Wall Street poised to start the new month lower


Eyes on earnings and jobs report

U.S. stock futures were pointing to losses when the opening bell rings on Monday, ahead of a big week of earnings and economic data releases.

At 5 a.m. ET, Dow Jones Industrial Average futures lost 84 points, or 0.26% to 32,741. The S&P 500 futures shed 15.5 points, or 0.37% to 4,118 while Nasdaq 100 futures gave away 58.75 points, or 0.45% to 12,912.75.

More than 20% of the S&P 500 companies are expected to report earnings this week, including: Uber (UBER), Pinterest (PINS), Airbnb (ABNB) Caterpillar (CAT), Activision Blizzard (ATVI), Loews (LOW), Starbucks (SBUX), Eli Lilly (LLY), Amgen (AMGN).

This week’s major economic report will be the June nonfarm payrolls data. The report, which will be released Friday by the Bureau of Labor Statistics, will provide additional insight on the state of the U.S. labor market.

Alibaba added to SEC delisting risk list

Alibaba (BABA) will also be in the spotlight this week after the Biden administration added the e-commerce behemoth to a list of Chinese-owned companies that could be delisted from U.S. stock exchanges.

On Friday, U.S. Securities and Exchange Commission officials added the company to its provisional list of companies that would be booted from U.S. exchanges under the 2020 Holding Foreign Companies Accountable Act (HFCAA).

Under the HFCAA, U.S.-listed Chinese companies are required to open their books to U.S. auditors.

Alibaba, which has a secondary listing in Hong Kong, said it would continue to monitor market developments, comply with applicable laws and regulations and strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange.

The company will release earnings for the June quarter before the opening bell on Thursday. Analysts expect the company to have earned $1.56 per share on revenue of $30.21 billion in the quarter.

Shares of Alibaba dropped 11.1% in New York trading on Friday. The stock rose 2.05% to $91.20 a share in the premarket trading session on Monday.

Crude futures dip ahead of OPEC+ meeting

Meanwhile, crude futures were trading lower early Monday morning as the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, prepares to meet to discuss oil production.

OPEC+ members are scheduled to hold a meeting on Wednesday to decide on oil production for September.

According two of eight OPEC+ sources polled in a Reuters survey, the cartel will discuss a modest increase for September at the meeting. The rest said production is likely to remain unchanged.

As of 5 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures dropped $2.23, or 2.26% to $96.39 a barrel. Global Brent crude futures were down $1.57, or 1.51% to $102.4 a barrel.