Morning Markets
September S&P 500 futures (ESU22) this morning are down by -0.20%. Negative carry-over from a fall in the Euro Stoxx 50 to a 3-1/2 month low today is weighing on U.S. stock index futures after Eurozone consumer prices rose more than expected at a record pace in June. Also, weakness in chipmaking stocks is weighing on technology stocks today, with Micron Technology down more than -5% in pre-market trading after it issued a weak forecast for the current quarter due to lower demand for phones and computers. A positive for equities is a slide in T-note yields as the 10-year T-note yield dropped to a 4-week low today at 2.908%.
Data from EPFR Global show outflows in global stock and bond markets. About $5.8 billion exited global stock funds in the week through June 29, and global bond markets had redemptions of $17 billion in the same period. In addition, data from Bloomberg shows global companies have postponed or canceled 70 debt sales in the first half of this year, more than in all of 2020.
The Euro Stoxx 50 today is down by -0.41% and slid to a 3-3/4 month low. Concern that the ECB may have to raise interest rates faster and more aggressively than expected is weighing on stocks today after Eurozone Jun consumer prices rose more than expected at the fastest pace on record. European chipmakers are falling today after Micron Technology gave a dismal outlook for Q4, and mining stocks and metals producers are falling with the price of copper sliding to a 17-month low. Losses in stocks are contained after the 10-year German bund yield fell to a 3-1/2 week low today at 1.279%.
Eurozone Jun CPI rose a record +8.6% y/y (data from 2001), stronger than expectations of +8.5% y/y. Eurozone Jun core CPI unexpectedly eased to +3.7% y/y, a slower pace of increase than expectations of +3.9% y/y.
Asian markets today closed lower. China’s Shanghai Composite Index closed down by -0.32%, and Japan’s Nikkei stock index closed down by -1.73%.
Chinese stocks fell back from Thursday’s 3-1/2 month high and closed moderately lower. Concern about a slowdown in the U.S economy weighed on Asian stocks today after Thursday’s weak U.S. consumer spending data and soft factory data from the Jun MNI Chicago PMI. Also, mining stocks fell as the price of copper today dropped more than -3% to a 17-month low. Losses in Chinese stocks were limited after a gauge of Chinese manufacturing activity expanded more than expected.
The China Jun Caixin manufacturing PMI rose +3.6 to 51.7, stronger than expectations of 50.2 and the strongest pace of expansion in 13 months.
Japanese stocks moved lower on weak sentiment from large manufacturers after the Q2 Tankan index of large manufacturer sentiment fell more than expected. Also, weakness in Asian chipmakers weighed on Japanese stocks after Micron Technology, the largest maker of U.S. memory chips, forecasted a slowdown this quarter as consumers cut back on spending on computers and phones.
Japan Jun vehicle sales fell -15.8% y/y, the tenth consecutive month that auto sales have declined.
The Japan Q2 Tankan index of large manufacturer sentiment fell by -5 to 9, weaker than expectations of 13.
Pre-Market U.S. Stock Movers
Semiconductor stocks are falling in pre-market trading after Micron Technology issued a weak forecast for the current quarter due to lower demand for phones and computers. Micron Technology (MU) is down more than -5%, and Nvidia (NVDA), Advanced Micro Devices (AMD), and Qualcomm (QCOM) are down more than -1%.
Koh’s (KSS) plunged -15% in pre-market trading after CNBC reported that the company is ending sale talks with Franchise Group.
FedEx (FDX) slid more than -2% in pre-market trading after Berenberg cut its recommendation on the stock to hold from buy amid “mounting” near-term earnings risks.
Freeport-McMoRan (FCX) fell nearly -3% in pre-market trading after the price of copper tumbled to a 17-month low.
American Airlines (AAL) rose more than +1% in pre-market trading after CNBC reported the company offered its pilots a raise of nearly 17% under a new contract.
Cryptocurrency-related stocks are moving higher in pre-market trading, with the price of Bitcoin up more than +2%. Coinbase Global (COIN), MicroStrategy (MSTR), Riot Blockchain (RIOT), and Marathon Digital (MARA) are all up more than +1%.
Accolade (ACCD) climbed more than +2% in pre-market trading after reporting Q1 revenue of $85.5 million, above the consensus of $81.9 million.
Coupang (CPNG) rose +2% in pre-market trading after Credit Suisse raised its recommendation on the stock to outperform from neutral.
Today’s U.S. Earnings Reports (7/1/2022)
Piedmont Lithium Inc (PLL).
More Stock Market News from Barchart
/Intel%20Corp_%20Santa%20Clara%20campus-by%20jejim%20via%20Shutterstock.jpg)
