Futures Point towards Cautious Start
U.S. stock futures pointed towards a flat start on Tuesday as investors wait for President Obama’s annual speech at 9:00 p.m. EST on a day which is lacking any major U.S. economic data release.
At last check, futures on Dow Jones Industrial Average Index inched up 0.03%; the NASDAQ 100 Index nudged ahead 0.02% while those on S&P 500 Index added 0.01%.
President Barack Obama will deliver his annual message to the nation on Tuesday at 9 p.m. EST. The President will sketch out his policy goals for the second term. However, the speech is expected to put more emphasis on the looming threat of automatic spending cuts or sequester, which are expected to come into effect from March 1 in case lawmakers fail to find a middle ground over how to cuts nation’s fiscal deficit.
On economic data front, the National Federation of Independent Business is scheduled to release its small-business-sentiment index at 7:30 a.m. EST while the Labor Department will release its data on job openings at 10 a.m. EST.
Shares of Lions Gate Entertainment Corp. (NYSE: LGF) will under spotlight on Tuesday. The Company following closing bell on Monday reported that it swung into fiscal third quarter profit thanks to strong box office performance of ‘The Twilight Saga: Breaking Dawn Part 2.’
Shares of Rexnord Corp. (NYSE: RXN) rallied in aftermarket trading on Monday after the diversified machinery company announced that its board has started to appraise strategic alternatives, including the selling of the business, in order to boost shareholders’ value.
Elsewhere in Asia, most markets were shut on account of Lunar New Year celebrations. Japan’s Nikkei Index jumped 1.94%.
In Europe, nearly all leading benchmark indexes traded in green territory with Pan European Stoxx 600 nearly flat, FTSE 100 gaining 0.33% while Germany’s DAX adding 0.09%, at last check.