The stock market is on track for a modestly higher start as futures on the S&P 500 trade 23 points above fair value.
The benchmark index faced some volatility this week, but it approached its high from Tuesday during yesterday’s session. The index enters today with a week-to-date gain of 1.3% while the Nasdaq has gained 2.1% this week and the Dow is down 0.1% since last Friday.
Overnight action saw a mostly lower showing from markets in Asia while European indices are looking to finish the week on a positive note.
President Biden and European officials announced a plan to increase exports of liquefied natural gas to Europe, but new infrastructure will need to be constructed before deliveries can be increased.
Crude oil is continuing yesterday’s pullback, as it slips $1.80, or 1.6%, to $110.54/bbl.
Today’s economic data will be limited to the 10:00 ET release of February Pending Home Sales (Briefing.com consensus 1.2%; prior -5.7%) and the final reading of the Michigan Consumer Sentiment survey for March (Briefing.com consensus 59.7; prior 59.7).
Treasuries are modestly lower with the 10-yr yield rising two basis points to 2.36%.
In U.S. corporate news:
- NIO ( NIO 21.21, -0.77): -3.5% after missing Q4 expectations and issuing below-consensus guidance for Q1.
- Honest Company ( HNST 4.87, -1.17): -19.4% after missing Q4 expectations and issuing below-consensus guidance for FY22.
- Mister Car Wash ( MCW 16.07, +0.22): +1.4% after beating Q4 expectations and issuing above-consensus revenue guidance for FY22.
Reviewing overnight developments:
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Asian markets ended mixed. Japan’s Nikkei +0.1%, Hong Kong’s Hang Seng -2.5%, and China’s Shanghai Composite -1.2%
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In economic data:
- Japan’s March Tokyo CPI +1.3% yr/yr (prior +1.0%) and Tokyo Core CPI +0.8% yr/yr (expected +0.4%; prior +0.5%)
- Singapore’s February Industrial Production +17.6% yr/yr (expected +6.3%; prior +2.4%)
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In news:
- Tokyo March CPI hit a six-year high and the 10-yr JGB (0.235%) reached its highest yield since January 2016
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Major European indices trade higher. Germany’s DAX +0.9%, France’s CAC +0.8%, and the U.K.'s FTSE +0.3%
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In economic data:
- Germany’s March Ifo Business Climate Index 90.8 (expected 94.2; prior 98.5)
- UK’s February Retail Sales -0.3% m/m (expected +0.6%; prior +1.9%) and +7.0% yr/yr (expected +7.8%; prior +9.4%); March GfK Consumer Confidence -31 (expected -30; prior -26)
- Spain’s Q4 GDP +2.2% qtr/qtr (expected +2.0%; prior +2.6%) and +5.5% yr/yr (expected +5.2%; prior +3.5%); PPI +40.7% yr/yr (prior +35.7%)
- Italy’s March Business Confidence 110.3 (expected 111.7; prior 112.9) and March Consumer Confidence 100.8 (expected 108.3; prior 112.4)
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In news:
- ECB member Schnabel said the central bank would reconsider plan to end bond purchases this summer if the war in Ukraine triggered a deep recession in the eurozone
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U.S. equity futures:
- S&P 500 Futures: +15 @ 4,535
- DJIA Futures: +91 @ 34,791
- Nasdaq 100 Futures: +64 @ 14,830
Overseas:
- Europe: DAX +0.8%, FTSE +0.3%, CAC +0.8%
- Asia: Nikkei +0.1%, Hang Seng -2.5%, Shanghai Composite -1.2%
Commodities:
- Crude Oil -2.29 @ 110.10
- Nat Gas +0.056 @ 5.457
- Gold -9.05 @ 1953.15
- Silver -0.072 @ 25.848
- Copper -0.0230 @ 4.7195