A Peek Into The Markets: US Stock Futures Down Ahead Of Earnings, Jobless Claims Data

Pre-open movers

U.S. stock futures traded lower in early pre-market trade, following a rise in the stock markets on Wednesday. Investors are awaiting earnings results from Best Buy Co Inc. BBY, BJ's Wholesale Club Inc BJ, Hormel Foods Inc. HRL, NVIDIA Corporation NVDA and Hewlett Packard Enterprise Company HPE. Data on new unemployment claims for the latest week and the Philadelphia Fed general conditions index for May will be released at 8:30 a.m. ET. The flash Composite Purchasing Managers' Index for May will be released at 9:45 a.m. ET, while data on existing home sales for April and the index of leading economic indicators for April is scheduled for release at 10:00 a.m. ET. Federal Reserve Bank of New York President John Williams is expected to speak at 10:00 a.m. ET, while Federal Reserve Vice Chairman Richard Clarida will speak at 1:00 p.m. ET. Federal Reserve Chairman Jerome Powell is set to speak at 2:30 p.m. ET, while Federal Reserve Governor Lael Brainard will speak at 2:30 p.m. ET.

The U.S. is now the epicenter of the coronavirus pandemic with the highest number of cases and deaths around the world. Total COVID-19 cases in the U.S. exceeded 1,551,850 with around 93,430 deaths. Russia reported a total of at least 317,550 confirmed cases, while Brazil confirmed over 291,570 cases.

Futures for the Dow Jones Industrial Average dropped 143 points to 24,376 while the Standard & Poor’s 500 index futures traded fell 18.25 points to 2,950.25. Futures for the Nasdaq 100 index fell 51.75 points to 9,433.75.

Oil prices traded higher as Brent crude futures rose 1.9% to trade at $36.42 per barrel, while US WTI crude futures rose 2.2% to trade at $34.22 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.

A Peek Into Global Markets

European markets were lower today, with the Spanish Ibex Index falling 0.3%, STOXX Europe 600 Index declining 0.7% and German DAX 30 index dropping 1.3%. The UK's FTSE index was trading lower by 0.7%, while French CAC 40 Index fell 1.1%.

In Asian markets, Japan’s Nikkei fell 0.21%, Hong Kong’s Hang Seng Index fell 0.49%, China’s Shanghai Composite Index dropped 0.55% and India’s BSE Sensex rose 0.4%.

Broker Recommendation

Analysts at Jefferies downgraded MGM Resorts International MGM from Buy to Hold and lowered the price target from $22 to $17.

MGM shares fell 2.1% to $16.15 in pre-market trading.

Breaking News

• Expedia Group Inc EXPE posted a wider-than-expected first-quarter loss on Wednesday.
• Aurora Cannabis Inc ACB announced plans to acquire CBD platform Reliva for $40 million in Aurora common shares.
• Synopsys, Inc. SNPS reported better-than-expected results for its second quarter.
• L Brands Inc LB reported wider-than-expected loss for its first quarter.