Market Overview

A Peek Into The Markets: US Stock Futures Down Following Surge In Covid-19 Cases

A Peek Into The Markets: US Stock Futures Down Following Surge In Covid-19 Cases

Pre-open movers

U.S. stock futures traded lower in early pre-market trade following stalled stimulus talks and a record increase in Covid-19 cases in the country.

Investors are awaiting earnings from Hasbro, Inc. (NASDAQ: HAS), HCA Healthcare Inc (NYSE: HCA) and NXP Semiconductors NV (NASDAQ: NXPI). The Chicago Fed National Activity Index for September is scheduled for release at 8:30 a.m. ET, while data on new home sales for September will be released at 10:00 a.m. ET. The Dallas Fed Manufacturing index for October is scheduled for release at 10:30 a.m. ET.

Futures for the Dow Jones Industrial Average dropped 245 points to 27,944 while the Standard & Poor’s 500 index futures traded fell 30 points to 3,421.75. Futures for the Nasdaq 100 index declined 90.50 points to 11,573.00.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 8,636,160 with around 225,230 deaths. India reported a total of at least 7,909,950 confirmed cases, while Brazil confirmed over 5,394,120 cases.

Oil prices traded lower as Brent crude futures fell 2.4% to trade at $40.78 per barrel, while US WTI crude futures fell 2.6% to trade at $38.80 a barrel. The total number of active U.S. oil rigs rose by 6 to 211 rigs this week, Baker Hughes Inc reported Friday.

A Peek Into Global Markets

European markets were mostly lower today following a rise in coronavirus cases, and new restrictions in Europe. The Spanish Ibex Index fell 0.2% and STOXX Europe 600 Index declined 0.5%. The French CAC 40 Index fell 0.5%, while German DAX 30 dropped 2% and London’s FTSE 100 rose 0.1%. German Ifo Business Climate indicator dipped to 92.7 in October versus a seven-month high of 93.2 in September. Spain's producer prices dropped 3.3% year-over-year in September after falling 3.5% in the prior month.

Asian markets traded lower today. Japan’s Nikkei 225 fell 0.09%, China’s Shanghai Composite fell 0.82% and India’s BSE Sensex fell 1.4%. Australia's S&P/ASX 200 traded lower by 0.2%. Japanese corporate services price index showed a growth of 1.3% year-over-year.

Broker Recommendation

Analysts at KeyBanc upgraded Installed Building Products Inc (NYSE: IBP) from Sector Weight to Overweight and announced a $120 price target.

Installed Building Products shares rose 2.9% to close at $106.50 on Friday.

Breaking News

  • SAP SE (NYSE: SAP) reported around 4% year-over-year drop in revenue for the third quarter and lowered its revenue outlook for the year.
  • Blackstone Group Inc (NYSE: BX) agreed to buy self-storage company Simply Self Storage from Brookfield Asset Management Inc (NYSE: BAM) for a $1.2 billion consideration, according to the Wall Street Journal
  • AstraZeneca plc's (NASDAQ: AZN) data from COVID-19 vaccine trial, developed in collaboration with the University of Oxford, showed encouraging signs for the elderly, the Financial Times reported.
  • Airbnb is splitting its privately held shares 2-for-1 ahead of its initial public offering, Bloomberg reported Sunday.

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