Eyes on data as stock futures signal dip
U.S. stock index futures pointed to a lower open on Wall Street on Tuesday following the previous session's strong gains, with futures for the S&P 500 down 0.41 percent, Dow Jones futures down 0.31 percent and Nasdaq 100 futures down 0.28 percent at 3:55 a.m. ET.
The dollar fell to a 3-month low against the euro on Tuesday, as the single currency gained support from solid euro zone data and corporate earnings, while the greenback fell on the perception that the U.S. growth outlook is deteriorating, forcing the Federal Reserve to keep interest rates low.
The two-year U.S. Treasury note yield dropped to a record low in Europe on Tuesday on the prospect of the Federal Reserve buying more U.S. Treasuries. The two-year yield fell as low as 0.542 percent from 0.562 percent late in New York on Monday. At 3:30 a.m. ET, it was down 2 basis points on the day at 0.546 percent, Reuters data showed.
A Wall Street Journal report, without citing sources, said Federal Reserve officials meeting on August 10 will consider whether to use cash the Fed receives when its mortgage-bond holdings mature to buy new mortgage or Treasury bonds, instead of allowing its portfolio to shrink gradually, as it is expected to do in the months ahead.
Oil prices extended three-month highs toward $82 on Tuesday, tracking gains in Asian equities following strong bank earnings and upbeat manufacturing data for industrialized economies a day earlier.
Mining shares will be in focus after gold miner Kinross Gold Corp
Xstrata
Research in Motion
Sanofi-Aventis
MetLife Inc
Companies scheduled to report quarterly results on Tuesday include Dow Chemical Co .
After the bell on Monday, Sykes Enterprises Inc
On the macro front, investors awaited June's personal income and consumption data, due at 8:30 a.m. ET, and June's factory orders and pending home sales, due at 10 a.m ET.
U.S. shares ended at their highest level in 10 weeks on Monday and the S&P 500 pierced key technical levels as a weaker U.S. dollar lifted the energy and raw materials sectors while robust results in Europe from BNP Paribas
The Dow Jones industrial average <.DJI> gained 208.44 points, or 1.99 percent, to 10,674.38. The Standard & Poor's 500 Index <.SPX> advanced 24.26 points, or 2.20 percent, to 1,125.86. The Nasdaq Composite Index <.IXIC> rose 40.66 points, or 1.80 percent, to 2,295.36.
The S&P 500 closed the session above its 200-day moving average and the 1,121 level, the midpoint of the slide from its historic high reached in October 2007 and the 12-year low hit in March 2009, which has been viewed as a key resistance level. The benchmark has not been able to close above this 50 percent retracement since mid-May.
(Reporting by Blaise Robinson; Editing by Louise Heavens)
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