Tuesday September 6th

6-09-2016

Wall Street eyes the moves in oil, ahead of key data, earnings

U.S. stock index futures pointed to a slightly higher open on Tuesday, as investors remained watchful over the recovery in U.S. crude, ahead of important economic data. For the U.S.' first trading day of the week after Labor Day, oil is expected to keep investors abuzz after leading oil producers Russia and Saudi Arabia agreed on Monday to cooperate on stabilizing the energy market. The news continued to support crude futures on Tuesday, with U.S. crude posting slight gains, last standing around $44.50 per barrel. Brent showed some signs of weakness however, trading around $47.10. On the data front, the final Markit services PMI is due out at 9.45 a.m. ET, followed by the ISM non-manufacturing data, set to come out at 10 a.m. ET. The data will be of key importance for the U.S., as investors look for indications as to how well the U.S. economy is performing. The data come just days after a disappointing jobs figure for the U.S. In August, nonfarm payrolls increased by 151,000, below what Wall Street economists were expecting of 180,000. With the payrolls report being a key statistic for the central bank, the below-expectations number could push the Fed to delay the next rate hike beyond this month. When it comes to earnings, Marvell Technology posted quarterly results before the bell Tuesday. Dave & Buster's Entertainment and Casey's General Stores are also expected to release their latest earnings. European stocks traded slightly higher, while Asia-Pacific indexes finished mixed to higher overnight. Japan's Nikkei 225 closed up 0.26 percent, or 44.35 points, at 17,081.98; Across the Korean strait, the Kospi ended up 0.31 percent, or 6.45 points, at 2,066.53. Chinese mainland markets were higher, with the Shanghai composite finishing up 0.63 percent, or 19.353 points, at 3,091.448 and the Shenzhen composite closing up 1.491 percent, or 30.088 points, at 2,048.19. In Hong Kong, the Hang Seng index was up 0.43 percent at 3:13 p.m. local time. Gold prices edged higher on Tuesday as the dollar weakened on expectations that the U.S. Federal Reserve will not raise interest rates at its September policy meeting. Spot gold rose 0.57 percent to $1,333.97 an ounce while U.S. gold futures were 0.8 percent higher at $1,337.90.