WASHINGTON (dpa-AFX) - The major U.S. index futures are currently pointing
to a higher open on Tuesday, with stocks likely to add to the gains posted in
the previous session.

A positive reaction to some of the latest earnings news may generate early
buying interest, with shares of Bank of America (BAC) moving notably higher in
pre-market trading after the financial giant reported better than expected
second quarter earnings.

Health insurance giant UnitedHealth (UNH) is also likely to move to the upside
after reporting second quarter earnings that exceeded analyst estimates.

On the other hand, shares of Morgan Stanley (MS) are seeing significant
pre-market weakness even though the company reported better than expected second
quarter earnings.

Traders are also digesting the latest U.S. economic news, including a Commerce
Department report showing U.S. retail sales came in unchanged in the month of
June.

The Commerce Department said retail sales came in flat in June after rising by
an upwardly revised 0.3 percent in May.

Economists had expected retail sales to come in unchanged compared to the 0.1
percent uptick originally reported for the previous month.

Excluding a sharp drop in sales by motor vehicle and parts dealers, retail sales
climbed by 0.4 percent in June after inching up by 0.1 percent in May. Ex-auto
sales were expected to creep up by 0.1 percent.

The Labor Department released a report on Tuesday showing import prices in the
U.S. were unexpectedly flat in the month of June.

The report said import prices were unchanged in June after dipping by a revised
0.2 percent in May. Economists had expected import prices to rise by 0.2 percent
compared to the 0.4 percent decrease originally reported for the previous month.

Meanwhile, the Labor Department said export prices declined by 0.5 percent in
June after falling by a revised 0.7 percent in May.

Export prices were expected to edge down by 0.1 percent compared to the 0.6
percent decrease originally reported for the previous month.

U.S. stocks closed on a firm note on Monday, with two of the three major indices
moving on to record fresh highs thanks to strong buying at several counters from
across various sectors.

Optimism about interest rate cuts by the Fed and rising prospects of former
President Donald Trump winning the upcoming presidential elections rendered the
mood positive on Wall Street.

The Dow ended up 210.82 points or 0.5 percent at 40,211.72 after scaling a new
high at 40,351.10. The S&P 500, which climbed to a new high of 5,666.94, settled
at 5,631.22, gaining 15.87 points or 0.3 percent, while the Nasdaq ended with a
gain of 74.12 points or 0.4 percent at 18,472.57, after hitting a high of
18,641.53.

Caterpillar climbed more than 3 percent. Goldman Sachs gained about 2.6 percent
on strong second quarter results.

JP Morgan Chase and American Express gained 2.5 percent, and 2.3 percent,
respectively. Apple, Visa, Chevron, Travelers Companies, Walmart and
UnitedHealth Group also closed on a firm note.

Netflix, Adobe Inc, Costco Wholesale Corp, Qualcomm, Tesla, Automatic Data
Processing and Marriott International closed with strong gains.

Nike ended down nearly 3 percent. Boeing, Verizon Communications, 3M, Procter &
Gamble, McDonald's and Amazon lost 0.9 to 2 percent.

Trump Media & Technology shares zoomed nearly 32 percent amid huge volumes,
following Trump's fortunate escape from the assassination attempt in
Pennsylvania on Saturday.

In economic news, a report released by the Federal Reserve Bank of New York
showed regional manufacturing activity contracted at a slightly faster rate in
the month of July.

The New York Fed said its general business conditions index edged down to a
negative 6.6 in July from a negative 6.0 in June, with a negative reading
indicating contraction. Economists had expected the index to come in unchanged.

Fed Chair Jerome Powell, who spoke at the Economic Club of Washington D.C., said
that the central bank will not wait until inflation hits 2 percent to cut
interest rates.

Powell referenced the idea that central bank policy works with 'long and
variable lags' to explain why the Fed wouldn't wait for its target to be hit.

'The implication of that is that if you wait until inflation gets all the way
down to 2%, you've probably waited too long, because the tightening that you're
doing, or the level of tightness that you have, is still having effects which
will probably drive inflation below 2%,' Powell said.

Commodity, Currency Markets

Crude oil futures are tumbling $1.43 to $80.48 a barrel after slipping $0.30 to
$81.91 a barrel on Monday. Meanwhile, after climbing $8.20 to $2,428.90 an ounce
in the previous session, gold futures are rising $9 to $2,437.90 an ounce.

On the currency front, the U.S. dollar is trading at 158.77 yen compared to the
158.06 yen it fetched at the close of New York trading on Monday. Against the
euro, the dollar is valued at $1.0881 compared to yesterday's $1.0894.

Asia

Asian stocks fluctuated before ending mixed on Tuesday despite strength on Wall
Street overnight. Investors weighed the case for a September rate cut after
comments by Fed Chair Jerome Powell that the three inflation readings over the
second quarter of this year showed 'more progress.'

With the odds for a Trump presidency increasing, markets also grappled with the
concept of the 'Trump Trade,' which implies deregulation, tax cuts, and
increased fiscal spending.

