U.S. Stock Futures Drop Following Another Week Of Losses

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Tuesday after Wall Street recorded losses for another week and closed one of the worst halves in decades on Thursday. However, the Dow Jones surged by more than 300 points on Friday.

Data on factory orders for May will be released at 10:00 a.m. ET. Analysts expect factory orders increasing 0.5% in May, following a 0.3% rise in the previous month.

Check out this: US Factory Orders Might Rise This Much In May, Here's The Major Macro Issues For Tuesday

Futures for the Dow Jones Industrial Average dipped 134 points to 30,927.00 while the Standard & Poor’s 500 index futures fell 17 points to 3,810.25. Futures for the Nasdaq index fell 62.25 points to 11,549.00.

Oil prices traded higher as Brent crude futures rose 0.2% to trade at $113.74 per barrel, while US WTI crude futures rose 1.2% to trade at $109.71 a barrel. The total number of active U.S. oil rigs climbed by 1 to 595 rigs this week, Baker Hughes Inc reported.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 89,567,320 with around 1,043,370 deaths. India reported a total of at least 43,532,780 confirmed cases, while Brazil confirmed over 32,536,300 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index slipped 0.4%, London’s FTSE 100 fell 1% while Spain’s IBEX 35 Index fell 0.4%. The French CAC 40 Index fell 1%, while German DAX declined 0.8%.

The S&P Global/CIPS UK services PMI was revised higher to 54.3 in June versus a preliminary reading of 53.4, while new car registrations declined 24.3% year-over-year to 140,958 units in June. The S&P Global Eurozone services PMI was revised higher to 53 in June compared to a preliminary level of 52.8, while German services PMI was confirmed at 52.4 in June. The S&P Global Spain services PMI declined to 54 in June from 56.5 in May, while French services PMI dropped to 53.9 in June from 58.3 in May.

Asian markets traded mostly higher today. Japan’s Nikkei 225 rose 1.03%, China’s Shanghai Composite fell 0.04% and Hong Kong’s Hang Seng Index rose 0.1%. Australia’s S&P/ASX 200 rose 0.3%, while India’s S&P BSE Sensex rose 0.1%.

The Reserve Bank of Australia boosted the cash rate by 50 bps to 1.35% at its latest meeting. The Australia Ai Group construction PMI dropped to 46.2 in June compared to 50.9 in May, while services PMI slipped to 52.6 from 53.2. Indian services PMI rose to 59.2 in June from 58.9 in the previous month. The Caixin Chinese general services PMI climbed to 54.5 in June from 41.4 in May, while Japanese services PMI rose to 54.0 in June from 52.6 in May.

Broker Recommendation

Goldman Sachs downgraded Zenvia Inc. ZENV from Buy to Neutral and announced a $3.4 price target.

Zenvia shares rose 1.9% to close at $2.15 on Friday.

Check out this: Bright Green, Staffing 360 Solutions And 3 Stocks To Watch Heading Into Tuesday

Breaking News

• Bank OZK OZK raised its quarterly dividend from $0.31 to $0.32 per share. The company’s board also announced a preferred stock dividend.
• AstraZeneca PLC AZN agreed to acquire TeneoTwo including its T cell engager for $100 million upfront plus milestone payments up to $1.168 billion.
• Bright Green Corporation BGXX disclosed that the CEO Ed Robinson is stepping down, while the company’s board has named Chairman of the Board, Terry Rafih, as interim CEO.
• Trading volumes on major Indian cryptocurrency exchanges have declined by 70% after a new transaction tax came into effect on July 1.

Check out other breaking news here