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A Peek Into The Markets: US Stock Futures Down Ahead Of Earnings, Jobless Claims Data

Pre-open movers

Benzinga · 05/21/2020 09:58

Pre-open movers

U.S. stock futures traded lower in early pre-market trade, following a rise in the stock markets on Wednesday. Investors are awaiting earnings results from Best Buy Co Inc. (NYSE: BBY), BJ's Wholesale Club Inc (NYSE: BJ), Hormel Foods Inc. (NYSE: HRL), NVIDIA Corporation (NASDAQ: NVDA) and Hewlett Packard Enterprise Company (NYSE: HPE). Data on new unemployment claims for the latest week and the Philadelphia Fed general conditions index for May will be released at 8:30 a.m. ET. The flash Composite Purchasing Managers' Index for May will be released at 9:45 a.m. ET, while data on existing home sales for April and the index of leading economic indicators for April is scheduled for release at 10:00 a.m. ET. Federal Reserve Bank of New York President John Williams is expected to speak at 10:00 a.m. ET, while Federal Reserve Vice Chairman Richard Clarida will speak at 1:00 p.m. ET. Federal Reserve Chairman Jerome Powell is set to speak at 2:30 p.m. ET, while Federal Reserve Governor Lael Brainard will speak at 2:30 p.m. ET.

The U.S. is now the epicenter of the coronavirus pandemic with the highest number of cases and deaths around the world. Total COVID-19 cases in the U.S. exceeded 1,551,850 with around 93,430 deaths. Russia reported a total of at least 317,550 confirmed cases, while Brazil confirmed over 291,570 cases.

Futures for the Dow Jones Industrial Average dropped 143 points to 24,376 while the Standard & Poor’s 500 index futures traded fell 18.25 points to 2,950.25. Futures for the Nasdaq 100 index fell 51.75 points to 9,433.75.

Oil prices traded higher as Brent crude futures rose 1.9% to trade at $36.42 per barrel, while US WTI crude futures rose 2.2% to trade at $34.22 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.

A Peek Into Global Markets

European markets were lower today, with the Spanish Ibex Index falling 0.3%, STOXX Europe 600 Index declining 0.7% and German DAX 30 index dropping 1.3%. The UK's FTSE index was trading lower by 0.7%, while French CAC 40 Index fell 1.1%.

In Asian markets, Japan’s Nikkei fell 0.21%, Hong Kong’s Hang Seng Index fell 0.49%, China’s Shanghai Composite Index dropped 0.55% and India’s BSE Sensex rose 0.4%.

Broker Recommendation

Analysts at Jefferies downgraded MGM Resorts International (NYSE: MGM) from Buy to Hold and lowered the price target from $22 to $17.

MGM shares fell 2.1% to $16.15 in pre-market trading.

Breaking News

  • Expedia Group Inc (NASDAQ: EXPE) posted a wider-than-expected first-quarter loss on Wednesday.
  • Aurora Cannabis Inc (NYSE: ACB) announced plans to acquire CBD platform Reliva for $40 million in Aurora common shares.
  • Synopsys, Inc. (NASDAQ: SNPS) reported better-than-expected results for its second quarter.
  • L Brands Inc (NYSE: LB) reported wider-than-expected loss for its first quarter.