The major U.S. index futures are pointing to a lower opening on Tuesday, impacted by geopolitical tensions triggered by the extension of the lockdown of Brussels in a bid to manhunt the mastermind behind the Parisian attacks. European stocks are plunging but crude oil and most commodities are advancing. The dollar has given back some ground. Forecasts issued by retailers for the holiday quarter hasn't been very encouraging. Meanwhile, the third quarter U.S. GDP was upwardly revised in line with expectations. Traders may also look ahead to a consumer confidence reading due shortly after the markets open.
U.S. stocks went about in a lackluster manner on Monday before ending modestly lower, as traders took some profits off the table after last week's strong showing. Some sore domestic data points prompted the weakness.
The major averages opened narrowly mixed and saw apprehension in early trading. After moving firmly above the unchanged line in late morning trading, the Dow Industrials remained in the green until the mid-session. The index went about a nervous ride only to pull back in late afternoon trading. In the final hour, the index recouped some of the loss but still closed down 31.13 points or 0.17 percent at 17,793.
The S&P 500 Index and the Nasdaq Composite hovered above the unchanged line after seeing listlessness in early trading. After retreating into negative territory in late afternoon trading, the averages pared some of their losses before ending lower for the day. The former ended down 2.58 points or 0.12 percent at 2,087 and the latter closed at 5,103, down 2.44 points or 0.05 percent.
Twenty-two of the thirty Dow components closed lower for the session, with Apple (AAPL), Goldman Sachs (GS), JP Morgan Chase (JPM) and Procter & Gamble (PG) leading the slide. On the other hand, Coca-Cola (KO), Home Depot (HD) and Chevron (CVX) gained ground.
Among the sectors, transportation, utility, semiconductor, brokerage and gold stocks came under selling pressure, while biotechnology and retail stocks gained ground.
On the economic front, flash estimates released by Markit showed that its U.S. manufacturing PMI unexpectedly fell to 52.6 in November from 54 in October, hitting the lowest level in more than 2 years.
The National Association of Realtors reported that existing home sales fell a more than expected 4.7 percent to 5.36 million units in October from 5.55 million units in September. Annually, existing home sales were up 3.9 percent.
Single-family sales fell 3.7 percent month-over-month and condominium sales were down 1.6 percent. Inventories measured in terms of months of supply rose slightly to 4.8 months. The median price of an existing home sales edged down 0.9 percent to $219,600.
Currency, Commodity Markets
Crude oil futures are climbing $0.75 to $42.50 a barrel after receding $0.15 to $41.75 a barrel on Monday. Meanwhile, an ounce of gold is currently trading at $1,076.60, up $9.80 from the previous session's close of $1,066.80. On Monday, gold rose $2.70.
On the currency front, the U.S. dollar is trading at 122.50 yen compared to the 122.84 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0656 compared to yesterday's $1.0636.
Asia
The major Asian markets ended on mixed note, unimpressed by the lackluster performance on Wall Street overnight. The Australian, Hong Kong and Taiwanese markets retreated, while most other major markets advanced.
The Japanese market ended modestly higher, advancing for the fifth straight session, as the yen weakened slightly. The Nikkei 225 Index languished below the unchanged line until late afternoon trading. Thereafter, the average recovered and ended 45.08 points or 0.23 percent higher at 19,925.
Export, construction, chemical, pharma and retail stocks were among the gainers of the session, while food, cement, mining, marine transportation, financial, utility and rubber stocks came under selling pressure.
Australia's All Ordinaries Index languished below the unchanged line throughout the session before ending down 49.50 points or 0.93 percent at 5,277. The market witnessed broad based weakness, with material, energy and consumer stocks leading the slide.
Hong Kong's Hang Seng Index ended at 22,588, down 78.27 points or 0.35 percent, while China's Shanghai Composite Index closed at 3,616, up 5,79 points or 0.16 percent.
