Dow Futures Surge Over 200 Points After Thursday's Sell-Off; Nike Shares Drop After Q1 Results

Pre-open movers

U.S. stock futures traded higher in early pre-market trade on Friday after recording sharp losses in the previous session. The Dow fell 1.54% on Thursday, while the S&P 500 declined 2.11% to 3,640.47, notching a new closing low for the year. US major averages are on pace to record losses for the month, with the Dow and S&P down around 7.3% and 7.9%, respectively in September.

Data on personal income and outlays for August will be released at 8:30 a.m. ET. Personal income is expected to increase 0.3% in August, while personal consumption expenditures are likely to rise 0.2%. The Chicago PMI for September is scheduled for release at 9:45 a.m. ET, while the University of Michigan's consumer sentiment index for September will be released at 10:00 a.m. ET. Federal Reserve Vice Chair Lael Brainard is set to speak at 9:00 a.m. ET, while Federal Reserve Governor Michelle Bowman will speak at 11:00 a.m. ET. Federal Reserve Bank of Richmond President Thomas Barkin is set to speak at 12:30 p.m. ET, while Federal Reserve Bank of New York President John Williams will speak at 4:15 p.m. ET.

Investors are also awaiting earnings results from Carnival Corporation CCL, and CIRCOR International, Inc. CIR.

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Futures for the Dow Jones Industrial Average jumped 210 points to 29,495.00 while the Standard & Poor’s 500 index futures rose 31.50 points to 3,685.75. Futures for the Nasdaq index rose 97.26 points to 11,325.50.

Commodities

Oil prices traded higher as Brent crude futures rose 1.3% to trade at $88.29 per barrel, while US WTI crude futures rose 1.1% to trade at $82.12 a barrel. The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.

Gold futures rose 0.8% to trade at $1,681.80 an ounce, while silver traded up 2.3% at $19.14 an ounce on Friday.

 

A Peek Into Global Markets

Europe Markets

European markets were hugher today. The STOXX Europe 600 Index climbed 1%, London’s FTSE 100 rose 0.8% while Spain’s IBEX 35 Index rose 1.1%. The French CAC 40 Index rose 1.1%, while German DAX gained 1.1%.

The unemployment rate in Germany came in unchanged at 5.5% in September, while unemployment rate in Italy fell to 7.8% in August from 7.9% in the previous month. Retail trade in Spain came in flat for August versus an annual drop of 0.5% in the prior month. The Nationwide House Price Index in the UK climbed 9.5% year-over-year in September, while British GDP expanded 4.4% year-over-year in the second quarter. The current account deficit in the UK narrowed to GBP 33.8 billion in the second quarter versus a revised record GBP 43.9 billion in the previous period. The annual inflation rate in France fell to 5.6% in September from 5.9% a month ago.

Asia-Pacific Markets

Asian markets traded mixed today. Japan’s Nikkei 225 fell 1.83%, Hong Kong’s Hang Seng Index gained 0.4% and China’s Shanghai Composite Index fell 0.55%. Australia’s S&P/ASX 200 fell 1.2%, while India’s S&P BSE SENSEX jumped 1.8%.

Japan's housing starts rose by 4.6% year-over-year in August, while consumer confidence index in the country dropped to 30.8 in September versus August’s 3-month high of 32.5. Retail sales in Japan rose by 4.1% year-over-year in August, while industrial production increased by 2.7% month-over-month in August. Japanese unemployment rate declined to 2.5% in August. The Reserve Bank of India increased its key repo rate by 50 bps to 5.9% at its September meeting. The official NBS Non-Manufacturing PMI for China fell to a four-month low level of 50.6 in September, while manufacturing PMI rose to 50.1 in September.

 

Broker Recommendation

Summit Insights Group upgraded Micron Technology MU from Hold to Buy..

Micron shares rose 3.6% to $51.83 in pre-market trading.

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Breaking News

 

• NIKE, Inc. NKE reported better-than-expected earnings and sales results for its first quarter on Thursday. However, the company reported a rise in quarter-ended inventories and revenue in the Greater China region also declined from a year ago.
• Rent-A-Center, Inc. RCII lowered its earnings guidance for the third quarter and named Mr. Fahmi Karam as new Executive Vice President - Chief Financial Officer.
• Micron Technology, Inc. MU posted upbeat earnings for its fourth quarter, while sales missed estimates. The company also issued Q1 revenue guidance below estimates.
• Alphabet Inc’s GOOGL GOOG Google is shutting down its consumer gaming service Stadia as it didn't gain traction with users, the company said in a statement.

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