Dow, Nasdaq Futures Lower Following Friday's Sell-Off; US Dollar Surges To 20-Year High

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones tumbled more than 1,000 points in the previous session following speech from Federal Reserve Chairman Jerome Powell at the central bank’s Jackson Hole economic symposium. The US dollar index, meanwhile, jumped to its strongest level in 20 years on Monday.

Investors are awaiting earnings results from Catalent, Inc. CTLT, Pinduoduo Inc. PDD and HEICO Corporation HEI.

The Dallas Fed manufacturing index for August is scheduled for release at 10:30 a.m. ET. The index, which fell to minus 22.6 in July, is expected to recover slightly to minus 13.2 in August. Federal Reserve Governor Lael Brainard will speak at 2:15 p.m. ET.

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Futures for the Dow Jones Industrial Average dropped 267 points to 31,996.00 while the Standard & Poor’s 500 index futures fell 38.75 points to 4,020.75. Futures for the Nasdaq index fell 160 points to 12,460.50.

Oil prices traded higher as Brent crude futures rose 0.4% to trade at $99.42 per barrel, while US WTI crude futures rose 0.4% to trade at $93.42 a barrel. The total number of active U.S. oil rigs climbed by 4 to 605 rigs this week, Baker Hughes Inc reported Friday.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 96,011,850 with around 1,069,130 deaths. India reported a total of at least 44,415,720 confirmed cases, while France confirmed over 34,478,790 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 1.1%, while Spain’s IBEX 35 Index fell 1.3%. The French CAC 40 Index fell 1.7%, while German DAX fell 1.6%.

Asian markets traded lower today. Japan’s Nikkei 225 fell 2.66%, China’s Shanghai Composite rose 0.14%, while Hong Kong’s Hang Seng Index fell 0.73%. Australia’s S&P/ASX 200 fell 2%, while India’s S&P BSE SENSEX declined 1.5%.

The index of coincident economic indicators in Japan declined to 98.6 in June versus the flash level of 99.0, while index of leading economic indicators was revised higher to 100.9 from 100.6. Retail sales in Australia climbed by 1.3% from a month ago to AUD 34.67 billion in July, topping market expectations of 0.3%.

Broker Recommendation

Keybanc downgraded Dow Inc. DOW from Sector Weight to Underweight and announced a $45 price target.

Dow shares fell 2.7% to $52.98 in pre-market trading.

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Breaking News

• Apple, Inc. AAPL has long been rumored to be working on its Augmented Reality/Virtual Reality headset. The tech giant may want to have the right to use the term “Reality” for its mixed reality headset, Bloomberg reported, citing the company’s trademark filings.
• Alphabet Inc’s GOOGL GOOG Google has now opened doors for developers to create various Android-based apps that will be able to connect with a range of devices.
• Mind Medicine (MindMed) Inc. MNMD completed its 1-for-15 reverse share split.
• The funding rate for Ethereum ETH/USD hit a 14-month low on Sunday as the asset’s price dropped to a four-week low of $1,430.

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