Here are five things you must know for Tuesday, February 22:
1. -- Stock Futures Pressured As Russian Tanks Rolls Into Ukraine
U.S. equity futures traded lower Tuesday, while oil prices raced to fresh seven-year highs and Treasury yields retreated, as global markets reacted to Russia's provocative actions in eastern Europe that are likely to result in widespread sanctions from western leaders and escalating military tensions in the region.
Russian President Vladimir Putin said he would recognize the independent sovereignty of two breakaway republics in the Ukraine on Monday, a move that both allows him to annex the pro-Moscow territories with what he called "peacekeeping" troops while simultaneously ruining any near-term chance of negotiating a peaceful settlement in the fast-escalating dispute with Washington.
Global markets reacted in kind, with benchmark 10-year Treasury bond yields falling below the 1.90% mark in overnight trading as investors ploughed cash into safe-haven assets, while oil prices surged closer to the $100 per barrel mark on fears of disruption in natural gas supplies into western Europe and sanctions on Russia's 10.2 million barrels in daily crude exports.
Europe's Stoxx 600 benchmark fell 1% by mid-morning trading in Frankfurt, following on from a 1.6% slump for the region-wide MSCI ex-Japan index.
On Wall Street, futures tied to the Dow Jones Industrial Average are indicating a 90 point opening bell slide while those linked to the S&P 500, which is down 8.8% for the year, are priced for a 10 point retreat.
Nasdaq Composite futures are indicating a 90 point gain for the tech-focused benchmark as 10-year Treasury note yields hold at 1.897% in overnight trading.
2. -- Week Ahead: Retail Earnings In Focus
Retail earnings will highlight a relatively muted slate for corporate and economic updates over the holiday-shortened week, with investors looking to gauge the impact of surging inflation on consumer spending.
Home Depot (HD), Lowe's Companies (LOW), Macy's (M) and TJX (TJX) Companies and EBay (EBAY) will update on holiday-quarter earnings over the next four days as retailers round-out a solid fourth quarter season that has seen collective S&P 500 profits rise 31.8% from last year to a share-weighted $463.3 billion.
That growth rate is set to slow sharply, however, in the current quarter, with collective profits forecast to rise only 6.7% from last year to $435.6 billon as inflation pressures continue to mount and the Federal Reserve begins what many believe will be a multiple series of rates hikes to tame it.
On the data front, investors will get a final look at fourth quarter GDP growth on Thursday, alongside weekly jobless claims, as well as pending home sales and durable goods orders on Friday.
3. -- Oil Prices Surge As U.S. Threatens Sanctions
Global oil prices look set to test the $100 per barrel mark this week following Russia's incursion into the Ukraine amid concern for the disruption of natural gas supplies into western Europe and sanctions on crude exports from Moscow.
Russia's estimated 10.2 million barrels of daily production contributes around a quarter of the total output of OPEC+, the loose alliance of cartel members and their allies, and represents a key component to the global marketplace.
U.S. ambassador to the United Nations Linda Thomas-Greenfield told reporters late Monday that "we can, will, and must stand united in our calls for Russia to withdraw its forces" from the region, adding that "the U.S. will impose sanctions on Russia for this clear violation of international law."
Any crackdown on Russia crude, however, could exaggerate the imbalance between a surge in post-pandemic demand, OPEC's reluctance to boost its current output and the dwindling levels of U.S. domestic supplies.
WTI crude futures for April delivery were marked $2.77 higher on the session at $94.36 per barrel while Brent contract for the same month, the global benchmark, gained $3.29 to trade at $98.67 per barrel in early European dealing.
4. -- Trump's 'Truth Social' App Has Bumpy Apple Store Debut
Truth Social, the social media app launched by former President Donald Trump, faces another test to meet surging customer interest Tuesday following two days of disruptions and wait times in the Apple App Store.
The launch of the app on Presidents' Day marks nearly a year after Trump was permanently suspended from several social media platforms, including Twitter (TWTR), Facebook (FB) and YouTube (GOOGL), following his role in inciting the violent protestors who stormed Capitol Hill on January 6, 2021.
The app, which was developed by Trump Media & Technology Group, is finding technical support and financial backing from the right-wing YouTube rival Rumble, as well as conservative investors such as former Facebook board member Peter Thiel.
Shares in Digital World Acquisition Corp (DWACU), the blank-check company that is planning to merge with Trump Media & Technology Group and list its shares on the Nasdaq, were marked 31.1% higher in pre-market trading to indicate an opening bell price of $110.50 each.
5. -- Elon Musk Steps-Up Attack on SEC-Tesla Probe
Tesla (TSLA) shares moved lower in pre-market trading as founder and CEO Elon Musk appeared to step-up his attack on the Securities and Exchange Commission.
Tesla attorney Alex Spiro, who is also representing Musk, told U.S. District Judge Alison Nathan Monday that the SEC has leaked “certain information regarding its investigation”, adding that "it has become clearer and clearer that the Commission is out to retaliate against my clients for exercising their First Amendment rights."
Last week, Spiro said the SEC's long-running probe is motivated by the billionaire's vocal criticism of U.S. government policy.
Tesla shares were marked 1.22% lower in pre-market trading to indicate an opening bell price of $843.00 each.
