Market Overview

A Peek Into The Markets: US Stock Futures Edge Higher Following August's Rally; Manufacturing Data In Focus

A Peek Into The Markets: US Stock Futures Edge Higher Following August's Rally; Manufacturing Data In Focus

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after the Dow Jones and the S&P 500 recorded their strongest August month since the 1980s. Investors are awaiting earnings from H & R Block Inc (NYSE: HRB), At Home Group Inc (NYSE: HOME) and Shoe Carnival, Inc. (NASDAQ: SCVL). The manufacturing PMI for August is scheduled for release at 9:45 a.m. ET, while the ISM manufacturing index for August and data on construction spending for July will be released at 10:00 a.m. ET. Federal Reserve Governor Lael Brainard is set to speak at 1:00 p.m. ET.

Futures for the Dow Jones Industrial Average climbed 11 points to 28,427 while the Standard & Poor’s 500 index futures traded rose 11 points to 3,510. Futures for the Nasdaq 100 index gained 129.75 points to 12,243.75.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 6,031,010 with around 183,590 deaths. Brazil confirmed over 3,908,270 cases, while India reported a total of at least 3,691,160 confirmed cases.

Oil prices traded higher as Brent crude futures rose 1.3% to trade at $45.86 per barrel, while US WTI crude futures rose 1.2% to trade at $43.14 a barrel. The American Petroleum Institute is expected to release report on inventory levels of US crude oil today.

A Peek Into Global Markets

European markets were mostly higher today, with the Spanish Ibex Index rising 0.4% and STOXX Europe 600 Index gaining 0.4%. The French CAC 40 Index climbed 0.6%, while German DAX 30 rose 1.1% and London’s FTSE 100 fell 0.5%. The eurozone manufacturing index recorded growth for the second straight month during August. The IHS Markit French manufacturing PMI increased to 49.8 in August versus a preliminary reading of 49, while German manufacturing index slipped to 52.2 from a preliminary reading of 53.

In Asian markets, Japan’s Nikkei fell 0.01%, Hong Kong’s Hang Seng Index rose 0.14% China’s Shanghai Composite Index rose 0.44% and India’s BSE Sensex rose 1.3%. China’s manufacturing index jumped to a near-decade high for August, while Japanese manufacturing PMI increased to 47.2 last month.

Broker Recommendation

Analysts at Goldman Sachs upgraded Zoom Video Communications Inc (NASDAQ: ZM) from Sell to Neutral and raised the price target from $187 to $402.

Zoom shares rose 27.1% to $413.15 in pre-market trading.

Breaking News

  • Zoom Video Communications Inc (NASDAQ: ZM) reported better-than-expected results for its second quarter and issued a strong forecast for the current quarter.
  • Sanofi SA (NASDAQ: SNY) disclosed that its rheumatoid arthritis drug Kevzara, developed in partnership with Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), isn't effective against COVID-19.
  • T2 Biosystems Inc (NASDAQ: TTOO) disclosed that it has received the FDA Emergency Use Authorization for its coronavirus molecular diagnostic test.
  • AstraZeneca Plc (NYSE: AZN) announced that its COVID-19 vaccine candidate is moving into phase three clinical trials for all adult age groups in the United States.

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