U.S. stock futures were trending lower on Monday as a surge in oil prices triggered fears of a spike in inflationary pressures. The U.S. sparked some of those fears when Secretary of State Antony Blinken announced they are in talks with European governments to ban Russian crude and natural gas.
Dow futures (DJIA) were down 1.51%, S&P futures (SPX) were down 1.57% and Nasdaq futures (NDX) were down 1.67% at the time of writing.
Futures edged lower amid concern that higher oil prices will negatively impact the global economy, which is trying to bounce back from COVID-19 shocks. Geopolitical tensions in Europe continue to weigh heavily on equities, despite positive economic data out of the U.S. On Friday, the Bureau of Labor Statistics said the U.S. economy added 678,000 jobs in February, topping expectations of 440,000.
Upcoming Earnings
Air Industries Group (AIRI), Independence Contract Drilling (ICD), and Squarespace (SQSP) are set to report their quarterly results before the bell. Rover Group (ROVR), Owlet (OWLT), and Intrepid Potash Inc. (IPI) will report after the bell.
Market News
Sony Group (SONY) has teamed up with Honda Motor Company (HMC) as part of a joint venture to develop and sell battery-powered electric vehicles. As part of this venture, Honda will develop the first battery-powered electric model, expected to go on sale in 2025. Sony is tasked with developing a mobility service platform, having explored ways of becoming a key player in the automobile industry.
Microsoft Corp. (MSFT) has suspended the new sales of its products and services in Russia amid the ongoing invasion of Ukraine. In a blog post, President Brad Smith said they are working with the U.S., the U.K., and the European Union to comply with the sanctions against Russia. Separately, the company has completed the acquisition of software firm Nuance Communications.
Hibbett Sports, Inc. (HIBB) delivered weaker-than-expected fourth-quarter results despite experiencing a strong holiday season. The fashion retailer delivered Q4 diluted earnings of $1.25 a share, lower than the $1.35 a share that analysts expected. Net sales in the quarter landed at $383.35 million, missing analysts’ estimates of $383.72 million.
Shell (SHEL) is facing criticism for purchasing 100,000 metric tons of heavily discounted Russian oil. In its defense, the company insists it will donate all the profits from the controversial purchase to help support humanitarian aid in Ukraine, reports CNBC.
Shares of Electric Last Mile Solutions (ELMS) fell 7.73% after the company announced plans to lay off 24% of its staff to streamline its core business. Reuters reports the lay-offs are intended to make the embattled commercial electric vehicle maker leaner. However, the company has yet to confirm the cost savings from the cuts.
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