After moving sharply lower over the past few sessions, stocks may move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.4 percent.
Bargain hunting may contribute to early strength on Wall Street, as some traders look to pick up stocks at relatively reduced levels.
The sell-off seen in recent days has dragged the Nasdaq and the S&P 500 down to three-month lows amid concerns about the outlook for the U.S. economy.
A positive reaction to some of the latest corporate earnings news may also generate early buying interest, with shares of Uber (UBER) spiking by 8.9 percent in pre-market trading after the ride-sharing company reported better than expected second quarter results.
Industrial equipment maker Caterpillar (CAT) is also likely to see initial strength after reporting second quarter results that exceeded analyst estimates on both the top and bottom lines.
Shares of CSX Corp. (CSX) may also move to the upside after the rail transportation company reported better than expected second quarter earnings.
Stocks moved sharply lower during trading on Monday, extending the sell-off seen to close out the previous week. The major averages all showed significant declines, with the Nasdaq and the S&P 500 hitting three-month lows.
The major averages ended the day off their lows of the session but still firmly negative. The Nasdaq plunged 576.08 points or 3.4 percent to 16,200.08, the S&P 500 dove 160.23 points or 3.0 percent to 5,186.33 and the Dow tumbled 1,033.99 or 2.6 percent to 38,703.27.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index soared by 10.2 percent, while South Korea’s Kospi jumped by 3.3 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index has slid by 0.7 percent, the U.K.’s FTSE 100 Index is down by 0.4 percent and the German DAX Index is down by 0.2 percent.
In commodities trading, crude oil futures are slipping $0.40 to $72.54 a barrel after falling $0.58 to $72.94 a barrel on Monday. Meanwhile, after tumbling $25.40 to $2,444.40 an ounce in the previous session, gold futures are edging down $1.60 to $2,442.80 an ounce.
On the currency front, the U.S. dollar is trading at 144.65 yen compared to the 144.18 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0910 compared to yesterday’s $1.0952.
