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U.S. Index Futures Mixed; Commodities and Global Markets Update

Fernanda T
Latest News
June 17 2024 6:50AM

U.S. index futures are mixed in the pre-market this Monday, in a shortened week due to the Juneteenth holiday, which will keep markets closed on Wednesday.

At 6:20 AM, Dow Jones futures (DOWI:DJI) fell 126 points, or 0.33%. S&P 500 futures declined 0.16%, and Nasdaq-100 futures gained 0.09%. The 10-year Treasury yield stood at 4.236%.

In the commodities market, West Texas Intermediate crude for July fell 0.23% to $78.27 per barrel. Brent crude for August fell 0.19%, close to $82.46 per barrel. Iron ore traded on the Dalian exchange fell 1.69% to $112.04 per metric ton.

On Monday’s economic agenda, the monthly Empire State Manufacturing Index will be released at 8:30 AM. The market consensus forecasts an improvement, with the index expected at -9.00, compared to the previous value of -15.60. Also awaited are speeches from New York Federal Reserve President John Williams and Fed members Patrick Harker and Lisa Cook.

European markets are mostly up, with investors overcoming last week’s pessimism and awaiting the latest interest rate decision from the Bank of England (BoE). The BoE is expected to keep rates at 5.25%, with most economists polled by Reuters predicting a cut in August. In Italy, inflation rose slightly in May, increasing by 0.2% from the previous month. The Consumer Price Index (CPI) registered an annual increase of 0.8%.

Asia-Pacific markets fell on Monday, with investors assessing economic data from China. In May, retail sales rose 3.7%, surpassing the forecast of 3%. However, industrial production grew by 5.6%, below the expected 6%, and fixed asset investment increased by 4%, slightly below the forecasted 4.2%. The urban unemployment rate remained stable at 5%. Additionally, the PBoC decided to leave its medium-term lending facility rate unchanged at 2.5%. Major indices closed lower: Shanghai SE -0.55%, Nikkei -1.83%, Hang Seng -0.03%, Kospi -0.52%, and ASX 200 -0.31%.

The U.S. market showed weakness during most of Friday’s session, with the Dow Jones falling 0.15%, the S&P 500 declining 0.04%, and the Nasdaq rising 0.12%. In May, import prices fell 0.4%, led by a 2.0% drop in fuel prices, while export prices decreased by 0.6%. The University of Michigan’s consumer confidence index fell to 65.6 in June, the lowest level since November 2023. Inflation expectations for the next year were at 3.3%, with long-term expectations rising to 3.1%. Last week, the Nasdaq jumped 3.2%, the S&P 500 increased 1.6%, but the Dow fell 0.5%.

In quarterly earnings reports, Lennar (NYSE:LEN), La-Z-Boy (NYSE:LZB), and Quantum Corporation (NASDAQ:QMCO) are scheduled to report after the market close.

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