A Peek Into The Markets: US Stock Futures Edge Lower Following Monday's Surge; Alphabet Earnings in Focus

Pre-open movers

U.S. stock futures traded slightly lower in early pre-market trade after the Dow Jones jumped by more than 400 points in the previous session. Apple Inc. AAPL reported upbeat results for its first quarter after the closing bell on Thursday. Investors are awaiting earnings results from Alphabet Inc. GOOG, United Parcel Service, Inc. UPS, Exxon Mobil Corporation XOM, General Motors Company GM and Starbucks Corporation SBUX.

The final manufacturing PMI for January will be released at 9:45 a.m. ET, while the ISM manufacturing composite index for January and data on construction spending for December will be released at 10:00 a.m. ET. The Labor Department's JOLTS report for December will be released at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average dropped 44 points to 34,953.00 while the Standard & Poor’s 500 index futures slipped 7.25 points to 4,497.00. Futures for the Nasdaq index fell 0.50 points to 14,904.50.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 76,222,210 with around 910,100 deaths. India reported a total of at least 41,469,490 confirmed cases, while Brazil confirmed over 25,454,100 cases.

Oil prices traded lower as Brent crude futures fell 0.8% to trade at $88.54 per barrel, while US WTI crude futures fell 0.9% to trade at $87.35 a barrel. The API’s report on crude oil stocks will be released later during the day.

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A Peek Into Global Markets

European markets were higher today. The STOXX Europe 600 Index climbed 0.9%, while Spain’s IBEX 35 Index rose 0.7% and London’s FTSE 100 rose 0.6%. The French CAC 40 Index rose 0.8%, while German DAX climbed 0.7%. The IHS Markit manufacturing PMI for Eurozone was revised lower to 58.7 in January versus a preliminary reading of 59. The IHS Markit/CIPS UK manufacturing PMI was revised higher to 57.3 in January from a preliminary level of 56.9, while consumer credit rose by GBP 0.8 billion in December. The unemployment rate in Italy fell to 9% in December, while unemployment rate in Germany fell to 5.1% in January. Spain’s manufacturing PMI came in unchanged at 56.2 in January from the previous month, while French manufacturing PMI slipped to 55.5 in January from 55.6 in December. The annual inflation rate in France accelerated to 2.9% in January from 2.8% in December.

Asian markets traded higher today. Japan’s Nikkei gained 0.28%, while Australia’s S&P/ASX 200 rose 0.5% and India’s BSE SENSEX gained 1.5%. The IHS Markit India manufacturing PMI fell to 54.0 in January from 55.5 in December. Retail sales in Australia fell 4.4% in December, while the Reserve Bank of Australia held its cash rate unchanged at a record low level of 0.1% during its January meeting. The au Jibun Bank Japan manufacturing PMI was revised higher to 55.4 in January versus a preliminary reading of 54.6, while unemployment rate fell to 2.7% in December.

Broker Recommendation

Keybanc maintained KBR, Inc. KBR with an Overweight and raised the price target from $50 to $55..

KBR shares rose 0.6% to close at $43.40 on Monday.

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Breaking News

Sanmina Corporation SANM reported better-than-expected results for its first quarter and issued strong forecast for the current quarter.
Nio Inc NIO said on Tuesday deliveries fell in January over the previously month. The company delivered 9,652 electric vehicles last month, a fall of 7.9% over December and a rise of 33.6% over 2021.
Li Auto Inc LI on Tuesday outshone delivery numbers of close rival Nio in January even as the two U.S. listed Chinese electric vehicle makers reported a sequential decline in volume amid the slow-sales season ahead of the Lunar New Year.
Pfizer Inc PFE and BioNTech SE BNTX are likely to submit a request for an emergency use authorization to the U.S. Food and Drug Administration on Tuesday for a COVID-19 vaccine aimed at children younger than five years.