Morning Markets
June S&P 500 futures this morning are slightly lower. A +15% surge in the shares of HP Inc in pre-market trading is positive for the overall market after Warren Buffet’s Berkshire Hathaway purchased a $4.2 billion stake in the company.
Stock indexes gave up most of their overnight gains as T-note yields climbed after weekly U.S. jobless claims unexpectedly fell and matched a record low. The 10-year T-note yield is up +3.6 bp today at 2.633%, just below Wednesday’s 3-year high today of 2.656%.
U.S. weekly initial unemployment claims unexpectedly fell -5,000 to match the Mar 18 record low of 166,000, showing a stronger labor market than expectations of an increase to 200,000.
The Euro Stoxx 50 index today is up by +0.53%. M&A activity is lifting European stocks, with Atlantia Spa up more than +8% as Global Infrastructure Partners and Brookfield Asset Management made competing bids for the company. However, stock gains were limited as European government bond yields rose on the hawkish minutes from the ECB’s March meeting.
The minutes of the ECB’s March 9-10 policy meeting said, “some members preferred to set a firm end date for APP net asset purchases during the summer,” and such a move “could clear the way for a possible rate hike in Q3 this year in the light of the deterioration in the inflation outlook.”
Today’s Eurozone economic data was bearish for stocks after Eurozone Feb retail sales rose +0.3% m/m, weaker than expectations of +0.5% m/m.
Asian markets today closed lower. China’s Shanghai Stock Index closed down -by 1.42%, and Japan’s Nikkei Stock closed down by -1.69%. Asian stocks moved lower today on concerns that a rapid rise in U.S. interest rates and an aggressive scale-back of the Fed’s balance sheet could undercut economic growth and hurt corporate earnings. Chinese stocks also fell on concern that pandemic lockdowns in China will reduce economic growth, with 25 million people in Shanghai still under lockdown. Weak economic data also weighed on Japanese stocks today after the Japan Feb leading index CI fell -1.6 to a 5-month low of 100.9.
Pre-Market U.S. Stock Movers
HP Inc (HPQ) surged +15% in pre-market trading after Warren Buffet’s Berkshire Hathaway bought a stake in the company valued at more than $4.2 billion.
Levi Strauss (LEVI) climbed more than +5% in pre-market trading after it said revenue during the most recent quarter increased 22% to $1.6 billion.
Sprinklr (CXM) jumped more than +8% in pre-market trading after it reported Q4 revenue of $135.7 million, above the consensus of $130.4 million, and raised guidance on 2023 revenue to $607 million-$615 million, stronger than the consensus of $588.9 million.
Coterra Energy (CTRA) rose nearly +2% in pre-market trading after Piper Sandler raised its price target on the stock to $31 from $26.
SoFi (SOFI) dropped more than -5% in pre-market trading after Morgan Stanley cut its 2022 Ebitda estimate on the company by $42 million to $100 million after the U.S. government extended the pause on student-loan payments.
Wayfair (W) fell more than -4% in pre-market trading after Wells Fargo cut its recommendation on the stock to underweight from equal weight.
Vapotherm (VAPO) plunged -by 21% in pre-market trading after it reported preliminary Q1 revenue between $20.5 million to $21.5 million, well below the consensus of $25.8 million.
Ford Motor (F) slid more than -1% in pre-market trading after Barclays cut its recommendation on the stock to equal-weight from overweight.
Southern Co (SO) dropped -1% in pre-market trading after KeyBanc Capital Markets cut its recommendation on the stock to sector weight from overweight.
Today’s U.S. Earnings Reports (4/7/2022)
Conagra Brands Inc (CAG), Constellation Brands Inc (STZ), Lamb Weston Holdings Inc (LW).
/Microsoft%20Corporation%20logo%20on%20sign-by%20Jean-Luc%20Ichard%20via%20iStock.jpg)
/Advanced%20Micro%20Devices%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
/Qualcomm%2C%20Inc_%20logo%20on%20phone-by%20viewimage%20via%20Shutterstock.jpg)
/Chipset%20held%20over%20rush%20hour%20traffic%20by%20Jae%20Young%20Ju%20via%20iStock.jpg)