U.S. stocks looked to extends gains Tuesday, with investors keeping a close watch on eurozone developments but remaining optimistic that leaders are making progress addressing the region's debt crisis.
The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were higher ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
As investors awaited another meeting of eurozone leaders Tuesday, Moody's warned of a potential downgrade of 87 banks across 15 eurozone countries. The ratings agency also warned of sovereign credit rating cuts across the region, as the debt crisis continues to escalate.
U.S. stocks posted sharp gains Monday, following reports of strong Black Friday weekend sales and optimism that European leaders may be working toward a solution to the continent's debt crisis.
Europe eyes new pact as debt crisis rages
Monday's rally was broad, with all 30 Dow components gaining ground. All but a small handful of stocks in the S&P 500 and Nasdaq traded higher.
The mood on Wall Street was cheerful, after major retailers reported record sales of $52.4 billion over Black Friday weekend -- up 16% from last year.
Meanwhile, investors appeared to shrug off a warning by Moody's on Monday that the intensifying European debt crisis could lead to a downgrade of the region's sovereign debt. Instead, reports about a coordinated effort to create some type of eurozone fiscal union, while not new, appear to be lifting sentiment.
Under pressure to avert a financial meltdown, European leaders are working on a new plan to ensure fiscal discipline across the euro area. The proposal, which was worked on during a meeting in Washington, D.C. on Monday, is expected to give the European Union greater authority over the budget policies of individual eurozone nations.
World markets: European stocks were higher in morning trading. Britain's FTSE 100 (UKX) ticked up 0.4%, the DAX (DAX) in Germany rose 1.1% and France's CAC 40 (CAC40) added 1%.
Asian markets ended with sharp gains. The Shanghai Composite (SHCOMP) and the Hang Seng (HSI) in Hong Kong climbed 1.2%, and Japan's Nikkei (N225) rallied 2.3%.
Economy: New data on home prices and consumer confidence will be released on Tuesday.
The September edition of the S&P/Case Shiller index, a gauge of home prices in 20 major cities, is due on Tuesday morning. Analysts surveyed by Briefing.com expect prices to have dropped 3.0% versus a year ago, after a 3.8% year-over-year drop the previous month.
New home sales rose 1.3% to an annual rate of 307,000 in October, according to data released on Monday. Economists were expecting the annual rate to come in at 312,000.
The Conference Board's Consumer Confidence Index is expected to rise to 42.5 for the month of November, up from 39.8 in October.
Companies: Companies on tap to report earnings Tuesday include jewelry company Tiffany & Co (TIF) and digital imaging developer OmniVision Technologies (OVTI).
Currencies and commodities: The dollar slumped against the euro, the British pound and the Japanese yen.
Oil for January delivery rose 70 cents to $98.91 a barrel.
Gold futures for December delivery added $4.50 to $1,750.30 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury edged lower, pushing the yield up to 2.01% from 1.96% late Monday.more information...
Source: http://money.cnn.com
No comments:
Post a Comment