Here are five things you must know for Thursday, March 10:
1. -- Stock Futures Retreat As Oil Resumes Climb, Russian War Enters Third Week
U.S. equity futures moved lower again Thursday as markets failed to hold onto the sentiment that triggered the strongest single-day gain in two years amid a renewed leap in oil prices and little hope of a peaceful conclusion in the now three week war between Russia and Ukraine.
Foreign Ministers from both sides met in Ankara, Turkey today to end what is now being called a humanitarian crisis in the region, with more than 2 million refugees displaced, thousands of civilians killed and crippling economic sanctions imposed on Moscow.
The lack of positive messages from the talks, the first since the conflict began three weeks ago, unnerved European stocks Thursday and added further upward pressure to oil prices, with WTI crude futures for April delivery rising $3.80 to $112.50 per barrel.
The dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.25% higher at $98.208 in safe-haven overnight trading, pushing gold back below the $2,000 mark.
Europe's Stoxx 600 was marked 0.98% lower by late-morning in Frankfurt as investors prepped for the European Central Bank's regular interest rate decision later in the session, with a focus on how policymakers will wrestle with the specter of surging inflation and slowing economic growth.
The very same issues will be faced by the Federal Reserve next week, in fact, and today's reading of February inflation will underscore the impact of high energy prices on the overall CPI reading, which could come in as high as 8% when the figures are released at 8:30 am Eastern time.
On Wall Street, futures contracts linked to the Dow Jones Industrial Average are indicating a 240 point opening bell decline while those linked to the S&P 500, which is down 10.25% for the year, are priced for a 27 point slump.
Nasdaq Composite futures are indicating a 115 point pullback as benchmark 10-year Treasury note yields rise to $1.932% in overnight trading.
2. -- Oil, Gas and Food Prices Set to Prolong Inflation Surge in New Fed Headache
Headline consumer price inflation is set to pierce the highest levels in more than four decades, according to forecasts released ahead of today's reading of February CPI, thanks in part to soaring gas and food prices.
The Commerce Department will release its estimate of February inflation at 8:30 am Eastern time, with economists looking for a headline annual reading of 7.9%, the highest since the early 1980s, and a month-on-month gain of around 0.8%.
However, with gas and energy prices continuing to surge amid concerns over supply disruption linked to Russia's war on Ukraine, as well as energy export sanctions on Moscow, higher inflation readings are expected to linger for several months, adding further complications to the Fed's plans on interest rate hikes to combat them for fear of choking off growth prospects in the world's biggest economy.
3. -- Amazon Shares Leap After 20-For-1 Stock Split
Amazon AMZN shares powered higher in pre-market trading after after the world's biggest online retailer approved a 20-for-1 stock split and a $10 billion share repurchase plan.
The group also approved a $10 billion share buyback plan that it said "would enhance long-term shareholder value", according to papers filed with the Securities and Exchange Commission.
The split follows a similar move by Google parent Alphabet (GOOGL) earlier this year, likely to take place in July, and removes on of the final four-digit stocks from major U.S. indices. Amazon shares are expected to begin trading on a split-adjusted basis on June 6.
Amazon shares were marked 6.3% higher in pre-market trading to indicate a Thursday opening bell price of $2,952.00 each, a move that would still leave the stock with a year-to-date decline of around 13.1%..
4. -- Tesla Boosts Model 3, Model Y Prices in the U.S. and China
Tesla (TSLA) shares moved lower in pre-market trading, largely in-line with broader market moves for the Nasdaq, after it unveiled price hikes for its clean-energy cars in the U.S. and China.
U.S.-made versions of the Model Y SUV, as well as the long-range version of the Model 3 sedan, will be increased by $1,000 each, according to Tesla's website. China-made versions will increase by around $1,600, or 10,000 Chinese yuan.
Raw materials prices, as well as labor costs linked to Tesla's overall production cycles, have risen steadily over the past year, while Nickel prices -- a crucial component in EV battery making -- briefly topped a record high $100,000 per ton on the London Metals Exchange before officials cancelled trading earlier this week.
Tesla also cautioned earlier this year that supply-chain disruptions have held back production capacity and will impact the pace of near-term output, a warning that took some of the gloss from a record fourth quarter, which saw revenues rise 65% from last year to an-all time high of $17.72 billion.
Tesla shares were marked 1.3% lower in pre-market trading to indicate an opening bell price of $848.00 each.
5. -- Britain Freezes Assets of Chelsea Football Club Owner Roman Abramovich
British lawmakers agreed Thursday to freeze the assets of Russian billionaire Roman Abramovich, who also owns the U.K. Premiership's Chelsea Football Club, as part of a broader crackdown on oligarchs with close ties to President Vladimir Putin.
Abramovich joined a list of seven Russian billionaires, including the CEOs of energy giants Rosneft and Gazprom, that will face travel bans and a blocked access to collective assets in the U.K. of around $20 billion.
Britain's foreign office said Abramovich, who also runs the steelmaking group Evraz, “received preferential treatment and concessions” from Putin and have been involved in "destabilizing Ukraine and undermining and threatening the territorial integrity, sovereignty, and independence”.
The move also lays waste to Abramovich's plans to sell Chelsea, which he purchased in 2003, although the U.K. Secretary for Digital, Culture, Media and Sport said the club can continue playing its Premier League matches "while ensuring sanctions hit those intended."
