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 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 sell-off may have been more 'tech check' than the 'tech wreck' some had forecast," said analysts at Accendo Markets in a note.
The Nasdaq Composite 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 flat around 97.522 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 healthcare 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%.
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 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 rebounded from a seven-month low (http://www.marketwatch.com/story/oil-hovers-at-seven-month-low-as-investors-weigh-up-supply-issues-2017-06-20) and rose 0.3% to $44.33 a barrel. Gold was slightly higher.
(END) Dow Jones Newswires
June 20, 2017 06:19 ET (10:19 GMT)