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

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after the Dow Jones dropped around 150 points in the previous session. The Federal Reserve is set to announce its policy decision at 2:00 p.m. ET, with the country’s central bank projected to increase its fed funds target range by 50 basis points. The Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.

Data on retail sales for May, Empire State manufacturing index for June, and import and export prices for May will be released at 8:30 a.m. ET. Data on business inventories for April and housing market index for June will be released at 10:00 a.m. ET. Analysts expect business inventories rising 1.3% in April following a 2.0% build in the previous month.

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Futures for the Dow Jones Industrial Average gained 166 points to 30,541.00 while the Standard & Poor’s 500 index futures rose 26.50 points to 3,763.25. Futures for the Nasdaq index climbed 85.25 points to 11,399.50.

Oil prices traded lower as Brent crude futures fell 0.2% to trade at $120.96 per barrel, while US WTI crude futures fell 0.2% to trade at $118.70 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 87,549,560 with around 1,036,480 deaths. India reported a total of at least 43,245,510 confirmed cases, while Brazil confirmed over 31,543,000 cases.

A Peek Into Global Markets

European markets were higher today. The STOXX Europe 600 Index climbed 1%, London’s FTSE 100 rose 0.9% while Spain’s IBEX 35 Index rose 1.3%. The French CAC 40 Index rose 1.2%, while German DAX gained 1.2%. The European Central Bank announced plans to hold an unscheduled meeting today in order to discuss current market conditions. Annual inflation rate in France accelerated to 5.2% in May from 4.8% in April.

Asian markets traded mixed today. Japan’s Nikkei 225 fell 1.14%, China’s Shanghai Composite climbed 0.5% and Hong Kong’s Hang Seng Index rose 1.14%. Australi’s S&P/ASX 200 fell 1.3%, while India’s S&P BSE Sensex rose 0.1%. The People's Bank of China held interest rates unchanged for a fifth consecutive month. Chinese retail trade fell by 6.7% year-over-year in May, while industrial production unexpectedly climbed by 0.7% from a year ago in May. Private-sector machinery orders in Japan surged 10.8% in April from a month ago. Indian trade deficit widened to a record high of $24.29 billion in May from a $6.53 billion gap in the year-earlier period.

Broker Recommendation

Stifel downgraded Continental Resources, Inc. CLR from Buy to Hold and lowered the price target from $107 to $70.

Continental Resources shares fell 0.3% to $74.00 in pre-market trading.

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Breaking News

• RF Industries, Ltd. RFIL reported better-than-expected results for its second quarter and raised its FY22 sales forecast.
• Planet Labs PBC PL reported mixed financial results for its first quarter. The company’s revenue increased 26% year-over-year to $40.1 million, beating market estimates of $39.5 million. The company, meanwhile, reported a quarterly earnings loss of 17 cents per share.
• One of Apple Inc's AAPL oldest and largest suppliers, Foxconn, has forayed into the electric vehicle segment. The key iPhone assembler, whose official name is Hon Hai Precision Industry Co., Ltd HNHPF, broke ground on its first battery cell plant on Wednesday, the latest move by the company to make inroads into the booming EV industry.
• Western Asset Mortgage Capital Corporation WMC named Robert W. Lehman as Chief Financial Officer.

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