FOX Business: The Power to Prosper
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U.S. stock-index futures and many classes of commodities extended gains on Tuesday morning as the greenback weakened to its lowest level since early July.
As of 9:00 a.m. ET, Dow Jones Industrial Average futures rose 40 points to 13269, S&P 500 futures gained 5 points to 1420 and Nasdaq 100 futures climbed 11.3 points to 2791.
The U.S. dollar fell 0.5% against a basket of six world currencies to its lowest level since July 4. Meanwhile, the euro rallied 0.89% to $1.2456. Commodities that are traded in dollars often move in the opposite direction of the currency.
The benchmark crude oil contract traded in New York jumped $1.07, or 1.1%, to $97.04 a barrel. Wholesale New York Harbor gasoline climbed 0.96% to $3.06 a gallon.
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In metals, gold edged up by $15.10, or 0.93%, to $1,638 a troy ounce.
Trading volumes have been thin so far this week as is often seen in the late summer. There were 2.8 billion shares exchanged on the New York Stock Exchange on Monday, trailing the average over the past three months of 3.5 billion by more than 20%.
Besides the help from a weaker greenback, analysts pointed to a dearth of negative news, as opposed to a specific stimulus, for the slight upward bias on the day.
"The lack of bad news has facilitated gains in equity markets broadly," analysts at Nomura wrote in a note to clients. "Investors are awaiting the more important events towards the end of the week."
Indeed, minutes from the Federal Reserve's last policy-setting meeting are due on Wednesday. Economists are expected to search for clues as to whether the central bank will take more action to jumpstart the still slowly growing U.S. economy.
Atlanta Federal Reserve Bank President Dennis Lockhart delivered a speech to the Latin American Chamber of Commerce in which he hinted that Congress needs to take action to help boost the economy.
"There is a risk to monetary policy being employed too aggressively and without effect to address economic problems that can be resolved only by fiscal reforms that involve making tough choices about the allocation of public resources," Lockhart said in prepared remarks.
"Monetary policy can exert a powerful positive influence on an economy, but as (Fed) Chairman Bernanke has pointed out, monetary policy is not a panacea."
On the corporate front, earnings are due from Best Buy (BBY) and Dell (DELL). Glencore took a tougher stance in defending its $30 billion bid for miner miner Xstrata, with its chief executive saying it isn't a "must do" deal. A key shareholder has been pushing for a sweeter price.
The Euro Stoxx 50 gained 0.52% to 2479, the English FTSE 100 climbed 0.27% to 5840 and the German DAX rose 0.39% to 7061.
In Asia, the Japanese Nikkei slumped 0.16% to 9157 and the Chinese Hang Seng inched lower by 0.02% to 20100.