The stock market is on track for a higher start as futures on the S&P 500 trade 29 points above fair value.
Barring an early reversal, the market will look to rebound from a midweek dip that returned the S&P 500 back below its 200-day moving average (4,474).
Overnight action saw a mostly lower showing from markets in Asia while European markets trade near their flat lines.
President Biden is meeting with NATO allies in Europe with reports suggesting that more sanctions against Russia will be announced.
Crude oil holds a modest loss, slipping $0.63, or 0.6%, to $114.30/bbl.
Treasuries are on track to give back yesterday’s gains at the open, as the 10-yr yield rises five basis points to 2.37%.
Weekly Initial Claims (Briefing.com consensus 210,000; prior 214,000), Continuing Claims (prior 1.419 mln), February Durable Orders (Briefing.com consensus -0.5%; prior 1.6%), Durable Orders ex-transportation (Briefing.com consensus 0.5%; prior 0.7%), and Q4 Current Account Balance (prior -$214.80 bln) will be reported at 8:30 ET, followed by the preliminary March IHS Markit Manufacturing PMI (prior 57.3) at 9:45 ET.
In U.S. corporate news:
- Darden Restaurants (DRI 129.00, -1.94): -1.5% after missing Q3 expectations and issuing below-consensus guidance for FY22 EPS.
- KB Home (KBH 34.60, -1.43): -4.0% after missing Q1 expectations and reaffirming its guidance for FY22 revenue.
- Traeger (COOK 7.25, -1.55): -17.6% as the company’s below-consensus revenue guidance for Q1 and FY22 overshadows a Q4 beat.
- Trip.com (TCOM 25.70, +1.68): +7.0% after beating Q4 expectations.
Reviewing overnight developments:
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Asian markets ended mixed. Japan’s Nikkei +0.3%, Hong Kong’s Hang Seng -0.9%, and China’s Shanghai Composite -0.6%
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In economic data:
- Japan’s March Preliminary Manufacturing PMI 53.2 (expected 53.5; prior 52.7); Preliminary March Services PMI 48.7 (prior 44.2)
- Australia’s March Preliminary Manufacturing PMI 57.3 (prior 57.0); Preliminary March Services PMI 57.9 (prior 57.4)
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In news:
- China was warned by the U.S. that it will impose export controls if it is found to be helping Russia get around sanctions. Meanwhile, the USTR’s determination of China Section 301 tariffs reinstated 352 of the 549 eligible exclusions
- Minutes from the January BOJ meeting captured a belief that the BOJ needed to maintain its easy policy to help anchor higher inflation
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Major European indices trade near their flat lines. Germany’s DAX -0.1%, France’s CAC +0.1%, and the U.K.'s FTSE +0.2%
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In economic data:
- Eurozone’s Preliminary March Manufacturing PMI 57.0 (expected 56.0; prior 58.2); Services PMI 54.8 (expected 54.2; prior 55.5)
- Germany’s Preliminary March Manufacturing PMI 57.6 (expected 55.8; prior 58.4); Services PMI 55.0 (expected 53.8; prior 55.8)
- UK’s Preliminary March Manufacturing PMI 55.5 (expected 57.0; prior 58.0); Services PMI 61.0 (expected 58.0; prior 60.5)
- France’s Preliminary March Manufacturing PMI 54.8 (expected 55.0; prior 57.2); Services PMI 57.4 (expected 55.0; prior 55.5); March Business Survey 106 (expected 110; prior 112)
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In news:
- An ECB bulletin said that invasion is expected to have a material impact on the euro area economy due to higher inflation, disrupted trade, and weaker confidence The Swiss National Bank left its key policy rate unchanged at -0.75%, as expected
- Norges Bank boosted its deposit rate by 25 bps to 0.75%, as expected, and said another rate hike in June is likely
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U.S. equity futures:
- S&P 500 Futures: +20 @ 4,476
- DJIA Futures: +123 @ 34,482
- Nasdaq 100 Futures: +82 @ 14,530
Overseas:
- Europe: DAX -0.1%, FTSE +0.2%, CAC +0.1%
- Asia: Nikkei +0.3%, Hang Seng -0.9%, CAC -0.6%
Commodities:
- Crude Oil -0.24 @ 114.69
- Nat Gas +0.016 @ 5.248
- Gold +17.15 @ 1954.45
- Silver +0.246 @ 25.435
- Copper +0.0215 @ 4.7980