(RTTNews.com) - Stocks may continue to show a lack of direction in early trading on Tuesday following the lackluster performance seen in the previous session. The major index futures are currently pointing to a roughly flat open for the markets, with the Dow futures down by just 1 point.
Traders may remain reluctant to make significant moves ahead of Federal Reserve Chairman Jerome Powell's semiannual monetary policy testimony before the Senate Banking Committee.
Powell's remarks are likely to be closely watched for clues about the outlook for interest rate hikes after the Fed previously signaled two more rate hikes this year.
Nonetheless, a notable decline by shares of Netflix (NFLX) may weigh on the tech-heavy Nasdaq, with the video streaming service tumbling by 12.9 percent in pre-market trading.
The drop by Netflix comes after the company reported better than expected second quarter earnings but weaker than expected revenues and subscriber growth.
On the other hand, shares of Johnson & Johnson (JNJ) may move to the upside after the healthcare giant reported second quarter results that beat analyst estimate on both the top and bottom lines.
Financial giant Goldman Sachs ( GS ) is also likely to be in focus after reporting better than expected second quarter results and confirming David Solomon will succeed Lloyd Blankfein as Chairman and CEO.
Just before the start of trading, the Fed is scheduled to release its report on industrial production in the month of June. Production is expected to climb by 0.5 percent in June after edging down by 0.1 percent in May.
The National Association of Home Builders is also due to release its report on homebuilder confidence in the month of July shortly after the open. The housing market index is expected to inch up to 69 in July from 68 in June.
Following the strong upward move seen last week, stocks turned in a lackluster performance during trading on Monday. The major averages showed a lack of direction, spending the day bouncing back and forth across the unchanged line.
The major averages eventually ended the session mixed. While the Dow rose 44.95 points or 0.2 percent to 25,064.36, the Nasdaq dipped 20.26 points or 0.3 percent to 7,805.72 and the S&P 500 edged down 2.88 points or 0.1 percent to 2,798.43.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday. China's Shanghai Composite Index fell by 0.6 percent, while Hong Kong's Hang Seng Index tumbled by 1.3 percent. However, Japan's Nikkei 225 Index bucked the downtrend and rose by 0.4 percent.
The major European markets are seeing modest weakness on the day. While the U.K.'s FTSE 100 Index is just below the unchanged line, the German DAX Index is down by 0.1 percent and the French CAC 40 Index is down by 0.3 percent.
In commodities trading, crude oil futures are unchanged after plunging $2.95 to $68.06 a barrel on Monday. Meanwhile, after dipping $1.50 to $1,239.70 an ounce in the previous session, gold futures are inching up $0.80 to $1,240.50 an ounce.
On the currency front, the U.S. dollar is trading at 112.64 yen compared to the 112.29 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1701 compared to yesterday's $1.1711.
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Source : https://www.nasdaq.com/article/stocks-may-open-roughly-flat-ahead-of-powell-testimony--us-commentary-20180717-00575