Here are the top five things you need to know in financial markets on Tuesday, August 7:
1. U.S. Stock Futures Point To Higher Open
U.S. stock futures pointed to a higher open, with the S&P 500 set to edge closer to the all-time high it reached in January, as investors focused on the latest batch of corporate earnings.
There was also some relief coming from the lack of escalation in trade tensions between the U.S. and China.
At 5:35AM ET, the blue-chip Dow futures were up 80 points, or roughly 0.3%, the S&P 500 futures tacked on 6 points, or about 0.2%, while the tech-heavy NASDAQ 100 futures indicated a gain of 25 points, or around 0.3%.
The three major U.S. stock indexes closed higher on Monday, with the Nasdaq recording a five-day winning streak, which was its longest since May.
Elsewhere, in Europe, most of the region's major bourses were higher in mid-morning trade, with nearly every sector in positive territory.
Among national indexes, Germany's export-heavy DAX outperformed, rising by as much as 1.1%.
Europe's gains came on the heels of a stronger trading session in Asia, where a rebound in battered Chinese stock markets helped boost sentiment.
The Shanghai Composite Index surged 2.7%, its best one-day gain in two years, as investors snapped up shares that were hit hard during a four-day losing run.
2. Disney , Snap, Papa John's Report Earnings
Dozens of companies are expected to release earnings today in one of the last big waves of the earnings season.
Most of the focus will fall on Disney (NYSE:DIS) and Snap (NYSE:SNAP), which both report after the close.
Papa John's (NASDAQ:PZZA) results, also due after the bell, will be closely watched as the company has been engulfed in controversy over the use of a racial slur by its founder and now former CEO back in the spring.
Other high-profile names reporting today include, Office Depot (NASDAQ:ODP), Crocs (NASDAQ:CROX), Discovery (NASDAQ:DISCA), and Dean Foods (NYSE:DF), which are all set to report during pre-market hours.
Joining Disney, Snap and Papa John's after the bell will be results from Wendy’s (NASDAQ:WEN), Applied Opt (NASDAQ:AAOI), and Match Group (NASDAQ:MTCH).
This earnings season has been stronger than analysts had expected so far. Of the S&P 500 companies that had reported through Monday, almost 80% have posted better-than-expected profits, according to FactSet.
3. Dollar Falls Back
Away from equities, the U.S. dollar slipped lower, giving back some of the previous session's gains.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down roughly 0.2% to the 95.00-level, after edging up close to a one-year high of 95.35 Monday.
Elsewhere in foreign exchange markets, the euro climbed 0.3% to 1.1590 against the dollar, after falling to 1.1530 on Monday, its lowest since June 28.
The British pound was also higher, regaining ground after falling to 11-month lows amid worries over the growing prospect of a no-deal Brexit.
In the bond market, U.S. Treasury prices ticked lower, pushing yields slightly higher across the curve, with the benchmark 10-year yield inching up to 2.95%, while the Fed-sensitive 2-year note rose to 2.66%.
4. Oil Prices Continue Higher Ahead Of API Data
In commodity markets, oil prices were higher, extending gains from the prior session, as the United States reintroduced sanctions against major crude exporter Iran, tightening global markets.
Brent crude futures, the global benchmark, tacked on 50 cents to $74.25 a barrel, while U.S. crude rose 30 cents to $69.31.
Oil traders turned their attention to fresh data on U.S. commercial crude inventories to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute is due to release its weekly report for the week ended August 3 at 4:30PM ET, amid forecasts for an oil-stock drop of around 3.4 million barrels.
5. JOLTs Data Ahead
On the data front, the calendar is thin today, with no top-tier reports on deck.
The highlight of the day will come at 10:00 AM ET, when the Bureau of Labor Statistics releases its job openings and labor turnover survey (JOLTS) data on job openings from June.
On average, economists expect that job openings rose to 6.74 million, although it’s unlikely a miss or beat will move stocks much given the reaction to the employment report on Friday.