A Peek Into The Markets: US Stock Futures Rise Ahead Of ADP, Manufacturing Data

Pre-open movers

U.S. stock futures traded higher in early pre-market trade after closing slightly lower in the previous session. Investors are also awaiting earnings results from Campbell Soup Company CPB, Brown-Forman Corporation (NYSE: BF-B) and Five Below Inc FIVE.

The ADP national employment report for August will be released at 8:15 a.m. ET, while the manufacturing PMI for August is scheduled for release at 9:45 a.m. ET. Data on construction spending and the ISM manufacturing composite index will be released at 10:00 a.m. ET.

Futures for the Dow Jones Industrial Average climbed 102 points to 35,442.00 while the Standard & Poor’s 500 index futures gained 13.50 points to 4,534.00. Futures for the Nasdaq 100 index rose 27 points to 15,609.50.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 39,198,440 with around 640,100 deaths. India reported a total of at least 32,810,840 confirmed cases, while Brazil confirmed over 20,776,870 cases.

Oil prices traded higher as Brent crude futures rose 0.4% to trade at $71.92 per barrel, while US WTI crude futures gained 0.4% to trade at $68.77 a barrel. The Energy Information Administration’s weekly report on petroleum inventories is scheduled for release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were higher today. The Spanish Ibex Index climbed 1.7% and STOXX Europe 600 Index gained 0.6%. The French CAC 40 Index jumped 1%, London’s FTSE 100 gained 0.7% while German DAX 30 gained 0.3%. The unemployment rate in the Eurozone declined to 7.6% in July from 7.8% in June, while manufacturing PMI dropped to 61.4 in August from July's final reading of 62.8. UK’s manufacturing PMI slipped to 60.3 in August 2021 from July's final reading of 60.4. The unemployment rate in Italy dropped to 9.3% in July from a revised 9.4% in June. German manufacturing PMI slipped to 62.6 in August from a preliminary level of 62.7, while retail sales dropped 5.1% in July. The IHS Markit manufacturing PMI for Spain rose to 59.5 in August from 59.0 in July.

Asian markets traded mostly higher today. Japan’s Nikkei 225 rose 1.3%, Hong Kong’s Hang Seng Index gained 0.6%, while China’s Shanghai Composite Index gained 0.65%. Australia’s S&P/ASX 200 slipped 0.1% and India’s BSE Sensex fell 0.4%. The Ai Group Australian Performance of Manufacturing Index dropped to 51.6 in August from 60.8 a month ago, while the country’s economy expanded 0.7% quarter-over-quarter in Q2. The IHS Markit India manufacturing PMI fell to 52.3 in August from 55.3 a month ago. China’s general manufacturing PMI dropped to 49.2 in August versus 50.3 in July. Japanese manufacturing PMI rose to 52.7 in August from a preliminary reading of 52.4.

Broker Recommendation

Wells Fargo upgraded PPL Corporation PPL from Equal-Weight to Overweight and announced a $34 price target.

PPL shares rose 0.6% to $29.51 in pre-market trading.

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Breaking News

• PVH Corp PVH reported better-than-expected results for its second quarter and issued strong earnings guidance for the third quarter.
• Chinese smartphone maker Xiaomi Corp XIACF XIACY has formally registered its electric vehicle unit, which it says has entered a “substantial development phase,” CNBC reported on Wednesday.
• Caleres Inc CAL reported upbeat results for its second quarter. The company said it sees FY21 adjusted earnings of $3.25 to $3.50 per share.
• Conn's, Inc. CONN reported better-than-expected results for its second quarter on Wednesday.

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