U.S. Stock Futures Down Ahead Of Big Earnings, Fed Meeting

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Tuesday after closing mixed in the previous session. Investors are awaiting earnings results from The Coca-Cola Company KO, Alphabet Inc. GOOGL, McDonald's Corporation MCD, Microsoft Corporation MSFT, General Motors Company GM and General Electric Company GE.

The Federal Open Market Committee will start its two-day policy meeting today. The S&P Corelogic Case-Shiller home price index for May and the FHFA House Price Index for May will be released at 9:00 a.m. ET. The Conference Board’s consumer confidence index for July, data on new home sales for June and the Richmond Fed Manufacturing Index for July will be released at 10:00 a.m. ET.

Why Energy Stocks Traded Higher; Here Are 61 Biggest Movers From Yesterday

Futures for the Dow Jones Industrial Average dropped 129 points to 31,838.00 while the Standard & Poor’s 500 index futures fell 10.75 points to 3,959.25. Futures for the Nasdaq index fell 37.25 points to 12,317.25.

Oil prices traded higher as Brent crude futures rose 1.6% to trade at $101.78 per barrel, while US WTI crude futures rose 1.6% to trade at $98.27 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 92,339,920 with around 1,052,460 deaths. India reported a total of at least 43,920,450 confirmed cases, while Brazil confirmed over 33,621,960 cases.

A Peek Into Global Markets

European markets were mixed today. The STOXX Europe 600 Index gained 0.1%, London’s FTSE 100 rose 0.6% while Spain’s IBEX 35 Index fell 0.2%. The French CAC 40 Index fell 0.1%, while German DAX fell 0.3%. Producer inflation in Spain eased slightly to 43.2% year-over-year in June from the 43.6% annual increase in the prior month.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 0.16%, while China’s Shanghai Composite gained 0.83% and Hong Kong’s Hang Seng Index rose 1.67%. Australia’s S&P/ASX 200 rose 0.3%, while India’s S&P BSE Sensex fell 0.8%.

Broker Recommendation

Jefferies downgraded MicroStrategy Incorporated MSTR from Hold to Underperform and announced $180 price target.

MicroStrategy shares fell 6.2% to $249.47 in pre-market trading.

Check out this: All Eyes On Fed Meeting, Here Are The Major Macro Issues For Tuesday

Breaking News

• Walmart Inc WMT cut guidance for the second quarter and full fiscal year. Walmart said it revised its outlook as a result of pricing actions aimed to improve inventory levels at Walmart and Sam's Club in the U.S. and mix of sales.
• Whirlpool Corporation WHR posted upbeat earnings for its second quarter, while sales missed views. The company also lowered its FY22 guidance.
• The Aaron's Company, Inc. AAN lowered its sales guidance for the full year.
• Alibaba Group Holding Limited BABA said Tuesday it plans to apply for a primary listing in Hong Kong. The stock already has a secondary listing in Hong Kong, which is a special administrative region of China.

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