U.S. Stock Futures Down Ahead Of Bank Earnings, Producer Price Index

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Thursday after the Dow Jones dropped more than 200 points in the previous session. Investors are awaiting earnings results from Morgan Stanley MS and JPMorgan Chase & Co. JPM.

The Producer Price Index for June is scheduled for release at 8:30 a.m. ET. Producer prices are projected to rise 0.8% on the month in June to match May's growth. The annual rate, however, is seen easing to 10.4% from 10.8%. Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET.

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Futures for the Dow Jones Industrial Average dipped 308 points to 30,450.00 while the Standard & Poor’s 500 index futures fell 41 points to 3,763.50. Futures for the Nasdaq index fell 110.25 points to 11,652.00.

Oil prices traded lower as Brent crude futures fell 2% to trade at $97.59 per barrel, while US WTI crude futures fell 2.4% to trade at $97.59 a barrel. The Energy Information Administration’s weekly report on natural gas stocks in underground storage will be released 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 90,909,760 with around 1,047,790 deaths. India reported a total of at least 43,689,980 confirmed cases, while Brazil confirmed over 33,076,770 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.7%, London’s FTSE 100 fell 0.7% while Spain’s IBEX 35 Index fell 1.1%. The French CAC 40 Index fell 0.8%, while German DAX fell 0.6%. Wholesale prices in Germany increased by 21.2% year-over-year in June following a 22.9% increase in the prior month.

Asian markets traded mostly lower today. Japan’s Nikkei 225 rose 0.62%, China’s Shanghai Composite fell 0.08% and Hong Kong’s Hang Seng Index fell 0.22%. Australia’s S&P/ASX 200 rose 0.4%, while India’s S&P BSE Sensex fell 0.2%. The annual wholesale price inflation rate in India declined to 15.18% in June from 15.88% in the previous month, while total passenger vehicles sales in the country climbed 9.9% from the earlier month to 275,788 units in June. Industrial production in Japan fell by 7.5% month-over-month in May. Australian seasonally adjusted unemployment dipped to a fresh record low of 3.5% during June.

Broker Recommendation

Truist Securities initiated coverage on Tesla, Inc. TSLA with a Buy rating and announced a price target of $1000.

Tesla shares fell 1.1% to $703.00 in pre-market trading.

Check out this: JPMorgan, Morgan Stanley And 3 Stocks To Watch Heading Into Thursday

Breaking News

• The U.S. Food and Drug Administration granted emergency use authorization to Novavax, Inc’s NVAX lead candidate Adjuvanted (NVX-CoV2373) COVID-19 Vaccine for individuals 18 years of age and over.
• Tesla, Inc. TSLA battery supplier Panasonic Holdings Corp's PCRFY subsidiary has zeroed in on the U.S. state of Kansas as the site to build its second U.S. lithium-ion battery manufacturing plant.
• Azenta, Inc. AZTA said it sees preliminary adjusted earnings of $0.08 to $0.12 per share on sales of $133 million for the third quarter.
• BELLUS Health Inc. BLU priced its 16.54 million share public offering at US$9.25 per share.

Check out other breaking news here