US Stock Futures Lower Following Friday's Rally; Tesla In Focus

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Monday after recording sharp gains in the previous session. The Dow Jones jumped by around 750 points on Friday. All the three major indices recorded their best week since June, with the S&P 500 and Dow adding 4.7% and 4.9%, respectively last week.

The Chicago Fed National Activity Index for September is scheduled for release at 8:30 a.m. ET, while the flash Composite Purchasing Managers' Index for October will be released at 9:45 a.m. ET. Analysts expect services index at 49.3, while manufacturing index is projected at 51.2.

Investors are awaiting earnings results from Schnitzer Steel Industries, Inc. SCHN, Discover Financial Services DFS, Packaging Corporation of America PKG and Crown Holdings, Inc. CCK.

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Futures for the Dow Jones Industrial Average dropped 85 points to 31,038.00 while the Standard & Poor’s 500 index futures slipped 11.50 points to 3,752.50. Futures for the Nasdaq index fell 47 points to 11,311.50.

Commodities

Oil prices traded lower as Brent crude futures fell 1.7% to trade at $89.80 per barrel, while US WTI crude futures fell 1.9% to trade at $83.44 a barrel. The total number of active U.S. oil rigs climbed by 2 to 612 rigs this week, Baker Hughes Inc reported.

Gold futures fell 0.3% to trade at $1,651.60 an ounce, while silver traded up 0.2% at $19.11 an ounce on Monday.

 

A Peek Into Global Markets

Europe Markets

European markets were mostly higher today. The STOXX Europe 600 Index gained 0.5%, London’s FTSE 100 fell 0.5% while Spain’s IBEX 35 Index rose 0.7%. The French CAC 40 Index rose 0.3%, while German DAX gained 0.4%.

UK’s manufacturing PMI declined to 45.8 in October from 48.4 a month ago. The S&P Global Eurozone manufacturing PMI dropped to 46.6 in October from 48.4 in September, while services PMI fell to 48.2 from 48.8. The S&P Global Composite PMI in Germany fell to 44.1 in October from 45.7 in the previous month, while French Composite PMI dropped to 50 in October from 51.2 in September.

Asia-Pacific Markets

Asian markets traded mixed today. Japan’s Nikkei 225 rose 0.31%, China’s Composite Index fell 2.02%, while Hong Kong’s Hang Seng Index dipped 6.36%. Australia’s S&P/ASX 200 rose 1.5%.

The Chinese economy expanded 3.9% during the three months to September, while average new home prices fell by 1.5% year-over-year in September. Chinese trade surplus widened to $84.74 billion in September from $67.78 billion in the year-ago month, while industrial production rose by 6.3% year-over-year in September. Japanese services PMI rose to 53.0 in October from a final 52.2 in the previous month, while manufacturing PMI fell to 50.7 in October from a final 50.8. The S&P Global Australian composite PMI dropped to 49.6 in October from 50.9 in the prior month.

 

Broker Recommendation

SVB Leerink downgraded AVEO Pharmaceuticals, Inc. AVEO from Outperform to Market Perform.

AVEO Pharmaceuticals shares fell 0.3% to $14.72 in pre-market trading.

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Breaking News

 

• Myovant Sciences, Inc. MYOV agreed to be acquired by Japanese pharmaceutical company Sumitomo Pharma’s unit Sumitovant Biopharma in a $1.7 billion deal.
• Tesla, Inc. TSLA is cutting prices for its Giga Shanghai-made cars by about 5%, reversing the price hikes announced earlier this year. The company’s stock dropped around 3.3% in pre-market trading.
• BioMed X reported a research collaboration with Sanofi SNY on artificial intelligence for drug development.
• AstraZeneca PLC AZN said Imjudo in combination with Imfinzi has been approved in the U.S. in advanced liver cancer.

Check out other breaking news here