Morning Markets

June S&P 500 futures this morning are down by -0.43%.  U.S. stock indexes are being weighed down by losses in European stocks, with the Euro Stoxx 50 down more than -1%.   U.S. stocks are also being undercut by a rally of more than +2% in crude oil, which is fueling concern that higher energy costs will eat into corporate profits and boost inflation pressures.  A decline of nearly -3% in Adobe in pre-market trading is another bearish factor weighing on stocks today after it forecast weaker-than-expected Q2 revenue.  

The Euro Stoxx 50 index today is down by -1.28%.  European stocks are weighed down by concern that the ongoing war in Ukraine will undercut Eurozone economic growth and cause spikes in commodity prices that further stoke inflation pressures.  U.S. President Biden will meet with EU leaders tomorrow in Brussels and they are expected to announce new sanctions against Russia for its invasion of Ukraine.

Russia announced today that the Moscow Exchange will resume trading in 33 Russian equities on Thursday and that a ban on short-selling will apply.  Local stock trading in Russia has been halted since Feb 28, the longest closure in the country’s modern history.

Asian markets today closed higher.  China’s Shanghai Composite closed up by +0.34%, and Japan’s Nikkei Stock Index rallied to a 2-month high and closed up sharply by +3.00%.  Strength in Chinese technology stocks led the overall market higher today after Xiaomi joined Alibaba Group Holdings in announcing a stock buyback plan. Chinese technology stocks also garnered support from a front-page editorial piece in the Securities Tomes that said the government’s “traffic light” mechanism for platform firms may not better regulate the industry and that “green light” areas that should be supported for development. 

Japanese stocks rallied sharply today as exporter stocks gained on speculation today’s fall in the yen to a 6-year low against the dollar will boost the profits of Japanese exporters. SoftBank Group jumped +7% today to lead gainers in the Nikkei Stock Index after the bank’s largest investment, Alibaba Group Holdings, surged after it expanded a share-buyback program. 

Pre-Market U.S. Stock Movers

Adobe (ADBE) fell nearly -3% in pre-market trading after it forecast Q2 revenue of $4.34 billion, below the consensus of $4.40 billion.

Poshmark (POSH) dropped more than -7% in pre-market trading after it forecast Q1 revenue of $86 million-$88 million, weaker than the consensus of $92.5 million.

Piedmont Lithium (PLL) tumbled more than -7% in pre-market trading after it announced the pricing of an upsized underwritten stock offering of 1.75 million shares of its common stock at a price per share to the public of $65, below Tuesday’s closing level of $75.17. 

GAN Limited (GAN) plunged -19% in pre-market trading after it reported Q4 revenue of $30.5 million, weaker than the consensus of $35.3 million and forecast full-year 2022 revenue of $155 million-$165 million, below the consensus of $171 million.

Energy stocks and energy service providers are moving higher in pre-market trading, with the price of WTI crude up more than +2%.  Devon Energy (DVN), Halliburton (HAL), Marathon Oil (MRO), Exxon Mobil (XOM), and Occidental Petroleum (OXY) are all up more than +1%. 

HealthEquity (HQY) climbed more than +2% in pre-market trading after it reported Q4 revenue of $203.3 million, stronger than the consensus of $201.9 million, and raised guidance on 2023 revenue to $820 million-$830 million from a prior view of $815 million-$830 million.

Today’s U.S. Earnings Reports (3/23/2022)

Cintas Corp (CTAS), General Mills Inc (GIS), Ollie's Bargain Outlet Holding (OLLI).