A Peek Into The Markets: US Stock Futures Lower Ahead Of Economic Reports

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones surged around 200 points in the previous session. Investors are awaiting earnings results from Deere & Company DE and Kingsoft Cloud Holdings Limited KC.

Data on durable goods orders, Gross Domestic Product, international trade in goods, initial jobless claims and wholesale inventories will be released at 8:30 a.m. ET. Data on new home sales for October, University of Michigan's consumer sentiment index, personal income and outlays will be released at 10:00 a.m. ET. The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.

Futures for the Dow Jones Industrial Average dropped 99 points to 35,667.00 while the Standard & Poor’s 500 index futures fell 11.75 points to 4,676.75. Futures for the Nasdaq 100 index fell 39.25 points to 16,272.75.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 48,835,210 with around 796,310 deaths. India reported a total of at least 34,535,760 confirmed cases, while Brazil confirmed over 22,038,730 cases.

Oil prices traded slightly lower as Brent crude futures fell 0.3% to trade at $81.10 per barrel, while US WTI crude futures fell 0.1% to trade at $78.46 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET, while the EIA’s weekly report on natural gas stocks in underground storage is scheduled for release at 12:00 p.m. ET. The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

A Peek Into Global Markets

European markets were mostly higher today. The Spanish Ibex Index rose 0.4% and STOXX Europe 600 Index gained 0.2%. The French CAC 40 Index fell 0.1%, London’s FTSE 100 gained 0.3% while German DAX 30 declined 0.3%. The Ifo Business Climate indicator for Germany dropped for the fifth month to 96.5 in November, while manufacturing climate indicator in France climbed to 109 in November from 107.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 1.58%, while Hong Kong’s Hang Seng Index rose 0.14% and China’s Shanghai Composite gained 0.1%. Australia’s S&P/ASX 200 fell 0.2%, while India’s BSE Sensex fell 0.6%. Total construction work done in Australia declined by 0.3% quarter-on-quarter during the three months to September. The au Jibun Bank Japan manufacturing PMI climbed to 54.2 in November from a final reading of 53.2 in October, while services PMI rose to a 26-month high of 52.1 in November.

Broker Recommendation

Stifel downgraded Jack in the Box Inc. JACK from Buy to Hold and lowered the price target from $130 to $100.

Jack In The Box shares fell 2.9% to close at $ 93.00 on Tuesday.

Check out other major ratings here

Breaking News

• HP Inc HPQ reported better-than-expected results for its fourth quarter and issued strong earnings forecast for the current quarter.
• Dell Technologies Inc. DELL posted stronger-than-expected earnings and sales results for its third quarter on Tuesday.
• The Gap, Inc. GPS reported weaker-than-expected results for its third quarter and lowered its FY21 earnings guidance.
• Tesla Inc TSLA CEO Elon Musk sold $1 billion worth of the automaker’s shares on Tuesday, as per filings made with the U.S. Securities and Exchange Commission.

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