By Peter Nurse
Investing.com - U.S. stocks are seen opening mixed Tuesday, with the tech-focused Nasdaq underperforming as investors digest the nomination of Jerome Powell for a second term as head of the Federal Reserve.
At 7 AM ET (1200 GMT), the Dow Futures contract was up 20 points, or 0.1%, S&P 500 Futures largely flat and Nasdaq 100 Futures dropping 30 points, or 0.2%.
President Joe Biden on Monday ended months of speculation over his pick to run the Federal Reserve, reappointing Powell as chair and promoting Fed Governor Lael Brainard to second in command.
Although stocks initially gained on the news, the broad market headed lower into the final minutes of trading as bond yields rose. Powell’s appointment, which has to be confirmed in the Senate, was seen resulting in a faster normalization of monetary policy than would have been the case under Brainard.
The Dow Jones Industrial Average closed just 17 points higher on Monday, but the S&P 500 and the Nasdaq Composite, in particular, fell as growth stocks reacted to the jump in yields.
Looking at individual stocks, Zoom Video Communications (NASDAQ:ZM) will be in focus after the popular video-conferencing platform added fewer large clients than expected for the second straight quarter.
Urban Outfitters (NASDAQ:URBN) stock slumped premarket after the retailer warned of possible inventory problems in the busy holiday quarter. Its guidance for around 16% sales growth failed to impress.
Additionally, there are quarterly earnings reports to study from American Eagle (NYSE:AEO), Best Buy (NYSE:BBY) and Abercrombie & Fitch (NYSE:ANF) before the bell, and Dell Technologies (NYSE:DELL), Gap (NYSE:GPS), HP (NYSE:HPQ) and Nordstrom (NYSE:JWN) after the close.
The economic data slate centers around the flash PMI figures for November, which are expected to show some improvement, particularly after Eurozone business growth unexpectedly accelerated as consumers shrugged off another wave of coronavirus infections and new restrictions.
Crude prices fell Tuesday as the U.S. confirmed it will release 50 million barrels of oil from strategic reserves in an attempt to cool elevated prices The likes of India, Japan and South Korea are also expected to join in the release of additional reserves.
The American Petroleum Institute releases its weekly estimates of U.S. oil inventories later in the session. Its data showed crude stockpiles increasing by 655,000 barrels for the week ended Nov. 9, compared with a draw of 2.5 million barrels the previous week.
By 7 AM ET, U.S. crude futures traded 1.2% lower at $75.81 a barrel, while the Brent contract fell 0.8% to $79.09.
Additionally, gold futures fell 0.7% to $1,793.95/oz, while EUR/USD traded 0.2% higher at 1.1254.