U.S. Stocks May See Further Upside In Early Trading

(RTTNews) - After moving sharply higher over the course of the previous session, stocks may see further upside in early trading on Tuesday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

Technology stocks may extend yesterday's rally following the release of upbeat quarterly results from software company Palantir (PLTR).

Shares of Palantir are surging by 6.8 percent in pre-market trading after the company said its sales jumped almost 50 percent in the second quarter amid robust demand for artificial intelligence services.

Chemical maker DuPont (DD) is also seeing significant pre-market strength after reporting better than expected second quarter results and providing upbeat guidance.

On the other hand, shares of Caterpillar (CAT) may move to the downside after the construction equipment maker reported weaker than expected second quarter earnings.

Telehealth company Hims & Hers Health (HIMS) is also likely to come under pressure after reporting second quarter revenues that missed analyst estimates.

Overall trading activity may be somewhat subdued, however, as traders take a step back to assess the recent volatility in the markets.

Shortly after the start of trading, the Institute for Supply Management is due to release its report on service sector activity in the month of July. The services PMI is expected to rise to 51.5 in July from 50.8 in June, with a reading above 50 indicating growth.

Stocks moved sharply higher early in the session on Monday and continued to turn in a strong performance throughout the day. With the upward move, the major averages offset a large chunk of the notable pullback seen over the two previous sessions.

The major averages saw further upside going into the close, ending the day just off their highs of the session. The Nasdaq surged 403.45 points or 2.0 percent to 21,053.58, the S&P 500 shot up 91.93 points or 1.5 percent to 6,329.94 and the Dow jumped 585.06 points or 1.3 percent to 44,173.64.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while China's Shanghai Composite Index advanced by 1.0 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index is up by 0.8 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.3 percent.

In commodities trading, crude oil futures are sliding $0.96 to $65.33 a barrel after slumping $1.04 to $66.29 a barrel on Monday. Meanwhile, after jumping $26.60 to $3,426.40 an ounce in the previous session, gold futures are falling $9.80 to $3,416.60 an ounce.

On the currency front, the U.S. dollar is trading at 147.71 yen compared to the 147.09 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1533 compared to yesterday's $1.1571.