Daily Markets: Investors kick off a new quarter with a wealth of data


The big picture today

Asia-Pacific equity indices ended today’s session on a mixed note. Australia’s ASX All Ordinaries at 0.05%, India’s Sensex at 0.38%, Japan’s Nikkei at 0.56%, Korea’s KOSPI at 0.65% and China’s Shanghai Composite at 0.94%. Hong Kong’s Hang Seng rose 0.19% and Taiwan’s TAIEX 1.21%. By midday, European stock indices are up across the board and US futures are pointing to a positive market open later this morning.

The new quarter kicks off with the continuation of the Russian-Ukrainian war, supply chain issues and inflationary pressures as we enter the second phase of the latest Covid lockdown in Shanghai, China. Additionally, ahead of the open, investors and economists will digest several pieces of data from March, including the U.S. jobs report, the March ISM manufacturing index, and Markit’s final March manufacturing PMI. These data points, combined with similar PMI data for Japan, China and the Eurozone, will reveal the degree of impact of the current war and related sanctions on the global economy. As important as growth indicators will be, given the growing hawkish tone from central bankers, we suspect inflation data could have an even bigger influence on the first day of the June quarter for the stock market.

Data download

International economy

Yesterday evening, March manufacturing PMI figures were released in Japan (54.1) and China (48.1). Japan’s result showed a strengthening from the previously reported 53.2 while China showed a decline from February’s 50.4. Investors will note that, like yesterday’s Korean PMI, China’s results fell below the 50 mark, indicating a slight contraction.

This morning, March manufacturing PMI figures were released in a number of European countries, including the Eurozone as a whole (56.5), Germany (56.9), France (54.7 ), Italy (55.8) and Spain (54.2). All of these numbers are lower than previously reported numbers and expectations. We cite the ongoing war in Ukraine as the catalyst for these results. The UK also released a March manufacturing PMI at 55.2, following the same trend as its European neighbours.

In other Eurozone releases, initial YOY CPI readings came in at 7.5%, higher than both the previously reported 5.9% and expectations of 6.7. %. Again, energy costs related to the war in Ukraine are the main driver of this increase.

Domestical economy

Today sees a number of employment-related releases at 8:30 a.m. ET. Year-on-year hourly earnings growth in March is expected to be slightly higher at 5.5% compared to the 5.1% gain recorded in February, and the average workweek is expected to have increased slightly to 34.8 from 34 .7 previously reported. Payrolls data for manufacturing, non-farm and private non-farm payrolls are all expected to fall about 30% from figures reported in February.

9:45 a.m. ET will see the March release of the manufacturing PMI which is expected to hold steady against the February reading of 58.5.

At 10 a.m., the Institute for Supply Management (ISM) will release its March manufacturing PMI report, and it is expected to come in at 59.0 from 58.6 in February. The new orders component is expected to slide to 58.5 from 61.7 the previous month, but the prices paid sub-index is expected to rise to 80.0 from 75.6 in February.

Also at 10 a.m. ET, construction spending for February will be reported, and it is expected to drop to +1.0% from the 1.3% increase from January.

The House passed a bill to limit the cost of insulin to $35 per month for most Americans. To become law, the bill will need to attract at least 10 Republican votes in the Senate to overcome a filibuster. Shareholders of Eli Lilly (LLY), Novo Nordisk (NVO), and Sanofi (SNY) will want to follow the progress of the bill.

Markets

The S&P 500 fell yesterday, its decline accelerating at the market close. While there was no specific catalyst, some of the selling could be attributed to traders pulling back on recent gains as we start the new quarter and prepare for the quarterly earnings season. Of March. The Nasdaq Composite and the Dow Jones Industrial Average fell 1.5% and 1.6% respectively, while the Russell 2000 lost 1.0%. From a sector perspective, all 11 S&P 500 sectors ended in the red with the biggest declines in the financials and communication services sectors. Including yesterday’s moves, here’s how the major market indicators stacked up for the first quarter of 2022:

  • Dow Jones Industrial Average: -4.6%
  • S&P 500: -5.0%
  • Nasdaq compound: -9.1%
  • Russell 2000: -7.8%
  • Bitcoin (USD-BTC): -5.4%
  • Ether (ETH-USD): -13.0%

Stocks to Watch

Prior to the start of trading, no company is expected to release quarterly results, but we will be on the lookout for those that have pre-announced their March quarter results.

