Coffee With Greta: The Bulls Disappear
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DJIA Futures: +6 (+0.02%)
SPX Futures: +3 (+0.1%)
NASDAQ Futures: +3 (+0.02%)
Good morning friends!
Futures are flat as the market continues to monitor tensions between Ukraine and Russia.
And the market bulls have vanished.
Let’s get right to it!
Fear Takes Over
The market bulls are gone.
T3 Live’s weekly market sentiment survey found traders are more bearish than ever.
81% of respondents to this week’s survey said the S&P 500 will go down in the next 30 days.
That’s an all-time low in bearish sentiment for the survey.
Sentiment flipped on Apple (AAPL), with 68% saying the stock will go down over the next month.
And it was even worse for Tesla (TSLA), as 78% are bears on the stock.
The risk-off sentiment spread to crypto, with 70% saying they’re bearish on Bitcoin.
As traders ditch risk, gold sentiment hit an all-time high for the survey.
81% of traders said they see gold prices going up in the next 30 days.
And oil sentiment rose further.
80% of surveyed traders expect those prices to continue rising.
Markets Monitor Russia-Ukraine Tensions
Global markets are monitoring tensions between Russia and Ukraine.
Bloomberg reported this morning that Russian Foreign Minister Sergei Lavrov is proposing a continuation of diplomatic efforts.
But Russia is continuing to train along the Ukraine border, with 130,000 troops in the area.
The White House says there was no breakthrough from President Biden’s phone call with Russian President Putin over the weekend.
Now the German Chancellor is visiting Ukraine and Russia today.
A war in Ukraine would add another layer of uncertainty for Wall Street, on top of tightening monetary policy.
More Inflation Data, Retail Sales This Week
The Bureau of Labor Statistics releases more inflation data Tuesday morning with the January Producer Price Index.
All eyes are on that report after the Consumer Price Index surged to a 40-year high last week.
Economists expect that report to show prices surged 9.3% year-over-year last month, down from 9.7% in December.
Higher producer prices translate into higher consumer prices down the line.
The Census Bureau’s retail sales report Wednesday morning will be key to gauge how much January’s inflation pressures hurt consumer activity.
Consensus estimates are for that report to show a 2% increase in retail sales last month after a surprise drop in December.
In Case You Missed It
- Pfizer (PFE) and the FDA delayed the company’s emergency request to approve its COVID vaccine for children under 5-years-old. The company had requested the first two doses to be approved while they awaited clinical data for a third dose. But the FDA said they need that data before they will approve the shots. Pfizer expects to release those trial results in April. The first two doses did not produce an adequate immune response in young children.
- The Los Angeles Rams won Super Bowl LVI at home on Sunday. It’s the team’s first Super Bowl win since 1999 and the second in franchise history. The Rams were losing at the start of the 4th quarter and secured the win with a late comeback drive.