Bargain Hunting May Lead To Early Strength On Wall Street - U.S. Commentary

(RTTNews) - After falling sharply over the two previous sessions, stocks may regain some ground in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 228 points.

Bargain hunting is likely to contribute to early strength on Wall Street, as traders look to pick up stocks at reduced levels.

The steep drop seen in the two sessions following the Brexit vote dragged the Dow and the S&P 500 down to their lowest closing levels in over three months, while the Nasdaq hit a four-month closing low.

Nonetheless, lingering concerns about the economic impact of the Brexit are likely to keep the major averages off their recent highs.

On the U.S. economic front, the Commerce Department recently released a report showing that economic activity increased faster than previously estimated in the first quarter of 2016.

The Commerce Department said the pace of growth in gross domestic product was upwardly revised to 1.1 percent from the previous estimate of 0.8 percent.

The revised GDP growth in the first quarter compares to the 1.4 percent jump seen in the fourth quarter and the 1.0 percent increase expected by economists.

Shortly after the start of trading, the Conference Board is due to release its report on consumer confidence in the month of June. The consumer confidence index is expected to rise to 93.3 in June after dipping to 92.6 in May.

Stocks moved sharply lower during trading on Monday, extending the sell-off that was seen last Friday. The major averages ended the day firmly in negative territory but off their lows of the session.

The Dow plunged 260.51 points or 1.5 percent to 17,140.24, the Nasdaq tumbled 113.54 points or 2.4 percent to 4,594.44 and the S&P 500 plummeted 36.87 points or 1.8 percent to 2,000.54.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Tuesday. Japan's Nikkei 225 Index crept up by 0.1 percent, while Hong Kong's Hang Seng Index edged down by 0.3 percent.

Meanwhile, the major European markets have all moved sharply higher on the day. While the French CAC 40 Index has surged up by 3.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index are up by 2.8 percent and 2.7 percent, respectively.

In commodities trading, crude oil futures are jumping $1.32 to $47.65 a barrel after tumbling $1.31 to $46.33 a barrel in the previous session. Meanwhile, an ounce of gold is trading at $1,316.70, down $8 from the previous session's close of $1,324.70. On Monday, gold rose $2.30. On the currency front, the U.S. dollar is trading at 102.42 yen compared to the 102 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1079 compared to yesterday's $1.1025.