Here are the top stories to read ahead of Tuesday trading:
Latest Updates
Biogen Inc.’s stock rose 2% early Tuesday, after the company and Belgian partner UCB announced positive results in a late-stage trial of a treatment for the chronic autoimmune disease lupus.
The Phase 3 trial sought to evaluate dapirolizumab pegol plus standard of care in people living with moderate-to-severe lupus and met its primary goal of improvement after 48 weeks compared with placebo in addition to standard of care.
The trial also met secondary endpoints measuring disease activity and flares.
Stocks making notable moves in premarket action:
Freeport-McMoRan shares are up nearly 5%, helped by a rise in copper prices, as many industrial commodity groups are lifted by hopes of stronger demand from China following Beijing’s bumper stimulus package.
Popular Chinese companies with U.S.-traded stock are seeing gains, with Alibaba adding 6% and JD.com climbing nearly 8%.
Shares of Hawaiian Electric are dropping more than 12% following news the company plans to offer $500 million in common stock in a public offering.
Snowflake shares are down nearly 4% after the cloud data-warehouse software announced a proposed private placement of $2 billion of convertible senior notes.
Salesforce shares are up nearly 2% after the stock was raised to Overweight from Neutral by Piper Sandler and the price target on shares of the enterprise software company was boosted to $325 from $268.
Tyler Richey of the Sevens Report highlights a market breadth concern: there are more stocks trading below their 200-day average than their 50-day average.
Granted, it’s not a huge disparity: through Monday, 75% of S&P 500 stocks were above their 200-day, while 78% were above their 50-day average.
“In simple terms, a situation where there are more stocks below their 200-day MA than their 50-day is a bearish one as in a healthy market environment, there should consistently be more stocks above their 200-day MAs than 50-day MAs,” Richey says. Another concern is the NYSE advance-decline line declined last week even though the S&P 500 hit record highs.
Here are some of the potential market catalysts due Tuesday for traders to consider:
AutoZone and Thor Industries will reveal results before the opening bell rings on Wall street.
9:00 a.m. Eastern. Federal Reserve Governor Michelle Bowman speaks on policy and the economic outlook.
9:00 a.m. S&P Case-Shiller home price index (20 cities) for July.
10:00 a.m. Consumer confidence for September.
10:00 a.m. Richmond Fed index.
1:00 p.m. Treasury will announce result of $69 billion auction of 2-year notes.
KB Home, Progress Software and Stitch Fix will release earnings after the close.
How are stock-index futures trading:
S&P 500 futures are up 0.2%.
Dow Jones Industrial Average futures are adding 0.1%.
Nasdaq 100 futures are gaining 0.3%.
On Monday, the Dow Jones Industrial Average rose 61 points, or 0.15%, to 42125, the S&P 500 increased 16 points, or 0.28%, to 5719, and the Nasdaq Composite gained 26 points, or 0.14%, to 17974.
Futures indicate fresh highs for the S&P 500 and Dow Jones Industrial Average after global bourses got a boost from news the People’s Bank of China had unleashed a swathe of stimulus measures designed to revive the world’s second biggest economy and its stock market.
Copper producer Freeport-McMoRan is among the big gainers in premarket action as traders hope a rejuvenated Chinese economy will lift demand for the red metal.
Energy and mining stocks in Europe were advancing on the similar premise of increased demand for industrial commodities, while the CAC 40 in Paris was the region’s best performer as its bevy of luxury goods groups benefited from hopes of more spending by China’s consumers.
“The timing of the move by Beijing suggests that they felt more comfortable unleashing the ‘Big stimulus’ after the Fed started its rate-cutting cycle,” said Kathleen Brooks, research director at XTB.
“This is also good for global risk sentiment since it suggests that China will not be exporting inflation around the world. Thus, today’s measures will not stop central banks from cutting interest rates,” Brooks added.
