A Peek Into The Markets: US Stock Futures Down Ahead Of Powell Testimony

Pre-open movers

U.S. stock futures traded lower in early pre-market trade. Wholesale inventories report for May will be released at 10:00 a.m. ET. Federal Reserve Chairman Jerome Powell is set to testify before the House Financial Services Committee at 10:00 a.m. ET, while St. Louis Federal Reserve Bank President James Bullard is set to speak in Saint Louis, Missouri at 1:30 p.m. ET. The Federal Open Market Committee will issue minutes of its meeting at 2:00 p.m. ET.

Futures for the Dow Jones Industrial Average dropped 60 points to 26,726.00, while the Standard & Poor’s 500 index futures fell 6.6 points to 2,976.00. Futures for the Nasdaq 100 index declined 15.75 points to 7,829.25.

Oil prices traded higher as Brent crude futures rose 2.2% to trade at $65.56 per barrel, while US WTI crude futures rose 2.2% to trade at $59.12 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is schedule for release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were mostly lower today, with the Spanish Ibex Index falling 0.2%, STOXX Europe 600 Index falling 0.1% and German DAX 30 index dropping 0.4%. The UK's FTSE index was trading lower by 0.1%, while French CAC 40 Index rose 0.1%.

In Asian markets, Japan’s Nikkei Stock Average fell 0.15%, Hong Kong’s Hang Seng Index rose 0.31%, China’s Shanghai Composite Index fell 0.44% and India’s BSE Sensex fell 0.45%.

Broker Recommendation

Analysts at UBS downgraded Deere & Company (NYSE: DE) from Buy to Neutral and raised the price target from $158 to $167.

Deere shares fell 1.3 percent to $161.20 in pre-market trading.

Breaking News

• MSC Industrial Direct Co Inc (NYSE: MSM) reported weaker-than-expected results for its third quarter and issued weak Q4 forecast.
• Vipshop Holdings Ltd – ADR (NYSE: VIPS) reported strategic acquisition of Shan Shan Outlets for RMB2.9 billion in cash.
• Levi Strauss & Co. (NYSE: LEVI) reported weaker-than-expected earnings for its second quarter, while sales exceeded views.
• Helen of Troy Limited (NASDAQ: HELE) reported stronger-than-expected earnings for its first quarter.