Daily Markets: Fed minutes, Russian sanctions set tone in markets

The big picture of today

Asia-Pacific stock indexes ended the day lower, with Australia’s ASX All Ordinaries down 0.69%, India’s Sensex 0.97% and Hong Kong’s Hang Seng down 1.23%. , the Shanghai Composite of China 1.42%, the Korean KOSPI 1.69% and the KOSPI of Korea 1.69% 4. . The biggest hit was Taiwan’s TAIEX, which closed the day down 1.96%. By noon, major European stock indexes are broadly bullish and US futures are showing a positive market opening later this morning.

The headwinds that started last quarter continue to put pressure on the markets. For example, there have been reports that Russia is preparing an eastern attack on Ukraine, while Ukraine is requesting more military equipment from NATO, clearly signaling that the war is unlikely to end soon. The European Union is set to vote today on a plan to ban Russian coal in the fifth round of sanctions, a move that could lead to higher commodity prices, especially energy.

Meanwhile, China’s bilateral coronation lockdown on March 28, which includes Shanghai, the world’s largest container port, is estimated by the EU Chamber of Commerce to have reduced Shanghai port volumes. by about 40% each week. These restrictions have not yet been lifted, indicating at least a small wave of supply chain disruptions.

Also today, James Bullard of the Fed of St. Louis, Atlanta Fed Raphael Bostic and Chicago Fed Charles Evans are scheduled to speak but at separate events. Following the publication of the minutes of the last Fed monetary policy meeting yesterday, which essentially confirmed a move of 50 basis points at the next monetary policy meeting in May, comments earlier this week on the rate of possible reduction of its balance sheet will be made by Fed observers. to dig what these three Fed heads said.

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International Economy

Early this morning, the March preliminary data for the Japan Top Index were released, which rose to 100.9, reversing an expected upward trend from the reported February rate approaching the September 2021 low of 100.

Germany reported that Industrial Production in February showed a growth rate of 0.20%, slower than expected and in good relation to the reported growth of 1.40% in January. As with almost all European economic publications last month, the impact of the Russian invasion of Ukraine and the ensuing war continues to affect not only Ukraine but the entire continent.

China said foreign exchange reserves stood at $ 3.188 billion in March, down $ 12 billion from expectations and $ 26 billion short of February figures. The main lever of the fall was attributed to the yuan’s weakness against the dollar as well as the overall strength of the dollar in global foreign exchange markets.

Domestic Economy

At 8:30 a.m. ET will see the release of Weekly Initial (04/02) & Continuing (03/26) Blobless Claims. The expectation is that the Initial Claims will decrease slightly to 200,000 from the 202,000 previously mentioned and the Continuing Claims will also decrease by 7,000 to 1.3 million.

At 3:00 p.m. ET will see data from the Federal Reserve release consumer credit data in February. Expectations are for an increase to $ 17.5 billion from the $ 6.8 billion mentioned earlier, which, while significant, would put this measurement in line with historical rules.

markets

The combination of the Fed’s aggressive stance, rising interest rates and the prospect of a slowdown in future economic growth weighed on the shares with the S&P 500 ending the day 1.0% lower. The Nasdaq Composite fell 2.2% while the Russell 2000 fell 1.4% and the Dow Jones industrial average fell 0.4%. Including yesterday’s moves, see how the main market indicators accumulate on an annual basis:

  • Dow Jones Industrial Average: -5.1%
  • S&P 500: -6.0%
  • Nasdaq Composite: -11.2%
  • Russell 2000: -10.2%
  • Bitcoin (BTC-USD): -9.1%
  • Ether (ETH-USD): -14.6%

Shares for monitoring

Before trading in US-listed shares begins, Apogee Enterprises (APOG), Conagra (CAG), Constellation Brands (STZ), and Lamb Weston (LW) are expected to present their latest quarterly results. Investors should also be on the lookout for those who announced the results for the March quarter.

Costco Wholesale (COST) reported comparable store sales in March, up 12.2% year-on-year, excluding the impact of petrol and exchange rates. For the month, the company’s companies in the US increased by 12.7%, while for Canada they increased by 12.2% and e-commerce by 9.2%. For the thirty-one weeks of the current fiscal year, the company reported net sales of $ 130.00 billion, up 16.7% from $ 111.37 billion in the same period last year.

