U.S. Stocks May Lack Direction Following Recent Advance

(RTTNews) - After moving notably higher over the two previous sessions, 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 down by less than a tenth of a percent.

Traders may take a breather following the recent rally, which has seen the major averages climbed back within striking distance of their record highs.

While the corporate earnings season is off to a positive start, traders may be reluctant to continue buying stocks amid lingering concerns about U.S.-China trade tensions and the ongoing government shutdown.

A lack of major U.S. economic data due in part to the shutdown may also keep some traders on the sidelines ahead of the release of closely watched consumer price inflation data on Friday.

With most other economic reports indefinitely delayed, the inflation data could impact the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.

Currently, the Fed is widely expected to continue cutting interest rates at its next two meetings, with CME Group's FedWatch Tool indicating a 97.8 percent chance of a quarter point rate cut next week and a 95.5 percent chance of another quarter point rate cut in December.

Among individual stocks, shares of General Motors (GM) are moving sharply higher in pre-market trading after the auto giant reported better than expected third quarter results and raised its full-year guidance.

Beverage giant Coca-Cola (KO) is also seeing significant pre-market strength after reporting third quarter results that exceeded analyst estimates on both the top and bottom lines.

On the other hand, shares of Northrop Grumman (NOC) may move to the downside after the defense company reported better than expected third quarter earnings but weaker than expected revenues.

Following the upward move seen over the course of last Friday's session, stocks showed a more significant move to the upside during trading on Monday. The major averages all moved sharply higher, climbing back within striking distance of their record highs.

The major averages moved roughly sideways after an early rally, hovering firmly in positive territory. The Nasdaq surged 310.57 points or 1.4 percent to 22,990.53, the S&P 500 jumped 71.12 points or 1.1 percent to 6,735.13 and the Dow shot up 515.97 points or 1.1 percent to 46,706.58.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. China's Shanghai Composite Index jumped by 1.4 percent, Hong Kong's Hang Seng Index advanced by 0.7 percent and Japan's Nikkei 225 Index rose by 0.3 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index is up by 0.5 percent, the U.K.'s FTSE 100 Index is up by 0.3 percent and the German DAX Index is up by 0.1 percent.

In commodities trading, crude oil futures are climbing $0.48 to $58 a barrel after edging down $0.02 to $57.52 a barrel on Monday. Meanwhile, after soaring $146.10 to $4,359.40 an ounce in the previous session, gold futures are plunging $125.70 to $4,233.70 an ounce.

On the currency front, the U.S. dollar is trading at 152.13 yen compared to the 150.74 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1606 compared to yesterday's $1.1640.