U.S. Stock Futures Lower; Tesla Posts Upbeat Q2 Earnings

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Thursday after the Nasdaq jumped over 1.5% the previous session. Investors are awaiting earnings results from AT&T Inc. T, American Airlines Group Inc. AAL and Dow Inc. DOW.

Data on initial jobless claims for the latest week and Philadelphia Fed manufacturing index for July will be released at 8:30 a.m. ET. The index of leading economic indicators for June will be released at 10:00 a.m. ET.

U.S. Weekly Jobless Claims Might Decline Slightly To This Level, Here Are The Major Macro Issues For Thursday

Futures for the Dow Jones Industrial Average dropped 108 points to 31,745.00 while the Standard & Poor’s 500 index futures fell 12.75 points to 3,949.75. Futures for the Nasdaq index fell 39 points to 12,426.25.

Oil prices traded lower as Brent crude futures fell 2.9% to trade at $103.85 per barrel, while US WTI crude futures fell 3.3% to trade at $96.56 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 91,767,460 with around 1,050,700 deaths. India reported a total of at least 43,825,180 confirmed cases, while Brazil confirmed over 33,454,290 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.3%, London’s FTSE 100 dropped 0.4% while Spain’s IBEX 35 Index fell 0.3%. The French CAC 40 Index fell 0.4%, while German DAX fell 0.9%. The ECB is likely to increase interest rates for the first time in eleven years during its meeting today. The manufacturing climate indicator in France dropped to 106 in July from 108 in the prior month.

Asian markets traded mixed today. Japan’s Nikkei 225 rose 0.44%, while China’s Shanghai Composite fell 0.99% and Hong Kong’s Hang Seng Index fell 1.51%. Australia’s S&P/ASX 200 rose 0.5%, while India’s S&P BSE Sensex rose 0.3%. The Bank of Japan kept its key short-term interest rate unchanged at -0.1%, but reduced its 2022 GDP growth outlook to 2.4%. Japan recorded a trade deficit of JPY 1,383.8 billion in June versus a year-ago surplus of JPY 369.4 billion.

Broker Recommendation

Keybanc maintained PayPal Holdings, Inc. PYPL with an Overweight and lowered the price target from $125 to $100.

PayPal shares fell 0.9% to $79.50 in pre-market trading.

Check out this: Why Baker Hughes Shares Dropped 8%; Here Are 64 Biggest Movers From Yesterday

Breaking News

• Tesla Inc TSLA posted better-than-expected earnings for its second quarter, while sales missed estimates. Second-quarter deliveries were 254,695, up 27% year-over-year.
• BitGo, a cryptocurrency custody provider, has undertaken its registration to carry out operations in Italy.
• United Airlines Holdings, Inc. UAL posted weaker-than-expected earnings for its second quarter on Wednesday.
• Alcoa Corporation AA reported upbeat results for its second quarter on Wednesday.

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