Stocks may show a lack of direction in early trading on Tuesday after ending the previous session notably higher. The major index futures are currently pointing to a roughly flat open for the markets, with the Dow futures down by just 3 points.
Traders may be reluctant to make any significant moves following the strength seen on Monday, which lifted the Dow and the S&P 500 to new record closing highs.
Another light day on the U.S. economic front may also keep traders on the sidelines ahead of the release of reports on new and existing home sales and leading economic indicators in the coming days.
Among individual stocks, shares of Parexel (PRXL) are moving notably higher in pre-market trading after the drug research firm agreed to be acquired by Pamplona Capital Management for $88.10 per share in cash or $5 billion including debt.
Tesla (TSLA) may also see early strength after a report from Bloomberg said the electric car maker is close to an agreement to produce vehicles in China for the first time.
Shares of Lennar (LEN) are also seeing pre-market strength after the homebuilder reported second quarter results that exceeded analyst estimates on both the top and bottom lines.
Meanwhile, Regeneron Pharmaceuticals (REGN) is moving lower in pre-market trading on news Novartis’ (NVS) eye drug works as well as the company’s Eylea with fewer injections.
Restaurant chain Chipotle Mexican Grill (CMG) may also come under pressure after forecasting higher operating costs as a percentage of sales in the second quarter.
Stocks moved mostly higher during trading on Monday following the mixed performance seen last week. With the upward move on the day, the Dow and the S&P 500 both climbed to new record closing highs.
The major averages ended the session just off their best levels of the day. The Dow climbed 144.71 points or 0.7 percent to 21,528.99, the Nasdaq surged up 87.25 points or 1.4 percent to 6,239.01 and the S&P 500 advanced 20.31 points or 0.8 percent to 2,453.46.