U.S. Stock Futures Lower as Market Awaits Fed Direction

U.S. stock futures are lower in pre-market trading for Wednesday, June 1. The Dow Futures are down -62 points to 17712.0. The S&P 500 Futures are down -7.25 points to 2087.75. The Nasdaq Futures are lower at 4513.25 for a loss of -11.00 points. The Russell Futures are lower at 1150.8 for a loss of -2.60 points.

In overnight trading in the Eastern Hemisphere, stocks were mostly lower. In Asia, China’s Shanghai Composite was at 2913.51 for a loss of -3.11 points or -0.11 percent. Japan’s Nikkei 225 was at 16955.73 for a loss of -279.25 points or -1.62 percent. Hong Kong’s Hang Seng Index was lower at 20760.98 for a loss of -54.11 points or -0.26 percent. The S&P BSE Sensex was higher at 26713.93 for a gain of 45.97 or 0.17 percent. The Asia Dow was lower at 2659.86 for a loss of -5.32 points or -0.20 percent. In Europe, stocks were lower. The FTSE 100 was down -43.42 points or -0.70 percent to 6187.37. Germany’s DAX was lower at 10192.07 for a loss of -70.67 points or -0.69 percent. France’s CAC 40 was lower at 4468.06 for a loss of -37.56 points or -0.83 percent. The Stoxx Europe 600 was lower at 344.06 for a loss of -3.39 points or -0.98 percent. The Europe Dow was lower at 1547.40 for a loss of -14.78 points or -0.95 percent.

Wednesday’s Factors and Events

 A number of leading economic reports are scheduled to be released on Wednesday. Motor vehicle sales will be reported for the month of May. There will be two manufacturing reports, the PMI Manufacturing Index and the ISM Manufacturing Index. Construction spending will also be released on Wednesday. The Beige Book from the Fed will also be released Wednesday which includes a broad analysis of the economy’s current position.

Stocks trading actively in the pre-market include Baxalta, Transocean, Berkshire Hathaway, Nike, Apple, Amazon.com, Microsoft, Staples and Under Armour.

The CEO of Staples will be resigning shortly after a deal fell apart between Office Depot and Staples. Sporting goods stocks are also likely to trade lower on Wednesday as Under Armour reports losses from affiliations with bankrupt Sports Authority. Nike is also trading lower Wednesday.

Earnings reports from retail companies Michael Kors and Lands’ End will also be reported Wednesday.

Tuesday’s Activity

 Yesterday the Commerce Department reported its Personal Income and Outlays report, a significant gauge for consumer spending and inflation. The report included positive data across nearly all categories and annual inflation data was also slightly higher. The results will likely cause increased volatility in the market Wednesday as the news could increase the chances of a June increase to the federal funds rate.

Stocks traded actively on Tuesday with the VIX Volatility Index higher at 14.26 for a gain of 1.14 points or 8.69 percent.

On Tuesday, the Dow Jones Industrial Average was lower at 17787.13 for a loss of 86.09 points or 0.48 percent. The Standard & Poor’s 500 was also lower for the day, closing at 2096.95 for a loss of 2.11 points or 0.10 percent. The Nasdaq Composite was higher for the day at 4948.05 for a gain of 14.55 points or 0.29 percent.


Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.

Other notable index closes in the U.S. included the small-cap Russell 2000 which was higher at 1155.23 for a gain of 4.78 points or 0.42 percent; the S&P 600 closing at 705.10 for a gain of 2.25 points or 0.32 percent; the S&P 400 Mid-Cap Index closing at 1493.24 for a gain of 1.17 points or 0.08 percent; the Russell 3000 closing at 1236.24 for a loss of -0.38 points or -0.03 percent; and the Dow Jones U.S. Select Dividend Index closing at 591.73 for a gain of 0.23 points or 0.04 percent.

Julie Young


Julie Young is a Senior Market Reporter and Analyst

You may also like...

Discussion on U.S. Stock Futures Lower as Market Awaits Fed Direction