US Stock Futures Down Following Friday's Rally; Crude Oil Edges Lower

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Monday after recording sharp gains in the previous session. The Dow Jones jumped more than 800 points, while the Nasdaq added over 300 points on Friday. The Dow Jones recorded gains for the fourth week in a row, adding around 5.7% last week.

The Chicago PMI for October is scheduled for release at 9:45 a.m. ET. After collapsing to 45.7 in September, analysts expect the index improving slightly to 47.3 for October. The Dallas Fed manufacturing index for October will be released at 10:30 a.m. ET, while data on farm prices for September will be released at 3:00 p.m. ET.

Investors are awaiting earnings results from Global Payments Inc. GPN, ON Semiconductor Corporation ON and The Goodyear Tire & Rubber Company GT.

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Futures for the Dow Jones Industrial Average dipped 168 points to 32,728.00 while the Standard & Poor’s 500 index futures fell 26.25 points to 3,885.00. Futures for the Nasdaq index declined 98.75 points to 11,488.25.

Commodities

Oil prices traded lower as Brent crude futures fell 0.7% to trade at $93.10 per barrel, while US WTI crude futures fell 0.8% to trade at $87.19 per barrel. The total number of active U.S. oil rigs fell by 2 to 610 rigs last week, Baker Hughes Inc reported Friday.

Gold futures fell 0.4% to trade at $1,639.10 an ounce, while silver traded down 1% at $18.96 an ounce on Monday.

A Peek Into Global Markets

Europe Markets

European markets were lower today. The STOXX Europe 600 Index fell 0.2%, London’s FTSE 100 fell 0.2% while Spain’s IBEX 35 Index fell 0.3%. The French CAC 40 Index fell 0.4%, while German DAX fell 0.1%.

Italian gross domestic product grew by 0.5% quarter-on-quarter during the three months to September, while retail trade in Spain rose by 0.1% in September. Retail sales in Germany rose 0.9% from a month ago in September.

Asia-Pacific Markets

Asian markets traded mixed today. Japan’s Nikkei 225 rose 1.78%, China’s Composite Index fell 0.77%, while Hong Kong’s Hang Seng Index dipped 1.18%. Australia’s S&P/ASX 200 rose 1.2%, while India’s BSE Sensex rose 1.1%.

Retail sales in Japan rose by 4.5% year-over-year in September, while industrial production dropped 1.6% month-over-month in October. Japanese housing starts climbed by 1.0 percent year-over-year in September, while consumer confidence index in the country declined to 29.9 in October from 30.8 a month ago. The official NBS non-manufacturing PMI for China fell to 48.7 in October from 50.6 in the previous month, while manufacturing PMI declined to 49.2 from 50.1. Retail sales in Australia increased by 0.6% month-over-month to a new record level of AUD 35.10 billion during September.

Broker Recommendation

BMO Capital downgraded Greif, Inc. GEF from Market Perform to Underperform and lowered the price target from $72 to $62.

Greif shares rose 3.3% to close at $69.05 on Friday.

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Breaking News

• Thermo Fisher Scientific Inc. TMO is said to be nearing a deal to acquire diagnostic firm Binding Site for around $2.3 billion, Bloomberg reported.
• Elbit Systems ESLT said it was awarded a $25 million contract to supply communications systems to Finland.
• Tesla Inc. TSLA CEO Elon Musk has hinted at plans to bring back Twitter Inc.'slong-defunct short video app Vine and make it better than the ByteDance-owned TikTok.
• Quanergy Systems, Inc. QNGY priced its upsized 9.8 million unit public offering at $1.70 per unit.

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