Daily Markets: Energy, Tech Stocks in Focus


Today’s Big Picture

Equity indices in the Asia-Pacific ended the trading week on a mixed note with modest gains in Japan’s Nikkei and Australia’s ASX All Ordinaries index. China’s Shanghai Composite lost 1.2% on the day while Hong Kong’s Hang Seng slumped 2.5%, leaving it flat for the week. Weighing on those markets were reports that China would face sanctions if it helps Russia avoid Western sanctions, while separately, U.S. regulators suggested that talks of U.S.-China dual stock listing is “premature.” China also postponed its auto show amid rising Covid cases, and Japan’s Tokyo March CPI hit a six-year high. By mid-day trading, European equity indices are modestly higher, and U.S. futures point to a positive market open later this morning as oil prices look to trend lower yet again.  

The continued decline in oil prices likely reflects U.S. President Joe Biden and European Commission President Ursula von der Leyen announcing the formation of a joint task force to bolster energy security for Ukraine and the EU for next winter and the following one. Yesterday, the European Parliament and EU member states reached a deal on the Digital Markets Act (DMA), a new set antitrust regulations that could reshape the business models of “gatekeeper” tech companies with a market capitalization of at least 75 billion euros ($83 billion) or annual revenues within the EU of at least 7.5 billion euros in the past three years. These “gatekeeper” must also have at least 45 million monthly users or 10,000 business users in the EU. While the legislation has not passed and a final version is yet to be officially adopted by the European Parliament, reports suggest a targeted adoption date as “sometime in October.” Gatekeepers that violate the DMA face potential fines of up to 10% of global revenues and repeat offenders will that increase to 20%. As the final version of the regulations are solidified, we expect to hear much about this in the coming weeks and months, particularly from the likes of Apple (AAPL), Meta (FB), Alphabet (GOOGL), Amazon (AMZN) and others whose business models meet the target criteria. 

Data Download

International Economy

Retail Sales in the U.K. rose 7.0% YoY but fell 0.3% compared to January’s 1.9% MoM gain. Sales in non-store sales fell 4.8% and 0.2% in food stores, with reportedly large falls in alcohol and tobacco stores. Areas of strength in the February data included in non-food stores, particularly for clothing and department stores. 

The Ifo Business Climate indicator for Germany fell to a 14-month low of 90.8 in March vs. 98.9 in February and the expected figure of 94.2. Both the current conditions and expectations components fell sharply as the war in Ukraine weighed while supply chains issues worsened. Reportedly 80.2% of companies faced supply chain issues during the March compared to 74.6% in February. That in turn led to rising price expectations with two-thirds of the companies surveyed willing to increase prices.

Italy’s March Consumer Confidence reading fell to 100.8 in March from 112.4 in the prior month and significantly missing market forecasts of 108.3 amid surging energy bills and uncertainty.

Domestic Economy

We have another relatively quiet day on the domestic economic calendar that see Pending Home Sales for February being reported as well as the final March reading for the University of Michigan Consumer Sentiment Index.


Equities rallied yesterday led by technology stocks as oil prices moved lower on the day and the yield on 30-year treasuries inched lower. The Nasdaq Composite gained 1.9%, the S&P 500 added 1.4% and the Dow Jones Industrial Average rose 1.0%. Including those moves, here’s how the major market indicators stack up on a year-to-date basis:

  • Dow Jones Industrial Average: -4.5%
  • S&P 500: -5.2%
  • Nasdaq Composite: -9.3% 
  • Russell 2000: -7.6%
  • Bitcoin (BTC-USD): -7.5%
  • Ether (ETH-USD): -16.7%

Stocks to Watch

Before trading kicks off for US-listed equities, the lone company expected to report its quarterly results is BRP Inc. (DOOO).  

Shares of Chinese EV company Nio Inc. (NIO) are down in pre-market trading after the company missed December quarter expectations despite revenue for the quarter climbing 49% YoY. Delivered vehicles for the quarter tallied 25,034 vs. 24,439 the prior quarter and 17,353 in the December 2020 one. For the current quarter, Nio sees revenue rising 20.6% YoY, well below the 33.8% consensus forecast.

FedEx (FDXannounced its intention to test electric carts to make deliveries on its signature Express routes in 10 U.S. and Canadian cities throughout 2022. 

Netflix (NFLX) continues to expand its footprint in gaming, announcing the acquisition of Boss Fight Entertainment. Founded in 2013, Boss Flight is best known for mobile game Dungeon Boss, and worked on Zynga’s (ZNGA) CastleVille and Microsoft’s (MSFT) Age of Empires and Rise of Nations.

Air Lease Corporation (AL) announced long-term lease agreements for nine new Boeing (BA) 737 aircraft with Aeromexico. The nine aircraft consist of two new 737-8s and seven new 737-9s, and are scheduled to be delivered between July 2022-August 2023. Amid that good news, reports indicate the US Federal Aviation Administration warned Boeing it may not gain certification of a lengthened version of the 737 MAX ahead of a key safety deadline set by Congress. 

The U.K.’s Competition and Markets Authority has referred NortonLifeLock’s (NLOK) pending acquisition of Avast plc (AVTTY) for an in-depth investigation. 

DigitalBridge Group (DBRG) affiliate, DigitalBridge Investments, LLC is acquiring the mobile telecommunications tower business of Telenet Group Holding NV (TLGHF) for $820 million in cash, on a cash-free and debt-free basis. 


There are no IPO offerings expected to price this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.

After Today’s Market Close

No companies are expected to report their quarterly results. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar

On the Horizon

Monday, March 28

  • US: Wholesale Inventories (Preliminary) – February
  • US:Dallas Federal Reserve Manufacturing Index – March

Tuesday, March 29

  • Germany: Gfk Consumer Confidence – April
  • France: Consumer Confidence Survey – March
  • UK: Bank of England
  • Germany: ZEW Current Situation & Economic Sentiment – March
  • US: FHFA Home Price Index – January 
  • US: Consumer Confidence – March
  • US: JOLTS Job Openings Report – February

Wednesday, March 30

  • Japan: Retail Sales (Preliminary) – February
  • Japan: Import/Export – February
  • Eurozone: Business Climate, Consumer Confidence, Economic Confidence, Industrial Confidence, and Services Confidence Indicators – March
  • Germany: Consumer Price Index – March
  • US: Weekly MBA Mortgage Applications 
  • US: ADP Employment Survey – March
  • US: 4Q 2021 GDP – Final 
  • US: Weekly EIA Crude Oil Inventories

Thursday, March 31

  • Korea: Industrial Production – February
  • Japan: Industrial Production – February
  • China: CFLP Manufacturing & Non-Manufacturing PMI – March
  • Germany: Retail Sales – February
  • UK: 4Q 2021 GDP (Final)
  • Eurozone: Unemployment Rate – February
  • US: Weekly Initial & Continuing Jobless Claims 
  • US: Personal Consumption & Spending – February 
  • US: Chicago PMI – March 
  • US: Weekly EIA Natural Gas Inventories 

Friday, April 1

  • Japan: Tankan Large Manufacturing & Non-Manufacturing Index – 1Q 2022
  • Japan: Markit/JMMA Manufacturing PMI – March
  • China: Markit/Caixin Manufacturing PMI – March
  • Eurozone: Markit PMI Manufacturing – March
  • UK: CIPS Manufacturing PMI – March
  • Eurozone: Consumer Price Index – March
  • US: Employment Report – March 
  • US: Markit Manufacturing PMI – March
  • US: Construction Spending – February 
  • US: ISM Manufacturing Index – March 

Thought for the Day

“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.” – Albert Einstein


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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