MARKET SNAPSHOT: U.S. Stocks Poised To Cool Their Heels At Record Highs

By Victor Reklaitis, MarketWatch Features Dow Jones Newswires

Ford gains premarket after news of job cuts

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U.S. stock futures struggled for direction Tuesday, as analysts highlighted reasons why the S&P 500 could keep climbing after the prior session's record close above 2,400.

S&P 500 futures inched down by 0.90 point, or less than 0.1%, to 2,397.50, while Dow Jones Industrial Average futures gained 4 points, or less than 0.1%, to 20,934. Nasdaq-100 futures added 1.75 points, or less than 0.1%, to 5,703.

On Monday, the S&P and Nasdaq Composite both gained 0.5% and achieved all-time closing highs (http://www.marketwatch.com/story/us-stocks-poised-for-higher-open-as-saudi-russia-surprise-lifts-oil-prices-2017-05-15). Meanwhile, the Dow tacked on 0.4% and finished within striking distance of its record close of March 1.

Appetite for credit-related funds like the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has been "a necessary ingredient" for the S&P 500's advance, and so it's bullish to see that ETF trending higher, said Frank Cappelleri, a technical analyst at Instinet.

"Seeing the HYG begin to diverge in a material way would change our mind, but that is not the case yet," Cappelleri wrote in a note.

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Other markets: Oil futures rose nearly 1%, stretching their week-to-date gain to about 3%. Expectations that the Organization of the Petroleum Exporting Countries will extend production cuts until early next year continue to boost trading sentiment (http://www.marketwatch.com/story/oil-prices-add-to-gains-with-investors-cheered-by-opec-news-2017-05-16).

European stocks mostly moved lower, while Asian markets largely closed higher.

Read:Why stock-market investors are falling back in love with Europe (http://www.marketwatch.com/story/why-stock-markets-investors-are-finding-lamour-en-europe-2017-05-15)

Gold futures gained, as a key dollar index lost ground. Some analysts are blaming the buck's drop to a six-month low (http://www.marketwatch.com/story/dollar-slides-to-6-month-low-as-worries-about-trump-return-2017-05-16) on worries about President Donald Trump sharing classified information with Russia (http://www.marketwatch.com/story/trump-revealed-sensitive-intel-to-russians-us-officials-say-2017-05-15).

Economic news: An April report on U.S. housing starts and building permits is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting 1.259 million starts.

At 9.15 a.m. Eastern, April releases for industrial production and capacity utilization are due, and economists expect 0.5% growth and a reading of 76.3%, respectively.

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No Federal Reserve officials are expected to deliver speeches on Tuesday.

Individual movers: Shares in Ford Motor Co.(F) traded higher in thin premarket action following news the auto maker is planning substantial cuts to its global workforce (http://www.marketwatch.com/story/ford-plans-to-slash-about-10-of-its-global-workforce-2017-05-15) amid a drive to boost profits and address Ford's sliding stock price.

Retailers Home Depot Inc.(HD) , TJX Cos.(TJX) and Staples Inc.(SPLS) are among the companies expected to post earnings before the open.

(END) Dow Jones Newswires

May 16, 2017 05:26 ET (09:26 GMT)