On the economic front, flash estimates released by Nikkei and Markit showed that Japanese manufacturing activity expanded at the fastest rate in 20 months in November. The corresponding manufacturing PMI rose 0.4 points to 52.8 in November.
Europe
European stocks opened lower and have seen further downside since then, extending the declines of the previous session. Traders are reacting to terror threat, as Brussels remained in a shutdown mode for the fourth straight delay, even as some domestic data has been encouraging.
The results of a survey by the IfO Institute showed that German business confidence firmed up in November. The business climate index rose to 109 in November from 108.2 in October, belying expectations for an unchanged reading.
The German Federal Statistical Office reported that German GDP rose 0.3 percent sequentially in the third quarter, as estimated initially. Household spending and government spending rose 0.6 percent and 1.3 percent, respectively, while gross fixed capital formation eased 0.3 percent.
Data released by French statistical office INSEE showed that confidence among French manufacturers receded in November. The manufacturing confidence index fell a point to 102.
U.S. Economic Reports
Preliminary estimate released by the Commerce Department showed that third quarter GDP rose at an upwardly revised rate of 2.1 percent compared to a 3.9 percent expansion in the second quarter. Advance estimate released in late October had pitched the growth at 1.5 percent. The revision was in line with estimates.
The upward revision reflected an upward revision to private inventory investment that was partly offset by downward revisions to PCE and to exports. Consumer spending, non-residential fixed investment, residential fixed investment, state and local government spending positively contributed to growth.
The Conference Board is due to release the results of its consumer confidence survey for November at 10 am ET. Economists expect the consumer confidence index to rise to 99.6 from 97.6 in October.
Confidence among U.S. consumers fell to a 3-month low in October. The consumer confidence index fell to 97.6 from a downwardly revised 102.6 in September. Economists expected a more modest drop to 102.5. The present situation index fell 8.2 points to 112.1, while the expectations index fell a more modest 2.8 points to 88.
The results of the Richmond Federal Reserve's manufacturing survey for November are expected to show an increase in the index to 1 from -1 in October.
The Treasury Department is scheduled to release the results of its auction of 5-year notes at 1 pm ET.
Stocks in Focus
Campbell (CPB) reported better than expected adjusted earnings per share for its first quarter but its sales were slightly shy of estimates. While lowering its full year sales guidance, the company lifted its adjusted earnings per share guidance.
Chico's FAS (CHS) reported below-consensus results for its third quarter and its board announced a $300 million stock buyback program.
Hormel Foods (HRL) reported better than expected adjusted earnings and revenues for its fourth quarter. The company's 2016 earnings per share guidance is positive.
Microsemi (MSCC) and PMC-Sierra Inc. (PMCS) announced they have entered into a definitive agreement under which Microsemi will acquire PMC in a deal valued at approximately $2.5 billion.
Tiffany (TIF) reported below-consensus earnings per share and net sales for the third quarter and lowered its full year earnings per share guidance.
Dollar Tree (DLTR) reported lower earnings per share for the third quarter but its revenues beat estimates.
Fred's (FRED) third quarter results exceeded estimated, while its fourth quarter earnings per share guidance is lackluster.
Standard & Poor's announced that CSRA (CSRA) will be added to the S&P 500 Index after the close of trading on November 27th, replacing Computer Sciences (CSC) from which it is spin-off. The Computer Sciences stub will replace Apollo Education (APOL) in the S&P MidCap 500.
Bristol-Myers (BMY) announced the FDA has approved Opdivo for treating advanced renal cell carcinoma in patients who have received prior anti-angiogeneric therapy.
J.M. Smucker (SJM) announced a selling shareholder will offer 2.86 million shares of its common stock in a secondary offering.
Brocade Communications (BRCD) reported better than expected fourth quarter results but issued lackluster guidance for its first quarter,
Guess (GES), Hewlett Packard Enterprise (HPE), HP (HP) and TiVo (TIVO) are among the notable companies due to release their quarterly results after the close of trading.
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