Stock Futures Higher Amid Iran Tensions, Looming Fed Decision

Stock futures are cautiously higher after yesterday's selloff, brushing off escalating tensions in the Middle East. Last night, President Donald Trump took to Truth Social to call for Iran's "unconditional surrender."  Iran's Supreme leader Ayatollah Ali Khamenei insisted the country would not surrender and warned U.S. military intervention would “undoubtedly be met with irreparable damage.”

Stateside, investors are gearing up for the conclusion of the Federal Reserve's June meeting, with CME Group's FedWatch pricing in a 99% chance the central bank keeps interest rates steady. Comments from Fed Chair Jerome Powell about future monetary policy will be what Wall Street really cares about.

Continue reading for more on today's market, including:

• Senior Quantitative Analyst Rocky White examines the relationship between spiking oil prices and stocks.
• One more earnings report investors should know.
• Plus; analysts loving ORCL; animal drugmaker downgraded; and KFY breaks out.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts -- the most since May 6 -- and over 931,651 million put contracts traded on Tuesday. The single-session equity put/call ratio slid to 0.61, while the 21-day moving average stayed at 59.
2. Oracle Corp (NYSE:ORCL) stock is 1.5% higher before the open, after Guggenheim hiked its price target to $250 from $220, the highest on Wall Street. ORCL hit a record high of $216.60 on June 13 after the software company's stellar earnings report. ORCL is 24.9% higher year-to-date.
3. Zoetis Inc (NYSE:ZTS) stock is down 1.1% ahead of the open, after Stifel downgraded the animal drugmaker to "hold" from "buy" and trimmed its price target to $160 from $165. The analyst in coverage is leery of decreasing revenue amid increasing competition. ZTS is flat year to date, and down 5.4% in the last 12 months.
4. The shares of Korn Ferry (NYSE:KFY) are 10% higher in electronic trading, after the consulting firm reported a top-line beat for the fourth quarter. KFY is poised to reclaim its year-to-date breakeven today.
5. What to expect for this holiday-shortened week.

Japan Shrugs Off Weak Export Data

Asian markets were mixed on Wednesday, as investors monitored the Iran-Israel conflict and digested President Trump’s calls for Iran’s “unconditional surrender.” Investors also unpacked Japan exports data, which declined a smaller-than-expected in May, compared to estimates of a 3.8% drop. Japan’s Nikkei added 0.9%, while South Korea’s Kospi rose 0.7%. China’s Shanghai’s Composite settled near breakeven, and Hong Kong’s Hang Seng shed 1.1%.

European markets are also mixed, with traders looking ahead to comments from the Bank of England’s (BoE) Monetary Policy Committee on its key interest rate. The German DAX is down 0.2%, France’s CAC 40 is 0.2% lower, and London’s FTSE 100 was last seen 0.1% higher.