A Peek Into The Markets: US Stock Futures Down After Fed Boosts Interest Rate

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones gained more than 300 in the previous session. Investors are awaiting earnings results from The Kroger Co. KR, Jabil Inc. JBL and Adobe Inc. ADBE. The Federal Reserve raised interest rates by 0.75% at its recent meeting.

Data on initial jobless claims, housing starts, permits and Philadelphia Fed manufacturing index will be released at 8:30 a.m. ET.

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Futures for the Dow Jones Industrial Average dipped 591 points to 30,070.00 while the Standard & Poor’s 500 index futures fell 89.50 points to 3,699.75. Futures for the Nasdaq index declined 329.50 points to 11,264.25.

Oil prices traded lower as Brent crude futures fell 0.7% to trade at $117.68 per barrel, while US WTI crude futures fell 0.6% to trade at $114.64 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.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 87,759,180 with around 1,037,660 deaths. India reported a total of at least 43,259,600 confirmed cases, while Brazil confirmed over 31,611,760 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 2.2%, London’s FTSE 100 fell 2.4% while Spain’s IBEX 35 Index fell 1.6%. The French CAC 40 Index fell 2.3%, while German DAX dropped 2.9%. Hourly labor costs in the eurozone rose by 3.2% year-over-year in the first quarter. The trade deficit in Spain increased to €6.4 billion in April from € 1.3 billion in the year-ago period, while annual inflation rate in Italy was revised lower to 6.8% in May.

Asian markets traded mostly lower today. Japan’s Nikkei 225 rose 0.40%, China’s Shanghai Composite fell 0.61% and Hong Kong’s Hang Seng Index fell 2.17%. Australia’s S&P/ASX 200 fell 0.2%, while India’s S&P BSE Sensex fell 1.9%. The Hong Kong Monetary Authority raised the base rate by 75 basis points. Australian unemployment came in at 3.9% in May. Average new home prices in China fell by 0.1% year-over-year in May. Japanese trade deficit widened to JPY 2,384.7 billion in May from JPY 212.9 billion in the year-ago month.

Broker Recommendation

Citigroup upgraded The Boeing Company BA from Neutral to Buy and lowered the price target from $219 to $209.

Boeing shares fell 1.3% to $132.01 in pre-market trading.

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Breaking News

• Rockley Photonics Holdings Limited RKLY disclosed changes to its senior management team. The company said Mahesh Karanth will resign from his role as chief financial officer, while naming Chad Becker as interim CFO. The company promoted Ciaran Rooney to senior vice president of corporate development and reaffirmed its fiscal year 2022 revenue forecast.
• Revlon, Inc. REV filed for Chapter 11 bankruptcy, Reuters reported.
• Safehold Inc. SAFE boosted its quarterly stock dividend by 4.12% to $0.177 per share.
• Walt Disney Co's DIS dispute with Florida Governor Ron DeSantis continues to play out, as reports suggest the media giant has halted plans to move some California-based employees to the Sunshine State.

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