A Peek Into The Markets: US Stock Futures Down Ahead Of ADP Report

Pre-open movers

U.S. stock futures traded lower in early pre-market trade ahead of the ADP jobs data. Wall Street closed slightly higher on Tuesday, with the S&P 500 hitting another record high in the previous session. Investors are awaiting earnings results from General Mills, Inc. GIS, Bed Bath & Beyond Inc. BBBY and Micron Technology, Inc. MU

The ADP national employment report for June will be released at 8:15 a.m. ET. Analysts expect a 550,000 rise in private payrolls for June following a 978,000 increase in the previous month. The Chicago PMI for June is scheduled for release at 9:45 a.m. ET, while data on pending home sales for May will be released at 10:00 a.m. ET. Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 8:00 a.m. ET, while Federal Reserve Bank of Richmond President Thomas Barkin will speak at 1:00 p.m. ET.

Futures for the Dow Jones Industrial Average dipped 137 points to 34,033.00 while the Standard & Poor’s 500 index futures fell 11 points at 4,271.00. Futures for the Nasdaq 100 index fell 23.25 points to 14,539.75.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 33,651,920 with around 604,460 deaths. India reported a total of at least 30,362,840 confirmed cases, while Brazil confirmed over 18,513,300 cases.

Oil prices traded mixed as Brent crude futures fell 0.1% to trade at $74.19 per barrel, while US WTI crude futures rose 0.1% to trade at $73.06 a barrel. The American Petroleum Institute, late Tuesday, reported a decline of 8.153 million barrels in crude oil inventories for the week ending June 25. 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. The Spanish Ibex Index fell 0.8% and STOXX Europe 600 Index slipped 0.2%. The French CAC 40 Index lost 0.3%, London’s FTSE 100 fell 0.2% while German DAX 30 declined 0.3%. French industrial producer prices increased 0.5% in May, while annual inflation rate rose to 1.5% in June from 1.4% in May. The UK’s gross domestic product contracted by 6.1% year-over-year in the first quarter. Business investment in the UK dipped 10.7% on quarter during the first three months of the year, while current account deficit shrank to GBP 12.8 billion in the first quarter. German unemployment rate slipped to 3.7% in May from 3.8% in the prior month.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 0.07%, while Hong Kong’s Hang Seng Index declined 0.48% and China’s Shanghai Composite Index gained 0.5%. Australia’s S&P/ASX 200 rose 0.2% and India’s BSE Sensex gained 0.2%. Japan's housing starts climbed 9.9% year-over-year in May, while consumer confidence index rose by 3.3 points to 37.4 in June. Private sector credit in Australia climbed 0.4% on a monthly basis in May. The official NBS manufacturing PMI for China declined to 50.9 in June from 51.0 in May, while non-manufacturing PMI tumbled to a four-month low level of 53.5 in June.

Broker Recommendation

Barclays upgraded Seagate Technology Holdings plc STX from Underweight to Equal-Weight and announced a price target of $85.

Seagate shares rose 1.1% to $88.68 in pre-market trading.

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Breaking News

• AeroVironment, Inc. AVAV reported upbeat earnings for its fourth quarter, while sales missed views. The company also said it expects FY22 adjusted earnings of $2.50 to $2.70 per share on sales of $560 million to $580 million.
• Xpeng Inc. XPEV is set to raise $1.8 billion in its Hong Kong listing, Reuters reported Tuesday, citing two people with direct knowledge of the matter.
• Barnes & Noble Education Inc BNED posted downbeat results for its fourth quarter on Tuesday.
• Canada has set a 2035 deadline to stop the sale of fuel-burning new cars and light-duty trucks as it strives to reach net-zero emissions across the country by 2050, as per a statement from the country’s transport regulator.

Check out other breaking news here