U.S. Market Futures Pointing Lower with New Perspective on Rates

U.S. stock futures are pointing lower in pre-market trading for Tuesday, August 30. The Dow Futures are at 18482.0 for a loss of -7.00 points. The S&P 500 Futures are lower at 2177.25 for a loss of -2.00 points. The Nasdaq Futures are lower at 4782.0 for a loss of -11.25 points. The Russell Futures are lower at 1244.0 for a loss of -0.70 percent.

In overnight trading in the Eastern Hemisphere, Japan’s Nikkei 225 is at 16725.36 for a loss of -12.13 points or -0.07 percent. Hong Kong’s Hang Seng Index is at 23016.11 for a gain of 194.77 points or 0.85 percent. China’s Shanghai Composite is higher at 3074.68 for a gain of 4.65 points or 0.15 percent. India’s S&P BSE Sensex is higher at 28343.01 for a gain of 440.35 points or 1.58 percent. In Europe, the FTSE 100 is at 6841.04 for a gain of 2.99 points or 0.04 percent. Germany’s DAX is at 10632.31 for a gain of 87.87 points or 0.83 percent. France’s CAC 40 is at 4456.03 for a gain of 31.78 points or 0.72 percent. The Stoxx Europe 600 is at 344.69 for a gain of 1.49 points or 0.43 percent.

Tuesday’s Factors and Events

On Tuesday the economic calendar is light with leading reports on the S&P Case-Shiller Home Price Index and Consumer Confidence.

U.S. market futures are pointing lower for the day as stocks factor in a more aggressive outlook for rate increases which could potentially include two rate increases in 2016. Investors will mainly be looking to Friday’s jobs report for market direction.

Active in pre-market trading for the day are the following stocks:

Mylan

Endo International

Regeneron Pharmaceuticals

Alexion Pharmaceuticals

Bank of America

Newmont Mining

Tyson Foods

Pioneer Natural Resources

Alcoa

Williams Companies

Market investors will continue to watch Mylan and its EpiPen pricing. Mylan has been increasing the price of the EpiPen over the last seven years with a 400 percent increase. Its pricing strategy has been under scrutiny as the healthcare sector overall is in the spotlight for drug pricing.

In trading for the day, other stocks on watch include Apple, United Continental Holdings Inc., Hershey and Mondelez.

Monday’s Activity

Stocks were higher Monday after regaining some ground from last week’s losses. For the day the Dow Jones Industrial Average closed at 18502.99 for a gain of 107.59 points or 0.58 percent. The S&P 500 was also higher, closing at 2180.38 for a gain of 11.34 points or 0.52 percent. The Nasdaq Composite closed higher at 5232.33 for a gain of 13.41 points or 0.26 percent.

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

Other notable index closes included the small-cap Russell 2000 Index, higher at 1244.94 for a gain of 6.91 points or 0.56 percent; the S&P 600 Small-Cap Index, higher at 756.18 for a gain of 4.27 points or 0.57 percent; the S&P 400 Mid-Cap Index at 1570.79 for a gain of 11.12 points or 0.71 percent; the S&P 100 Index higher at 963.55 for a gain of 4.49 points or 0.47 percent; the Russell 3000 Index higher at 1289.85 for a gain of 6.82 points or 0.53 percent; the Russell 1000 Index higher at 1208.10 for a gain of 6.36 points or 0.53 percent; and the Dow Jones U.S. Select Dividend Index higher at 618.61 for a gain of 4.22 points or 0.69 percent.