U.S. Stock Futures Lower Ahead Of Manufacturing Data; Crude Oil Drops 2%

Pre-open movers

U.S. stock futures traded slightly lower in early pre-market trade on Monday after the Dow Jones jumped more than 300 points in the previous session. Investors are awaiting earnings results from Global Payments Inc. GPN, The Mosaic Company MOS, Activision Blizzard, Inc. ATVI and ON Semiconductor Corporation ON.

The manufacturing PMI for July is scheduled for release at 9:45 a.m. ET. The ISM manufacturing index and data on construction spending will be released at 10:00 a.m. ET.

ISM Manufacturing Index Might Decline Further To This Level In July, Here Are The Major Macro Issues For Monday

Futures for the Dow Jones Industrial Average dropped 53 points to 32,772.00 while the Standard & Poor’s 500 index futures fell 11.25 points to 4,122.25. Futures for the Nasdaq index fell 37.75 points to 12,933.75.

Oil prices traded lower as Brent crude futures fell 1.3% to trade at $102.63 per barrel, while US WTI crude futures fell 2% to trade at $96.65 a barrel. The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.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 93,082,190 with around 1,055,050 deaths. India reported a total of at least 44,036,270 confirmed cases, while France confirmed over 33,859,570 cases.

A Peek Into Global Markets

European markets were higher today. The STOXX Europe 600 Index gained 0.2%, London’s FTSE 100 rose 0.3% while Spain’s IBEX 35 Index rose 0.6%. The French CAC 40 Index rose 0.4%, while German DAX gained 0.3%.

The unemployment rate in the Eurozone came in unchanged at 6.6% for June, while manufacturing PMI fell to 49.8 in July from 52.1 in June. Retail sales in Germany declined 1.6% month-over-month in June versus a revised 1.2% increase in May, while the country’s manufacturing PMI rose to 49.3 in July from a preliminary level of 49.2. The S&P Global/CIPS UK manufacturing PMI fell to 52.1 in July from a preliminary reading of 52.2, while Italian manufacturing PMI declined to 48.5 in July from 50.9 in June. The S&P Global manufacturing PMI for France dropped to 49.5 in July from 51.4 a month ago.

Asian markets traded higher today. Japan’s Nikkei 225 rose 0.69%, while China’s Shanghai Composite rose 0.21% and Hong Kong’s Hang Seng Index rose 0.05%. Australia’s S&P/ASX 200 rose 0.7%, while India’s S&P BSE Sensex surged 0.8%.

The official NBS Manufacturing PMI for China declined to 49.0 in July from 50.2 a month ago, while non-manufacturing PMI fell to 53.8 in July versus a 13-month high level of 54.7 in the previous month. The S&P Global Australian manufacturing PMI slipped to 55.7 in July from 56.2 in June. The au Jibun Bank Japanese manufacturing PMI dropped to 52.1 in July from a final reading of 52.7 in June. The S&P Global Indian manufacturing PMI, however, surged to 56.4 in July compared to a nine-month low level of 53.9 in June. Hong Kong's economy contracted by 1.4% year-over-year during the second quarter.

Broker Recommendation

Wells Fargo downgraded Stanley Black & Decker, Inc. SWK from Overweight to Equal-Weight and announced a $105 price target.

Stanley Black & Decker shares fell 1.3% to close at $97.33 on Friday.

Check out this: Bitcoin, Ethereum Record Losses; Here Are Other Crypto Movers That Should Be On Your Radar Today

Breaking News

• Alibaba Group Holding Inc. BABA has said it will continue to monitor market developments, comply with applicable laws and regulations and strive to maintain its listing status on both the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange. The firm’s statement comes after it was reportedly placed on a de-listing watch by the U.S.
• Li Auto, Inc. LI reported Monday a month-over-month decline in July deliveries. The company said its Li L9 SUV launched in late June has received positive feedback from customers.
• Tuesday Morning Corporation TUEM said that the company’s Chief Financial Officer Jennifer Robinson is departing to pursue other opportunities effective August 15, 2022. The company named current COO Marc Katz as Interim CFO.
• Luxury jewelry brand Tiffany & Co. is selling 250 exclusive diamond pendants to CryptoPunk NFT holders. The LVMH Moet Hennessy Louis Vuitton-owned company unveiled the “NFTiff” collection over the weekend.

Check out other breaking news here