The S&P 500 futures trade 26 points, or 0.6%, below fair value after WTI crude futures hit $130 per barrel last night. Futures have cut their losses, though, as oil prices for the April contract now trade at $120.42/bbl (+$4.74, +4.1%).
The initial pop in oil was driven by a confirmation from Secretary of State Blinken that there are active talks to potentially ban imports of Russian oil and a report from Reuters indicating that an Iran nuclear deal could be delayed.
Besides the retracement in oil, which are trading under $100 per barrel for contracts at the end of the year, the futures market has welcomed news that ceasefire talks will continue today in addition to positive-sounding corporate news.
Specifically, Uber ( UBER 31.01, +1.18, +4.0%) raised its Q1 Adjusted EBITDA guidance range, Oasis Petroleum ( OAS 153.70, +9.21, +6.4%) and Whiting Petroleum ( WLL 88.00, +4.57, +5.5%) agreed to a $6.0 billion merger of equals, and Bed Bath & Beyond ( BBBY 27.31, +11.13, +68.8%) has popped 70% on news of turnaround interest from Ryan Cohen.
Treasury yields are trading higher, as risk sentiment lightens up. The 2-yr yield is up four basis points to 1.53% after touching 1.42% overnight, and the 10-yr yield is up five basis points to 1.77% after dipping below 1.70% overnight. The U.S. Dollar Index is up 0.3% to 98.91.
Today’s economic data will be limited to Consumer Credit for January (Briefing.com consensus $25.0 billion) at 3:00 p.m. ET.
In U.S. Corporate news:
- Bed Bath & Beyond (BBBY 27.31, +11.13): +68.8% on news that Chewy co-founder Ryan Cohen has pushed for changes after acquiring a 9.8% stake in the company, according to The Wall Street Journal .
- Occidental Petroleum (OXY 61.23, +5.08): +9.1% amid the higher oil prices and a report from The Wall Street Journal indicating that Carl Icahn has divested his stake in the company.
- Uber (UBER 31.01, +1.18): +4.0% after raising its Q1 Adjusted EBITDA expectations to between $130 million and $150 million (from $100 million to $130 million).
- Oasis Petroleum (OAS 153.70, +9.21): +6.4% after agreeing to merge with Whiting Petroleum (WLL 88.00, +4.57, +5.5%) in a $6.0 billion merger of equals transaction.
Reviewing overnight developments:
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Equity indices in the Asia-Pacific region began the week on a lower note as sentiment remained pressured by ongoing fighting in Ukraine and rising commodity prices. Japan’s Nikkei: -2.9% Hong Kong’s Hang Seng: -3.9% China’s Shanghai Composite: -2.2% India’s Sensex: -2.7% South Korea’s Kospi: -2.3% Australia’s ASX All Ordinaries: -1.0%.
- In economic data:
- China’s February trade surplus $115.95 bln (expected surplus of $99.50 bln; last surplus of $94.46 bln). February Imports 15.5% yr/yr (expected 16.5%; last 19.5%) and Exports 16.3% yr/yr (expected 15.0%; last 20.9%). February FX Reserves $3.214 trln (expected CNY3.225 trln; last CNY3.222 trln)
- Australia’s February AIG Services Index 60.0 (last 56.2) and February ANZ Job Advertisements 8.4% m/m (last -0.7%)
- In news:
- China’s National People’s Congress set a 5.5% growth target for 2022, its lowest in 30 years.
- National Development and Reform Commission vice chair said that reaching the target will require “strenuous effort.”
- Top Chinese officials are increasing focus on strengthening the domestic supply of food.
- In economic data:
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Major European indices trade in the red as sentiment remains pressured by fighting in Ukraine and rising commodity prices. STOXX Europe 600: -1.4% Germany’s DAX: -1.3% U.K.'s FTSE 100: -0.6% France’s CAC 40: -0.9% Italy’s FTSE MIB: -0.3% Spain’s IBEX 35: -0.6%.
- In economic data:
- Eurozone’s March Sentix Investor Confidence -7.0 (expected 5.3; last 16.6)
- Germany’s January Factory Orders 1.8% m/m (expected 1.0%; last 3.0%). January Retail Sales 2.0% m/m (expected 1.8%; last -4.6%); 10.3% yr/yr (expected 9.8%; last 0.8%)
- U.K.'s February Halifax House Price Index 0.5% m/m (expected 1.0%; last 0.2%); 10.8% yr/yr (last 9.7%)
- Swiss February Unemployment Rate 2.2% (expected 2.3%; last 2.3%)
- In news:
- Heating gas prices in Europe have continued ring to fresh highs while Brent oil has eclipsed $125/bbl.
- Another round of case-fire talks is expected to be held today.
- Spain’s economy minister said that a way to cap energy prices is being studied.
- European Commission President von der Leyen said officials are working on more sanctions on Russia.
- In economic data:
U.S. equity futures:
- S&P 500 Futures: -30 @ 4,299
- DJIA Futures: -269 @ 33,351
- Nasdaq 100 Futures: -108 @ 13,730
Overseas:
- Europe: DAX -1.3%, FTSE -0.6%, CAC -0.9%
- Asia: Nikkei -2.9%, Hang Seng -3.9%, Shanghai Composite -2.2%
Commodities:
- Crude Oil +5.73 @ 121.41
- Nat Gas +0083 @ 5.099
- Gold +23.10 @ 1989.70
- Silver +0.186 @ 25.975
- Copper +0.0495 @ 4.9870