The stock market is on track for a lower start as futures on the S&P 500 trade 13 points below fair value.
The modest weakness in equity futures comes alongside selling in most European markets. President Biden is traveling to Europe today to meet with NATO allies.
German Chancellor Scholz said that while his country plans to phase out the use of Russian oil, the change cannot be made overnight. Crude oil is up $2.47, or 2.3%, at $111.74/bbl.
Economic data released overnight showed the U.K.'s yr/yr CPI rate rising to 6.2%, its fastest pace of growth in nearly 30 years.
In the U.S., the weekly MBA Mortgage Index fell 8.1% after decreasing 1.2% a week ago. The only remaining report on today’s schedule is the February New Home Sales report (Briefing.com consensus 820,000; prior 801,000), which will be released at 10:00 ET.
Treasuries trade near their flat lines with the 10-yr yield unchanged at 2.37%.
In U.S. corporate news:
- GameStop ( GME 138.55, +15.41): +12.5% after RC Ventures increased its stake in the company.
- General Mills ( GIS 64.00, +1.32): +2.1% after beating Q3 EPS expectations and raising its FY22 EPS guidance above consensus.
- Adobe ( ADBE 454.00, -12.45): -2.7% after beating Q1 EPS expectations and issuing below-consensus EPS and revenue guidance for Q2.
- Poshmark ( POSH 12.53, -1.30): -9.4% after missing Q4 EPS expectations on above-consensus revenue and issuing below-consensus revenue guidance for Q1.
Reviewing overnight developments:
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Asian markets ended higher. Japan’s Nikkei +3.0%, Hong Kong’s Hang Seng +1.2%, and China’s Shanghai Composite +0.3%
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In economic data:
- Japan’s Leading Index -1.2% m/m (expected -1.0%; prior +0.9%)
- South Korea’s February PPI +0.4% m/m (prior +1.1%) and +8.4% yr/yr (prior +8.9%)
- Singapore’s February CPI +4.3% yr/yr (expected +4.2%; prior +4.0%)
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In news:
- Outgoing South Korean President Moon nominated IMF’s Rhee for Bank of Korea Governor position
- There was speculation about more stimulus in Japan
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Major European indices trade on a mostly lower note. Germany’s DAX -0.7%, France’s CAC -0.6%, and the U.K.'s FTSE +0.2%
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In economic data:
- UK’s February CPI +0.8% m/m (expected +0.6%; prior -0.1%) and +6.2% yr/yr (expected 5.9%; prior 5.5%); Core CPI +0.8% m/m (expected +0.5%; prior +0.4%) and +5.2% yr/yr (expected +5.0%; prior +4.4%); February RPI +0.8% m/m (expected +0.8%; prior 0.0%) and +8.2% yr/yr (expected +8.2%; prior +7.8%)
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In news:
- The U.S. and UK reached a deal that will end U.S. tariffs on steel and aluminum and UK tariffs on U.S. whiskey, motorcycles, and tobacco
- The U.S. and EU are reportedly set to announce new sanctions on Russia ahead of the NATO Summit
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U.S. equity futures:
- S&P 500 Futures: -22 @ 4,490
- DJIA Futures: -139 @ 34,669
- Nasdaq 100 Futures: -114 @ 14,540
Overseas:
- Europe: DAX -0.8% FTSE +0.2%, CAC -0.6%
- Asia: Nikkei +3.0%, Hang Seng +1.2%, Shanghai Composite +0.3%
Commodities:
- Crude Oil +2.82 @ 112.09
- Nat Gas +0.036 @ 5.223
- Gold +9.20 @ 1930.70
- Silver +0.261 @ 25.165
- Copper +0.0350 @ 4.7350