Morning Markets
March S&P 500 futures (ESH23) this morning are down -1.91% and March Nasdaq 100 E-Mini futures (NQH23) are down -1.51%.
U.S. stock index futures this morning sharply lower on fresh turmoil in the banking sector. A selloff in European bank stocks today had pressured U.S. bank stocks in pre-market trading and has weakened market sentiment after Credit Suisse AG plunged more than -22% to a record low when its top shareholder ruled out any additional assistance for the bank.  However, stock index futures recovered from their worst levels, and bond yields fell further after this morning’s U.S. economic news showed an easing of producer price pressures.
This morning’s stock slump amid fresh banking turmoil has boosted the safe-haven demand for government debt and knocked global bond yields lower.  As a result, the 10-year T-note yield today is down -22.0 bp at 3.470%. Also, the 10-year German bund yield is down -21.9 bp at 2.201%, and the 10-year UK gilt yield is down -18.1 bp at 3.307%.
Overseas stock markets are mixed. The Euro Stoxx 50 today is down -2.99%. China’s Shanghai Composite stock index closed up +0.55%, and Japan’s Nikkei Stock Index closed up +0.03%.Â
The Euro Stoxx 50 index today is sharply lower as a plunge in Credit Suisse AG roiled European bank stocks and dampened investor sentiment. Credit Suisse AG has now fallen for eight consecutive sessions and plunged more than -22% today to a record low after the Chairman of Saudi National Bank, Credit Suisse AG’s top shareholder, ruled out any additional assistance for the bank if it needed additional liquidity. European retailers are also retreating today, led by a -3% fall in Hennes & Mauritz AB after the company reported weaker-than-expected sales in the three months through February.  In addition, European stocks came under pressure on a report from Reuters stating that a person close to the ECB's Governing Council said the ECB still plans to raise interest rates by 50 bp at Thursday's policy meeting on expectations that inflation will continue expanding.Â
Today’s Eurozone economic news was mixed for stocks. On the negative side, France's Feb CPI (EU harmonized) was revised upward by +0.1 to a record high 7.3% y/y. Conversely, Eurozone Jan industrial production rose +0.7% m/m, stronger than expectations of +0.3% m/m. Also, the German Feb wholesale price index eased to +8.9% y/y from +10.6% y/y in Jan, the slowest pace of increase in 1-3/4 years.
China’s Shanghai Composite today closed moderately higher. Strength in property and real estate stocks led gainers in the broader market after China Jan-Feb property sales rose +3.5% y/y compared with a -22% plunge in the first two months of 2022. Also, China Feb retail sales posted their biggest increase year-to-date in a year, a sign of stronger consumer spending. However, an increase in China’s jobless rate last month and a smaller-than-expected increase in industrial production show an uneven recovery.
China Feb industrial production rose +2.4% year-to-date y/y, weaker than expectations of +2.6% and the smallest pace of increase in 2-1/4 years.
China Feb retail sales rose +3.5% year-to-date y/y, right on expectations and the biggest increase in a year.
The China Feb surveyed jobless rate rose +0.3 to 5.6%.
Japan’s Nikkei Stock Index today closed slightly higher. Japanese bank stocks rose today to lead the overall market higher as concern over the fallout from the collapse of SVB Financial Group eased. Stocks also gained after a report on U.S. February consumer prices came in near expectations, easing concerns of further aggressive Fed interest-rate hikes.  An increase in Japanese government bond yields weighed on stocks after the 10-year JGB bond yield rose +5.5 bp to 0.329% after the BOJ offered to buy only 50 billion yen ($372 million) of bonds maturing in 25-years or longer, compared with its initial purchase of 100 billion yen. The BOJ slowed bond purchases to 9.4 trillion yen in February from a record 23,7 trillion yen in January as upward pressures on bond yields eased.
Pre-Market U.S. Stock Movers
Bank stocks are under pressure in pre-market trading, weighed down by a -15% plunge in Credit Suisse AG after its biggest investor ruled out any additional support for the lender. Â Bank of America (BAC), Citizens Financial Group (CFG), Comerica (CMA), Citigroup (C), JPMorgan Chase (JPM), US Bancorp (USB), and Wells Fargo (WFC)Â are down -2% or more.
American Public Education (APEI) tumbled more than -9% in pre-market trading after reporting Q4 revenue of $152.4 million, weaker than the consensus of $153 million.Â
Luna Innovations (LUNA) sank more than -15% in pre-market trading after reporting Q4 revenue of $31.7 million, below the consensus of $32.2 million.Â
Ormat Technologies (ORA) dropped more than -6% in pre-market trading after offering 3.6 million shares of stock via Goldman Sachs.
Smartsheet (SMAR) jumped more than +8% in pre-market trading after forecasting 2023 adjusted EPS of 31 cents-38 cents, well above the consensus for an EPS loss of -8.2 cents.
Lennar (LEN) climbed more than +2% in pre-market trading after reporting Q1 revenue of $6.49 billion, better than the consensus of $5.99 billion.
Today’s U.S. Earnings Reports (3/15/2023)
Adobe Inc (ADBE), Five Below Inc (FIVE), UiPath Inc (PATH).
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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