U.S. stocks are set to edge higher at open. Continuing the current positive tendency towards indications of an improving market even in the middle of concerns about a resurgence of coronavirus and trade tensions between the U.S. and China.
At 7:AM ET (1100 GMT), S&P 500 Futures traded 21 points or 0.7% higher, while Nasdaq Futures traded 56 points or 0.6% higher. The contract for Dow Futures rose by 201 points or 0.8%.
Wall Street has been powering higher since the lows in March. Last week was the fourth winning week out of the last five. Which helped by heavy fiscal, monetary stimulus, and economic recovery signs.
Bank of Investments J.P. Morgan turned positively on U.S. equities on Monday, upgrading to overweight his investment stance, after falling to neutral late last year.
Nevertheless, COVID-19 continues to grow globally, reaching more than 9 million cases, and areas of the U.S. are still reporting daily records for new infections since the pandemic started.
In addition, the volatile complexity of the U.S.-China partnership, the world’s two largest economies, was laid bare overnight after President Trump was forced to refute the assertion of his trade advisor Peter Navarro that the one-phase trade agreement concluded in January was “over”.
Releases of economic data will center around the IHS Markit Purchasing Managers Index release for June, due at 9:45 AM ET (1345 GMT), which are seen as the leading indicators of overall economic growth. The number of PMI manufacturing is expected to rise to 48, up from 39.8 the month before, while PMI services are expected to rise to 46.5, up from 37.5.
The eurozone’s composite PMI reached a 4-month high of 47.5 earlier Tuesday, up from 31.9 in May and a record low below 14 in April, at the depths of the pandemic-driven lockdowns. However, that’s still below the 50 reading which separates growth from contraction.
In addition, new home sales are scheduled for May at 10 AM ET and by forecast to be 640,000, up 3.5 percent a month compared to an increase of 0.6 percent a month earlier.
In corporate news, Apple (NASDAQ: AAPL) will remain in the spotlight, fresh from another all-time high after confirming that it will start using its new Mac and laptop computers with its own ARM-based processors.
Nonetheless, powerful investment bank Goldman Sachs (NYSE: GS) retains a sell rating on the tech giant, saying “as we move into the COVID-related recession, we conclude that Apple’s costly goods are likely to see much weaker demand than consensus suggests.”
Oil prices got higher Tuesday, maintaining the optimistic tone for the first time since March 6, after the WTI contract settled Monday above $40 a barrel.
The American Petroleum Institute will publish its own data on crude oil and product inventories later Tuesday. Those numbers come ahead of government estimates typically published Wednesday.
U.S. oil futures fell 1.9% to $41.49 a barrel while Brent Futures fell 1.7% to $43.80.
Gold futures elsewhere increased by 0.2% to 1.769.80 / oz, while EUR / USD traded at 1.1288, up.3%.