Stocks May Come Under Pressure In Early Trading

The major U.S. index futures are pointing to a lower opening on Tuesday following the mixed performance seen in the previous session.

Following the lackluster session seen last Friday, stocks continued to show a lack of direction during trading on Monday. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages ended the day mixed. While the Dow edged down 5.27 points or less than a tenth of a percent to 21,808.40, the Nasdaq rose 17.37 points or 0.3 percent to 6,383.02 and the S&P 500 inched up 1.19 points or 0.1 percent to 2,444.24.

The choppy trading on Wall Street came as traders were looking ahead to the release of key economic data in the coming days.

The monthly jobs report is likely to be in focus, with the report expected to show an increase of 180,000 jobs in August.

Reports on consumer confidence, personal income and spending, pending home sales, and manufacturing activity may also attract attention.

Most of the major sectors showed only modest moves on the day, although considerable weakness was visible among energy stocks.The weakness in the energy sector came amid a steep drop by the price of crude oil.

On the other hand, biotechnology stocks showed a strong move to the upside, driving the NYSE Arca Biotechnology Index up by 3 percent.

Kite Pharma (KITE) posted a standout gain after agreeing to be acquired by Gilead Sciences (GILD) for approximately $11.9 billion.

Significant strength was also visible among gold stocks, as reflected by the 4 percent jump by the NYSE Arca Gold Bugs Index. The strength in the sector came amid a sharp increase by the price of the precious metal.

Commodity, Currency Markets

Crude oil futures are slipping $0.14 to $46.43 after plunging $1.30 to $46.57 a barrel on Monday. Meanwhile, after jumping $17.40 to $1,315.30 an ounce in the previous session, gold futures are climbing $12.30 to $1,327.60 an ounce.

On the currency front, the U.S. dollar is trading at 108.55 yen compared to the 109.25 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $11.2028 compared to yesterday’s $1.1979.

Asia

Asian stocks fell broadly on Tuesday and safe-heaven assets climbed after North Korea launched a ballistic missile over Japan, reigniting geopolitical worries. The missile flew over the northern Japanese island of Hokkaido at 6:06 am local Japanese time, according to Japan’s state broadcaster NKH.

Chinese shares shrugged off weak regional cues to…

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