A Peek Into The Markets: US Stock Futures Edge Higher; Morgan Stanley, Bank of America Earnings In Focus

Pre-open movers

U.S. stock futures traded slightly higher in early pre-market trade after the Dow Jones tumbled more than 500 points in the previous session. Investors are awaiting earnings results from Bank of America Corporation BAC, Morgan Stanley MS, UnitedHealth Group Incorporated UNH and The Procter & Gamble Company PG.

Data on housing starts and permits for December will be released at 8:30 a.m. ET. Analysts expect an annual rate of 1.650 million for December starts, down from 1.679 million in the previous month. Permits are seen at 1.710 million, slightly down from 1.717 million a month ago.

Futures for the Dow Jones Industrial Average gained 31 points to 35,290.00 while the Standard & Poor’s 500 index futures rose 6.50 points to 4,577.75. Futures for the Nasdaq index gained 40 points to 15,246.00.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 68,767,000 with around 877,240 deaths. India reported a total of at least 37,901,240 confirmed cases, while Brazil confirmed over 23,215,550 cases.

Oil prices traded higher as Brent crude futures rose 0.8% to trade at $88.19 per barrel, while US WTI crude futures gained 1% to trade at $88.19 a barrel. The API’s report on crude oil stocks will be released today.

A Peek Into Global Markets

European markets were slightly higher today. The STOXX Europe 600 Index rose 0.1%, while Spain’s IBEX 35 Index rose 0.2% and London’s FTSE 100 gained 0.1%. The French CAC 40 Index gained 0.4%, while German DAX dropped 0.1%. The Eurozone current account surplus shrank to EUR 26.0 billion in November from EUR 27.5 billion in the year-ago month. Germany’s annual inflation rate was confirmed at 5.3% in December, notching the highest level since June 1992. Annual inflation rate in the UK climbed to 5.4% in December from 5.1% in the previous month, while headline rate of output prices fell to 9.3% year-over-year in December.

Asian markets traded mostly lower today. Japan’s Nikkei dipped 2.8%, Hong Kong’s Hang Seng Index rose 0.06%, while China’s Shanghai Composite fell 0.33%. Australia’s S&P/ASX 200 fell 1% and India’s BSE Sensex fell 1.1%. The Consumer Sentiment Index in Australia slipped 2% to 102.2 in January.

Broker Recommendation

Keybanc downgraded Toll Brothers, Inc. TOL from Sector Weight to Underweight and announced a $56 price target.

Toll Brothers shares fell 1.3% to $62.50 in pre-market trading.

Check out other major ratings here

Breaking News

• J.B. Hunt Transport Services, Inc. JBHT reported better-than-expected results for its fourth quarter on Tuesday.
• American Financial Group, Inc. AFG announced plans to acquire Verikai Inc for $120 million in cash.
• Signature Bank SBNY reported pricing of its underwritten offering of 2,100,000 shares at $352.00 per share.
• General Motors Co GM has secured a tax break on its proposed $1.3 billion investment to expand the Orion assembly plant for building electric vehicles, the Detroit Free Press reported on Tuesday, citing an Orion township trustee.

Check out other breaking news here