Li Auto (LI) delivered 11,034 Li ONE in March 2022, up 125.2% year-on-year, bringing the company’s March quarter shipments to 31,716, a jump of 152.1% year-on-year. March deliveries for Nio (NIO) counted 9,822 premium smart electric SUVs, including 1,726 ES8, 5,064 ES6 and 3,032 EC6, and 163 ET7, the company’s flagship premium smart electric sedan. For the March quarter, NIO delivered 25,768 vehicles, up 28.5% year-on-year.

Blackberry (BB) announced better-than-expected EPS for the February quarter on revenue essentially matching the consensus of $186 million. IoT revenue for the quarter increased 11% year-on-year to $52 million, while cybersecurity revenue was $122 million, unchanged from the prior year quarter .

While Ford engine (F) and General Motors (GM) announce production halt at some factories next week due to continued chip shortages, semiconductor and automotive solutions company independent semiconductor (INDI) issued an upward guidance for its March quarter with revenue expected at the high end of its previously guided $21-22 million range.

The Macau Gaming Inspection and Coordination Bureau reported that March 2022 gross revenue fell 55.8% year-on-year to HKD 3.672 billion, down from a 6.1% increase in the previous month. . These figures are likely to influence how the shares of Wynn Resorts (WYNN), MGM Resorts (MGM), and others in the games business start the new quarter.

Reports suggest Robinhood Markets (HOOD) approaching the launch of retirement account support on its platform.

GameStop (GME) announced that it will seek shareholder approval at its upcoming 2022 annual meeting to increase the number of Class A common shares from 300,000,000 to 1,000,000,000 in the form of a stock split of 3.33 to 1.

IPOs

Shares of Genius Group (GNS), Rail Vision (RVSN) and Wearable Devices (WLDS) are expected to price their IPO bids this week. Readers interested in learning more about the timing of upcoming IPOs should visit Nasdaq’s Most Recent and Upcoming IPOs page.

After today’s market close

Just like before the market opened today, no companies are expected to release their quarterly results, but we will be watching those that announce their March quarter results in advance. Those interested in learning more about which companies release their reports when head to the Nasdaq earnings calendar.

on the horizon

Monday april 4th

  • Eurozone: Sentix Economic Index – April
  • Euro zone: Producer price index – February
  • United States: sustainable orders (final) – February
  • United States: Factory Orders – February

Tuesday, April 5

  • Japan: real household consumption and income – February
  • Japan: Services PMI – March
  • France: Industrial production – February
  • Euro zone: Markit PMI Services – March
  • Euro zone: Markit PMI Composite (Final) – March
  • United States: Markit Services PMI (Final) – March
  • United States: ISM non-manufacturing index – March

Wednesday 6 April

  • China: Markit/Caixin Services PMI – March
  • Germany: manufacturing orders and sales – February
  • United Kingdom: CIPS Construction PMI – March
  • Euro zone: Retail sales – February
  • US: Weekly MBA Mortgage Applications
  • United States: EIA Weekly Crude Oil Inventories
  • US: Federal Reserve FOMC Minutes

Thursday, April 7

  • Japan: leading index (preliminary) – February
  • Germany: Industrial production – February
  • United States: Initial and Continuing Weekly Unemployment Claims
  • United States: EIA Weekly Natural Gas Inventories
  • United States: consumer credit – February

friday april 8

  • China: new yuan loans and loan growth – March
  • United States: Wholesale inventories – February

Thought of the day

“You have to be willing to throw out a dozen ideas to find a good one, just like you have to throw out a dozen words to find the right one.” ~James Gunn

Disclosures

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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Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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