The dollar rebounded after a recent streak of losses and gold nudged higher
toward record highs, while oil extended losses on worries about Chinese demand.

China's Shanghai Composite Index finished marginally higher at 2,976.30 and Hong
Kong's Hang Seng Index fell 1.6 percent to 17,727.98 due to concerns over a
further escalation in geopolitical conflicts if Donald Trump wins the White
House again in November.

Japanese markets ended slightly higher, with the Nikkei 225 Index rising 0.2
percent to 41,275.08 as traders returned to their desks after a holiday the
previous day. The broader Topix Index settled 0.3 percent higher at 2,904.50.

A weak yen lifted some export-oriented shares. Defense-related shares also
surged, with Mitsubishi Heavy Industries and Kawasaki Heavy Industries climbing
5 percent and 6.2 percent, respectively.

Electronic components maker TDK jumped 5.4 percent, while Uniqlo parent Fast
Retailing fell 1.3 percent.

Seoul stocks posted modest gains, with the Kospi rising 0.2 percent to 2,866.09.

Australian markets ended lower as investors awaited June jobs data for
directional cues. The benchmark S&P/ASX 200 Index slipped 0.2 percent to
7,999.30, snapping a three-day winning streak. The broader All Ordinaries Index
closed down 0.2 percent at 8,243.30.

Banks edged up slightly to extend gains for a sixth day running while mining
stocks suffered losses after Rio Tinto reported second-quarter iron ore
shipments below analyst estimates.

Rio Tinto closed 2.5 percent lower after hitting its weakest level since March
18 earlier. Peer BHP gave up 1.4 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.5 percent to
12,184.49 ahead of inflation data for the second quarter due on Wednesday that
might influence the central bank's monetary policy stance.

Europe

European stocks have fallen in cautious trading on Tuesday after analysts warned
the euro area's economy, including the zone's gross domestic product, could be
impacted if Donald Trump were to win the presidential election in November.

Investors are also reacting to the results of a survey that showed German
investor morale worsened more than expected in July.

The ZEW Economic Sentiment index fell from 47.5 to 41.8 in July, below
expectation of 44.3 and marking the first decline in a year since July 2023.

While the French CAC 40 Index has slid by 0.7 percent, the German DAX Index and
the U.K.'s FTSE 100 Index are both down by 0.4 percent.

SCOR plummeted 26 percent. The French reinsurer issued a profit warning, saying
it currently expects L&H insurance service result for the second quarter to be a
loss of 0.4 billion euros, primarily driven by updates on reserves, and
continued negative experience variance.

Luxury group Richemont rose over 1 percent as it reported a marginal rise in
sales at constant exchange rates in the three months through June.

German fashion house Hugo Boss plummeted 9 percent as the company lowered its
full-year outlook after a challenging second quarter amid weakening consumer
demand in markets such as China and the U.K.

Miners slipped in London as copper prices eased on concerns about weakening
Chinese demand. Anglo American, Antofagasta and Glencore fell 1-2 percent.

Rio Tinto gave up 2.5 percent after reporting second-quarter iron ore shipments
below estimates.

Ocado shares jumped 15 percent after the online grocer raised profit forecasts
for its key technology division.

B&M European Value Retail rallied 3.4 percent. The discount retailer sounded
optimistic about achieving profitable, cash-generating growth for the full
financial year after reporting a 2.4 percent revenue increase in Q1 FY2024.

Credit reporting company Experian declined 1.6 percent after the announcement of
its chief operating officer's departure.

U.S. Economic News

With steep declines in auto and gasoline sales offset by strength in other
areas, the Commerce Department released a report on Tuesday showing U.S. retail
sales came in unchanged in the month of June.

The Commerce Department said retail sales came in flat in June after rising by
an upwardly revised 0.3 percent in May.

Economists had expected retail sales to come in unchanged compared to the 0.1
percent uptick originally reported for the previous month.

Excluding the sharp drop in sales by motor vehicle and parts dealers, retail
sales climbed by 0.4 percent in June after inching up by 0.1 percent in May.
Ex-auto sales were expected to creep up by 0.1 percent.

The Labor Department also released a report on Tuesday showing import prices in
the U.S. were unexpectedly flat in the month of June.

The report said import prices were unchanged in June after dipping by a revised
0.2 percent in May. Economists had expected import prices to rise by 0.2 percent
compared to the 0.4 percent decrease originally reported for the previous month.

Meanwhile, the Labor Department said export prices declined by 0.5 percent in
June after falling by a revised 0.7 percent in May.

Export prices were expected to edge down by 0.1 percent compared to the 0.6
percent decrease originally reported for the previous month.

At 10 am ET, the National Association of Home Builders is scheduled to release
its report on homebuilder confidence in the month of July. The housing market
index is expected to inch up to 44 in July from 43 in June.

The Commerce Department is also due to release its report on business
inventories in the month of June at 10 am ET. Business inventories are expected
to rise by 0.3 percent.

At 2:45 pm ET, Federal Reserve Board Governor Adriana Kugler is scheduled to
speak before the 21st Annual National Association for Business Economics
Foundation Economic Measurement Seminar.



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