A Peek Into The Markets: US Stock Futures Mostly Higher Ahead Of GDP, Jobless Claims Data

Pre-open movers

U.S. stock futures traded mostly higher in early pre-market trade ahead of earnings from major companies. Investors are awaiting earnings results from Mastercard Inc MA, Merck & Co., Inc. MRK, Comcast Corporation CMCSA and AstraZeneca plc AZN.

Data on initial jobless claims for the latest week and Gross Domestic Product for the second quarter will be released at 8:30 a.m. ET. The pending home sales index for June is scheduled for release at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average surged 147 points to 34,981.00 while the Standard & Poor’s 500 index futures rose 8.50 points to 4,402.25. Futures for the Nasdaq 100 index fell 13.75 points to 14,997.75.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 34,672,820 with around 611,800 deaths. India reported a total of at least 31,528,110 confirmed cases, while Brazil confirmed over 19,797,080 cases.

Oil prices traded higher as Brent crude futures rose 0.5% to trade at $74.23 per barrel, while US WTI crude futures rose 0.7% to trade at $72.87 a barrel. US crude oil inventories dropped 4.089 million barrels in the July 23rd week, following a 2.108 million rise in the prior period, the EIA 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.

A Peek Into Global Markets

European markets were higher today. The Spanish Ibex Index rose 0.7% and STOXX Europe 600 Index gained 0.4%. The French CAC 40 Index climbed 0.7%, London’s FTSE 100 rose 0.9% while German DAX 30 gained 0.4%. The consumer confidence indicator in the Eurozone was confirmed at -4.4 in July, while services confidence indicator climbed to 19.3 in July. The industry confidence indicator in the Eurozone increased to 14.6 in July. Producer prices in Italy surged 9.1% year-over-year in June. Consumer credit in the UK rose by GBP 0.31 billion in June, while UK factories produced 69,097 cars during June. Spain's unemployment rate fell to 15.26% in the second quarter from 15.98% in the prior three-month period, while annual inflation rate increased to 2.9% in July. French industrial producer increased 1.1% in June, while German unemployment rate stood at 3.7% in June.

Asian markets traded higher today. Japan’s Nikkei 225 rose 0.73%, Hong Kong’s Hang Seng Index climbed 3.30%, while China’s Shanghai Composite Index gained 1.49%. Australia’s S&P/ASX 200 gained 0.5% and India’s BSE Sensex rose 0.4%. Australia's import prices increased by 1.9% quarter-on-quarter during the second quarter, while export prices rose 13.2%.

Broker Recommendation

DZ Bank upgraded Tesla, Inc. TSLA from Sell to Buy and announced a $750 price target..

Tesla shares rose 0.9% to $652.57 in pre-market trading.

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Breaking News

• Facebook Inc FB reported better-than-expected earnings for its second quarter. The company saw its daily active users grow 7% year-over-year to 1.91 billion in the quarter. Monthly active users increased 7% to 2.9 billion. Facebook said its third- and fourth-quarter revenue growth rates could decelerate “significantly” due to going against tough comp periods from the prior year.
• M.D.C. Holdings, Inc. MDC posted upbeat earnings for its second quarter.
• QUALCOMM Incorporated QCOM reported better-than-expected Q3 results and issued strong Q4 earnings guidance.
• Ford Motor Company F reported a surprise profit for the second quarter, while sales also exceeded market estimates. The company also raised its profit guidance for the year.

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