Coffee With Greta: Futures Pop Ahead of Economic Data
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DJIA Futures: +261 (+0.8%)
SPX Futures: +35 (+0.8%)
NASDAQ Futures: +145 (+1.0%)
Good morning friends!
Futures are higher as the market looks ahead to new economic data to be released today.
Let’s get right to it!
Market Awaits Economic Data of the Day
Traders are gearing up for a bunch of new economic data today.
Both the Case-Shiller national house price index and the Federal Housing Finance Agency house price index are set to be released in just a few moments.
Those surveys measure the change in home prices on an annual basis and have both hit record highs over the past year.
The Labor Department releases its February Job Openings and Labor Turnover Survey (JOLTS) at 10:00 a.m. ET.
That survey is expected to show the jumper of job openings fell to 11.1 million last month from 11.3 million in January.
Openings have outpaced the number of unemployed Americans looking for work as the U.S. economy struggles with a labor shortage.
And the Conference Board’s March consumer confidence index will be released at 10:00 a.m. ET.
Economists are expecting a three-point decline in that index to 107.5 this month.
U.S. consumers have been squeezed by high prices as inflation pressures remain at a 40-year high.
Treasury Yields Invert
Two key Treasury yields are inverted again this morning after doing so for the first time since 2006 on Monday.
The yield on the 5-year Treasury note is up nearly 3 basis points to 2.587% while the yield on the 30-year Treasury note is flat at 2.552%.
This inversion is seen by many analysts as a warning sign of an impending recession.
The more closely monitored spread between the 2-year and 10-year yields remains positive.
The 2-year yield is sitting at 2.399% with the 10-year yield at 2.486%.
Ukraine, Russia Resume Peace Talks
Peace talks between Ukraine and Russia resumed in Istanbul today after two weeks of no talks.
Ukrainian officials are still seeking a ceasefire agreement as Russia continues attacks on residential areas.
Russia’s interfax news agency said those talks were “constructive”.
Russia’s deputy defense minister also said the country would “radically reduce” its military activity outside Kyiv and Chernihiv.
Three humanitarian corridors were opened in Ukraine today allowing civilians to escape the cities of Mariupol and Melitopol.
Oil Prices Slide
Oil prices are sliding as those peace talks resume.
West Texas Intermediate crude futures are down 6.8%, dropping below $99 per barrel.
Brent crude futures are down 6.7% to just over $105 per barrel.
Demand concerns are also still looming over the oil market amid new Covid lockdowns in Shanghai.
Shanghai accounts for 4% of China’s oil consumption and China is the largest crude importer in the world.
LHC Group Rallies on UnitedHealth Buyout
LHC Group (LHCG) shares are up 7.3% in premarket trade as UnitedHealth Group (UNH) announced it will buy the company for $5.4 billion.
UnitedHealth plans to pay $170 cash for each LHCG share.
The deal still needs to be approved by LHC Group’s shareholders and regulators.
LHC Group provides in-home health and hospice care services and is based in Louisiana.
FedEx Founder Steps Down as CEO
FedEx (FDX) shares are up 3% ahead of the open after the company announced its founder will step down as CEO.
FedEx founder Fred Smith will vacate the role June 1, becoming executive chairman.
The company’s current president and chief operating officer, Raj Subramaniam, will take over as CEO.
In a statement, Smith said, “As we look toward what’s next, I have a great sense of satisfaction that a leader of the caliber of Raj Subramaniam will take FedEx into a very successful future.”
Subramaniam has been with FedEx since 1991.
In Case You Missed It
- Tesla (TSLA) shares rallied 8% Monday after a new SEC filing showed the company wants to split its stock. The electric automaker will ask at the shareholders’ meeting “for an increase in the number of authorized shares of common stock… in order to enable a stock split of the Company’s common stock in the form of a stock dividend”. This would be Tesla’s second stock split in less than two years.
- President Biden unveiled a $5.8 trillion budget proposal for 2023 Monday. The proposal includes a 20% minimum tax rate on households worth more than $100 million. The plan also raises the corporate tax rate to 28% from 21%. Biden’s plan includes about $31 billion in new defense spending and more than $32 billion in funding to combat crime. Congress will use this proposal as a blueprint for budget negotiations.
