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. - Here are the top five things you need to know in financial markets on Tuesday, February 5:

1. President Trump's State of The Union Address

President Donald Trump will make his annual State of the Union address to Congress at 9:00PM ET.

Trump signaled last week that the speech will include extensive remarks about his standoff with Democrats over building a wall along the U.S.-Mexico border, the subject of an intense partisan battle that prompted a 35-day partial government shutdown.

Beyond the wall, a senior White House official said that Trump will outline what he sees as areas where Republicans and Democrats may be able to find agreement. These include a plan to fund infrastructure improvements across the country, lower the cost of prescription drugs and work to resolve long-standing differences over healthcare.

Whether the two sides are prepared to work together in any significant way is far from clear, with tensions still high over the shutdown fight and another deadline approaching on Feb. 15.

2. U.S. Futures Point to Higher Open

U.S. stock futures pointed to a slightly higher open, as market players looked ahead to a key speech from President Donald Trump and another batch of quarterly earnings reports.

At 5:25AM ET (10:25 GMT), the blue-chip Dow futures were up 61 points, or about 0.25%, the S&P 500 futures tacked on 3 points, or roughly 0.1%, while the tech-heavy Nasdaq 100 futures indicated a gain of 11 points, or around 0.15%.

The moves in premarket come after Wall Street closed higher on Monday, with the Dow gaining 175 points.

Elsewhere, European stocks were higher, with nearly all major bourses across the region in positive territory. The pan-European STOXX 600 index reached a nine-week high, boosted by gains in banks and oil sector stocks.

Earlier, shares in Asia closed mixed. Trade was light, with markets in greater China, Taiwan, South Korea, Singapore and Indonesia all closed for the Lunar New Year.

3. Disney Earnings

Dozens of companies are expected to release earnings today in one of the last big waves of the earnings season.

Most of the focus will fall on Disney (NYSE: DIS ), which reports after the close. The media giant is expected to report adjusted earnings per share of $1.54 on revenue of $15.07 billion, according to estimates.

Investors will be closely watching the results to see whether its growing efforts to take on Netflix (NASDAQ: NFLX ) in the streaming space are starting to pay off. Disney recently announced it will launch its direct-to-consumer streaming platform in September of 2019.

Other high-profile names releasing quarterly results today include, Viacom (NASDAQ: VIAB ), Archer Daniels Midland (NYSE: ADM ), Ralph Lauren (NYSE: RL ), and Estee Lauder (NYSE: EL ), which are all set to report during premarket hours.

Joining Disney after the bell will be results from Snap (NYSE: SNAP ), Electronic Arts (NASDAQ: EA ), Anadarko Petroleum (NYSE: APC ), Tableau Software (NYSE: DATA ), and Paycom (NYSE: PAYC ).


Read more: Has Snap Bottomed? Today's Q4 Earnings Results Could Provide The Tell: Haris Anwar

4. Oil Prices Hover Below 2019 Highs

In commodities, oil prices held within sight of their best levels of the year, buoyed by expectations of tightening global supply due to U.S. sanctions on Venezuela and production cuts led by OPEC.

U.S. West Texas Intermediate crude futures were at $55.14 a barrel, up 56 cents, or 1%. They touched their highest level in more than two months at $55.75 the previous day.

International Brent crude oil futures were at $62.95 per barrel, up 43 cents, or 0.7%. It rose to its strongest level since Dec. 7 at $63.63 on Monday.

The American Petroleum Institute will release its weekly report on U.S. crude stocks for the week ended Feb. 1 at 4:30PM ET (21:30 GMT).

5. ISM Services Data

With key data from the Commerce Department still delayed because of last month's government shutdown, market players will keep an eye out on the Institute for Supply Management’s (ISM) survey on service sector activity to gauge the strength of the economy.

The survey, due for release at 10:00AM ET (15:00 GMT), is forecast to inch down to 57.0 in January from the previous month's reading of 57.6.

The U.S. dollar index , which measures the greenback’s strength against a basket of six major currencies, was up 0.1% at 95.68.

In the bond market, U.S. Treasury prices dipped, pushing yields a tad higher across the curve, with the benchmark 10-year yield rising to 2.73%.

-- Reuters contributed to this report

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