WASHINGTON (dpa-AFX) - After ending the previous session mostly higher, stocks may see some further upside 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 352 points.
Early buying interest may be generated in reaction to news that Russia has approved a coronavirus vaccine, with Russian President Vladimir Putin claiming the vaccine works 'quite effectively.'
'It forms a stable immunity and, I repeat, has passed all the necessary checks,' Putin said at a meeting with members of the government, according to RIA Novosti.
The speed of the development of the vaccine has raised questions about its safety, although the news is still likely to generate optimism the coronavirus pandemic can be contained in the relatively near future.
Reflecting the optimism about a potential vaccine, airlines and cruise operators are seeing significant pre-market strength.
The markets may also benefit from recent upward momentum, as the Dow and the S&P 500 have closed higher for seven consecutive sessions. The advance has lifted the S&P 500 within striking distance of its record high.
In U.S. economic news, the Labor Department released a report showing producer prices climbed by more than expected in the month of July.
The Labor Department said its producer price index for final demand rose by 0.6 percent in July after dipping by 0.2 percent in June.
The rebound in producer prices reflected the largest increase since October of 2018 and exceeded economist estimates for an uptick of 0.3 percent.
Excluding food and energy prices, core producer prices still climbed by 0.5 percent in July after falling by 0.3 percent in June. Economists had expected core prices to inch up by 0.1 percent.
Stocks moved mostly higher during trading on Monday, with the Dow and the S&P 500 climbing to their best closing levels in over five months. However, weakness among technology stocks contributed to a continued pullback by the Nasdaq.
While the Nasdaq fell 42.63 points or 0.4 percent to 10,968.36, the Dow jumped 357.96 points or 1.3 percent to 27,791.44 and the S&P 500 rose 9.19 points or 0.3 percent to 3,360.47.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday, although China's Shanghai Composite Index bucked the uptrend and slumped by 1.2 percent. Japan's Nikkei 225 Index jumped by 1.9 percent, while Hong Kong's Hang Seng Index surged up by 2.1 percent.
The major European markets have also shown strong moves to the upside on the day. While the French CAC 40 Index has soared by 2.8 percent, the German DAX Index is up by 2.5 percent and the U.K.'s FTSE 100 Index is up by 2.1 percent.
In commodities trading, crude oil futures are advancing $0.82 to $42.76 a barrel after climbing $0.72 to $41.94 a barrel on Monday. Meanwhile, after jumping $11.70 to $2,039.70 an ounce in the previous session, gold futures are plunging $66.10 to $1,973.60 an ounce.
On the currency front, the U.S. dollar is trading at 105.94 yen compared to the 105.96 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1794 compared to yesterday's $1.1738.
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