Stocks are expected to have a weaker start on Tuesday following the Labor Day break. Selling might be triggered by bargain hunting, and traders will be focused on Federal Reserve speeches this week. Bond yields have risen after a recent dip. Lingering concerns arise from underwhelming service sector data in China and Europe. Additionally, August’s auto sales figures could influence trading for the day.
Looking back at last week’s trading, the major averages closed on a positive note after rebounding from a slump in August. The market experienced a relief rally following the Jackson Hole meeting. Weaker-than-expected data on the labor market, consumer confidence, and GDP led to a risk-on mode.
In terms of analyst insight, Fund Strat analyst Tom Lee believes that the US economy is in a good state. He views the higher supply of workers and softer labor demand as supportive of a soft landing and beneficial for equities. However, looming concerns include the UAW strike and the surge in the federal deficit.
In premarket trading on Tuesday, futures performance showed a slight retreat for the Nasdaq 100, S&P 500, and Dow, while the R2K had a larger decrease.
Upcoming economic data includes a series of Fed speeches, the central bank’s Beige Book, service sector activity data, updated second-quarter productivity and costs report, and initial jobless claims data. Additionally, the Commerce Department will release its factory goods orders report for July.
Fidelity National Financial saw a rise in premarket trading after Citi increased its stake in the company. AeroVironment, Asana, GitLab, and Zscaler are among the companies set to release their quarterly results after the market close.
Crude oil futures edged down in the early European session following a jump last week. The 10-year Treasury note rose, and most Asian markets fell due to concerns about China. The Reserve Bank of Australia kept its key interest rate unchanged, and Europe saw mostly lower stocks as the service sector in the Eurozone contracted more than expected.