Before the bell: What you need to know before the US market open

Billy Bambrough
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Mark Carney Unveils New Polymer Five Pound Note
Carney's flashing the cash today (Source: Getty)

The Bank of England has cut interest rates and markets are loving it.

Here's what you need to know before the US market open at 2:30pm London time.

US stock futures are pointing up ahead of the open. The S&P is up by 0.15 per cent, the Nasdaq is up by 0.05 per cent, while the Dow is up by 0.21 per cent. The US 10-year yield is little changed at 1.54 per cent.

European markets are cheering Carney taking an axe to UK interest rates, with the FTSE 100 up by 1.5 per cent and Germany's Dax up by just under one per cent. Asian markets had a good, all closing higher.

Carney's big moment...

Bank of England governor Mark Carney has unleashed a massive stimulus package today and warned growth in the UK economy will grind to a halt over the next 18 months.

In a dramatic move, the Bank’s monetary policy committed (MPC) voted unanimously to slash interest rates to 0.25 per cent while also unleashing a huge extension of quantitative easing which could pump an extra £170bn of newly-printed cash into the economy.

Read more: Mark Carney has a message for UK banks after today's interest rate cut

Investors are, naturally, thrilled. The pound sunk on the announcement however, ditching over one per cent against the dollar.

Stocks to watch

Following last nights raft of corporate data investors will be keeping a close eye on today's reactions.

TripAdvisor last night missed expectations and is set to plunge at the open.

Loses at electric car company Tesla have surged to $150m for its latest quarter, double what Wall Street had feared. It lost an adjusted $1.06 a share on adjusted revenue of $1.56bn, though investors may be reassured to know Tesla is on track for 50,000 deliveries in the second half of the year, which would put it at the low end of its 2016 guidance of 80,000 to 90,000 deliveries.

Though investors still aren't thrilled about that Solar City tie-up.

Shares in media company 21st Century Fox and insurer Metlife are under pressure in the pre-market after posting results last night.

Companies reporting today

The relentless torrent of earnings continues. Ahead of the open we'll hear from Viacom; Time; Nokia; Kellogs; MGM Resorts; Restaurant Brands International (Burger King); Build-A-Bear; SeaWorld Entertainment.

Read more: 8 technologies Elon Musk just revealed Tesla is working on

Later on tonight we'll get the latest numbers from Kraft Heinz; Priceline; LinkedIn; Paramount Group; Lions Gate Entertainment, and Zynga.

In economic news

Initial jobless claims are out this morning along with the latest factory orders. Later on we'll get the natural-gas inventories.


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