Pre-open movers
U.S. stock futures traded higher in early pre-market trade on Wednesday after the Dow Jones dipped over 400 points in the previous session. Investors are awaiting earnings results from CVS Health Corporation (NYSE:CVS), Yum! Brands, Inc. (NYSE:YUM) and Moderna, Inc. (NASDAQ:MRNA).
US Services Purchasing Managers' Index for July is scheduled for release at 9:45 a.m. ET, while data on factory orders for June and ISM services index for July will be released at 10:00 a.m. ET.
Philadelphia Federal Reserve Bank President Patrick Harker is set to speak at 10:30 a.m. ET.
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Futures for the Dow Jones Industrial Average jumped 140 points to 32,505.00 while the Standard & Poor’s 500 index futures rose 18.75 points to 4,112.50. Futures for the Nasdaq index surged 651.50 points to 12,990.00.
Oil prices traded lower as Brent crude futures fell 1.2% to trade at $99.29 per barrel, while US WTI crude futures fell 1.2% to trade at $99.29 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released 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 93,319,700 with around 1,055,970 deaths. India reported a total of at least 44,067,140 confirmed cases, while France confirmed over 33,921,340 cases.
A Peek Into Global Markets
European markets were slightly higher today. The STOXX Europe 600 Index rose 0.1%, London’s FTSE 100 rose 0.1% while Spain’s IBEX 35 Index rose 0.5%. The French CAC 40 Index rose 0.3%, while German DAX gained 0.3%.
The annual producer inflation in the Eurozone dropped to 35.8% in June from 36.2% in May, while retail sales fell 1.2% month-over-month in June. Producer prices in the Eurozone increased 1.1% month-over-month in June, while services PMI was revised higher to 51.2 in July from a preliminary reading of 50.6. The S&P Global Italy Composite PMI dropped to 47.7 in July from 51.3 in the previous month, while UK’s Composite PMI fell to 52.1 in July from 53.7 in June. The S&P Global French Composite PMI slipped to 51.7 in July from 52.5 a month ago, while German Composite PMI rose slightly to 48.1 in July from a preliminary level of 48. Germany reported a trade surplus of €7.7 billion in June.
Asian markets traded mixed today. Japan’s Nikkei 225 rose 0.53%, while China’s Shanghai Composite fell 0.71% and Hong Kong’s Hang Seng Index gained 0.40%. Australia’s S&P/ASX 200 fell 0.3%, while India’s S&P BSE Sensex gained 0.3%.
The S&P Global India Composite PMI dropped to a three-month low level of 56.6 in July from 58.2 a month ago. Retail sales in Australia climbed by 0.2% from a month ago to a fresh record level of AUD 34.24 billion during June, while the country’s Composite PMI declined to 51.1 in July from a final level of 52.6 in June. The au Jibun Bank Japan Composite PMI was revised lower to 50.2 in July from a flash reading of 50.6, while S&P Global Hong Kong PMI fell to a three-month low of 52.3 in July.
Broker Recommendation
Credit Suisse downgraded Esperion Therapeutics, Inc. (NASDAQ:ESPR) from Neutral to Underperform and lowered the price target from $7 to $6.
Esperion Therapeutics shares fell 3.8% to $5.65 in pre-market trading.
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Breaking News
- Starbucks Corp (NASDAQ:SBUX) reported upbeat earnings for its third quarter, but missed market expectations for comparable sales.
- PayPal Holdings Inc (NASDAQ:PYPL) reported better-than-expected earnings for its second quarter.
- Robinhood Markets Inc (NASDAQ:HOOD) announced plans to reduce 23% of its staff after reporting downbeat sales for the second quarter. The company also reported a net loss of $295 million.
- Advanced Micro Devices, Inc. (NASDAQ:AMD) reported upbeat earnings for its second quarter and issued Q3 sales guidance with a midpoint below estimates.
