Maybe my last update for a bit, on holiday.
The S&P 500 futures trade 11 points, or 0.2%, above fair value to start the week, as the market continues to weather a host of growth-related concerns.
Some of those concerns include the prolonged Russia-Ukraine situation, the COVID lockdowns in Shanghai, the potential for a Fed policy mistake, the 2s10s spread inversion, supply chain disruptions, and an inflationary environment that includes $100/bbl oil prices ($100.29, +1.02, +1.0%).
In corporate news, Twitter ( TWTR 48.80, +9.49, +24.1%) has jumped 24% in pre-market action after Elon Musk disclosed a 9.2% stake in the company. Tesla ( TSLA 1090.43, +5.84, +0.5%) reported over 310,000 vehicle deliveries in the first quarter. Starbucks ( SBUX 89.02, -2.47, -2.7%) suspended its share buyback program.
The Treasury market is trading little changed, although the 30-yr yield has risen four basis points to 2.46% after dropping 18 basis points last week. The 2-yr yield is unchanged at 2.43%, and the 10-yr yield is up one basis point to 2.39%. The U.S. Dollar Index is up 0.3% to 98.88.
Today’s economic data will be limited to Factory Orders for February (Briefing.com consensus -0.6%), which will be released at 10:00 a.m. ET.
In U.S. Corporate news:
- Twitter (TWTR 48.80, +9.49): +24.1% after Elon Musk disclosed a 9.2% stake in the company. As of now, the stake is a passive one.
- Tesla (TSLA 1090.43, +5.84): +0.5% after reporting over 310,000 vehicle deliveries in the first quarter.
- Starbucks (SBUX 89.02, -2.47): -2.7% after suspending its stock repurchasing program to “invest more into our people and our stores.”
- JPMorgan Chase (JPM 134.34, -0.97): -0.7% after CEO Jamie Dimon warned the bank “could still lose about $1 billion over time” as a result of its direct exposure to Russia.
Reviewing overnight developments:
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Equity indices in the Asia-Pacific region were mostly higher on Monday, featuring a 2.1% gain in Hong Kong’s Hang Seng Index. Japan’s Nikkei: +0.3% Hong Kong’s Hang Seng: +2.1% China’s Shanghai Composite: closed for holiday India’s Sensex: +2.3% South Korea’s Kospi: +0.7% Australia’s ASX All Ordinaries: +0.4%.
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In economic data:
- Japan’s March Monetary Base +7.9% yr/yr (prior +7.6%)
- Australia’s Retail Sales +1.8% m/m (expected +1.8%; prior +1.6%)
- India’s March Nikkei Manufacturing PMI 54.0 (expected 55.2; prior 54.9)
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In news:
- Stocks in Hong Kong rallied amid reports that regulators are set to provide U.S. regulators more access to audit reports for Chinese companies.
- Hong Kong Chief Executive Carrie Lam said she will not seek a second term in office due to family considerations.
- China’s markets were closed for the Ching Ming Festival and will remain closed until Wednesday.
- COVID concerns persist, though, with all of Shanghai in some version of lockdown mode, pressuring China’s GDP growth outlook and supply chain logistics.
- Japanese officials calling more attention to the negative effects of a weaker yen. T
- The BOJ plans to increase purchases of 1-3 yr notes and decrease purchases of 3-5 yr and 10-25 yr securities.
- The Bank of Korea is planning to buy up to KRW2.0 trln of government securities on Tuesday.
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Major European indices are mixed with modest changes on either side of the unchanged line. STOXX Europe 600: +0.5% Germany’s DAX: -0.1% U.K.'s FTSE 100: +0.2% France’s CAC 40: +0.2% Italy’s FTSE MIB: -0.3% Spain’s IBEX 35: -0.8%.
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In economic data:
- Eurozone’s April Sentix Investor Confidence -18.0 (expected -9.2; prior -7.0)
- Germany’s February Exports +6.4% m/m (expected +1.5%; prior -2.8%) and Imports +4.5% (expected +1.4%; prior -4.2%)
- Spain’s Unemployment Change - 2.9K (prior -11.4K)
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In news:
- Russia-Ukraine peace talks remain bogged down and reports this morning are highlighting claims that Russian troops have carried out civilian massacres in areas around Kyiv. Consequently, EU officials are reportedly planning to level more sanctions on Russia.
- The Eurozone’s Sentix Investor Confidence reading for April dropped to its lowest level (-18.0) since June 2020.
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U.S. equity futures:
- S&P 500 Futures: +5 @ 4,551
- DJIA Futures: -4 @ 34,814
- Nasdaq 100 Futures: +44 @ 14,905
Overseas:
- Europe: DAX -0.1%, FTSE +0.2%, CAC +0.2%
- Asia: Nikkei +0.3%, Hang Seng +2.1%, Shanghai Composite Closed
Commodities:
- Crude Oil +1.31 @ 100.58
- Nat Gas -0.029 @ 5.691
- Gold +5.80 @ 1929.50
- Silver +0.229 @ 24.883
- Copper +0.0325 @ 4.7210