US Stock Futures Down After Recording Losses For August; Crude Oil Falls Further

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after recording losses for the fourth session in a row on Wednesday. All the three major indices notched their weakest August performance since 2015. For the month, the Dow Jones dropped around 4.06%, while the S&P 500 declined 4.24%. The Nasdaq index, meanwhile, dipped about 4.64% in August.

Investors are awaiting earnings results from Hormel Foods Corporation HRL, Campbell Soup Company CPB, Lululemon Athletica Inc. LULU and Broadcom Inc. AVGO.

The Challenger job-cut report for August is scheduled for release at 7:30 a.m. ET, while data on initial jobless claims, nonfarm productivity and unit labor costs will be released at 8:30 a.m. ET. The manufacturing PMI for August is scheduled for release at 9:45 a.m. ET, while the ISM manufacturing index and data on construction spending will be released at 10:00 a.m. ET. Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 3:30 p.m. ET.

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Futures for the Dow Jones Industrial Average dropped 178 points to 31,354.00 while the Standard & Poor’s 500 index futures fell 29 points to 3,927.50. Futures for the Nasdaq index fell 135.50 points to 12,149.75.

Oil prices traded lower as Brent crude futures fell 1.8% to trade at $93.89 per barrel, while US WTI crude futures fell 1.8% to trade at $87.98 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 96,347,970 with around 1,071,420 deaths. India reported a total of at least 44,436,330 confirmed cases, while France confirmed over 34,529,200 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 1.6%, London’s FTSE 100 dipped 1.5% while Spain’s IBEX 35 Index fell 1%. The French CAC 40 Index declined 1.6%, while German DAX fell 1.5%.

The unemployment rate in the Eurozone dropped to a record low of 6.6% in July from revised 6.7% in the prior month, while Eurozone manufacturing PMI was revised lower to 49.6 in August from an initial reading of 49.7. The S&P Global/CIPS UK manufacturing PMI was revised higher to 47.3 in August versus a preliminary reading of 46, while French manufacturing PMI climbed to 50.6 in August from a preliminary estimate of 49. The S&P Global/BME German manufacturing PMI was revised lower to 49.1 in August versus a preliminary level of 49.8, while Italian manufacturing PMI declined to 48 in August from 48.5 a month ago.

Asian markets traded lower today. Japan’s Nikkei 225 fell 1.53%, China’s Shanghai Composite fell 0.54%, while Hong Kong’s Hang Seng Index fell 1.79%. Australia’s S&P/ASX 200 fell 2%, while India’s S&P BSE SENSEX dropped 1.3%.

The S&P Global Indian manufacturing fell to 56.2 in August from July’s reading of 56.4, while China’s general manufacturing PMI fell to 49.5 in August from July’s 50.4. The au Jibun Bank Japan’s manufacturing PMI fell to 51.5 in August from 52.1 in July.

Broker Recommendation

Telsey Advisory Group maintained Five Below, Inc. FIVE with an Outperform and lowered the price target from $158 to $150.

Five Below shares rose 3.5% to $132.35 in pre-market trading.

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Breaking News

• Rio Tinto Group RIO announced plans to acquire full ownership of Turquoise Hill Resources Ltd. TRQ for C$43 per share in cash.
• Nutanix, Inc. NTNX reported better-than-expected sales results for its fourth quarter and issued strong revenue forecast.
• Former President Donald Trump is reportedly considering delaying his 2024 presidential campaign run as legal troubles pile up.
• Alibaba Group Holding Ltd. BABA-owned Lazada Group is getting ready to enter Europe, after its success in Southeast Asia, to take on rivals such as Amazon.com Inc. AMZN and Zalando SE ZLNDY, reported Bloomberg.

Check out other breaking news here