A Peek Into The Markets: US Stock Futures Edge Higher Ahead Of Earnings, PMI Data

Pre-open movers

U.S. stock futures traded slightly higher in early pre-market trade after the Dow Jones dipped more than 300 points in the previous session on reports that Biden will propose a capital gains tax for the wealthy of up to 43.4%. Investors are awaiting earnings results from Honeywell International Inc. HON, American Express Company AXP, Kimberly Clark Corp (NYSE: KMB and Schlumberger (NYSE: SLB).

The manufacturing and services PMIs for April will be released at 9:45 a.m. ET, while data on new home sales for March will be released at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average gained 39 points to 33,748.00 while the Standard & Poor’s 500 index futures rose 7.50 points at 4,135.25. Futures for the Nasdaq 100 index rose 19 points to 13,769.25.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 31,929,600 with around 570,340 deaths. India reported a total of at least 16,263,690 confirmed cases, while Brazil confirmed over 14,167,970 cases.

Oil prices traded higher as Brent crude futures rose 0.5% to trade at $65.72 per barrel, while US WTI crude futures rose 0.7% to trade at $61.85 a barrel. US natural-gas supplies climbed 38 billion cubic feet last week, the Energy Information Administration said Thursday. The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.

A Peek Into Global Markets

European markets were slightly lower today. The Spanish Ibex Index fell 0.3% and STOXX Europe 600 Index slipped 0.2%. The French CAC 40 Index slipped 0.1%, German DAX 30 dropped 0.2% while London's FTSE 100 fell 0.2%. UK’s manufacturing PMI climbed to 60.7 in April from 58.9 in March, while services PMI rose to 60.1 from 56.3. Retail sales in the UK rose 5.4% in March. The IHS Markit Eurozone services PMI increased to 50.3 in April compared to 49.6 in the earlier month, while manufacturing PMI rose to 63.3 from 62.5. German composite PMI dropped to 56.0 in April versus a 37-month high level of 57.3 in the earlier month, while French composite PMI increased to 51.7 from 50.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 0.57%, China’s Shanghai Composite rose 0.26% and Hong Kong’s Hang Seng Index rose 1.12%. Australia’s S&P/ASX 200 rose 0.1%, while India’s BSE Sensex fell 0.6%. The annual inflation rate in Hong Kong rose to 0.5% in March from 0.3% in February, while business confidence indicator came in at 0 for the second quarter versus -17 in the earlier period. Australian composite PMI rose to a record level of 58.8 in April from 55.5 a month ago. Japanese manufacturing PMI rose to 53.3 in April from 52.7 a month ago, while services PMI came in unchanged at 48.3 in April. Japan's consumer prices dropped 0.2% year-on-year for March.

Broker Recommendation

Keybanc upgraded Silicon Laboratories Inc. SLAB from Sector Weight to Overweight and announced a $185 price target.

Silicon Laboratories shares rose 14.1% to $165.00 in pre-market trading.

Breaking News

• Intel Corporation INTC reported better-than-expected results for its first quarter and raised FY21 guidance. However, the company issued weak earnings forecast for the second quarter.
• Johnson & Johnson’s JNJ single-shot COVID-19 vaccine is expected to be imported to India for the fill and finish process over the next two to three months, according to a report by the Indian financial daily Mint.
• Seagate Technology PLC STX reported upbeat results for its third quarter. The company also said it expects Q4 adjusted earnings of $1.45 to $1.75 per share, on sales of $2.7 billion to $3 billion..
• Skechers U.S.A., Inc. SKX reported better-than-expected results for its first quarter and issued strong Q2 guidance.

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