Futures Positive on Earnings; Dollar Slips
Wall Street was set for a positive open Tuesday as the dollar slipped and a handful of positive earnings reports helped restore some positive momentum for the market.
The US currency dropped against the euroas traders booked profits after a strong gain Monday that thwarted a potential stocks rally.
At the same time, TD Ameritrade and US Steel were among companies reporting earnings that beat analyst expectations.
US Steel posted a loss of $2.11 a share that was considerably less than the $2.87 that analysts expected, sending its shares up 2.3 percent in premarket trading. TD Ameritrade posted a $0.26 profit on record organic growth, sending its shares up 2.7 percent.
Energy giant BP also contributed to the move higher, posting a profit drop of 34 percent that beat analyst estimates, driven by aggressive cost-cutting. Its US-traded shares gained 5.1 percent premarket.
The moves come a day after the market posted its first back-to-back triple-digit drops since June as the markets were impacted by a rising dollar, falling commodity prices, and other factors.
Two economic reports could go a long way towards pushing the market in one direction or another: at 9 am New York time, the S&P/Case-Shiller Home Price Index will be released for the month of August. Economists think home prices in 20 major cities will have fallen 11.9 percent for the month, compared to a 13.3 percent drop the previous month.
At 10 am New York time, the Conference Board is out with its monthly Consumer Confidence Index, with consensus forecasts looking for a reading of 53.2 for October, compared to the September reading of 53.1.
The government continues its record week of auctions with the sale of $44 billion in 2-year notes, with the results available shortly after 1 pm New York time. On Wednesday will see the sale of $41 billion in 5-year notes, followed by $31 billion in 7-year notes on Thursday.
Some encouraging news from the auto sector, as Honda nearly triples its yearly profit forecast.
At the same time, we're hearing about a slight setback for Ford , as UAW workers at its Kansas City assembly plant vote against the tentative contract changes designed to bring Ford's costs in line with those at GM and Chrysler.
- Written by Peter Schacknow, Senior Producer, CNBC Breaking News Desk