A Peek Into The Markets: US Stock Futures Mostly Higher Ahead Of Election Results

Pre-open movers

U.S. stock futures traded mostly higher in early pre-market trade amid a tight race in the presidential election. Investors are awaiting earnings from Performance Food Group Co PFGC, QUALCOMM, Inc. QCOM and Metlife Inc MET. Wall Street closed sharply higher on the election day.

The Federal Open Market Committee will begin its two-day policy meeting today. The ADP national employment report for October will be released at 8:15 a.m. ET, while international trade report for September is scheduled for release at 8:30 a.m. ET. The composite PMI for October will be released at 9:45 a.m. ET, while the ISM services index for October is scheduled for release at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average fell 31 points to 27,345.00 while the Standard & Poor’s 500 index futures traded rose 17.25 points to 3,378.75. Futures for the Nasdaq 100 index surged 267 points to 11,532.75.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 9,384,820 with around 232,620 deaths. India reported a total of at least 8,313,870 confirmed cases, while Brazil confirmed over 5,566,040 cases.

Oil prices traded higher as Brent crude futures rose 2.4% to trade at $40.65 per barrel, while US WTI crude futures rose 2.4% to trade at $38.55 a barrel. The American Petroleum Institute reported a decline of 8 million barrels US crude inventories last week. The Energy Information Administration’s weekly report on petroleum inventories will be released at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were mostly higher today after recording gains in the previous session. The Spanish Ibex Index fell 0.6% and STOXX Europe 600 Index gained 0.7%. The French CAC 40 Index rose 0.8%, while German DAX 30 gained 0.4% and London’s FTSE 100 rose 0.6%. Germany's Composite PMI improved to 55 for October, while the Services PMI activity fell to 49.5. Eurozone composite PMI was revised higher to 50 for October versus a preliminary estimate of 49.4.

Asian markets traded mostly higher today. Japan’s Nikkei 225 rose 1.72%, China’s Shanghai Composite rose 0.19%, Hong Kong’s Hang Seng Index fell 0.21% and India’s BSE Sensex rose 0.7%. Australia's S&P/ASX 200 traded lower by 0.1%. Shanghai Stock Exchange suspended the largest IPO by Ant Group. Australia’s retail sales fell 1.1% in September, slightly better than expected.

Broker Recommendation

Analysts at KeyBanc downgraded Kennametal Inc. KMT from Overweight to Sector Weight.

Kennametal shares rose 1% to $29.35 in pre-market trading.

Breaking News

• Super Micro Computer, Inc. SMCI reported better-than-expected results for its first quarter and issued strong earnings forecast for the current quarter. The company also announced a $50 million buyback plan.
• Facebook Inc (NASDAQ FB) will allow the presidential candidates, or any other person, to declare state-wise victories for the presidential election before votes are counted, the Wall Street Journal reported.
• Digirad Corporation DRAD agreed to sell its DMS Health Technologies business unit for $18.75 million.
• Intel Corporation INTC is strategically ramping up expansion plans in the Artificial Intelligence (AI) and Machine Learning (ML) business with two acquisitions in one week. TechCrunch reported Intel's latest acquisition deal with Israeli startup, Cnvrg.io, on Wednesday.