US Stock Futures Drop Ahead Of Consumer Sentiment Report; FedEx Shares Plunge

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Friday after recording losses on Thursday. The Nasdaq 100 index dipped more than 200 points in the previous session following the release of several economic reports.

The University of Michigan's consumer sentiment report for September is scheduled for release at 10:00 a.m. ET. After rising around 7 points in August, analysts expect consumer sentiment improving further by 1.7 points to 59.9 in September.

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Futures for the Dow Jones Industrial Average dipped 262 points to 30,712.00 while the Standard & Poor’s 500 index futures fell 37 points to 3,865.00. Futures for the Nasdaq index fell 139.25 points to 11,795.50.

Commodities

Oil prices traded slightly higher as Brent crude futures rose 0.2% to trade at $91.01 per barrel, while US WTI crude futures rose 0.1% to trade at $85.11 a barrel. The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET.

Gold futures fell 0.2% to trade at $1,673.60 an ounce, while silver traded down 1.5% at $18.985 an ounce on Friday.

A Peek Into Global Markets

Europe Markets

European markets were mostly lower today. The STOXX Europe 600 Index fell 1.2%, London’s FTSE 100 gained 0.01% while Spain’s IBEX 35 Index dropped 1.1%. The French CAC 40 Index fell 1.4%, while German DAX dropped 1.7%.

Annual inflation rate in the Eurozone increased to a record of 9.1% in August, up from 8.9% in the previous month. Passenger car registrations in the European Union jumped 4.4% year-over-year to 650,305 units during August. The annual inflation rate in Italy accelerated to 8.4% in August, recording the highest level in over 36 years. Italy recorded a trade deficit of EUR 0.361 billion in versus a year-ago surplus of EUR 8.575 billion. Retail sales in the UK fell 1.6% month-over-month in August, recording the biggest drop so far this year.

Asia-Pacific Markets

Asian markets traded lower today. Japan’s Nikkei 225 fell 1.11%, Hong Kong’s Hang Seng Index fell 0.89% and China’s Shanghai Composite Index dipped 2.30%. Australia’s S&P/ASX 200 fell 1.5%, while India’s S&P BSE SENSEX fell 1.5%.

China's retail trade increased by 5.4% from a year ago in August 20versus a 2.7% growth a month ago. China's industrial production climbed by 4.2% year-over-year in August. Average new home prices in China fell by 1.3% from a year ago in August.

Broker Recommendation

JP Morgan downgraded FedEx Corporation FDX from Overweight to Neutral and lowered the price target from $258 to $214..

FedEx shares rose 0.2% to $303.33 in pre-market trading.

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Breaking News

• FedEx Corp FDX shares dropped more than 19% in pre-market trading after the company issued preliminary results. The company said it now expects first-quarter revenue of approximately $23.2 billion and first-quarter adjusted earnings to be around $3.44 per share. FedEx has withdrawn its fiscal year 2023 earnings forecast. The company expects business conditions to weaken further in the second quarter.
• Texas Instruments Incorporated TXN announced plans to increase its quarterly dividend from $1.15 to $1.24 per share. The company’s board also authorized a repurchase of an additional $15 billion of its common stock.
• Syros Pharmaceuticals, Inc. SYRS and Tyme Technologies, Inc. TYME announced stockholder approval of the merger agreement.
• The second-most valued cryptocurrency, Ethereum ETH/USD dropped below the $1,500 level after successfully completing its transition to a proof-of-stake network in an event dubbed “The Merge.”

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