Stocks Climb on Positive Corporate News
June S&P 500 futures this morning are up +0.23%. A +25% surge in shares of Twitter this morning is lifting stock index futures after regulatory filings showed Elon Musk took a 9.2% stake in the company. Tesla shares are climbing nearly +2% in pre-market trading after it reported record Q1 deliveries. A rally of more than +1% in the price of WTI crude oil this morning is also boosting energy stocks and energy service providers.
The Euro Stoxx 50 index today is up by +0.19%. European stocks are slightly higher today on lower German bund yields and strength in German trade data. The 10-year German bund yield today dropped to a 1-week low of 0.484%. Also, German Feb exports rose +6.4% m/m, stronger than expectations of +1.5% m/m and the largest increase in 20 months. Gains in European stocks are limited after the Eurozone Apr Sentix investor confidence index fell -11.0 to a 1-3/4 year low of -18.0, weaker than expectations of -9.4.
Comments today from ECB Executive Board member Schnabel were bearish for stocks when she said the war in Ukraine will measurably slow the pace of the recovery and will lift inflation further away from the ECB's target.
Asian markets today closed higher. China’s mainland markets were closed today for the 3-day Tomb Sweeping holiday. The Hong Kong Hang Seng Stock Index climbed to a 1-month high and closed up by +2.10%, and Japan’s Nikkei Stock Index closed up by +0.25%. Chinese technology stocks rallied today after Chinese regulators said they plan to modify rules that restrict offshore-listed firms from sharing sensitive financial data. The changes may allow U.S. regulators to gain full access to auditing reports of Chinese firms listed in the U.S., thus easing delisting concerns.
Japanese stocks closed slightly higher today as weakness in the yen boosted Japanese exporter stocks. The yen remains under pressure after the BOJ boosted its asset purchases last week to keep bond yields from climbing.
Pre-Market U.S. Stock Movers
Tesla (TSLA) is up nearly +2% in pre-market trading after it said that it had shipped 310,048 cars worldwide in Q1, 900 vehicles above the consensus.
Twitter (TWTR) surged more than +25% in pre-market trading after a regulatory statement showed Elon Musk took a 9.2% stake in the company.
U.S.-listed Chinese stocks are climbing in pre-market trading as reduced concerns that Chinese stocks will be delisted from U.S. exchanges after the Chinese government said it plans to modify restrictions on the data that overseas-listed companies are allowed to share with foreign regulators. Bilibili (BILI) and Didi Global (DIDI) are up more than +10%, Pinduoduo (PDD) is up more than +8%, Alibaba Group Holding (BABA) and JD.com (JD) are up more than +5%, and Baidu (BIDU) is up more than +4%,
NIO (NIO) jumped more than +6% in pre-market trading after UBS upgraded its recommendation on the stock to buy from neutral.
Ollie’s Bargain Outlet Holdings (OLLI) jumped +5% in pre-market trading after Wells Fargo Securities raised its recommendation on the stock to overweight from equal-weight.
Starbucks (SBUX) fell nearly -2% in pre-market trading after it said it would suspend its share buyback program.
Baxter (BAX) slid -by 2% in pre-market trading after Goldman Sachs cut its recommendation on the stock to sell from neutral.
Avantor (AVTR) fell more than -1% in pre-market trading after Citigroup cut its recommendation on the stock to neutral from buy.
Quest Diagnostics (DGX) fell more than -3% in pre-market trading after Citigroup cut its recommendation on the stock to neutral from buy.
Today’s U.S. Earnings Reports (4/4/2022)
Kinetik Holdings Inc (KNTK), Ortho Clinical Diagnostics Hol (OCDX), Sleep Number Corp (SNBR).
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