US Stock Futures Down; Powell Testimony In Focus

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones gained more than 600 points in the previous session.

Federal Reserve Bank of Richmond President Thomas Barkin is set to speak at 9:00 a.m. ET, while the Federal Reserve chief Jerome Powell will testify before Congress on monetary policy at 9:30 a.m. ET. Federal Reserve Bank of Chicago President Charles Evans will speak at 12:55 p.m. ET, while Philadelphia Federal Reserve Bank President Patrick Harker is set to speak at 1:30 p.m. ET.

Check out this: 5 Stocks To Watch For June 22, 2022

Futures for the Dow Jones Industrial Average dropped 486 points to 30,039.00 while the Standard & Poor’s 500 index futures fell 69.25 points to 3,698.50. Futures for the Nasdaq index fell 237.25 points to 11,340.00.

Oil prices traded lower as Brent crude futures fell 3% to trade at $111.17 per barrel, while US WTI crude futures fell 3.5% to trade at $105.66 a barrel.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 88,244,870 with around 1,038,900 deaths. India reported a total of at least 43,334,650 confirmed cases, while Brazil confirmed over 31,824,220 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index declined 1.6%, London’s FTSE 100 fell 1.3% while Spain’s IBEX 35 Index fell 16%. The French CAC 40 Index fell 1.8%, while German DAX dipped 2.2%. The annual inflation rate in the UK accelerated to 9.1% in May from 9% in the previous month, while producer prices surged 15.7% year-over-year in May.

Asian markets traded lower today. Japan’s Nikkei 225 fell 0.37%, China’s Shanghai Composite fell 1.2% and Hong Kong’s Hang Seng Index dropped 2.39%. Australia’s S&P/ASX 200 fell 0.2%, while India’s S&P BSE Sensex fell 1.3%. The Westpac-Melbourne Institute Leading Economic Index in Australia fell by 0.06% year-over-year in May.

Broker Recommendation

Credit Suisse downgraded Dow Inc. DOW from Neutral to Underperform and lowered the price target from $67 to $49.

Dow shares fell 3.6% to $53.00 in pre-market trading.

Check out this: Powell Testimony And Other Macro Issues For Wednesday

Breaking News

• La-Z-Boy Incorporated LZB reported upbeat results for its fourth quarter and issued strong sales forecast for the first quarter.
• Precision BioSciences DTIL reported a $50 million offering of common stock and announced in vivo gene editing collaboration with Novartis to develop potentially curative treatment for disorders including sickle cell disease.
• ProFrac Holding Corp. PFHC announced plans to acquire U.S. Well Services, Inc. USWS for $1.21 per share in an all-stock deal.
• Enviva Inc. EVA reaffirmed its 2022 guidance. The company said it sees FY22 adjusted EBITDA of $230 million to $270 million.

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