Morning Markets
June S&P 500 futures this morning rallied to a 2-1/4 month high and are up by +0.87%. Stock indexes pushed higher this morning on optimism about progress in cease-fire talks between Russia and Ukraine. Russia said it was taking steps to “de-escalate” the war and would cut back its military operations, which may lead to a meeting between Russian President Putin and Ukraine Present Zelenskiy. WTI crude fell more than -4% on the news to a 1-1/2 week low, easing inflation concerns
The Euro Stoxx 50 index today climbed to a 1-month high and is up sharply by +2.97%. European stocks jumped today after Russia said it would sharply cut military operations near Kyiv and Chernihiv after negotiators from Ukraine and Russia wrapped up talks today aimed at de-escalating the war. Russia said the talks could pave the way for a meeting between Russian President Putin and Ukrainian President Zelenskiy.
German economic data today was mixed for stocks. On the positive side, the German Feb import price index rose +1.3% m/m and +26.3% y/y, weaker than expectations of +1.6% m/m and +27.2% y/y. Conversely, German Apr GfK consumer confidence fell -7.0 to a 14-month low of -15.5, weaker than expectations of -14.5.
Asian markets today settled mixed. China’s Shanghai Composite closed down by -0.33%, and Japan’s Nikkei Stock Index closed up by +1.10%. Weakness in property stocks and real estate developers pressured the overall market today after Chinese developer Sunac said it wouldn’t release its unaudited results by March 31. Trading in the stock has been suspended until April 1. Also weighing on Chinese stocks are the economic concerns posed by pandemic lockdowns. An academic study released today by the Chinese University of Hong Kong estimated China’s Covid lockdowns might cost the country at least $46 billion a month in lost economic output.
Japanese stocks rallied today on strength in exporter stocks after the yen on Monday sank to a 6-1/2 year low against the dollar. The weaker yen boosts the earnings prospects of exporters. Japanese stocks also garnered support for the easing measures taken by the BOJ to buy an unlimited amount of 10-year Japanese government bonds over the next three days. The BOJ is concerned over rising interest rates after the 10-year Japan JGB bond yield rose to a 6-year high Monday of 0.255%.
Pre-Market U.S. Stock Movers
Tesla (TSLA) is up more than +2% in pre-market trading, adding to Monday’s +8% gain after it said it plans to seek shareholder approval for a stock split.
Jeffries Financial Group (JEF) climbed more than +2% in pre-market trading after it reported Q1 net revenue of $1.73 billion, stronger than the consensus of $1.55 billion.
Ginkgo Bioworks (DNA) jumped nearly +8% in pre-market trading after reporting Q4 revenue of $148.5 million, well above the consensus of $94.8 million.
Reynolds Consumer Products (REYN) fell more than -2% in pre-market trading after Goldman Sachs cut its recommendation on the stock to sell from buy.
CVH Health (CVS) slid nearly -2% in pre-market trading after Deutsche Bank downgraded the stock to hold from buy.
Dave & Buster’s (PLAY) dropped more than -7% in pre-market trading after it reported Q4 EPS of 52 cents, weaker than the consensus of 61 cents.
Progenity (PROG) slumped -by 20% in pre-market trading after it reported a net annual loss of -$247.4 million for 3021, wider than the consensus of -$179.5 million.
Pinterest (PINS) slid more than -2% in pre-market trading after Morgan Stanley downgraded the stock to equal weight from overweight.
Etsy (ETSY) fell -by 2% in pre-market trading after Loop Capital Markets downgraded the stock to hold from buy.
Today’s U.S. Earnings Reports (3/29/2022)
Concentrix Corp (CNXC), Lululemon Athletica Inc (LULU), McCormick & Co Inc/MD (MKC), Micron Technology Inc (MU), PVH Corp (PVH), RH (RH).
