A Peek Into The Markets: US Stock Futures Mixed; All Eyes On Fed Rate Decision

Pre-open movers

U.S. stock futures traded mixed in early pre-market trade after the Dow Jones dropped more than 100 points in the previous session. Investors are awaiting earnings results from ABM Industries Incorporated ABM, Lennar Corporation LEN and The Toro Company TTC.

Data on retail sales, Empire State manufacturing index, import and export prices will be released at 8:30 a.m. ET. Data on business inventories and the housing market index will be released at 10:00 a.m. ET. The FOMC will announce its policy decision at 2:00 p.m. ET, while the Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.

Futures for the Dow Jones Industrial Average gained 43 points to 35,595.00 while the Standard & Poor’s 500 index futures rose 0.75 points to 4,637.75. Futures for the Nasdaq 100 index dipped 35.25 points to 15,889.50.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 51,136,440 with around 821,330 deaths. India reported a total of at least 34,710,630 confirmed cases, while Brazil confirmed over 22,195,770 cases.

Oil prices traded lower as Brent crude futures fell 0.8% to trade at $73.11 per barrel, while US WTI crude futures fell 1% to trade at $70.02 a barrel. The American Petroleum Institute, late Tuesday, said crude oil stockpiles dropped 815kb last week. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were mixed today. The Spanish Ibex Index fell 0.4% and STOXX Europe 600 Index gained 0.4%. The French CAC 40 Index climbed 0.7%, London’s FTSE 100 fell 0.3% while German DAX 30 gained 0.4%. The annual inflation rate in Italy increased to 3.7% in November from 3% in the previous month, while Spain's consumer price inflation rate stood at 5.5% in November. French consumer price inflation rate was confirmed at 2.8% year-over-year in November. The consumer price inflation rate in the UK accelerated to 5.1% year-over-year in November.

Asian markets traded mostly lower today. Japan’s Nikkei 225 rose 0.1%, while Hong Kong’s Hang Seng Index dropped 0.91% and China’s Shanghai Composite declined 0.38%. Australia’s S&P/ASX 200 fell 0.7%, while India’s BSE Sensex fell 0.6%. China's retail sales growth eased to 3.9% year-over-year during November, while industrial production rose 3.8% year-over-year in November. The Westpac-Melbourne Institute Index of Consumer Sentiment for Australia slipped 1% from a month ago to 104.3 in December.

Broker Recommendation

JP Morgan upgraded Booking Holdings Inc. BKNG from Neutral to Overweight and raised the price target from $2,620 to $2,690.

Booking shares rose 2.2% to $2,171.00 in pre-market trading.

Check out other major ratings here

Breaking News

• Tesla Inc TSLA has secured homologation certificates for three more models in India, indicating the electric vehicle maker is closer to launch in the world’s fifth-largest auto market, The Hindu Business Line reported, citing a local government run-agency. The company has now secured the approvals for a total of seven models from India’s vehicle testing and certification agencies.
• Restaurant Brands International Inc's QSR quick-service restaurant brand, Popeyes, has signed an exclusive Master Franchise and Development Agreement with French restaurant group, napaqaro, to develop and grow the Popeyes brand in France and Monaco.
• R. R. Donnelley & Sons Company RRD agreed to be acquired by Chatham Asset Management for $10.85 per share in cash, terminating its earlier merger deal with Atlas Holdings.
• GrowGeneration Corp. GRWG reported the retirement of its COO, Tony Sullivan.

Check out other breaking news here