Stock Market Today: Zoom Video Falls, RobinHood Drops, Five9 Slides
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Stocks were set for a mostly lower open as the European Central Bank indicated it could discuss removing economic support soon and China’s non-manufacturing purchasing managers index reading missed estimates.
Dow Jones Industrial Average
futures dropped 26 points, or 0.1%, while
S&P 500
futures fell 0.1% and
Nasdaq Composite
futures declined 0.04%.
Inflation in the eurozone rose 3% year-over-year in July, its highest clip in almost 10 years. That caused the usual fretting by ECB’s inflation hawks, with Governing Council member Robert Holzmann saying that the bank may discuss at its September meeting how to end its pandemic-related support.
China’s manufacturing purchasing managers index, a key measure of manufacturing activity, missed estimates. The reading was 50.1 for August, below expectations for 50.4, while its services PMI fell to 47.5 a sign that activity is contracting. China’s economy has been hampered by the Covid-19 Delta variant, which has caused supply chain constraints.
Markets await key pieces of economic data, some of which could have implications for Federal Reserve policy. Wednesday, the ADP jobs report hits the wires, as does the ISM Manufacturing Index reading. Friday’s payrolls report, however, will be the most imprtant. With economists looking for about 720,000 jobs to have been added in August, any number above one million could stoke concern that the Fed will reduce its bond buying at a fast pace.
Here are five stocks making moves in Tuesday’s premarket action:
Robinhood Markets
(HOOD) stock fell 3.9% after Securities and Exchange Commission chairman Gary Gensler told Barron’s a full ban of payment for order flow is a possibility.
Zoom Video Communications
(ZM) stock fell 14.6% after reporting a profit of $1.36 a share, beating estimates of $1.16 a share, on sales of $1 billion, above expectations for $991 million.
Five9
(FIVN), which is being acquired by Zoom, fell 13%.
GoodRx Holdings
(GDRX) stock rose 2.6% after getting upgraded to Overweight from Equal Weight at Barclays.
Textron
(TXT) stock gained 2.1% after getting upgraded to Outperform from Market Perform at Cowen.
Write to Jacob Sonenshine at jacob.sonenshine@barrons.com
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