A Peek Into The Markets: US Stock Futures Mixed; All Eyes On Fed Decision

Pre-open movers

U.S. stock futures traded mixed in early pre-market trade, ahead of the Federal Reserve’s policy decision. Investors are awaiting earnings reports from United Natural Foods Inc. UNFI, Chico's FAS Inc. CHS, and Guess Inc. GES. The Consumer Price Index for May is scheduled for release at 8:30 a.m. ET, while the Atlanta Fed's Business Inflation Expectations survey results for June will be released at 10:00 a.m. ET. The Federal Open Market Committee is expected to announce its policy decision at 2:00 p.m. ET. With the interest rates already close to zero, no change in the rate is projected. The Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET. The U.S. Treasury budget report for May will be released at 2:00 p.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world. Total coronavirus cases in the U.S. exceeded 1,979,890 with around 112,000 deaths. Russia reported a total of at least 493,020 confirmed cases, while Brazil confirmed over 739,500 cases.

Futures for the Dow Jones Industrial Average dropped 41 points to 27,223 while the Standard & Poor’s 500 index futures traded fell 0.40 points to 3,205.00. Futures for the Nasdaq 100 index rose 35.25 points to 9,986.25.

Oil prices traded lower as Brent crude futures fell 2.1% to trade at $40.33 per barrel, while US WTI crude futures fell 2.5% to trade at $37.98 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were lower today, with the Spanish Ibex Index falling 0.1% and STOXX Europe 600 Index declining 0.1%. The UK's FTSE index was trading lower by 0.2%, while French CAC 40 Index slipped 0.1% and German DAX 30 dropped 0.3%.

In Asian markets, Japan’s Nikkei rose 0.15%, Hong Kong’s Hang Seng Index fell 0.03%, China’s Shanghai Composite Index dropped 0.42% and India’s BSE Sensex rose 1.1%.

Broker Recommendation

Analysts at Jefferies upgraded eBay Inc EBAY from Underperform to Hold and raised the price target from $30 to $52.

eBay shares rose 0.5% to $50.00 in pre-market trading.

Breaking News

• Singapore announced the approval of Gilead Sciences, Inc’s GILD remdesivir as a COVID-19 treatment, Reuters repored.
• GameStop Corp. GME reported a wider-than-expected loss for its first quarter, while sales also missed expectations.
• Verint Systems Inc. VRNT reported weaker-than-expected results for its first quarter on Tuesday.
• Five Below Inc FIVE reported downbeat results for its first quarter. However, the company said it has reopened around 90% of its stores till date.