Wednesday Morning Market Preview, Calendars

Morning Market Preview:

S&P futures are lower, down 15 to 16 points, as…

• Investors await retail sales data for January for an update on household spending and the health of the domestic economy.
• Federal Reserve Bank of Philadelphia President Patrick Harker said the central bank likely isn’t done raising interest rates but it’s getting close.
• Federal Reserve Bank of Dallas President Lorie Logan said it must be prepared to raise interest rates even higher if inflation proves more persistent than previously expected.
• Federal Reserve Bank of Richmond President Thomas Barkin said inflation growth is coming down slowly but the central bank is prepared to raise rates even higher if necessary.

European markets rose as…

• British Consumer Price Index (“CPI”) growth for January was 10.1% Y/Y, the lowest figure since last September as easing energy costs paved the way lower. 
• Eurozone industrial production figures for December showed a weakened outlook as production data showed a decline of 1.1% from November as the region struggled to handle the ongoing energy crisis. 
• European Central Bank Governing Council member Gabriel Makhlouf said interest rates need to rise above 3.5% and are unlikely to be cut until inflation comes back to target levels.
• European Central Bank Governing Council member Mario Centeno said the rate tightening process may take longer than initially anticipated to cool inflation growth.

Asian markets fell as…

• Japanese Prime Minister Fumio Kishida said his new Bank of Japan nominees will work cooperatively with the government to manage monetary policy and create price stability.
• The People’s Bank of China added $29.2 billion worth of liquidity to its money markets in an attempt to support rising loan demand and boost economic growth.
• Reserve Bank of Australia Governor Philip Lowe said that while rising interest rates have created economic pain, more will be needed to tackle rising inflation.
• Speculation the Federal Reserve could raise interest rates further stoked concerns the dollar could rebound, causing local currencies to fall, and cause a new surge in inflation.

And ahead of…

• Retail Sales for January (8:30 a.m.)
• Empire Manufacturing Index for February (8:30 a.m.)
• ECB's Lagarde Speaks (9 a.m.)
• Capacity Utilization for January (9:15 a.m.)
• Industrial, Manufacturing Production for January (9:15 a.m.)
• Business Inventories for December (10 a.m.)
• NAHB Housing Market Index (10 a.m.)
• Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)

Pre-Market Levels:

S&P -0.37%

Asia:

Japan's Nikkei -0.37%, Japan's TOPIX -0.26%, China's Shanghai Composite -0.39%, Hong Kong Hang Seng Index -1.43%, South Korea's KOSPI -1.53%, Taiwan's TSE -1.42%

Europe:

EuroStoxx 50 +0.67%, UK FTSE +0.02%, German DAX +0.40%, French CAC +1.08%, Italian MIB -0.22%, Spanish IBEX +0.17%       

Currencies:

Dollar +0.43%, Japanese Yen +0.26%, Euro -0.21%, British Pound -0.95%, Swiss Franc +0.04%, Chinese Yuan +0.17%

Risk:

VIX +1.59%

Bitcoin +1.52%

Ethereum +1.26%

Growth:

WTI Crude -0.90%

Brent Crude -0.74%

Nat Gas -0.86%

Copper -1.29%

Safety:

Gold -1.09%

Silver -1.87%

Sovereign Bonds:

U.S. Treasury 10-yr yield -1.0 bps at 3.75%

U.S. Treasury 2-yr yield unchanged at 4.62 %

German 10-yr yield -1.4 bps at 2.43%

French 10-yr yield -0.5 bps at 2.89%

Italian 10-yr yield +1.8 bps at 4.25%

Japanese 10-yr yield +0.5 bps at 0.51%

Earnings:

AIMC, ALJJ, ARR, BXRX, CLRI, CROX, CTXR, FKWL, GEO, GRPN, INTV, INVU, ISBA, KAI, KNBE, KPTI, KTRA, MICS, MOND, OTLK, PRET, PTVE, SCKT, SCU, SSY, ACRE, AVNT, BIIB, CEVA, CHH, CRWS, DNUT, FIS, IDCC, MLM, PSN, RBLX, RPRX, SITE, SUN, TGL, TMHC, TTD, GNRC, LAD, OC, WAB, WAT, ADI, CHEF, CIM, HCSG, KHC, SAH, TPG, R, SABR, and GLDD before the open.

ALB, ALSN, AM, AMPL, AR, ASPN, AUR, AVTA, AWK, BLZE, BOWL, CYH, EPRT, EQIX, EQT, ESRT, ET, FARO, FCPT, FSLY, HST, HT, IRT, MRO, MSA, NUS, OPI, PEGA, PLMR, QDEL, QS, RBBN, REZI, RNG, ROIC, ROKU, ROL, RSG, RUSHA, SNPS, STAG, SUM, TROX, TRUP, TWLO, TXG, TYL, UFCS, UPWK, WELL, Z, SAM, ATOM, MMLP, SGEN, AMED, CSCO, HCC, TOMZ, VECO, INVH, PGRE, RPT, TNET, AIG, AEE, CF, WH, SPWR, and ZD after the close.

Calendar:

China – One-Year Medium-Term Lending Facility Rate
South Korea – Unemployment Rate for January
Japan – Retail Sales for December
UK – CPI, PPI for January (2 a.m.)
UK – Retail Price Index for January (2 a.m.)
UK – Office of National Statistics House Price Survey for December (5 a.m.)
Eurozone – Industrial Production for December (5 a.m.)
Eurozone – Trade Balance for December (5 a.m.)
MBA Mortgage Applications (7 a.m.)
Retail Sales for January (8:30 a.m.)
Empire Manufacturing Index for February (8:30 a.m.)
ECB's Lagarde Speaks (9 a.m.)
Capacity Utilization for January (9:15 a.m.)
Industrial, Manufacturing Production for January (9:15 a.m.)
Business Inventories for December (10 a.m.)
NAHB Housing Market Index (10 a.m.)
Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)