A Peek Into The Markets: US Stock Futures Gain On Stimulus Hopes

Pre-open movers

U.S. stock futures traded higher in early pre-market trade as investors are optimistic about the Covid-19 relief package. The Federal Reserve on Wednesday left interest rates unchanged. Investors are awaiting earnings from Accenture Plc ACN, FedEx Corporation FDX, General Mills, Inc GIS and Jabil JBL.

Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET. Jobless claims are projected to drop to 806,000 in the December 12 week from 853,000 in the prior week. Data on housing starts, building permits and the Philadelphia Fed's manufacturing index will be released at 8:30 a.m. ET. The Kansas City Fed's manufacturing index for December will be released at 11:00 a.m. ET.

Futures for the Dow Jones Industrial Average climbed 135 points to 30,296.00 while the Standard & Poor’s 500 index futures traded rose 21 points to 3,721.75. Futures for the Nasdaq 100 index rose 70.50 points to 12,735.75.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 16,979,770 with around 307,500 deaths. India reported a total of at least 9,956,550 confirmed cases, while Brazil confirmed over 7,040,600 cases.

Oil prices traded higher as Brent crude futures rose 1.3% to trade at $51.73 per barrel, while US WTI crude futures rose 1.3% to trade at $48.44 a barrel. US crude supplies dropped 3.135 million barrels last week, the Energy Information Administration said Wednesday. 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 mostly higher today. The Spanish Ibex Index fell 0.1% and STOXX Europe 600 Index gained 0.4%. The French CAC 40 Index gained 0.4%, while German DAX 30 gained 0.8% and London’s FTSE 100 rose 0.3%. French manufacturing climate indicator rose to 93 in December versus 92 in November

Asian markets traded higher today. Japan’s Nikkei 225 rose 0.18%, China’s Shanghai Composite climbed 1.13%, Hong Kong’s Hang Seng Index climbed 0.82% and India’s BSE Sensex rose 0.7%. Australia's S&P/ASX 200 traded higher by 1.2%. Australian new home sales surged 15.2% month-over-month during November, while unemployment rate declined to 6.8% in November.

Broker Recommendation

Analysts at KeyBanc upgraded Olin Corporation OLN from Sector Weight to Overweight and announced a $31 price target..

Olin shares rose 1.3% to $24.30 in pre-market trading.

Breaking News

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• Roku Inc ROKU is partnering with AT&T Inc’s T subscription video-on-demand streaming service HBO Max starting Thursday.
• ABM Industries, Inc. ABM reported downbeat earnings for its fourth quarter.