Oil and gas production company Shell For the results of the first quarter of 2022, the transport impact of impairment of long-term assets and additional charges (eg amortization receivables, expected credit losses and burdensome contracts) related to activities in Russia 4- is expected to be $ 5 billion… Details of accounting and the impact of ongoing developments will be provided in the announcement of the results of the first quarter of 2022 “.

Meta Platforms (FB) moved higher in post-market trading last night due to reports that it plans to release virtual currencies for metaverse, not cryptocurrencies, more for in-app purchases.

Paramount Global (PARA) and RECUR announced that Star Trek will be the first digital NFT collection to abandon their multi-year partnership to bring Paramount’s favorite entertainment brands and characters to metaverse.

Chipotle Mexican Grill (CMG) is headed back to the post-universe. Starting today with National Burrito Day, the company launches the Chipotle Burrito Builder on Roblox (RBLX), a “new simulation experience that will cause players to throw burritos at metaverse to win Burrito Bucks.” The first 100,000 Roblox players to successfully roll a burrito will win enough Burrito Bucks to exchange a password that can be used in the Chipotle app or on the chain’s website in the US and Canada until April 13 or until stocks run out.

Today Google (GOOGL) Wing is set to launch its first commercial drone delivery service from a young age in the Dallas-Fort Worth Metroplex, serving tens of thousands of suburban homes in Frisco and Little Elm. The initial partners include Walgreens Boots Alliance (WBA)Frisco, Little Elm, easyvet, Texas Health and ice cream from Blue Bell Creameries.

His shares HP Inc. (HP) gained some momentum after trading hours last night following the revelation that Warren Buffett Berkshire Hathaway (BRK.A) bought almost 121 million shares, about 11.4% in the company.

SoFi Technologies (SOFI) reduces the guidance of 2022 net income under the consensus to reflect the latest extension of the Federal Student Loan Payment Moratorium. For the year, it now sees revenue of $ 1.47 billion compared to the previous guidance of $ 1.57 billion and the consensus of $ 1.51 billion.

Vapotherm (VAPO) withdrew the 2022 revenue guidance issued on January 12 of this year due to the slowdown in the number of COVID-19-related hospitalizations. The company also drove $ 20.5-21.5 million in the March quarter against a $ 25.8 million consensus.

Jacobs (J) was selected in parallel General Electric (GE) and Westinghouse Electric Company LLC to support preliminary life extension work at the Sizewell B nuclear power plant in Suffolk, UK.

Axon (AXON) announced the acquisition of Foundry 45, a virtual reality (VR) studio that focuses on developing rugged learning modules for large companies.

IPOs

No company is expected to price IPO bids this week. Readers who want to delve into the upcoming IPO calendar should visit the Nasdaq Latest and Upcoming IPO page.

After the Closing of the Market today

PriceSmart (PSMT) and WD-40 (WDFC) are expected to report their quarterly results, but we will also be vigilant for earnings announcements. For more information on which companies report when, go to the Nasdaq Earnings Calendar.

On the horizon

Friday, April 8

  • China: New Yuan Loans & Loan Increase – March
  • US: Wholesale stocks – February

Monday 11 April

  • UK: Manufacturing Production, Industrial Production, Manufacturing Production – February

Tuesday 12 April

  • Japan: Domestic CGPI – March
  • Germany: CPI – March
  • UK: ILO unemployment rate – February
  • Germany: Current situation and economic climate ZEW – April
  • USA: NFIB Small Business Index – March
  • USA: Consumer Price Index – March
  • USA: Average Work Week, Hourly Earnings – March

Wednesday 13 April

  • China: Import / Export – March
  • UK: PPI Output – March
  • UK: CPI – March
  • Eurozone: Industrial Production – February
  • Canada: Bank of Canada interest rate announcement
  • USA: Weekly MBA Mortgage Applications
  • USA: Producer Price Index – March
  • USA: Weekly Crude Oil Stocks Ltd.

Thursday 14 April

  • Eurozone: Decision of the Governing Council of the ECB on Monetary Policy
  • Weekly initial and ongoing unemployment applications
  • US: Import / Export Prices – March
  • USA: Retail Sales – March
  • USA: Business stocks – February
  • USA: Weekly Natural Gas Inventories Ltd.

Friday 15 April

  • USA: Empire State Index – April
  • USA: Industrial Production & Capacity Utilization – March

Thinking about the day

“April is the kindest month. “April takes you out of your mind and you go out to work in the garden.”

– Marty Rubin

Revelations

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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