UKX FTSE 100 Index

By Mark DeCambre, MarketWatch

U.S. stocks on Tuesday were poised to snap a two-session skid as investors appeared to focus on hope that China would do more to buoy its flagging economy. Wall Street also was digesting results from a number of key banks, as a key Brexit vote that could cause some friction in domestic markets, was in focus.

How are major benchmarks faring?

Futures of the Dow Jones Industrial Average gained 120 points, or 0.5%, at 23,983, those for the S&P 500 index rose 10.25 points, or 0.4%, at 2,590.50, while those for the Nasdaq-100 advanced 38.25 points to reach 6,583.50, a gain of 0.6%.

On Monday, the Dow slid 86.11 points, or 0.4%, to end at 23,909.84, while the S&P 500 index fell 13.65 points, or 0.5%, to 2,582.61. The Nasdaq Composite Index dropped 65.56 points, or 0.9%, to close at 6,905.92.

Read: The most important skill traders need isn't when to buy--it's when (and what) to sell (http://www.marketwatch.com/story/as-stocks-rally-most-important-skill-traders-need-isnt-when-to-buyits-when-and-what-to-sell-2019-01-12)

What's driving the market?

The People's Bank of China said they would increase efforts to spur their economy by improving credit availability for smaller companies, cutting taxes, and ramping up infrastructure investments, Beijing officials said Tuesday. The comments come a day after the world's second-largest economy delivered trade data that were weaker-than expected, underlining worries that the country's economy was locked in a downturn that could weight on global expansion amid a protracted tariff spat between China and the U.S.

See:China growth worries flare up again after trade data (http://www.marketwatch.com/story/china-growth-worries-flare-up-again-after-trade-data-2019-01-14)

Market participants were also watching for quarterly results from JPMorgan Chase & Co. and Wells Fargo & Co, because those financial institutions are at the center of issuing financing to individuals and corporations they are viewed as a proxy for the health of the economy.

Meanwhile, investors also were watching an important U.K. parliamentary vote on Prime Minister Theresa May's plan to stage an orderly divorce from the European Union by a March 29 deadline. May faces a likely defeat on her Brexit plan that is likely to inject volatility in local markets and potential among countries that do business with the United Kingdom.

What are strategists saying?

"Beijing revealed plans to cut income tax for small businesses in a bid to stimulate the economy. The latest move by the Chinese authorities indicates how keen they are to cushion the slowdown in economic activity," wrote David Madden, market analyst at CMC Markets UK, in a Tuesday research note. "Dealers in Europe are a little on the optimistic side this morning, and UK politics will be in focus this evening as parliament will vote on Theresa May's Brexit deal, but it seems to be very unpopular," he wrote.

Which stocks are in focus?

Shares of UnitedHealth Group Inc. (UNH) were about 2% higher in premarket action after the health company reported better-than-expected profit and revenue.

JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC) shares are in focus, as both institutions were set to report quarterly results on Tuesday.

(END) Dow Jones Newswires

January 15, 2019 06:55 ET (11:55 GMT)

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