Benzinga - by Shanthi Rexaline, Benzinga Editor.
The U.S. stocks could be primed for another mixed session on Tuesday, with techs looking poised for a bounce back from the previous session’s losses. Nvidia Corp. (NASDAQ:NVDA) could lead from the front, with the stock climbing over 2% in the premarket. The spotlight is likely to be on a couple of speeches by Federal Reserve officials and a consumer confidence reading.
Traders may, all the same, prefer staying on the sidelines as they look ahead to the back-end loaded economic calendar and the first presidential debate to be hosted late Thursday. Fund manager Louis Navellier sees the recent market pullback as a blessing in disguise. “For now, the bull market continues, and a stalling of the leaders finds investors turning to bargain shopping and broadening the breath, a healthy development,” he said.
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.43% |
| S&P 500 | +0.16% |
| Dow | -0.13% |
| R2K | +0.09% |
Cues From Last Session:
Tech stocks led the retreat by the Nasdaq Composite and the S&P 500 indices on Monday, while the Dow Jones Industrial Average ended higher for the fifth straight session. Nvidia spearheaded the tech sell-off, as the stock pulled back further away from its record high and ended lower for a third straight session.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -1.09% | 17,496.82 |
| S&P 500 Index | -0.31% | 5,447.87 |
| Dow Industrials | +0.67% | 39,411.21 |
| Russell 2000 | +0.43% | 2,030.81 |
Insights From Analysts:
LPL Financial analysts see disruptive technologies such as AI likely turning out to be an antidote to the headwinds of today. The firm’s Chief Economist Jeffrey Roach and Chief Equity Strategist Jeffrey Buchbinder noted that “excitement — plus maybe some ‘irrational exuberance’ — on artificial intelligence and other disruptive technologies generated record highs for the major stock market indexes over the past week and pushed implied volatility to historical lows.”
The analysts shrugged off the comparisons with the late-1990s tech bubble. “This market environment is very different, given who is leading the charge – the highest quality, most profitable companies in the world – and much lower valuations,” they said.
“A likely path for markets, we believe, is a pullback or mild correction in the second half, offering investors the opportunity to buy on dips.”
Wharton Professor and Wisdom Tree Senior Economist Jeremy Siegel said the upcoming presidential debate could also play a key role in shaping market sentiment. “A major gaffe by one of the candidates could alter the trajectory,” he said.
Trump’s policies, though considered more favorable for the stock market, his approach brings a degree of unpredictability, which can be a double-edged sword for investors, the economist said. “On the other hand, while Biden might imply a shift towards higher taxes and increased regulation, his policy approach promises more stability and predictability,” he added.
Upcoming Economic Data:
- S&P/Case-Shiller and the Federal House Finance Agency are scheduled to release the results of two separate house price surveys at 9 a.m. EDT.
- The Conference Board is due to release the results of its consumer confidence survey for June at 10 a.m. EDT. The consensus estimate calls for a dip in the index from 102 in May to 100 in June.
- Fed Governor Lisa Cook will make a public appearance at 12 p.m. EDT.
- The Treasury will auction two-year notes at 1 p.m. EDT.
Stocks In Focus:
- Carnival Corporation & plc (NYSE:CCL), FedEx Corporation (NYSE:FDX), Progress Software Corporation (NASDAQ:PRGS) and Worthington Enterprises, Inc. (NYSE:WOR) are among the companies due to release their quarterly results on Tuesday.
- Nvidia is rebounding by over 2% in premarket trading following the sell-off in the previous three sessions.
- Rivian Automotive, Inc. (NASDAQ:RIVN) climbed over 2% on a positive analyst action.
Crude oil futures pulled back but held above the $81-a-barrel level, while gold futures extended gains and were approaching the $2,350-an-ounce mark. Bitcoin (CRYPTO: BTC) was flattish just above the $61K mark. The benchmark 10-year U.S. Treasury note eased 1.8 basis points to 4.23%.
Among the global equities, most Asian markets closed mostly higher, with the exception of Chinese, Indonesian and Malaysian markets. European stocks fell in early trading,
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