Morning Markets
June S&P 500 futures this morning are up by +0.22%. A rally of more than +6% in Nike in pre-market trading is giving the overall market a lift after the world’s largest athletic-wear maker recovered from supply-chain struggles and reported stronger-than-expected Q3 quarterly earnings. Gains in stocks are limited as Monday’s jump in T-note yields continues after the 10-year T-note yield today rose to a new 2-3/4 year high of 2.357%.
The Euro Stoxx 50 index today is up by +0.58%. Strength in European bank stocks today is leading the overall market higher. Also, strong quarterly earnings results from Nike lifted European sportswear makers Adidas AG and Puma SE. Higher European government bond yields are limiting stock gains today after the 10-year UK gilt yield and the 10-year German bund yield jumped to 3-1/4 year highs.
ECB Vice President Guindos said today that because of Russia's invasion of Ukraine, "inflation that was on the rise previously now will be higher for longer."
Eurozone Jan construction output rose +3.9% m/m, the largest increase in 10 months.
Asian markets today closed higher. China’s Shanghai Composite climbed to a 1-week high and closed up by +0.19%, and Japan’s Nikkei Stock Index rallied to a 5-week high and closed up by +1.48%. Chinese stocks moved higher today on improved confidence in the market after Alibaba Group Holdings boosted its share buyback program to $25 billion from $15 billion. Gains in the Shanghai Composite were limited as airline stocks fell after China Eastern Airlines said it would ground all of its Boeing 737-800 jets following a fatal crash Monday in southwestern China.
A rally in Japanese exporters led the Nikkei Stock Index higher today after the yen tumbled to a new 6-year low against the dollar. The weaker yen bolsters the earnings prospects of Japanese exporters.
Pre-Market U.S. Stock Movers
Nike (NKE) jumped +6% in pre-market trading after it reported Q3 revenue of $10.87 billion, stronger than the consensus of $10.61 billion.
Stocks related to cryptocurrencies rose in pre-market trading, with Bitcoin up more than +4% at a 2-week high. Bit Digital (BTBT), Ebang (EBON), and Marathon Digital (MARA) are up more than +5%, Riot Blockchain (RIOT) is up more than +4%, and Coinbase Global (COIN) is up more than +2%.
Large-cap Chinese technology stocks listed in the U.S. are moving higher in pre-market trading after Alibaba boosted its share buyback to $25 billion from $15 billion. Alibaba Group Holding (BABA) is up more than +8%. JD.com (JD) and Pinduoduo (PDD) are up more than +5%, and NetEase (NTES) and Baidu (BIDU) are up more than +4%.
HireRight Holdings (HRT) jumped +16% in pre-market trading after it reported Q4 adjusted EPS of 32 cents, higher than the consensus of 6 cents, and forecast 2022 EPS of $1.32 to$1.45, well above the consensus of 66 cents.
FreightCar America (RAIL) rallied +11% in pre-market trading after it reported Q4 revenue of $75 million, above the consensus of $60.6 million, and raised its 2022 delivery outlook to 2,600-2,900 railcars from 2,350-2,650 railcars.
Okta (OKTA) tumbled more than -9% in pre-market trading over a potential data breach after hacking group Lapsus$ claimed it had gained internal access to the company’s system privileges.
Upstart (UPST) tumbled -6% in pre-market trading after Wedbush downgraded the stock to underperform from neutral.
Today’s U.S. Earnings Reports (3/22/2022)
Adobe Inc (ADBE), Carnival Corp (CCL).
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