Why US Stock Futures Are Trading Lower; Crude Oil Down 2%

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Monday following the release of jobs report on Friday.

The US economy added 372,000 payrolls in June, following a revised 384,000 growth in May. Analysts, however, were expecting for a 268,000 gain in jobs. Federal Reserve Bank of New York President John Williams will speak at 2:00 p.m. ET.

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Futures for the Dow Jones Industrial Average dropped 127 points to 31,183.00 while the Standard & Poor’s 500 index futures fell 21.75 points to 3,879.50. Futures for the Nasdaq index fell 93.25 points to 12,058.75.

Oil prices traded lower as Brent crude futures fell 1.9% to trade at $104.95 per barrel, while US WTI crude futures fell 2.3% to trade at $102.37 a barrel.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 90,338,650 with around 1,045,790 deaths. India reported a total of at least 43,639,320 confirmed cases, while Brazil confirmed over 32,896,460 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.5%, London’s FTSE 100 fell 0.5% while Spain’s IBEX 35 Index fell 0.4%. The French CAC 40 Index fell 0.7%, while German DAX fell 0.7%. Italy’s industrial production fell 1.1% from a month ago in May versus a revised 1.4% growth in the April. France recorded a current account deficit of EUR 3.9 billion in May versus a revised EUR 2.7 billion gap in the prior month, while trade deficit increased to EUR 13 billion in May from a revised EUR 12.7 billion in the previous month.

Asian markets traded mostly lower today. Japan’s Nikkei 225 rose 1.11%, China’s Shanghai Composite fell 1.27% and Hong Kong’s Hang Seng Index fell 2.77%. Australia’s S&P/ASX 200 fell 1.1%, while India’s S&P BSE Sensex fell 0.2%. Private-sector machinery orders in Japan declined 5.6% in May. China's producer price inflation fell to a 15-month low of 6.1% year-over-year in June, while annual inflation rate rose to 2.5% in June.

Broker Recommendation

Jefferies downgraded Under Armour Inc UAA from Buy to Hold and lowered the price target from $20 to $10.

Under Armour shares fell 3% to $8.70 in pre-market trading.

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Breaking News

• AZZ AZZ reported upbeat earnings for its first quarter on Monday.
• Shares of Twitter, Inc TWTR dropped 6.7% in pre-market trading after Elon Musk backed out of his deal to buy the company for $44 billion.
• Crypto hedge fund Three Arrows Capital (3AC) filedfor Chapter 15 bankruptcy protection earlier this month, and the beleaguered fund's legal team has said its co-founders are untraceable.
• Elanco Animal Health Incorporated ELAN reported in a 13D filing that Dodge & Cox has a 10.4% passive stake in the company.

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