The U.S. stock index futures signaled early Tuesday that the Dow Jones Industrial Average will open below its recently set record high.
The futures on the Dow Jones Industrial Average were down 0.15 percent, the futures on the Standard & Poor's 500 Index were down 0.12 percent and those on the Nasdaq 100 Index were down 0.16 percent.
The U.S. stocks advanced Monday, with the Dow Jones Industrial Average recording its seventh straight advance, as weak economic reports from Europe and China were offset by renewed optimism over the U.S. economy. Meanwhile, the CBOE Volatility Index which is often considered Wall Street's primary gauge of investor concerns declined to the lowest level since February 2007.
Surprisingly, strong February U.S. jobs data released Friday along with recent encouraging reports on factory activity, services sector, consumer spending and the housing market underscored hopes that the world’s largest economy is on the right track and pushed the market's blue-chip index to its fifth consecutive closing high.
The Dow Jones Industrial Average stock index gained 0.35 percent or 50.22 points to close at its new-record high of 14,447.29, the S&P 500 Index advanced 0.32 percent or 5.04 points to close at 1,556.22, the highest level since October 2007, and the Nasdaq Composite Index gained 0.26 percent.
“Positive mood was carried over the weekend with U.S. equities modestly up and VIX index dropping to a six-year low. It will again be a quiet day Tuesday in terms of economic data or major events so we are unlikely to see a major shift in sentiment,” a note from Credit Agricole said.
On the corporate front, shares of Yum! Brands, Inc. (NYSE:YUM) will be in focus. The company stock climbed more than 6 percent in post-market trading Monday after Yum! Brands announced that same-store sales for China division rose 2 percent in February, while its first quarter same-store sales in China declined 20 percent, less than its prior estimate of a 25 percent drop.
European stock markets were trading lower with Germany's DAX30 down 0.15 percent, France's CAC 40 declining 0.21 percent and London's FTSE 100 slipping 0.03 percent.
Asian stock markets declined Tuesday, with Chinese Shanghai Composite closing lower for the fourth consecutive session on news that China’s banking regulator has launched a nationwide probe of wealth-management products. The Chinese Shanghai Composite plunged 1.04 percent and Hong Kong’s Hang Seng declined 0.87 percent, while the Japanese Nikkei fell 0.28 percent and India’s BSE Sensex slipped 0.51 percent.
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