Coffee With Greta: EU Split on Russian Oil Ban
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DJIA Futures: +143, (+0.4%)
SPX Futures: +11 (+0.2%)
NASDAQ Futures: +7 (+0.1%)
Good morning friends!
Futures are higher as the market weighs hawkish comments from the Fed Chair. Meanwhile, the European Union is split on a Russian oil ban.
Let’s get right to it!
EU Leaders Split on Russian Oil Ban
Oil prices are up slightly as officials in the European Union have been unable to agree on a potential oil embargo against Russia.
West Texas Intermediate crude futures are up just 0.5% at $112.65 per barrel with Brent crude futures rising 0.9% to $116.71 per barrel.
Some EU countries say the bloc is too dependent on Russian energy to withstand a ban.
The American Petroleum Institute is set to release its supply report later today which is not expected to show any change in crude inventory in the U.S.
Tesla to Open German Gigafactory
Tesla (TSLA) shares are up 0.6% ahead of the open as the electric automaker prepares to open its new gigafactory in Germany.
CEO Elon Musk will cut the red ribbon at Giga Berlin today.
In a tweet, he said he was “excited to hand over the first production cars” made at the factory.
Excited to hand over the first production cars made by Giga Berlin-Brandenburg tomorrow!
— Elon Musk (@elonmusk) March 21, 2022
The automaker sees the factory producing up to 500,000 vehicles annually.
Alibaba Pops After Upping Buyback Program
Alibaba (BABA) shares are surging 9.6% in premarket trade after increasing the size of its share buyback program.
The company will now buyback $25 billion worth of shares by March 2024.
That’s up from the previous $15 billion.
In a statement, Alibaba’s Deputy Chief Financial Officer said, “Alibaba’s stock price does not fairly reflect the company’s value given our robust financial health and expansion plans”.
Nike Jumps on Earnings Beat
Nike (NKE) shares are up 5% ahead of the open after beating fiscal Q3 expectations.
The sportswear company reported earnings of $0.87 per share on $10.87 billion in revenue.
That topped analysts’ expectations for EPS of $0.71 on $10.59 billion in revenue.
Sales rose 9% year-over-year in North America amid strong demand from consumers returning to stores.
Nike’s CEO said, “Marketplace demand continues to significantly exceed available inventory supply”.
Powell Says Inflation is Too High
Fed Chair Jerome Powell vowed to be tough on inflation Monday, admitting the Central Bank “widely underestimated” how long it would last.
In a speech at the National Association for Business Economics Conference, Powell said, “The labor market is very strong, and inflation is much too high”.
He said the Central Bank will continue on its path of interest rate hikes to combat those inflation pressures and they’re willing to be aggressive if needed.
Powell said the Fed is open to larger rate hikes than 25 basis points and is willing to move rates past neutral and “into a more restrictive stance” if needed.
The Dow snapped a 5-day winning streak Monday following those hawkish comments from Powell.
In Case You Missed It
- Boeing (BA) shares fell 3.6% Monday after a 737-800 crash in China. China’s aviation authority confirmed the plane, operated by China Eastern Airlines, crashed with 132 people on board in the mountains of southern China Monday. Officials say there are no signs of any survivors. Boeing said it is ready to assist in the investigation.
- Alleghany (Y) shares surged 24.8% Monday after Berkshire Hathaway (BRK.A) announced it’s buying the insurance company. Berkshire will buy the company in an all-cash $11.6 billion deal. This is Warren Buffett’s biggest acquisition since 2016. Alleghany will still operate independently after the acquisition.