U.S. Stock Futures Down Ahead Of PepsiCo Earnings

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Monday after the Nasdaq tumbled more than 2% in the previous session. Investors are awaiting earnings results from PepsiCo, Inc. PEP and AngioDynamics, Inc. ANGO.

The NFIB small business optimism index for June is scheduled for release at 6:00 a.m. ET. Federal Reserve Bank of Richmond President Thomas Barkin will speak at 12:30 p.m. ET.

US NFIB Small Business Optimism Index Might Edge Lower In June, Here's The Major Macro Issues For Tuesday

Futures for the Dow Jones Industrial Average dropped 173 points to 30,967.00 while the Standard & Poor’s 500 index futures fell 22.25 points to 3,834.50. Futures for the Nasdaq index fell 67.75 points to 11,816.50.

Oil prices traded lower as Brent crude futures fell 1.9% to trade at $105.12 per barrel, while US WTI crude futures fell 2.3% to trade at $101.74 a barrel.

The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 90,491,960 with around 1,046,230 deaths. India reported a total of at least 43,652,940 confirmed cases, while Brazil confirmed over 32,940,500 cases.

A Peek Into Global Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.2%, London’s FTSE 100 fell 0.1% while Spain’s IBEX 35 Index fell 0.5%. The French CAC 40 Index fell 0.2%, while German DAX fell 0.6%. The ZEW Indicator of Economic Sentiment for the Eurozone fell to -53.8 in July from -28 in the prior month, while ZEW Indicator of Economic Sentiment for Germany declined to -53.8 from -28 in June. Retail sales in the UK dropped 1.3% on a like-for-like basis in June from a year earlier.

Asian markets traded mostly lower today. Japan’s Nikkei 225 fell 1.77%, China’s Shanghai Composite fell 0.97% and Hong Kong’s Hang Seng Index fell 1.32%. Australia’s S&P/ASX 200 rose 0.1%, while India’s S&P BSE Sensex fell 0.5%. The Westpac-Melbourne Institute Index of Consumer Sentiment for Australia fell 3.0% month-over-month in July, while NAB business confidence index declined 5 points from a month earlier to 1 in June. Producer prices in Japan surged 9.2% from a year ago in June.

Broker Recommendation

JP Morgan downgraded Union Pacific Corporation UNP from Overweight to Neutral.

Union Pacific shares rose 0.1% to close at $209.87 on Monday.

Check out this: PepsiCo, GameStop And 3 Stocks To Watch Heading Into Tuesday

Breaking News

• PriceSmart, Inc. PSMT reported downbeat earnings for its third quarter, while sales topped estimates.
• Shares of Chinese automotive giant BYD Co. Ltd BYDDF BYDDY sank as much as 11% during the trading session in Hong Kong on Tuesday after reports surfaced that Warren Buffett’s Berkshire Hathaway Inc BRK (NYSE: BRK-B) may be adjusting its holding.
• GameStop Corp GME announced the highly-anticipated launch of its previously-announced NFT marketplace.
• Rivian Automotive Inc RIVN reportedly aims to lay off several hundred workers to undo a recent hiring surge and reduce redundancy of roles.

Check out other breaking news here