A Peek Into The Markets: US Stock Futures Gain Ahead Of Jobless Claims Data

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after the Dow Jones fell around 1% in the previous session. Investors are awaiting earnings results from American Airlines Group Inc. AAL, Netflix, Inc. NFLX, and Union Pacific Corporation UNP.

Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET. Analysts expect jobless claims declining to 207,000 for the January 15 week from the prior week's level of 230,000. The Philadelphia Fed manufacturing index for January is scheduled for release at 8:30 a.m. ET, while data on existing home sales for December will be released at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average jumped 104 points to 35,014.00 while the Standard & Poor’s 500 index futures rose 17.50 points to 4,541.75. Futures for the Nasdaq index gained 98.75 points to 15,132.25.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 69,808,350 with around 880,970 deaths. India reported a total of at least 38,218,770 confirmed cases, while Brazil confirmed over 23,420,860 cases.

Oil prices traded lower as Brent crude futures fell 1% to trade at $87.60 per barrel, while US WTI crude futures fell 0.5% to trade at $86.55 a barrel. 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 in the U.S. will be released at 11:00 a.m. ET.

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A Peek Into Global Markets

European markets were mostly higher today. The STOXX Europe 600 Index rose 0.1%, while Spain’s IBEX 35 Index rose 0.3% and London’s FTSE 100 gained 0.4%. The French CAC 40 Index slipped 0.1%, while German DAX gained 0.2%. Producer inflation in Germany accelerated to a fresh all-time high of 24.2% in December from 19.2% in November.

Asian markets traded mixed today. Japan’s Nikkei surged 1.1%, Hong Kong’s Hang Seng Index jumped 3.42%, while China’s Shanghai Composite fell 0.09%. Australia’s S&P/ASX 200 rose 0.1% and India’s BSE Sensex fell 1.6%. The People's Bank of China reduced its key lending rates for corporate and household loans. Australian unemployment rate fell to 4.2% in December from 4.6% a month ago. Exports from Japan jumped 17.5% year-over-year to a record high of JPY 7,881.43 billion in December, while imports rose 41.1% year-over-year to a record high of JPY 8,463.79 billion.

Broker Recommendation

Jefferies downgraded Ford Motor Company F from Buy to Hold and announced a $25 price target.

Ford shares fell 2.4% to $21.91 in pre-market trading.

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Breaking News

• Alcoa Corporation AA reported better-than-expected earnings for its fourth quarter.
• Tesla Inc TSLA CEO Elon Musk has been invited by at least six Indian state governments to set up a manufacturing plant with them, The Indian Express reported on Wednesday.
• United Airlines Holdings, Inc. UAL reported a narrower-than-expected loss for its fourth quarter, while sales came in above estimates.
• The Walt Disney Co DIS CEO Bob Chapek saw his compensation rise to $32.5 million, according to a statement filed with the U.S. Securities and Exchange Commission Wednesday.

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