Top 5 Things to Know in the Market on Tuesday

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Top 5 Things to Know in the Market on Tuesday
Credit: © Reuters.

Investing.com - Here are the top five things you need to know in financial markets on Tuesday, April 24:

1. U.S. Stock Futures Point To Rebound

U.S. stock futures pointed to a higher open, with the Dow set to snap a four-day losing streak, as investors looked ahead to the latest deluge of corporate earnings.

The blue-chip Dow futures rose 100 points, or about 0.4%, the S&P 500 futures added 12 points, or nearly 0.5%, while the tech-heavy Nasdaq 100 futures climbed 36 points, or roughly 0.6%.

U.S. stocks fell on Monday, as tech shares declined, while investors fretted over higher interest rates.

Elsewhere, in Europe, the continent's major bourses edged higher, as rising oil prices buoyed shares in the energy sector.

Earlier, in Asia, markets in the region closed mostly higher, following two straight days of declines.

2. Blue Chip Earnings In Focus

The busy week for corporate earnings kicks into high gear today, with a number of blue chips reporting earnings this morning, including Coca-Cola (NYSE: KO ), Caterpillar (NYSE: CAT ), 3M (NYSE: MMM ), Travelers (NYSE: TRV ), United Technologies (NYSE: UTX ) and Verizon (NYSE: VZ ).

Biogen (NASDAQ: BIIB ), Eli Lilly (NYSE: LLY ), Lockheed Martin (NYSE: LMT ), Corning (NYSE: GLW ), Freeport-McMoran (NYSE: FCX ), PulteGroup (NYSE: PHM ), Sherwin-Williams (NYSE: SHW ) and JetBlue (NASDAQ: JBLU ) also report.

After the closing bell, Wynn Resorts (NASDAQ: WYNN ), Amgen (NASDAQ: AMGN ), Chubb (NYSE: CB ), Texas Instruments (NASDAQ: TXN ), Cree (NASDAQ: CREE ) and Hawaiian Holdings (NASDAQ: HA ) report.

Alphabet (NASDAQ: GOOGL ) earnings will also be in focus, after its stock dipped slightly in volatile after-hours trading following its earnings release; the company reported a 73% jump in profits in the first quarter.

3. Dollar Stands Tall Near 1-1/2 Month Highs

The dollar rose to a fresh one-and-a-half-month high against a basket of major currencies in early action, supported by expectations that the Federal Reserve would raise interest rates three more times in 2018.

The U.S. dollar index , which measures the greenback’s strength against a basket of six major currencies, was a shade higher at 90.72, after hitting an overnight peak of 90.85, the strongest level since March 1.

The dollar hit ten-week highs against the safe haven yen, with USD/JPY rising to 108.91.

The euro was near seven-week lows, with EUR/USD last at 1.2204 after plumbing an overnight nadir of 1.2185.

Sterling was also lower, with GBP/USD trading at one-month lows 1.3930.

On the data front, investors will be watching a few economic reports, including S&P/Case-Shiller home prices and FHFA home prices , both at 9:00AM ET (1300GMT). There are also new home sales and consumer confidence both due at 10AM ET (1400GMT).

4. U.S. 10-Year Treasury Yield Inches Away From 3%-Mark

U.S. Treasury yields halted their recent march higher, with the benchmark 10-year note inching away from the psychologically important 3%-threshold.

It was last at 2.964%, down 0.9 basis points, or 0.3%, after reaching an intraday peak of 2.998% on Monday, a level not seen since January 2014.

The 10-year yield has not been above 3% - the point at which strategists and fund managers say equities will really hurt - since early 2014.

Meanwhile, the yields on the Fed-sensitive 2-year and 5-year notes were also lower, one day after touching their loftiest levels in around 10 years.

The recent bounce in yields came as strengthening inflation prospects added to expectations of a more hawkish approach from the Federal Reserve this year.

5. Oil Holds Near Recent Highs Ahead Of API Supply Data

Crude prices held near their strongest level in three years, as investors looked ahead to fresh data on U.S. commercial crude inventories to gauge the strength of demand in the world’s largest oil consumer and how fast output levels will continue to rise.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (2030GMT).

New York-traded WTI crude futures rose 30 cents, or about 0.5%, to $68.95 per barrel, while Brent futures gained 20 cents, or roughly 0.3%, to $74.92 per barrel.

The global benchmark climbed as high as $75.27 earlier in the session, a level not seen since Nov. 27, 2014, boosted by geopolitical tension in the Middle East and concerns about supply disruptions in key oil-producing nations.

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