Investing.com - Here are the top five things you need to know in financial markets on Tuesday, August 28:
1. All Eyes Turn to U.S.-Canada Talks
Markets will be watching for more trade-related headlines, as talks between the U.S. and Canada were expected to resume today, when Canadian Foreign Minister Chrystia Freeland will arrive in Washington after cutting short a trip to Europe.
Freeland and the rest of the Canadian delegation had been excluded from the NAFTA talks since July, after U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau traded verbal barbs during a G-7 summit.
The U.S. reached an agreement with Mexico on a trade deal aimed at overhauling the North American Free Trade Agreement on Monday.
However, Trump warned he could still put tariffs on Canadian autos if Ottawa refuses to agree to the new deal and also wants concessions on the country’s dairy products.
Trump spoke with Trudeau on Monday, his economic adviser Larry Kudlow told reporters. The deal with Mexico should serve as a "reset" for talks with Canada, Kudlow said.
Officials said they hope Canada will agree to the terms by Friday, when the White House plans to notify Congress formally that Trump will sign the deal in 90 days. Congress has to approve it.
2. U.S. Stocks Set to Extend Push into Record Territory
U.S. stock index futures ticked modestly higher, suggesting Wall Street would extend its push into record territory, amid easing concerns over trade policy.
The blue-chip Dow futures were up 20 points, or around 0.1%, at 5:30AM ET, the S&P 500 futures tacked on 3 points, or around 0.1%, while the tech-heavy Nasdaq 100 futures indicated a gain of 15 points, or roughly 0.2%.
Wall Street rallied sharply on Monday, with both the S&P 500 and the Nasdaq closing at records for a second straight session, while the Dow moved back above 26,000 for the first time since February 1.
Elsewhere, in Europe, the region's major bourses rose to their best levels in two weeks. Auto stocks continued to rally, after enjoying their best day in a month on Monday.
Earlier, in Asia, markets in the region ended broadly higher, with the exception of China, amid lingering concerns over its ongoing trade dispute with the U.S.
3. Best Buy Reports Earnings
The second quarter earnings season has all but wound down, however results today are expected from a few retailers, including Best Buy (NYSE:BBY), and Tiffany (NYSE:TIF).
Both are due to post earnings ahead of Tuesday's opening bell.
Best Buy's results will be closely watched with Wall Street looking for same-store sales that rose 4.2% during the second quarter. Best Buy has been one of the big success stories in retail over the last 12 months, with the stock up around 30%.
Other companies reporting results ahead of the opening bell include DSW (NYSE:DSW), and BJs Wholesale Club (NYSE:BJ).
After the close, Box (NYSE:BOX), HP Enterprise (NYSE:HPE), H&R Block (NYSE:HRB), and Tilray (NASDAQ:TLRY) are on deck.
4. U.S. Consumer Confidence Data in Focus
Investors will get a key piece of economic sentiment data when The Conference Board releases its August update on consumer confidence at 10:00AM ET.
The consensus forecast is for a reading of 126.8, down from 127.4 in July.
At 8:30AM ET, the goods trade balance for July arrives, with economists predicting a slight widening of the deficit. At the same time the preliminary numbers for August wholesale inventories come out.
The June report on home prices from S&P/Case-Shiller is also due out in the morning as is the Richmond Fed’s reading on manufacturing activity in August.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was marked modestly lower at 94.59, after hitting an overnight low of 94.55, its weakest level since August 2.
In the bond market, Treasury prices were little changed, with the benchmark 10-year yield at around 2.85% while the 2-year yield stood at about 2.65%.
5. Oil Hits 7-Week Highs Ahead of API Data
In commodity markets, oil prices rose towards their highest level since early July ahead of the release of fresh weekly data on U.S. commercial crude inventories.
The American Petroleum Institute is due to release its weekly report for the week ended August 10 at 4:30PM ET.
U.S. West Texas Intermediate crude futures were up 18 cents at $69.03 a barrel.
International Brent crude oil futures were at $76.89 per barrel, 42 cents higher from their last close.
Gold also edged higher, with spot gold trading at $1,212.95 per ounce.