A Peek Into The Markets: US Stock Futures Lower Following Monday's Surge

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones jumped by more than 600 points in the previous session. Investors are awaiting earnings results from Best Buy Co., Inc. BBY, AutoZone, Inc. AZO and Intuit Inc. INTU.

The flash Composite Purchasing Managers' Index for May is scheduled for release at 9:45 a.m. ET. Analysts expect manufacturing index slowing to 58.9 from April's 59.2, while services index is expected to decline to 55.3 from 55.6. Data on new home sales for April and Richmond Fed manufacturing index for May will be released at 10:00 a.m. ET. Federal Reserve Chair Jerome Powell will speak at 12:20 p.m. ET.

Futures for the Dow Jones Industrial Average dipped 316 points to 31,523.00 while the Standard & Poor’s 500 index futures fell 56 points to 3,915.75. Futures for the Nasdaq index fell 242.25 points to 11,793.00.

Oil prices traded lower as Brent crude futures fell 0.4% to trade at $112.98 per barrel, while US WTI crude futures fell 0.4% to trade at $109.90 a barrel. The API’s report on crude oil stocks will be released today.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 85,113,960 with around 1,029,120 deaths. India reported a total of at least 43,140,060 confirmed cases, while Brazil confirmed over 30,803,990 cases.

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A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index dipped 1%, London’s FTSE 100 fell 0.5% while Spain’s IBEX 35 Index fell 0.7%. The French CAC 40 Index fell 1.4%, while German DAX dipped 1.1%. The S&P Global Flash Eurozone services PMI declined to 56.3 in May from 57.7 in April, while manufacturing PMI slipped to 54.4 from 55.5. UK’s services PMI fell to 51.8 in May from 58.9 in April, while manufacturing PMI dropped to a 16-month low of 54.6 in May. French composite PMI slipped to 57.1 in May from April's 51-month high of 57.6, while German composite PMI rose to 54.6 from 54.3.

Asian markets traded lower today. Japan’s Nikkei 225 fell 0.94%, Hong Kong’s Hang Seng Index fell 1.75% and China’s Shanghai Composite Index fell 2.41%. Australia’s S&P/ASX 200 fell 0.3% and India’s S&P BSE Sensex fell 0.7%. Japanese services PMI rose to a five-month high of 51.7 in May, while manufacturing PMI fell to a three-month low of 53.2 in May. The S&P Global Australia Flash Composite PMI dropped to 52.5 in May from a final level of 55.9 in April.

Broker Recommendation

Keybanc downgraded WalkMe Ltd. WKME from Overweight to Sector Weight.

WalkMe shares fell 8.1% to close at $12.20 on Monday.

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Breaking News

• Zoom Video Communications, Inc. ZM reported better-than-expected results for its first quarter and raised its profit forecast for the full year.
• Apple, Inc. AAPL is trying to get regulatory approval for a new network adapter that runs its iOS, documents filed with the Federal Communication Commission (FCC) show.
• Nordson Corporation NDSN reported upbeat earnings for its second quarter, while sales missed views. The company also raised its FY22 adjusted earnings guidance.
• Snap Inc SNAP filed a Form 8-K with the U.S. Securities and Exchange Commission showing it expects to miss its previously-issued guidance.

Check out other breaking news here