After a modest pullback in the previous session, stocks may display a lack of direction in early trading on Tuesday. Current indicators imply the markets will open roughly flat, with a meager 0.1% rise in S&P 500 futures.
Prevailing uncertainty about the markets' near-term outlook may result in erratic trading on Wall Street, harking back to last week when both the Dow and the S&P 500 ascended to new record highs. Traders might tread lightly in anticipation of critical economic data set to be released later this week, including an inflation report that is keenly monitored.
The forthcoming report from the Commerce Department on personal income and spending is anticipated to feature a consumer price inflation data, reportedly preferred by the Federal Reserve. The inflation data could significantly color the interest rate outlook, for the Fed officials assert they require stronger assurances of decelerating inflation before considering a rate cut.
A substantial downturn was seen in new orders for U.S. manufactured durable goods in January, according to a report unveiled by the Commerce Department earlier today. The report observed a sharp 6.1 percent drop in durable goods orders in January, following a minor, modified 0.3 percent decrease in December. Economists had predicted a 4.5 percent tumble in contrast to the stagnant reading reported for the previous month.
Eliminating the steep decline in orders for transportation equipment, durable goods orders dipped slightly by 0.3 percent in January, following a 0.1 percent decline in December. Orders excluding transportation were projected to rise by 0.2 percent.
Soon after the start of trading, the Conference Board is expected to publish its report on consumer confidence for February. The consumer confidence index is predicted to inch up to 115.0 in February, edging up from 114.8 in January.
U.S. stocks dipped on Monday, with all major averages weakening after a semi-positive onset as investors opted for caution ahead of certain key economic data. Major averages saw the Dow decrease by 62.30 points or 0.2 percent to 39,069.23 and the S&P 500 shed 19.27 points or 0.4 percent to 5,069.53. The Nasdaq, despite a rocky day spent largely in the positive zone, ended lower by 20.57 points or 0.1 percent to 15,976.25.
In Asia-Pacific, stocks put forth a mixed performance on Tuesday. China's Shanghai Composite Index surged by 1.3 percent while Japan's Nikkei 225 Index remained largely unchanged and South Korea's Kospi retreated by 0.8 percent.
European markets also exhibited mixed fortunes. The German DAX Index is up by 0.5 percent while both, the French CAC 40 Index and the U.K.'s FTSE 100 Index, are down by 0.1 percent.
In commodities, crude oil futures have receded $0.11 to $77.47 a barrel after bouncing $1.09 to $77.58 a barrel on Monday. After falling $10.50 to $2,038.90 an ounce in the previous session, gold futures are now inching up $8.10 to $2,047 an ounce.
On the currency front, the U.S. dollar is currently worth 150.28 yen, a small drop against the 150.70 yen it stood at during the close of New York trading on Monday. Facing the euro, the dollar comes in at $1.0845 compared to its previous value of $1.0851.
