US Stock Futures Edge Higher Following Monday's Sell-Off, Crude Oil Rises

Pre-open movers

U.S. stock futures traded slightly higher in early pre-market trade on Tuesday after recording sharp losses in the previous session. Investors are awaiting earnings results from Macy's, Inc. M, Medtronic plc MDT and Intuit Inc. INTU.

The flash Composite Purchasing Managers' Index for August is scheduled for release at 9:45 a.m. ET, while data on new home sales for July and Richmond Fed's manufacturing index will be released at 10:00 a.m. ET. Federal Reserve Bank of Minneapolis President Neel Kashkari is set to speak at 7:00 p.m. ET.

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Futures for the Dow Jones Industrial Average gained 65 points to 33,121.00 while the Standard & Poor’s 500 index futures rose 9.25 points to 4,150.50. Futures for the Nasdaq index rose 38 points to 12,947.75.

Oil prices traded higher as Brent crude futures rose 1.4% to trade at $97.81 per barrel, while US WTI crude futures rose 1.7% to trade at $91.92 a barrel. The API’s report on crude oil stocks will be released today.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 95,449,600 with around 1,066,080 deaths. India reported a total of at least 44,357,540 confirmed cases, while France confirmed over 34,358,620 cases.

A Peek Into Global Markets

European markets were mixed today. The STOXX Europe 600 Index slipped 0.1%, London’s FTSE 100 fell 0.4% while Spain’s IBEX 35 Index fell 0.4%. The French CAC 40 Index rose 0.2%, while German DAX gained 0.3%.

The S&P Global Eurozone services PMI declined to 50.2 in August from 51.2 in July, while manufacturing PMI slipped to 49.7 from 49.8 in July. The S&P Global/CIPS Flash manufacturing PMI for the UK dropped to 46 in August from 52.1 in the previous month, while composite PMI declined to 50.9 from 52.1.

The S&P Global Germany composite PMI declined to 47.6 in August from 48.1 a month ago, while French composite PMI dropped to 49.8 from 51.7.

Asian markets traded mostly lower today. Japan’s Nikkei 225 fell 1.19%, China’s Shanghai Composite fell 0.05%, while Hong Kong’s Hang Seng Index fell 0.78%. Australia’s S&P/ASX 200 fell 1.2%, while India’s S&P BSE SENSEX rose 0.4%.

The au Jibun Bank Japanese composite PMI dropped to 48.9 in August from a final reading of 50.2 in the previous month, while Australian composite PMI slipped to 49.8 from 51.1.

Broker Recommendation

Needham downgraded Clarus Therapeutics Holdings, Inc. CRXT from Buy to Hold..

Clarus Therapeutics shares fell 8.3% to close at $0.1890 on Monday.

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Breaking News

• Zoom Video Communications Inc ZM reported better-than-expected earnings for its second quarter, but sales missed expectations. The company ended the quarter with 204,100 Enterprise customers, up 18% year-over-year.
• Alcon Inc. ALC announced plans to acquire Aerie Pharmaceuticals, Inc. AERI for $15.25 per share.
• Palo Alto Networks PANW reported better-than-expected results for its fourth quarter and issued FY23 guidance above estimates. The company’s board also announced a three-for-one stock split.
• Starbox Group Holdings Ltd. STBX priced its 5 million share IPO at $4.00 per share.

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