A Peek Into The Markets: US Stock Futures Edge Lower Ahead of Jobless Claims Data

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Wall Street closed slightly higher in the previous session. Investors are awaiting earnings results from J M Smucker Co SJM, Ciena Corporation CIEN, Lululemon Athletica Inc LULU and Broadcom Inc AVGO.

The Challenger Job-cut report for May is scheduled for release at 7:30 a.m. ET, while the ADP national employment report for May will be released at 8:15 a.m. ET. Data on initial jobless claims for the latest week, nonfarm productivity and unit labor costs for the first quarter will be released at 8:30 a.m. ET. US Services Purchasing Managers' Index for May is scheduled for release at 9:45 a.m. ET, while the ISM's services index for May will be released at 10:00 a.m. ET. Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 12:30 p.m. ET, while Philadelphia Fed President Patrick Harker will speak at 1:50 p.m. ET. Federal Reserve Governor Randal Quarles is set to speak at 3:05 p.m. ET.

Futures for the Dow Jones Industrial Average fell 48 points to 34,542.00 while the Standard & Poor’s 500 index futures slipped 4.75 points at 4,201.50. Futures for the Nasdaq 100 index declined 10.75 points to 13,663.00.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 33,307,420 with around 595,830 deaths. India reported a total of at least 28,441,980 confirmed cases, while Brazil confirmed over 16,720,080 cases.

Oil prices traded higher as Brent crude futures rose 0.3% to trade at $71.59 per barrel, while US WTI crude futures rose 0.3% to trade at $69.04 a barrel. U.S. crude inventories dropped 5.36 million barrels for the week ended May 27, the American Petroleum Institute said Wednesday. The Energy Information Administration’s weekly report on natural gas stocks in underground storage is scheduled for release at 10:30 a.m. ET, while the EIA’s weekly report on petroleum inventories will be released at 11:00 a.m. ET.

A Peek Into Global Markets

European markets were lower today. The Spanish Ibex Index fell 0.2% and STOXX Europe 600 Index slipped 0.2%. The French CAC 40 Index fell 0.1%, London’s FTSE 100 fell 0.7% while German DAX 30 slipped 0.2%. The IHS Markit Eurozone services PMI was revised higher to 55.2 in May from the preliminary reading of 55.1, while composite PMI also rose to 57.1 in May versus a preliminary estimate of 56.9. German services PMI rose to 52.8 in May from 49.9 in April, while Spanish services PMI climbed to 59.4 in May from 54.6 in the prior month. French services PMI climbed to 56.6 in May compared to 50.3 in the previous month.

Asian markets traded mixed today. Japan’s Nikkei 225 rose 0.39%, while China’s Shanghai Composite fell 0.36%. Hong Kong’s Hang Seng Index fell 1.24%, Australia’s S&P/ASX 200 climbed 0.6% and India’s BSE Sensex rose 0.2%. India’s services PMI dropped to 46.4 in May versus 54.0 in the previous month, while Caixin China’s general services PMI declined to 55.1 in May from 56.3. Japanese services PMI dropped to 46.5 in May from 49.5 in April, while IHS Markit Hong Kong PMI climbed to 52.5 in May versus 50.3. Retail sales in Australia increased 1.1% in April, while trade surplus increased sharply to AUD 8.03 billion in April. Australia’s services Index fell to 58.0 in May versus a preliminary reading of 58.2.

Broker Recommendation

Jefferies upgraded Take-Two Interactive Software, Inc. TTWO from Hold to Buy and raised the price target from $185 to $231.

Take-Two shares rose 1.7% to $179.95 in pre-market trading.

Breaking News

• NetApp Inc. NTAP posted better-than-expected earnings for its first quarter and added $500 million to its buyback program. The company also said it projects Q1 earnings of $0.89 to $0.97 per share on sales of $1.37 billion to $1.47 billion.
• Tesla Inc TSLA expects to spend more than $1 billion annually over the next few years to source key battery materials from Australia due to its reliable mining industry and responsible production practices, Reuters reported.
• PVH Corp PVH reported upbeat earnings for its first quarter and raised FY21 earnings forecast.
• Smartsheet Inc. SMAR reported better-than-expected Q1 results and issued strong sales guidance .

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