US Stock Futures Mostly Lower Ahead Of Economic Reports, Fed Speakers; Tesla Shares Drop Following Q3 Results

Pre-open movers

U.S. stock futures traded mostly lower in early pre-market trade on Thursday after closing lower in the previous session. The Dow Jones dropped by 100 points on Wednesday, ending a two-session winning streak.

Data on initial jobless claims for the latest week will be released at 7:00 a.m. ET. Jobless claims are projected to come in at 235,000 for the October 15 week compared to 228,000 in the previous week. The Philadelphia Fed manufacturing index for October is scheduled for release at 8:30 a.m. ET, while data on existing home sales and index of leading economic indicators for September will be released at 10:00 a.m. ET.

Philadelphia Fed President Patrick Harker is set to speak at 12:00 p.m. ET, while Federal Reserve Governor Philip Jefferson will speak at 1:30 p.m. ET. Federal Reserve Governor Lisa Cook is set to speak at 1:45 p.m. ET, while Federal Reserve Governor Michelle Bowman will speak at 2:05 p.m. ET.

Investors are also awaiting earnings results from AT&T Inc. T, American Airlines Group Inc. AAL, Dow Inc. DOW and Snap Inc SNAP,

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Futures for the Dow Jones Industrial Average dropped 33 points to 30,427.00 while the Standard & Poor’s 500 index futures slipped 16.75 points to 3,690.50. Futures for the Nasdaq index fell 86 points to 11,067.25.

Commodities

Oil prices traded higher as Brent crude futures rose 0.9% to trade at $93.24 per barrel, while US WTI crude futures rose 1.6% to trade at $86.91 a barrel. The Energy Information Administration’s weekly report on natural gas stocks in underground storage is scheduled for release at 10:30 a.m. ET.

Gold futures rose 0.1% to trade at $1,634.80 an ounce, while silver traded up 0.2% at $18.39 an ounce on Thursday.

 

A Peek Into Global Markets

Europe Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.5%, London’s FTSE 100 fell 0.2% while Spain’s IBEX 35 Index fell 0.1%. The French CAC 40 Index fell 0.1%, while German DAX fell 0.7%.

The Eurozone recorded a current account deficit of EUR 20.21 billion in August versus a year-ago surplus of EUR 21.05 billion. Producer prices in Germany rose by 2.3% from a month ago in September, versus a 7.9% increase in the prior month, while annual producer inflation in the country stood at 45.8% in September.

The manufacturing climate indicator in France climbed to 103 in October from a 1-1/2-year low level of 102 in the previous month. Construction output in Italy surged 9.7% year-over-year in August versus a revised 7% increase in the prior month.

Asia-Pacific Markets

Asian markets traded lower today. Japan’s Nikkei 225 fell 0.92%, China’s Composite Index fell 0.31%, while Hong Kong’s Hang Seng Index fell 1.4%. Australia’s S&P/ASX 200 fell 1%, while India’s BSE Sensex fell 0.3%.

The People's Bank of China held its key lending rates for a second consecutive month. Australian unemployment rate remained unchanged from the prior month at 3.5% in September. Exports from Japan surged by 28.9% year-over-year to JPY 8,818.7 billion in September, while imports increased 45.9% to a new high of JPY 10,912.6 billion.

 

Broker Recommendation

Piper Sandler upgraded Oracle Corporation ORCL from Underweight to Neutral and announced a $70 price target.

Oracle shares rose 0.2% to $66.45 in pre-market trading.

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Breaking News

 

• Tesla, Inc. TSLA reported better-than-expected earnings for its third quarter, while sales missed estimates. Tesla shares dropped over 6% in pre-market trading.
• U.S. federal prosecutors have alleged that five Russian nationals laundered tens of millions of dollars in cryptocurrencies for Russian oligarchs and sanctioned entities.
• IBM IBM reported better-than-expected Q3 EPS and sales results.
• PPG Industries, Inc. PPG posted downbeat results for its third quarter and issued weak earnings forecast for the current quarter.

Check out other breaking news here