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A Peek Into The Markets: U.S. Stock Futures Drop Ahead Of Jobless Claims, Wholesale Inventories Data

SJM, RH

 

Pre-open movers

US stock futures traded lower in early pre-market trade. Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET, while wholesale inventories report for April is scheduled for release at 10:00 a.m. ET. Futures for the Dow Jones Industrial Average dropped 48 points to 17,946.00, while the Standard & Poor’s 500 index futures fell 7.25 points to 2,110.25. Futures for the Nasdaq 100 index declined 13.75 points to 4,505.00.

Oil prices traded lower as Brent crude futures dropped 1.03 percent to trade at $51.97 per barrel, while US WTI crude futures also declined 0.86 percent to trade at $50.78 a barrel. The EIA’s weekly report on natural gas stocks 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 0.34 percent, STOXX Europe 600 Index declining 0.99 percent and German DAX 30 index dropping 1.35 percent. The UK's FTSE index was trading lower by 0.91 percent, while French CAC 40 Index fell 0.94 percent. German exports came in unchanged for April versus March, while imports slipped 0.2 percent. The U.K.'s trade deficit, including services, narrowed to GBP3.3 billion in April.

In Asian markets, Japan’s Nikkei Stock Average fell 0.97 percent, and India’s BSE Sensex dropped 0.95 percent. China’s consumer price index increased 2.0 percent in May year-over-year, versus a 2.3 percent year-over-year growth in April.

Broker Recommendation
Analysts at Deutsche Bank downgraded Restoration Hardware Holdings Inc (NYSE: RH) from Buy to Hold and lowered the price target from $50.00 to $35.00.

Restoration Hardware shares fell 19.82 percent to $28.92 in pre-market trading.


Breaking news

  • J M Smucker Co (NYSE: SJM) reported stronger-than-expected earnings for its fourth quarter.

 

  • Francesca's Holdings Corp (NASDAQ: FRAN) reported better-than-expected earnings for the first quarter, but issued a weak forecast for the current quarter.

 

  • Restoration Hardware Holdings Inc (NYSE: RH) reported weaker-than-expected earnings for the first quarter and lowered its full-year forecast.

 

  • Envision Healthcare Holdings Inc (NYSE: EVHC) is said to be in discussions with Amsurg Corp (NASDAQ: AMSG), regarding a potential merger, according to sources as reported by Dow Jones on Wednesday. A deal could be announced as early as next week, the sources said.


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