A Peek Into The Markets: US Stock Futures Gain Ahead of Manufacturing Data

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after the Dow Jones gained 65 points in the previous session. Markets were closed Monday for the Memorial Day weekend. Investors are awaiting earnings results from Hewlett Packard Enterprise Co HPE, Zoom Video Communications Inc ZM and Canopy Growth Corporation CGC.

The manufacturing PMI for May is scheduled for release at 9:45 a.m. ET., while the ISM manufacturing composite index for May and data on construction spending for April will be released at 10:00 a.m. ET. The Dallas Fed manufacturing index for May is scheduled for release at 10:30 a.m. ET. Federal Reserve Governor Randal Quarles is set to speak at 10:00 a.m. ET, while Federal Reserve Governor Lael Brainard will speak at 2:00 p.m. ET.

Futures for the Dow Jones Industrial Average surged 175 points to 34,688.00 while the Standard & Poor’s 500 index futures rose 18 points at 4,220.50. Futures for the Nasdaq 100 index gained 55.50 points to 13,742.00.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 33,264,430 with around 594,560 deaths. India reported a total of at least 28,175,040 confirmed cases, while Brazil confirmed over 16,545,550 cases.

Oil prices traded higher as Brent crude futures rose 2.3% to trade at $70.94 per barrel, while US WTI crude futures climbed 3.1% to trade at $68.34 a barrel. The total number of active U.S. oil rigs rose by 3 to 359 rigs this week, Baker Hughes Inc reported Friday.

A Peek Into Global Markets

European markets were higher today. The Spanish Ibex Index rose 0.3% and STOXX Europe 600 Index gained 1%. The French CAC 40 Index rose 0.7%, London’s FTSE 100 rose 1.2% while German DAX 30 gained 1.2%. Annual inflation rate in the Eurozone increased to 2% in May from 1.6% in April, while manufacturing PMI rose to 63.1 in May from a preliminary level of 62.8. UK manufacturing PMI was revised lower to 65.6 in May versus a preliminary reading of 66.1, while German manufacturing PMI rose to 64.4 in May from a preliminary reading of 64. The IHS Markit French manufacturing PMI increased to 59.4 in May from 58.9 in April, while Spanish manufacturing PMI climbed to 59.4 in May versus 57.7 in the earlier month.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 0.16%, while China’s Shanghai Composite rose 0.26%. Hong Kong’s Hang Seng Index rose 1.08%, Australia’s S&P/ASX 200 fell 0.27% and India’s BSE Sensex slipped 0.01%. India’s manufacturing PMI dropped to a ten-month low level of 50.8 in May versus 55.5 a month ago. Australia’s business inventories increased 2.1% quarter-on-quarter during the first quarter, while current account surplus surged to a record high of AUD 18.3 billion for the first quarter. The Reserve Bank of Australia maintained its cash rate at a record low level of 0.1%. The au Jibun Bank Japanese manufacturing PMI increased to 53.0 in May from a preliminary level of 52.5.

Broker Recommendation

Cowen & Co. upgraded The Boeing Company BA from Market Perform to Outperform and raised the price target from $240 to $290.

Boeing shares rose 1.6% to $250.92 in pre-market trading.

Breaking News

• Advanced Micro Devices Inc. AMD has confirmed that infotainment systems in the newly updated Tesla Inc. TSLA Model S and Model X vehicles will use its processors and graphics chips.
• ADMA Biologics Inc ADMA reported a $50 million offering.
• Nio Inc NIO said on Tuesday deliveries nearly doubled in May on a year-on-year basis but slipped sequentially amid an ongoing global semiconductor chip shortage.
• Apple Inc AAPL will continue to scale up its global retail presence as physical stores help create a connection with consumers, a company executive told Germany's Funke Mediengruppe (via Bloomberg).

Check out other breaking news here