A Peek Into The Markets: US Stock Futures Down Ahead Of Wholesale Inventories Data

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones jumped by more than 250 points in the previous session. Investors are awaiting earnings results from Campbell Soup Company CPB, ABM Industries Incorporated ABM and Thor Industries, Inc. THO.

Data on wholesale inventories for April will be released at 10:00 a.m. ET. Analysts expect wholesale inventories rising 2.1% in April.

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Futures for the Dow Jones Industrial Average dipped 127 points to 33,038.00 while the Standard & Poor’s 500 index futures fell 15.50 points to 4,143.25. Futures for the Nasdaq index fell 42 points to 12,669.50.

Oil prices traded higher as Brent crude futures rose 0.2% to trade at $120.78 per barrel, while US WTI crude futures rose 0.4% to trade at $120.78 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 10:30 a.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 86,782,400 with around 1,034,280 deaths. India reported a total of at least 43,190,280 confirmed cases, while Brazil confirmed over 31,266,160 cases.

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A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.4%, London’s FTSE 100 fell 0.2% while Spain’s IBEX 35 Index fell 0.2%. The French CAC 40 Index fell 0.4%, while German DAX fell 0.4%. The trade gap in France shrank to €12.2 billion in April from a record high gap of €12.7 billion in the previous month, and reported a current account gap of EUR 3.4 billion. Industrial production in Germany rose 0.7% in April, while Halifax house price index in the UK rose 10.5% year-over-year in May.

Asian markets traded mostly higher today. Japan’s Nikkei 225 rose 1.04%, China’s Shanghai Composite gained 0.68% and Hong Kong’s Hang Seng Index jumped 2.24%. Australia’s S&P/ASX 200 rose 0.4% and India’s S&P BSE Sensex fell 0.4%. The Japanese economy shrank 0.5% on an annualized basis in Q1, while current account surplus shrank to 501.1 billion yen in April. The value of loans in Japan rose 0.7% year-over-year in May, while gauge for service sector sentiment rose 3.6 points from a month ago to 54 in May. The Reserve Bank of India increased its key repo rate by 50 bps to 4.9% at its June meeting.

Broker Recommendation

Telsey Advisory Group maintained Target TGT with an Outperform and lowered the price target from $200 to $185.

Target shares fell 2.3% to close at $155.98 on Tuesday.

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Breaking News

• Novavax, Inc. NVAX said the U.S. FDA Vaccines and Related Biological Products Advisory Committee voted to recommend that the FDA grant Emergency Use Authorization (EUA) for the Novavax COVID-19 vaccine (NVX-CoV2373) for individuals aged 18 years and over.
• Tesla Inc TSLA CEO Elon Musk on Tuesday advised an electric vehicle owner to avoid using the cabin recirculation mode as the range advantage is small.
• Verint Systems Inc. VRNT reported better-than-expected results for its first quarter on Tuesday.
• Payments company PayPal Holdings Inc PYPL has converted its conditional virtual currency license into a full-fledged “BitLicense.”

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