A Peek Into The Markets: US Stock Futures Tumble Ahead Of Jobless Claims Report

Pre-open movers

U.S. stock futures traded down in early pre-market trade, after closing mostly lower in the prior session. Investors are awaiting earnings reports from Childrens Place Inc PLCE, Adobe Inc ADBE, PVH Corp PVH and Lululemon Athletica Inc LULU. Data on new unemployment claims for the latest week will be released at 8:30 a.m. ET. Persons filing for jobless claims for the first time are expected to total 1.565 million in the recent week, down from 1.877 million in the previous week. The Producer Price Index for May is scheduled for release at 8:30 a.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world. Total coronavirus cases in the U.S. exceeded 2,000,460 with around 112,920 deaths. Russia reported a total of at least 493,020 confirmed cases, while Brazil confirmed over 772,410 cases.

Futures for the Dow Jones Industrial Average dropped 569 points to 26,392 while the Standard & Poor’s 500 index futures traded fell 54.75 points to 3,131.25. Futures for the Nasdaq 100 index fell 121.50 points to 9,965.75.

Oil prices traded lower as Brent crude futures fell 3% to trade at $40.50 per barrel, while US WTI crude futures fell 3.2% to trade at $38.32 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 3.1% and STOXX Europe 600 Index declining 2.4%. The UK's FTSE index was trading lower by 2.4%, while French CAC 40 Index slipped 2.7% and German DAX 30 dropped 2.4%.

In Asian markets, Japan’s Nikkei fell 2.82%, Hong Kong’s Hang Seng Index fell 2.27%, China’s Shanghai Composite Index dropped 0.78% and India’s BSE Sensex fell 1.7%.

Broker Recommendation

Analysts at KeyBanc downgraded Starbucks Corporation SBUX from Overweight to Sector Weight.

Starbucks shares fell 2.3% to $77.20 in pre-market trading.

Breaking News

• The European food delivery company, Just EatTakeaway.com N.V., announced plans to buy Grubhub Inc. GRUB in an all-stock deal, which values Grubhub at $75.15 per share.
• Tailored Brands, Inc. TLRD issued a business update for the first-quarter. The retailer’s net sales dropped 60.4% year-over-year to $286.7 million in the quarter. Tailored Brands posted an adjusted profit of $29.7 million.
• NetEase Inc. NTES shares jumped more than 8% on the first day of trading in Hong Kong. The Chinese internet company has also been listed on the Nasdaq since 2000.
• Johnson & Johnson JNJ will begin the human clinical trials of its novel coronavirus vaccine in July.