Shares open higher in front of production data
US stock indices ticked higher at the opening on Tuesday, indicating that the strong start to the new year will continue ahead of recent data on industry and the labor market.
The S&P 500 increased by 0.3% after the broad market index closed up 0.6% and set a record on Monday. The Dow Jones Industrial Average rose 0.5% and the Nasdaq Composite rose 0.1% on Tuesday.
Equities will continue to rise in 2022 after the S&P 500 closed 27% higher last year, while investors continue to assess data on the spread of the Omicron variant. Cases are breaking records in the United States and hospital admissions are increasing, but remain below pandemic peaks, according to data from Johns Hopkins University.
“The mildness of Omicron and therefore the potential for minor disruptions, minor shutdowns ̵[ads1]1; all of which should contribute directly to revenue expectations,” said James Athey, an investment manager at Abrdn.
The yield on the benchmark index for 10-year government bonds ticked up to 1.676% from 1.628% on Monday.
Purchasing managers’ surveys of the manufacturing sector for December are scheduled to be released at 10 a.m. ET. Economists expect a slowdown in growth, and estimate that supply chain problems may have limited US factories.
According to the plan, the Ministry of Labor will publish a survey on vacancies and turnover in November, also at Last month’s data showed that there were 3.6 million more vacancies than people looking for work, which underlines the tight labor market.
As a result, the furniture company MillerKnoll and the wireless computer company Smart Global Holdings are expected to publish their results on Tuesday after the markets close.
The S&P 500 closed at a record high on Monday after rising 27% last year.
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Courtney Crow / Associated Press
In pre-market trading, Apple shares climbed above $ 183 to a level that points to a market value of $ 3 trillion for the second day in a row, before falling slightly below. Some travel stocks also advanced the pre-market, with Carnival rising 2.2% and Royal Caribbean up 1.5%.
Oil prices rose ahead of an OPEC + meeting scheduled for Tuesday, at which energy ministers are expected to decide whether to continue with planned production increases. Global benchmark Brent oil rose 0.8% to $ 79.64 per barrel.
Bitcoin stabilized after a two-day fall, rising 1.8% compared to the level at 17.00 ET on Monday. It traded around $ 46,900, down 32% from its all-time high in November.
Abroad, the pan-continental Stoxx Europe 600 increased 1.0%. European airline shares rose, with International Consolidated Airlines rising 12%, Wizz Air up 13% and Ryanair up 9%.
In the foreign exchange markets, the Turkish lira fell 2% to 13.4 against the dollar. The currency has fluctuated sharply in recent weeks as investors have considered government measures aimed at stabilizing the economy. The Japanese yen weakened 0.9% against the dollar to a five-year low.
“The yen has really fallen, it’s a classic weakness based on investors’ appetite for risk taking,” said Gregory Perdon, chief investment officer at Arbuthnot Latham.
“People buy stocks, buy high returns [bonds]- that’s the market tone.
In Asia, major benchmarks were mixed. The Shanghai Composite Index fell 0.2% after recent data showed that Chinese exports were largely stagnant last month due to weak foreign demand, even as manufacturing activity picked up again. Hong Kong’s Hang Seng Index rose 0.1 percent.
Japan’s Nikkei 225 closed up 1.8% as the weaker yen drew investors to the country’s stock market. The S & P / ASX 200 index rose 2%, reaching a four-month high on Australia’s first trading day of the year.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
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