US stocks look like starting a shortened week on the back foot on Tuesday following another breakdown in negotiations over the Greek bailout at last night’s Eurogroup meeting. Today’s downturn follows the S&P 500 breaking into new ground on Friday driven largely by the energy sector gaining from what could be a bottom in the price of crude oil.
Although US oil inventories data from Wednesday suggests there is still an oversupply, the price of oil has been taking its direction from the Baker Hughes rig count which on Friday indicated the lowest number of US rigs since August 2011.
Economic growth in the US, the potential for a pickup in the Eurozone added to the eventual slowdown in US oil production suggests there may become more of an equalisation of oil supply and demand sometime this year.
After the stellar fourth quarter record earnings, Apple Inc (NASDAQ:AAPL) shares have now gained in value for five days in a row, most of which were new all-time closing highs. The latest reports out of Cupertino, California indicate Apple is developing its own electric-car to compete with the likes of Tesla Motors Inc (NASDAQ:TSLA).
The project has not been confirmed by Apple and it would likely be a number of years before the company was close to production if Apple chose to proceed with it. But the rumour does go to confirm the statement from CEO Tim Cook that Apple has a number of products up their sleeve that nobody knows about and could be massive for the future growth of the company.
Goodyear Tyres, Fresh Del Monte Produce, Fossil Group, MGM Resorts and Medtronic all report quarterly earnings on Tuesday.
Futures suggest the:
S&P 500 will open 6 points lower at 2,090 with the
Dow Jones expected to open 42 points lower at 17,977 and the
NASDAQ 9 points lower at 4,375.
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