In the corporate sector, Dollar General Corp. lowered its financial outlook for fiscal 2018. The company now expects earnings per share to be $5.85 to $6.05, down from the prior range of $5.95 to $6.15 per share. The revised earnings per share guidance assumes an effective tax rate in the range of 21 percent to 22 percent, compared with the lower end of the 22 percent to 23 percent range that the company previously provided.

Asian stocks closed mixed on Tuesday. China's Shanghai Composite index rose 11.16 points or 0.42 percent to 2,665.96. Hong Kong's Hang Seng index closed up 0.29 percent at 27,260.44.

Japanese shares fell on profit taking. The Nikkei average slid from a two-week high to end the session down as much as 538.71 points or 2.39 percent at 22,036.05. The broader Topix index closed 2.36 percent lower at 1,649.20.
Australian markets succumbed to profit taking after the previous session's sharp rally. The benchmark S&P/ASX 200 index fell 1.01 percent to 5,713.10 after climbing 1.8 percent on Monday. The broader All Ordinaries index closed 1 percent lower at 5,797.50.

European shares are trading in the red. France's CAC 40 is declining 34.35 points or 0.68 percent. Germany's DAX is down 78.85 points or 0.68 percent. FTSE 100 of U.K. is lowering by 46.54 points or 0.66 percent. Swiss Market Index is down 8.33 points or 0.09 percent.

Eurozone's leading Blue Chip index,Euro Stoxx 50, is declining 0.65 percent.

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