Stocks May Open Lower Amid Focus On Economic Data - U.S. Commentary

(RTTNews) - Following the long holiday weekend, stocks may move to the downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 44 points.

The downward momentum for the markets may partly reflect some trepidation ahead of the release of a slew of U.S. economic data.

The data could have a significant impact on the outlook for interest rates, with the next Federal Reserve meeting looming just a few weeks away.

While recent data has suggested that the Fed is not likely to raise rates at the June meeting, analysts have noted that a rate hike is not completely out of the question.

The Commerce Department recently released a report showing a modest drop in durable goods orders in April, although the decrease largely reflected a pullback in the volatile transportation sector.

The report said durable goods orders dipped by 0.5 percent in April after surging up by a revised 5.1 percent in March. The drop in orders came in line with economist estimates.

Excluding the decrease in orders for transportation equipment, durable goods orders rose by 0.5 percent in April compared to a revised 0.6 percent increase in March.

Economists had expected ex-transportation orders to edge up by 0.3 percent compared to the 0.2 percent drop originally reported for the previous month.

Trading could also be impacted by the impending release of reports on home prices, new home sales, and consumer confidence.

Reports on weekly jobless claims, pending home sales, and consumer sentiment may also attract some attention in the coming days.

U.S. stocks turned in a mixed performance in the week ended May 22nd, with the mood largely lackluster throughout the week as traders reacted to mixed economic data and earnings and volatility in the bond market.

For the week, the Dow Industrials edged down by 0.2 percent, while the S&P 500 Index crept up by 0.2 percent and the Nasdaq advanced by 0.8 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index climbed by 0.9 percent.

Meanwhile, the major European markets are turning in a mixed performance. While the French CAC 40 Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index is down by 0.1 percent and the German DAX Index is down by 0.6 percent.

In commodities trading, crude oil futures are falling $0.76 to $58.96 a barrel after edging up $0.03 to $59.72 a barrel in the week ended May 22nd. Gold futures, which fell $21.30 or 1.7 percent to $1,204 an ounce last week, are sliding $15.90 to $1,188.10 an ounce.

Among currencies, the U.S. dollar advanced against most currencies last week, jumping 1.9 percent against the yen before ending the week at 121.56 yen. The euro plunged 4.1 percent against the greenback. The dollar is currently trading at 122.98 yen and is valued at $1.0911 versus the euro.