Tuesday June 5th

5-06-2018

US stocks set for slight gains after Nasdaq scores record close

U.S. stock index futures saw minor gains ahead of the open, as markets overseas showed a relatively mixed to positive picture on Tuesday. Around 8 a.m. ET, Dow Jones industrial average futures rose 29 points, indicating a higher open of 11.31 points. Nasdaq 100 and the S&P 500 futures indicated a slightly positive start to the session for their respective markets. The moves in premarket trading came after U.S. markets finished Monday's session on a high. By the close, the Dow Jones industrial average and S&P 500 closed in the black, while the Nasdaq composite posted a record close, supported by a strong session by Apple and Amazon. Meanwhile, international markets saw a relatively tepid trading day Tuesday, with Asian-Pacific indexes closing mostly higher, while stocks in Europe fluctuated during its morning trade. Japan's Nikkei 225 closed higher by 0.28 percent as technology names and retailers edged up. Those gains were, however, offset by losses in financials and oil companies. Elsewhere, South Korea's benchmark Kospi erased earlier losses to go up 0.25 percent on the day, with gains seen in the tech and manufacturing sectors. Greater China markets edged higher, with Hong Kong's Hang Seng Index up by 0.17 percent at 3:40 p.m. On the mainland, the Shanghai composite rose 0.75 percent. In data, the services purchasing managers' index (PMI) is due out at 9:45 a.m. ET, followed at 10 a.m. ET by data including non-manufacturing ISM report on business, the job openings and labor turnover survey (JOLTS), and the quarterly financial report. Elsewhere, trade turmoil between the U.S. and other nations continues to keep markets jittery. Last week, the U.S. administration implemented metal tariffs on Canada, Europe and Mexico — a move met with criticism and retaliation from the nations involved. The White House stated Monday that it does continue to seek strong ties with those countries, despite the tariffs, Reuters reported. Investors will be turning their attention to the G-7 summit in Canada this week, where trade is expected to be of key importance. In earnings, Ambarella is scheduled to publish its latest corporate earnings after the bell. Brent crude futures eased on Tuesday, giving up early gains, as investors weighed the chances that global supply will increase substantially if OPEC decides this month to raise output, just as U.S. production grows at near-record rates. Brent crude futures fell 11 cents to $75.18 a barrel by 0924 GMT, having lost 2 percent the previous day. U.S. West Texas Intermediate crude edged up 30 cents to $65.05. Gold prices were little changed on Tuesday as investor focus shifted to bullish global economic fundamentals and away from trade concerns, helping lift equities and keeping the dollar steady near a six month high. Investors are awaiting economic data that might confirm the U.S. economy is on track for a strong June quarter, with rising bond yields also supporting the greenback and making dollar priced gold costlier for non-U.S. investors. Spot gold was flat at $1,291.90 per ounce. It is down 0.5 percent so far this month having fallen 1.3 percent in May. U.S. gold futures for August delivery were down 0.1 percent at $1,295.90 per ounce.