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