US Stock Futures Down Following Tuesday's Surge; ADP, Services Data In Focus

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Wednesday after recording sharp gains in the previous session. The Dow Jones jumped by more than 800 points, while the Nasdaq Composite surged around 360 points on Tuesday. The S&P 500 also notched its biggest two-session surge since March 2020.

The ADP national employment report for September will be released at 8:15 a.m. ET. Private payrolls are expected to come in at 200,000 in September, compared with growth of 308,000 in August. Data on international trade in goods and services for August will be released at 8:30 a.m. ET. Analysts expect a deficit of $68.0 billion for total goods and services trade in August, compared with a $70.6 billion gap in July. US Services Purchasing Managers' Index for September is scheduled for release at 9:45 a.m. ET, while the ISM services index for September will be released at 10:00 a.m. ET.

Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 4:00 p.m. ET. Investors are also awaiting earnings results from RPM International Inc. RPM, Helen of Troy Limited HELE and Lamb Weston Holdings, Inc. LW.

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Futures for the Dow Jones Industrial Average dropped 196 points to 30,169.00 while the Standard & Poor’s 500 index futures fell 25.25 points to 3,778.00. Futures for the Nasdaq index fell 74.75 points to 11,566.00.

Commodities

Oil prices traded lower as Brent crude futures fell 0.3% to trade at $91.54 per barrel, while US WTI crude futures fell 0.5% to trade at $86.06 a barrel. The American Petroleum Institute reported a decline of 1.770 million barrels in crude oil inventories for the latest week. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 10:30 a.m. ET.

Gold futures fell 0.5% to trade at $1,722.60 an ounce, while silver traded down 1.7% at $20.75 an ounce on Wednesday.

 

A Peek Into Global Markets

Europe Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.4%, London’s FTSE 100 fell 0.7% while Spain’s IBEX 35 Index fell 1.1%. The French CAC 40 Index fell 0.4%, while German DAX fell 0.5%.

The S&P Global Eurozone services PMI was revised down to 48.8 in September versus a preliminary level of 48.9, while composite PMI fell to 48.1 in September from a preliminary reading of 48.2.

The S&P Global Germany’s services PMI was revised lower to 45 in September versus a preliminary reading of 45.4, while French services PMI was revised lower to 52.9 in September from a flash reading of 53. Industrial production in France rose 2.4% from the prior month in August. The S&P Global Spain services PMI dropped to 48.5 in September from 50.6 in the previous month.

Asia-Pacific Markets

Asian markets traded higher today. Japan’s Nikkei 225 rose 0.48%, while Hong Kong’s Hang Seng Index jumped 5.8% and Australia’s S&P/ASX 200 surged 1.7%.

Japanese services PMI was revised higher to 52.2 in September from a preliminary level of 51.9, while composite PMI rose to 51.0 in September from the flash reading of 50.9. Retail sales in Australia climbed by 0.6% month-over-month to a fresh record level of AUD 34.88 billion in August. Australian services PMI rose to 50.6 in September versus a final level of 50.4 in August.

 

Broker Recommendation

Berenberg initiated coverage on Airbnb, Inc. ABNB with an Outperform rating and announced a price target of $143.

Airbnb shares fell 0.2% to $110.60 in pre-market trading.

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Breaking News

 

• Elon Musk and his team of advisors sent a letter to Twitter Inc’s TWTR litigation staff stating Musk would like to proceed with the acquisition of Twitter at $54.20 per share, or $44 billion, according to a 13D filing Musk made Tuesday with the Securities and Exchange Commission.
• Sensient Technologies Corporation SXT announced that it has acquired Endemix Doğal Maddeler A.Ş. (Endemix).
• SMART Global Holdings, Inc. SGH reported better-than-expected earnings for its fourth quarter, while sales missed estimates. The company also issued weak earnings forecast for the current quarter.
• Micron Technology, Inc. MU has plans to invest up to $100 billion over the next 20 years to construct a new mega fab in Clay, New York, with the first phase investment of $20 billion planned by the end of this decade.

Check out other breaking news here