US Stock Futures Down Ahead Of Jobless Claims Data

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after the Dow Jones gained over 80 points in the previous session. Investors are awaiting earnings results from Walgreens Boots Alliance, Inc. WBA, Micron Technology, Inc. MU and Constellation Brands, Inc. STZ.

Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET. Jobless claims are expected to come in at 226,000 for the June 25 week compared to 229,000 in the previous week. Data on personal income and outlays for May will be released at 8:30 a.m. ET, while the Chicago PMI for June is scheduled for release at 9:45 a.m. ET.

Check out this: RH, Walgreens And 3 Stocks To Watch Heading Into Thursday

Futures for the Dow Jones Industrial Average dipped 366 points to 30,633.00 while the Standard & Poor’s 500 index futures fell 58 points to 3,763.25. Futures for the Nasdaq index fell 226.25 points to 11,464.75.

Oil prices traded slightly higher as Brent crude futures rose 0.4% to trade at $112.84 per barrel, while US WTI crude futures rose 0.3% to trade at $110.07 a barrel. The Energy Information Administration’s weekly report on natural gas stocks in underground storage is scheduled for release at 10:30 a.m. ET.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 89,236,440 with around 1,042,290 deaths. India reported a total of at least 43,452,160 confirmed cases, while Brazil confirmed over 32,283,340 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index dropped 1.3%, London’s FTSE 100 fell 1.7% while Spain’s IBEX 35 Index fell 0.9%. The French CAC 40 Index fell 2%, while German DAX dropped 2%. Producer prices in France declined by 0.1% month-over-month in May, while annual inflation rate in the country accelerated to 5.8% in June. UK’s car production surged 13.3% year-over-year to 62,284 units in May, while business investment declined 0.6% on quarter in the first quarter. The Nationwide House Price Index in the UK rose 10.7% year-over-year in June, while current account deficit widened to GBP 51.7 billion in the first quarter from GBP 7.3 billion in the previous period. The British economy expanded 0.8% on quarter during the first three months of the year. Retail sales in Germany rose 0.6% month-over-month in May, while harmonized unemployment rate fell to a new record low of 2.8% in May.

Asian markets traded mostly lower today. Japan’s Nikkei 225 fell 1.54%, China’s Shanghai Composite rose 1.1% and Hong Kong’s Hang Seng Index fell 0.44%. Australia’s S&P/ASX 200 fell 2%, while India’s S&P BSE Sensex rose 0.3%. Japan's housing starts dropped by 4.3% year-over-year in May, while industrial production in the country declined by 7.2% month-over-month in May. The official NBS Manufacturing PMI for China climbed to 50.2 in June from 49.6 in the earlier month, while non-manufacturing PMI rose to 54.7 from 47.8.

Broker Recommendation

William Blair downgraded MSC Industrial Direct Co., Inc. MSM from Outperform to Market Perform.

MSC Industrial Direct shares rose 2.4% to close at $75.32 on Wednesday.

Check out this: US Jobless Claims And Other Macro Issues For Thursday

Breaking News

• RH RH share updated its fiscal 2022 outlook. The company said it projects demand to continue to soften during the remainder of fiscal 2022. As a result, the company now sees revenue to be down 2% to 5% for the full year.
• Coinbase Global Inc COIN is reportedly selling the Immigrations and Customs Enforcement (ICE) data that aids in tracing cryptocurrency transactions.
• SMART Global Holdings, Inc. SGH reported upbeat results for its third quarter, but issued weak forecast for the current quarter. The company also agreed to acquire Stratus Technologies for $225 million in cash at closing and an earn-out payment of up to $50 million.
• Spirit Airlines Inc SAVE on Wednesday postponed a key shareholder vote on a proposed deal with Frontier Group Holding Inc ULCC until next week.

Check out other breaking news here