Futures higher as North Korea tensions fade

[August 15, 2017]  By Sruthi Shankar

(Reuters) - U.S. stock index futures were higher on Tuesday as North Korea's leader delayed a decision on firing missiles towards the U.S. Pacific territory of Guam, pointing to receding tensions between the United States and North Korea.

Wall Street continued to recover from last week's selloff, with the S&P 500 posting its biggest one-day percentage gain since April on Monday.

Pyongyang's plans to fire missiles near Guam prompted a surge in tensions in the region last week, with President Donald Trump saying the U.S. military was "locked and loaded" if North Korea acted unwisely.

Gold prices fell further on Tuesday as easing tensions pushed investors to seek riskier assets such as equities. Spot gold <XAU=> was down 0.6 percent at $1,274.19 per ounce. [GOL/]

Investors will also be keeping an eye on economic data on Tuesday to gauge the health of the economy and the future path of interest rate hikes.

The U.S. Commerce Department is expected to report a 0.4 percent rise in retail sales in July after falling 0.2 percent in June.

New York Federal Reserve President William Dudley, one of the most influential members of the central bank, said on Monday he expected another interest rate hike this year if the economy holds and that the Fed would soon begin shedding some of its bond holdings.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 14, 2017. REUTERS/Brendan McDermid

The Fed has raised rates twice this year and is aiming for another hike. However a slide in inflation readings in recent months to 1.5 percent, below its 2-percent target, has raised doubts among investors about the Fed following through.

Coach was off about 6 percent in premarket trading after the company reported a fall in net sales as it cut back on promotions and pulled its products from department store shelves.

Snap was up 3.17 percent as big investors reported their stakes in the social media company. * Advance Auto Parts fell 6.71 percent after the company lowered its 2017 comparable store sales forecast.

Synchrony Financial rose 5.40 percent after Warren Buffett's Berkshire Hathaway said it had added a 17.5-million share stake in the credit card issuer.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)

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