Pre-Market Brief: Stocks Recover After Ukraine Tensions Ease Slightly

Morning Markets

March S&P 500 futures this morning are down -0.07%.  U.S. stock index futures initially fell sharply in overnight trade, with March E-mini S&P futures dropping to a 2-week low on inflation concerns and geopolitical tension surrounding Ukraine.   WTI crude climbed to a new 7-1/2 year high today, which stoked concern about higher future inflation.   However, crude prices gave up their gains and turned lower, and stock index futures recovered most of their losses on reduced tensions over Ukraine.   Tensions eased somewhat after Russian President Putin signaled he supports continuing diplomatic efforts with the West when he said “all right” to Russian Foreign Minister Lavrov’s proposal that Russia continue talks with the West.

The Euro Stoxx 50 index today tumbled to a 4-1/4 month low and is down by -2.21%. Geopolitical tensions over Ukraine are hammering European travel and hospitality stocks today.  Also, automakers and technology stocks are lower as inflation concerns weigh on those sectors.  European stocks recovered from their worst levels after Ukraine tensions eased slightly when Russian Foreign Minister Lavrov proposed to continue talks with the West. 

ECB Governing Council member Rehn said, "if we reacted strongly to inflation in the short term, we would probably cause economic growth to stop."  He added that "we will have time to react in the March meeting and in later meetings if it looks like the situation is markedly different than it now appears."

Asian markets today closed lower.  China’s Shanghai Composite closed down -0.98%, and Japan’s Nikkei Stock Index fell to a 2-week low and closed down -2.23%.  Inflation concerns undercut Asian stocks today after crude prices climbed to a new 7-1/2 year high.  Also, rising geopolitical tensions surrounding Ukraine weighed on equity prices. Chinese real estate stocks fell after the chairman of builder China Vanke said Chinese property developers’ income this year “will definitely drop significantly.”

The 7-day average of new U.S. Covid infections fell to a 1-1/2 month low Sunday of 173,857. 

Pre-Market U.S. Stock Movers

Airline stocks are falling around the world in pre-market trading due to growing concerns about Ukranian geopolitical risks.  American Airlines Group (AAL), Delta Air Lines (DAL), and United Airlines Holdings (UAL) are all down more than -2%.

Texas Instruments (TXN) dropped -4% in pre-market trading after Raymond James downgraded the stock to market perform from outperform.

Goodyear Tire & Rubber (GT) surged +27% in pre-market trading after JPMorgan Chase upgraded the stock to overweight from neutral and Nomura Securities raised its recommendation on Goodyear to neutral from reduce. 

Splunk (SPLK) climbed +8% in pre-market trading on reports that said Cisco Systems held discussions about acquiring the company.

Lockheed Martin (LMT) rose nearly +1% in pre-market trading after it said it had terminated its deal to purchase Aerojet Rocketdyne.

GoDaddy (GDDY) jumped +8% in pre-market trading after Truist Securities said it was “incrementally positive” on the stock after GoDaddy’s investor day event and reiterated its buy rating on the stock.

Micron Technology (MU) rose more than +1% in pre-market trading after Wedbush raised its recommendation on the stock to outperform from neutral.

BioDelivery Sciences (BDSI) surged more than +51% in pre-market trading after Collegium Pharmaceutical said it would buy the company for $604 million. 

Today’s U.S. Earnings Reports (2/14/2022)

2seventy bio Inc (TSVT), Advance Auto Parts Inc (AAP), AerSale Corp (ASLE), Alexander's Inc (ALX), 

Amkor Technology Inc (AMKR), AMMO Inc (POWW), Arista Networks Inc (ANET), Aura Biosciences Inc (AURA), Avis Budget Group Inc (CAR), Bank of NT Butterfield & Son L (NTB), Brookdale Senior Living Inc (BKD), Continental Resources Inc/OK (CLR), Cue Health Inc (HLTH), Entrada Therapeutics Inc (TRDA), 

FTC Solar Inc (FTCI), Gemini Therapeutics Inc (GMTX), Hawaiian Electric Industries I (HE), iBio Inc (IBIO), 

Kelly Services Inc (KELYA), Kite Realty Group Trust (KRG), Life Time Group Holdings Inc (LTH), Lulu's Fashion Lounge Holdings (LVLU), Medpace Holdings Inc (MEDP), Omnicell Inc (OMCL), Otter Tail Corp (OTTR), Primerica Inc (PRI), Radiant Logistics Inc (RLGT), Riley Exploration Permian Inc (REPX), Scorpio Tankers Inc (STNG), Service Corp International/US (SCI), Solo Brands Inc (DTC), Spirit Realty Capital Inc (SRC), TreeHouse Foods Inc (THS), Vera Therapeutics Inc (VERA), Vornado Realty Trust (VNO), Weber Inc (WEBR), Ziff Davis Inc (ZD).