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Top 5 Things to Know in The Market on Tuesday

Investing.com - Here are the top five things you need to know in financial markets on Tuesday, January 22:

1. U.S. Futures Point to Shaky Open

U.S. stock futures pointed to a sharply lower open at the start of the trading week, as worries about a global economic slowdown weighed on sentiment.

At 5:20AM ET (10:20 GMT), the blue-chip Dow futures were down 137 points, or about 0.55%, the S&P 500 futures slumped 16 points, or around 0.6%, while the tech-heavy Nasdaq 100 futures indicated a drop of 55 points, or roughly 0.8%.

Wall Street was closed on Monday due to the Martin Luther King Jr. Day holiday.

Elsewhere, European stocks were lower, with most major bourses across the region in negative territory, as investors continued to monitor the latest developments surrounding Brexit.

Earlier, markets in Asia closed mostly in negative territory, with bourses in China leading losses.

2. Fourth-Quarter Earnings Season Kicks into High Gear

There are about 60 S&P 500 companies reporting earnings in the week ahead, including seven Dow stocks, in what will be the second big week of the fourth-quarter earnings season.

Tuesday sees Johnson & Johnson (NYSE:JNJ), Halliburton (NYSE:HAL), Travelers (NYSE:TRV), Stanley Black & Decker (NYSE:SWK), and Steel Dynamics (NASDAQ:STLD) post results in the morning.

IBM (NYSE:IBM) is due in after the close along with TD Ameritrade (NASDAQ:AMTD), and Capital One (NYSE:COF).

Read more: IBM Q4 Earnings In Focus As Doubts About Its Turnaround Strategy Linger: Haris Anwar

3. Oil Prices Slump

In commodities, oil prices fell more than 1% as pessimism about world growth stoked concerns over future crude demand.

U.S. West Texas Intermediate crude futures were down 70 cents, or about 1.3%, at $53.34 a barrel.

International Brent crude oil futures were at $61.87 per barrel, down 87 cents, or around 1.4%.

Weekly data on U.S. crude supplies from the American Petroleum Institute will be delayed to Wednesday, one day later than usual, due to Monday's holiday.

4. Existing Home Sales Data

On the data front, economic reports will be limited due to the government shutdown. Regularly scheduled durable goods will not be available, but there will be existing home sales data due at 10:00AM ET (15:00 GMT).

Existing home sales are expected to have fallen 1.2% last month to 5.25 million units, according to estimates.

Recent data has painted a worrying picture of the U.S. housing market, which is struggling with rising mortgage rates and tight inventory.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was little changed near a three-week high of 96.00.

In the bond market, U.S. Treasury yields inched lower, with the benchmark 10-year note standing at 2.75%, while the yield on U.S. government bonds with 2-year maturities was at 2.59%.

5. World Economic Forum Kicks Off in Davos

Investors were likely to watch out for comments from political and business leaders set to gather in Davos, Switzerland for the World Economic Forum (WEF).

Highlighting the list of attendees are German Chancellor Angela Merkel, Japan Prime Minister Shinzo Abe, Italian Prime Minister Giuseppe Conte and Brazil’s far-right President Jair Bolsonaro.

International Monetary Fund chief Christine Lagarde and Britain’s Prince William will also be in attendance.

However, the forum will not be attended by U.S. President Donald Trump or representatives of his administration as a result of the government shutdown.

British Prime Minister Theresa May and French President Emmanuel Macron also won’t be in attendance.

-- Reuters contributed to this report

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