The S&P 500 opened at an all-time intraday high on Monday after Friday’s jobs data helped revive investors’ confidence in the US economy.
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Oil edged further above $45 on estimates of a drop in USA inventories and speculation of producer action to freeze output.
Stocks have moved mostly higher in early trading on Tuesday, offsetting the modest pullback that was seen in the previous session.
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“Today, it seems like whatever oil does, equities will follow”.
According to data from Thomson Reuters StarMine, 61 per cent of companies on the STOXX 600 index have beaten or met forecasts with their second quarter results so far, although those earnings are down 15 per cent from a year ago on average.
Roughly 90% of S&P 500 companies have reported earnings so far, and while the quarter hasn’t been an overall success, the majority of companies have exceeded lowered estimates.
Analysts polled by Reuters expect third-quarter earnings to fall 0.2 per cent as of Monday.
Gold, a traditional safe-haven asset, fell to a one-week low, while the Japanese yen remained weak, suggesting that the markets were in a risk-on mode.
The Dow Jones industrial average edged down 0.08 per cent to end at 18,529.29. The index climbed 1 points to 2,183.
The Nasdaq Composite dropped 0.15 per cent to 5,213.14.
If the trend of robust economic data continues, it could encourage the Federal Reserve to raise interest rates sometime this year.
Allergan lost 2.8 per cent after it slashed its full year revenue forecast and said it was not looking to use its surplus cash to fund any deals.
Endo International surged 11 percent to $20.20 after the drugmaker’s second-quarter revenue and profit beat estimates.
With nearly 90 percent of S&P 500 members having posted results, about 77 percent have beaten profit predictions and 56 percent have topped sales projections.
Investors will also keep an eye on economic data including a Labor Department report at 8:30 a.m. ET (1230 GMT), which is likely to show productivity rose 0.4 per cent in the second quarter after declining 0.6 per cent in the preceding quarter.
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No Fed official is scheduled to speak this week.
