FAANG stocks are among premarket gainers
U.S. stocks were set for a slightly higher open on Tuesday, with the S&P and Dow on track to push further into record territory as technology shares continued to rebound from a recent selloff.
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A raft of Federal Reserve speakers were also being closely watched by investors for any hints of future rate increases. A speech by House Speaker Paul Ryan on tax reform was in the limelight as well.
Futures for the Dow Jones Industrial Average rose 13 points, or 0.1%, to 21,473, while those for the S&P 500 index added 0.50 point to 2,448. Futures for the tech-heavy Nasdaq-100 index climbed 10.25 points, or 0.2%, to 5,776.25.
Tech stocks were among the biggest gainers on Monday, helping the Nasdaq Composite to a 1.4% jump. The S&P 500 and Dow industrials were also encouraged by the tech rally, each closing at records with gains of 0.8% and 0.7%, respectively.
The latest "tech resurgence" suggests "the recent sector selloff may have been more 'tech check' than the 'tech wreck' some had forecast," said analysts at Accendo Markets in a note.
The Nasdaq Composite Index has moved sharply lower over the past two weeks on concerns the high-value tech industry is in a bubble. There are also fears that higher Federal Reserve interest rates will trigger a market move into more defensive stock sectors.
Read:Tech selloff remains a concern after Fed hike, tepid economic growth (http://www.marketwatch.com/story/tech-selloff-remains-a-concern-after-fed-hike-tepid-economic-growth-2017-06-17)
Fed speakers: Chicago Fed President Charles Evans said late Monday the central bank could be done raising rates this year (http://www.marketwatch.com/story/feds-evans-says-possible-there-will-be-no-more-rate-hikes-this-year-2017-06-19). He said he supports the current policy of "very gradual" interest-rate hikes and a slow reduction of the balance sheet. Earlier on Monday, New York Fed President William Dudley struck a hawkish tone (http://www.marketwatch.com/story/feds-dudley-says-hes-not-paying-attention-to-bond-markets-signals-of-concerns-2017-06-19), arguing against slowing the pace of interest-rate increases.
In other Fed news, vice chairman Stanley Fischer said early Tuesday that he was worried memories might be fading (http://www.marketwatch.com/story/feds-fischer-says-hes-worried-memories-are-fading-about-housings-pivotal-role-in-financial-crisis-2017-06-20) about the pivotal role that housing played in the financial crisis.
Boston Fed President Eric Rosengren will speak in Amsterdam at 8:15 a.m. Eastern Time, followed by Dallas Fed President Rob Kaplan's participation in a moderated discussion at the Commonwealth Club of California in San Francisco at 3 p.m. Eastern.
The ICE Dollar Index was slightly higher at 97.632 as investors digested the latest Fed news.
On the economic docket for Tuesday, the sole top-tier report is on the current-account deficit for the first quarter, due at 8:30 a.m. Eastern. See:MarketWatch's economic calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
(http://www.marketwatch.com/economy-politics/calendars/economic)Politics: House Speaker Paul Ryan is set to deliver his first major speech on tax reform at 12:45 p.m. Eastern. He is expected to express confidence that the Republican can deliver on their promises of a major tax overhaul this year, despite a range of challenges facing his party.
One of the biggest hurdles is agreeing on whether or not to add a border adjustment to the corporate tax, which would tax imports and exempt exports.
Hopes for a groundbreaking tax shake-up were partly behind the so-called Trump trade that lifted stocks sharply after the election in November. However, after the Republicans struggled with pushing through their health-care reform earlier this year, investors started to scale back expectations of imminent changes.
Stock movers: The so-called FAANG stocks were among advancers again in Tuesday's premarket trade. Shares of Facebook Inc.(FB) rose 0.2%, Apple Inc.(AAPL) climbed 0.6%, Amazon.com Inc.(AMZN) gained 0.4%, Netflix Inc.(NFLX) put on 0.3%, and Google-parent Alphabet Inc.(GOOGL) (GOOGL) added 0.4%.
Tesla Inc.(TSLA) gained 3.6% ahead of the bell after the electric-car maker was found "not guilty" (http://www.marketwatch.com/story/tesla-found-not-guilty-in-fatal-may-2016-crash-says-ntsb-2017-06-20) in a May 2016 fatal crash.
U.S.-listed shares of Barclays PLC (BCS) were down 1% premarket after the U.K. Serious Fraud Office charged the bank and four former executives with conspiracy to commit fraud (http://www.marketwatch.com/story/barclays-4-former-top-execs-charged-with-fraud-2017-06-20) in a case related to fundraising in Qatar during the financial crisis.
Other markets:Asian stocks closed mixed (http://www.marketwatch.com/story/nikkei-leaps-to-22-month-high-other-asian-markets-quiet-2017-06-19), with Japan's Nikkei 225 index rising for a third straight day.
European markets mainly advanced (http://www.marketwatch.com/story/european-stocks-get-a-lift-from-consumer-shares-tech-recovery-2017-06-20), setting Germany's DAX 30 index on track for a fresh record.
Crude oil sank to a fresh seven-month low (http://www.marketwatch.com/story/oil-hovers-at-seven-month-low-as-investors-weigh-up-supply-issues-2017-06-20), falling 2% to $43.43 a barrel. Gold was slightly lower.
(END) Dow Jones Newswires
June 20, 2017 07:55 ET (11:55 GMT)