WASHINGTON (dpa-AFX) - Following the sell-off seen in the previous session, stocks are likely to regain some ground in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 112 points.
Bargain hunting may contribute to initial strength on Wall Street, as traders look to pick up stocks at reduced levels on the heels of yesterday's steep drop.
The Dow suffered its biggest point and percentage drop in two years on Monday, as traders worried about the impact of the coronavirus outbreak that has spread far beyond China to Europe and the Middle East.
The markets may also benefit from a positive reaction to earnings news from companies like Home Depot (HD) and Macy's (M).
Home Depot and Macy's are both moving higher in pre-market trading after the retailers reported quarterly results that exceeded analyst estimates on both the top and bottom lines.
On the other hand, MasterCard (MA) and United Airlines (UAL) have warned about the potential impact the coronavirus outbreak will have on their 2020 results.
MasterCard and United join a growing list of companies that have warned about the potential impact of the outbreak, which may keep buying interest somewhat subdued.
Not long after the start of trading, the Conference Board is due to release its report on consumer confidence in the month of February. The consumer confidence index is expected to rise to 132.5 in February after climbing to 131.6 in January.
Stocks moved sharply lower during trading on Monday, extending the notable pullback seen late last week. With the steep drop on the day, the Dow ended the session at its lowest closing level in well over two months.
The major averages remained firmly negative throughout the session after an initial nosedive. The Dow plunged 1,031.61 points or 3.6 percent to 27,960.80, the Nasdaq plummeted 355.31 points or 3.7 percent to 9,221.28 and the S&P 500 tumbled 111.86 points or 3.4 percent to 3,225.89.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index plunged by 3.3 percent as trading resumed following a holiday on Monday, while Hong Kong's Hang Seng Index rose by 0.3 percent.
Meanwhile, the major European markets have moved lower over the course of the session. While the U.K.'s FTSE 100 Index has slid by 0.8 percent, the French CAC 40 Index is down by 0.6 percent and the German DAX Index is down by 0.4 percent.
In commodities trading, crude oil futures are inching up $0.14 to $51.57 a barrel after plunging $1.95 to $51.43 a barrel on Monday. Meanwhile, after spiking $27.80 to $1,676.60 an ounce in the previous session, gold futures are tumbling $23.90 to $1,652.70 an ounce.
On the currency front, the U.S. dollar is trading at 110.57 yen compared to the 110.72 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0841 compared to yesterday's $1.0854.
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