Futures Little Changed Following Yesterday’s Modest Pullback

Following the modest pullback seen in the previous session, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.

Uncertainty about the near-term outlook for the markets may lead to choppy trading on Wall Street following last week’s advance by the Dow and S&P 500 to new record highs.

Traders may also stick to the sidelines ahead of the release of some key economic data later this week, including a closely watched inflation reading.

The Commerce Department’s report on personal income and spending, which is scheduled to be released on Thursday, includes a reading on consumer price inflation said to be preferred by the Federal Reserve.

The inflation data could have a notable impact on the outlook for interest rates, as Fed officials have said they need greater confidence inflation is slowing before cutting rates.

A report released by the Commerce Department this morning showed a substantial decrease by new orders for U.S. manufactured durable goods saw a substantial decrease in the month of January.

The Commerce Department said durable goods orders plunged by 6.1 percent in January after falling by a revised 0.3 percent in December.

Economists had expected durable goods orders to tumble by 4.5 percent compared to the unchanged reading that had been reported for the previous month.

Excluding a steep drop in orders for transportation equipment, durable goods orders dipped by 0.3 percent in January after edging down by 0.1 percent in December. Ex-transportation orders were expected to rise by 0.2 percent.

Not long after the start of trading, the Conference Board is scheduled to release its report on consumer confidence in the month of February. The consumer confidence index is expected to inch up to 115.0 in February after jumping to 114.8 in January.

U.S. stocks ended on a negative note on Monday, and the major averages turned weak after a slightly positive start, as investors largely stayed cautious ahead of some key economic data.

Among the major averages, the Dow ended lower by 62.30 points or 0.2 percent at 39,069.23. The S&P 500 settled with a loss of 19.27 points or 0.4 percent at 5,069.53. The Nasdaq, which spent much of the day’s session in positive territory despite a choppy ride, ended down 20.57 points or 0.1 percent at 15,976.25.

In overseas trading, stocks across the Asia-Pacific region turned in a mixed performance on Tuesday. China’s Shanghai Composite Index jumped by 1.3 percent, while Japan’s Nikkei 225 Index closed nearly unchanged and South Korea’s Kospi slid by 0.8 percent.

The major European markets have also turned mixed on the day. While the German DAX Index is up by 0.5 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both down by 0.1 percent.

In commodities trading, crude oil futures are slipping $0.11 to $77.47 a barrel after jumping $1.09 to $77.58 a barrel on Monday. Meanwhile, after falling $10.50 to $2,038.90 an ounce in the previous session, gold futures are rising $8.10 to $2,047 an ounce.

On the currency front, the U.S. dollar is trading at 150.28 yen compared to the 150.70 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0845 compared to yesterday’s $1.0851.