A Peek Into The Markets: US Stock Futures Gain Ahead Of Services Index

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after the Nasdaq index dipped over 2% in the previous session. Investors are awaiting earnings results from Saratoga Investment Corp SAR.

Data on international trade for August will be released at 8:30 a.m. ET. Analysts expect a deficit of $70.7 billion for total goods and services trade in August versus a $70.1 billion gap in July. US Services Purchasing Managers' Index for September is scheduled for release at 9:45 a.m. ET, while the ISM's services index for September will be released at 10:00 a.m. ET. Federal Reserve Bank of Richmond President Thomas Barkin is set to speak at 10:30 a.m. ET, while Federal Reserve Vice Chair Randal Quarles will speak at 1:15 p.m. ET.

Futures for the Dow Jones Industrial Average climbed 123 points to 33,993.00 while the Standard & Poor’s 500 index futures rose 16.75 points to 4,308.00. Futures for the Nasdaq 100 index climbed 75.25 points to 14,537.50.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 43,852,260 with around 703,280 deaths. India reported a total of at least 33,853,040 confirmed cases, while Brazil confirmed over 21,478,540 cases.

Oil prices traded higher as Brent crude futures rose 0.4% to trade at $81.62 per barrel, while US WTI crude futures rose 0.3% to trade at $77.85 a barrel. The API’s report on crude oil stocks will be released later during the day.

A Peek Into Global Markets

European markets were higher today. The Spanish Ibex Index rose 0.6% and STOXX Europe 600 Index gained 0.7%. The French CAC 40 Index climbed 0.9%, London’s FTSE 100 gained 0.7% while German DAX 30 gained 0.5%. Producer prices in the Eurozone increased 1.1% from a month ago in August, while the IHS Markit services PMI rose to 56.4 in September from a preliminary estimate of 56.3. French industrial production increased 1% from a month ago in August, while services PMI rose to 56.2 in September from a preliminary estimate of 56. The IHS Markit/CIPS UK services PMI rose to 55.4 in September from a preliminary reading of 54.6. German services PMI was revised higher to 56.2 for September from a preliminary reading of 56, while Spain’s services PMI slipped to 56.9 in September from 60.1 in August.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 2.19%, while Hong Kong’s Hang Seng Index rose 0.28%. Australia’s S&P/ASX 200 fell 0.4% and India’s BSE Sensex rose 0.8%. Indian services PMI slipped to 55.2 in September from 18-month high level of 56.7 in August. The Reserve Bank of Australia held the cash rate at a record low of 0.1% during its recent meeting, while retail sales in Australia dropped 1.7% in August. Australian trade surplus widened to a new record high of AUD 15.08 billion in August, while services PMI rose to 45.5 in September from a preliminary reading of 44.9. Japanese services PMI rose to 47.8 in September from a preliminary reading of 47.4.

Broker Recommendation

BMO Capital downgraded Sprouts Farmers Market, Inc. SFM from Market Perform to Underperform and lowered the price target from $21 to $19.

Sprouts Farmers Market shares fell 2.3% to $22.10 in pre-market trading.

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