Stock Market Update

Equity futures point to a lower opening this morning after stocks finished mostly lower in yesterday's action.

The major averages traded in a relatively stable range below their baselines for most of the session but trimmed their losses late in the afternoon in response to commentary from Israeli Prime Minister Benjamin Netanyahu, who said that Israel will assist the U.S. in reopening the Strait of Hormuz and that the war with Iran will be over sooner than people think. 

The Wall Street Journal reports that the U.S. and its allies have begun operations to reopen the Strait of Hormuz. Oil prices are seeing some relief this morning, with crude oil currently down $1.53 (-1.6%) to $94.02, but it has done little to keep equity futures from ticking lower. 

The major averages enter today's session firmly lower for the week. More importantly, each index sits below its respective 200-day moving average, with the S&P 500 failing to close above the key technical mark despite briefly trading above it yesterday afternoon. 

There is no economic data of note today. 

In corporate news:

• Airlines are developing contingency plans for jet fuel shortages, according to Financial Times. 
• OpenAI to introduce desktop "SuperApp," according to The Wall Street Journal. 
• FedEx (FDX 382.00, +25.89, +7.3%) beat EPS expectations by $1.10, beat revenue expectations, and guided FY26 EPS and revenues above consensus. 
• Super Micro Computer (SMCI 22.70, -8.09, -26.3%) trades sharply lower in the premarket after the company's cofounder and employee were charged with smuggling NVIDIA (NVDA 177.55, -1.01, -0.6%) chips into China, according to CNBC.

Equity indices in the Asia-Pacific region had a mixed finish to the week while Japan's Nikkei was closed for a holiday. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: -1.2%, India's Sensex: +0.4%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: -0.7%.

In news:

• China Securities Journal reported that the Chinese government may reform the consumption tax to increase local income.
• The People's Bank of China made no changes to its one-year (3.00%) and five-year (3.50%) loan prime rates.
• Australia is scrambling to increase the domestic supply of fuel. Meanwhile, weakness in Australian debt sent its 10-yr yield past the 5.000% mark to a level not seen since mid-2011.

In economic data:

• China's February FDI -5.7% YTD (last -5.7%)
• Hong Kong's February CPI 0.5% m/m (last 0.2%); 1.7% yr/yr (expected 1.6%; last 1.1%)
• Singapore's Q4 Unemployment Rate 2.0%, as expected (last 2.0%)
• New Zealand's February trade deficit NZD257 mln (expected deficit of NZD740 mln; last deficit of NZD627 mln). February Credit Card Spending -1.1% yr/yr (last 0.9%)

Major European indices are looking for a mostly upbeat finish to a down week. STOXX Europe 600: +0.3%, Germany's DAX: +0.1% U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.9%.

In news:

• Expectations for a June rate hike from the European Central Bank are solidifying with the market speculating that a hike could come as soon as April.
• The spread between Brent crude and WTI crude approached $21/bbl overnight, the widest level seen since early 2013.
• Spain will reduce its taxes on fuel. Unilever may sell its food unit to McCormick.

In economic data:

• Eurozone's January trade deficit EUR1.9 bln (expected surplus of EUR12.8 bln; last surplus of EUR11.2 bln). Current Account surplus EUR37.9 bln (expected surplus of EUR17.2 bln; last surplus of EUR14.6 bln)
• Germany's February PPI -0.5% m/m (expected 0.3%; last -0.6%); -3.3% yr/yr (expected -2.7%; last -3.0%)
• U.K.'s February Public Sector Net Borrowing GBP14.30 bln (expected GBP8.70 bln; last -GBP31.9 bln). March CBI Industrial Trends Orders -27 (expected -30; last -28)
• Italy's January trade surplus EUR1.089 bln (expected surplus of EUR5.65 bln; last surplus of EUR5.993 bln)