Morning Markets
June S&P 500 futures (ESM23) this morning are down -0.12%, and June Nasdaq 100 E-Mini futures (NQM23) are down -0.62%.
U.S. stock index futures this morning are moderately lower. Higher bond yields this morning are weighing on technology stocks and Nasdaq futures. Also, today’s U.S. March core retail sales fell less than expected and pushed bond yields even higher. Losses were limited by better-than-expected bank earnings results.
U.S. March retail sales fell -1.0% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 4 months. However, Mar core retail sales (ex-autos and gasoline) fell -0.3% m/m, a smaller decline than expectations of -0.6% m/m.
U.S. Mar import price index ex-petroleum fell -0.6% m/m, the biggest decline in 8 months and better than expectations of no change.
On the positive side for stocks, better-than-expected quarterly earnings results are boosting bank stocks, with JPMorgan Chase up more than +5% in pre-market trading and Citigroup and Wells Fargo up more than +2%. Also, PNC Financial Services Group is up more than +8% after reporting stronger-than-expected Q1 EPS and higher-than-expected Q1 deposits.
On the negative side, Boeing is down more than -5% in pre-market trading after it said it was pausing delivery of some 737 Max jets over a parts issue, a development that analysts said could result in a slowdown of deliveries and was negative for the stock. Also, Hartford Financial Services Group is down more than -2% after reporting weaker-than-expected Q1 preliminary net investment income. In addition, Lucid Group is down more than -7% after reporting Q1 vehicle deliveries below consensus.
Atlanta Fed President Bostic said recent inflation data are consistent with the Fed "moving one more time" with a 25 bp rate hike and then holding.
Global bond yields are higher. The 10-year T-note yield rose to a 1-1/2 week high of 3.532% and is up +7.6 bp at 3.520%. The 10-year German bund yield rose to a 1-month high of 2.407% and is up +2.6 bp at 2.398%, and the 10-year UK gilt yield rose to a 5-week high of 3.624% and is up +4.2 bp at 3.617%.
Overseas stock markets are higher. The Euro Stoxx 50 is up +0.53%. China’s Shanghai Composite closed up +0.60%, and Japan’s Nikkei Stock Index closed up +1.20%.
The Euro Stoxx 50 index today rallied to a 1-1/4 year high and is moderately higher. Strength in consumer stocks is lending support to the overall market, with Hermes International up more than +1% after reporting Q1 revenue climbed +23%, stronger than expectations of +16%, citing strong demand from Chinese customers. Also, European bank stocks are moving higher today with the better-than-expected earnings results from their U.S. peers.
An easing of price pressures is supportive for European stocks on today’s news that showed the German Mar wholesale price index eased to +2.0% y/y from +8.9% y/y in Feb, the slowest pace of increase in more than two years.
Hawkish comments today from ECB President Lagarde pushed EUR/USD up to a 1-year high when she said, "Resilient labor markets and strong wage growth, especially in advanced economies, suggest that underlying inflationary pressures remain strong."
China’s Shanghai Composite Stock Index today climbed to a 5-week high and closed moderately higher. Optimism in China’s recovery underpins stocks after Thursday’s better-than-expected Chinese trade news. Positive comments today from Goldman Sachs were supportive for Chinese stocks when they said returns in China may be better than the rest of Asia given “a much better near-term recovery.” Chinese mining stocks also moved higher today after gold prices rallied to a 13-month high and copper prices climbed to a 1-1/2 month high.
Japan’s Nikkei Stock Index today rose to a 5-week high and closed moderately higher. Japanese stocks opened higher on carry-over support from Thursday’s rally in U.S. stocks after friendly U.S. news on monthly producer prices and weekly jobless claims sparked hopes the Fed may be nearing the end of its rate-hike cycle. In addition, Japanese brokerage stocks extended this week’s rally amid news of Warren Buffet’s interest in increasing investment in Japanese equities. Also, retailer stocks rallied today when Fast Retailing jumped more than +8% after reporting stronger-than-expected Q2 profits and boosting its full-year operating profit guidance.
Pre-Market U.S. Stock Movers
Boeing (BA) tumbled more than -5% in pre-market trading after it said it was pausing delivery of some 737 Max jets over a parts issue, a development that analysts said could result in a slowdown of deliveries and was negative for the stock.
Lucid Group (LCID) dropped more than -7% in pre-market trading after reporting Q1 vehicle deliveries of 1,406, bell the consensus of 1,835.
Hartford Financial Services Group (HIG) fell more than -2% in pre-market trading after reporting Q1 preliminary net investment income of $515 million, weaker than the consensus of $528.7 million.
Tesla (TSLA) slid more than -1% in pre-market trading after cutting its new Model 3 and Model Y vehicle prices in Singapore by as much as 5%.
Check Point Software Technologies (CHKP) fell more than -1% in pre-market trading after Raymond James downgraded the stock to market perform from outperform.
Rivian Automotive (RIVN) dropped more than -3% in pre-market trading after Piper Sandler downgraded the stock to neutral from overweight.
JPMorgan Chase (JPM) jumped more than +5% in pre-market trading after boosting its full-year net interest income forecast to $81 billion from $73 billion.
PNC Financial Services Group (PNC) surged more than +8% in pre-market trading after reporting Q1 EPS of $3.98, above the consensus of $3.66 and reporting Q1 deposits of $436.8 billion, better than the consensus of $433.61 billion.
Wells Fargo (WFC) climbed more than +3% in pre-market trading after reporting Q1 revenue of $20.73 billion, stronger than the consensus of $20.03 billion.
Citigroup (C) is up more than +2% in pre-market trading after reporting Q1 FICC sales and trading revenue of $4.45 billion, better than the consensus of $4.02 billion.
BlackRock (BLK) is up more than +1% in pre-market trading after reporting Q1 net inflows of $110.32 billion, well above the consensus of $83.6 billion.
VF Corp (VFC) jumped more than +5% in pre-market trading after Goldman Sachs double-upgraded the stock to buy from sell.
Cryptocurrency-exposed stocks are climbing in pre-market trading, with the price of Bitcoin up more than +1% at a 10-month high. Riot Platforms (RIOT), Coinbase Global (COIN), Bit Digital (BTBT), and Marathon Digital (MARA) are up more than +3%.
Today’s U.S. Earnings Reports (4/14/2023)
BlackRock Inc (BLK), Citigroup Inc (C), JPMorgan Chase & Co (JPM), PNC Financial Services Group Inc (PNC), UnitedHealth Group Inc (UNH), Wells Fargo & Co (WFC).
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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.
