Stock Futures Fall as Oil Prices Surge

It's now day six of Russia's incursion into Ukraine

Deputy Editor
Mar 1, 2022 at 9:25 AM
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Stocks futures are lower this morning, as Russia's invasion of Ukraine continues into its sixth day. Satellite images showed a 40-mile convoy of Russian military vehicles headed toward the Ukrainian capital of Kyiv, sparking fears of a greater assault. Dow Jones Industrial Average (DJI) futures are down triple digits at last check, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also firmly in the red.

Investors are keeping an eye on the falling 10-year Treasury yield -- last seen at 1.77% -- as well as an upbeat corporate report from retail giant Target (TGT). Meanwhile, West Texas Intermediate Crude (WTI) has surged above $101 a barrel -- its highest level in seven years. 

Continue reading for more on today's market, including:  

  • Sentiment signals are flashing even amid technical risk, says Schaeffer's Senior V.P. of Research, Todd Salamone. 
  • 11 pot stocks to check out heading into March. 
  • Plus, Zoom stock crumpling; Cincinnati staple upgraded; and Lucid Motors' earnings whiff. 

futures chart 0301

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.34 million call contracts traded on Monday, and 662,933 put contracts. The single-session equity put/call ratio fell to 0.49, and the 21-day moving average stayed at 0.57.
  2. The shares of Zoom Video Communications Inc (NASDAQ:ZM) are down 2.1% pre-market, after the company's disappointing full-year guidance, following its fourth-quarter results beat. To follow, no fewer than seven analysts cut their price targets, including Stifel all the way to $150 from $275. Last week, Zoom stock hit its lowest level since before the pandemic, and is down 27.9% year-to-date. 
  3. Kroger Co (NYSE:KR) is up 2.8% ahead of the bell, after Telsey Advisory Group upgraded the grocery stock to "outperform" from "market perform," with a price-target hike to $54 from $47. Kroger will report earnings before the open on Thursday, March 3. 
  4. Lucid Group Inc (NASDAQ:LCID) is down 12.1% in electronic trading, after the electric vehicle (EV) manufacturer reported worse-than-expected fourth-quarter results and cut its production outlook for the year. In response, Citigroup slashed its price target to $45 from $57. Year-to-date, LCID is down 23.8%. 
  5. Today will bring data on construction spending, the ISM manufacturing index, and the Markit manufacturing PMI.

OV Buzz Chart March 1

Overseas Stocks Monitoring Russian Convoys

Asian markets kicked off March on a positive note, as investors monitored developments between Russia and Ukraine, and awaited tech concern Baidu’s (BIDU) quarterly earnings report. Boosting sentiment was China’s better-than-expected official manufacturing purchasing manager’s index (PMI) for February, which pointed to expansion. Pacing the gainers was Japan’s Nikkei with a 1.2% pop, followed by China’s Shanghai Composite 0.8% gain. Elsewhere, Hong Kong’s Hang Seng added 0.2%, while South Korea’s Kospi was closed for a holiday.

European stocks are sharply lower, as eyes focused on the aforementioned Russian convoy presence headed towards Kyiv. Investors are also digesting earnings reports from the likes of Bayer and HelloFresh. At last check, France’s CAC 40 is down 2.9%, the German DAX is eyeing a 2.8% drop, and London’s FTSE 100 is 1% lower.

 

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