The major U.S. index futures are pointing to a sharply higher opening on Tuesday, with stocks poised to add to the strong gains posted in the previous session. Early buying interest may be generated in reaction to upbeat earnings news from a number of well known companies, including DuPont (DD), Caterpillar (CAT) and McDonald’s (MCD).
Stocks surged on Monday even as the dollar weakened and oil prices fell, as investors breathed a sigh of relief when a centrist candidate emerged as the favorite to become France’s next president.
Pragmatist Emmanuel Macron will face far-right darling Marine Le Pen in the May 7th run-off. Macron is currently polling much better than Le Pen, whose anti-EU rhetoric generates fears on both sides of the Atlantic.
The Dow Jones Industrial Average rallied 216.13 points, or 1.1%, to 20,763.89. The Nasdaq Composite added 73.30 points, or 1.2%, to 5,983.82, an all-time high. The S&P 500 rose 25.46 points, or 1.1%. It was the best day for stocks in almost two months.
Financial stocks enjoyed considerable strength on the day, with the Dow Jones Banks Index jumping by 2.7 percent. Steel, tobacco, chemical and airline stocks also strengthened.
Among big movers, Akari Therapeutics Plc (AKTX), a clinical-stage biopharmaceutical company, reported positive results in a mid-stage clinical trial for its lead drug Coversin for a rare blood disease.
Hasbro Inc. (HAS) reported first quarter EPS of $0.54, up from $0.38 in the previous year. Analysts expected EPS of $0.38. Shares jumped 6% to a yearly high.
C.R. Bard Inc. (BCR) announced Sunday it has agreed to be acquired by Becton, Dickinson and Company (BDX) for $317.00 per share in cash and stock. Bard shares skyrocketed 20 percent.
Commodity, Currency Markets
Crude oil futures are slipping $0.10 to $49.13 a barrel after falling $0.39 to $49.23 a barrel on Monday. Meanwhile, after slumping $11.60 to $1,277.50 an ounce in the previous session, gold futures are sliding $7.80 to $1,269.70 an ounce.
On the currency front, the U.S. dollar is trading at 110.60 yen compared to the 109.77 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0891 compared to yesterday’s $1.0868.
Most Asian stocks rose on Tuesday as European political risks faded and oil prices rebounded after six consecutive sessions of losses.
Investors kept a wary eye on North Korea as the country celebrates the 85th anniversary of the Korean People’s Army amid signs Pyongyang could soon conduct another nuclear test in defiance of United Nations sanctions.
Chinese shares steadied after posting steep losses the previous day amid concerns over the regulatory crackdown on shadow banking.
The benchmark Shanghai Composite Index inched up 5.87 points or 0.19 percent to 3,135.40, while Hong Kong’s Hang Seng Index jumped 316.46 points or 1.31 percent to 24,455.94.
Japanese shares rose for a third straight session as the yen weakened amid easing fears over the risk of a French exit…