Here are five things you must know for Thursday, April 14:
1. -- Stock Futures Edge Higher As Treasury Yields Ease
U.S. equity futures were little-changed from last night's close in pre-market trading Thursday as investors looked to a key reading of March retail sales, as well as the expiry of more than a $1 trillion dollars in stock options, ahead of the Easter and Passover holiday weekend.
Traders were also tracking a pullback in U.S. Treasury bond yields, which continued into the Thursday session, following Tuesday's reading of March inflation which showed an easing in core consumer prices that suggest inflation may have reached its peak with the the highest headline rate since 1981.
Benchmark 10-year note yields have fallen around 20 basis points from the three-year peak of 2.84% they reached prior to the Tuesday reading, and were last seen at 2.684% in overnight trading.
Bank earnings will also be in focus today, with updates from Goldman Sachs (GS), Morgan Stanley (MS), Wells Fargo (WFC.PRN) and Citigroup (C) all expected prior to the opening bell, following yesterday's softer-than-expected first quarter profit report from JPMorgan Chase (JPM).
S&P 500 companies are expected to see collective profits grow 6.1% from last year to a share-weighted total of $432.2 billion, according to Refinitiv data, a pace that would be down sharply from the 32.1% clip recoded over the final three months of last year.
Further market volatility may come later today from the expiration of around $1.5 trillion in equity options, including nearly $500 billion linked to single stock exposures and around $980 million tied to the S$P 500.
Elsewhere, global oil prices eased modestly in overnight trading, with WTI crude futures falling 73 cents to $103.52 per barrel, following a bigger-than-expected increase of 9.4 million barrels in domestic crude stocks reported yesterday by the energy department.
In Europe, the region-wide Stoxx 600 slipped 0.05% lower ahead of the European Central Bank's latest policy meeting, which is expected to plot out a more detailed path in terms of unwinding its pandemic-era stimulus, but isn't likely to signal any rate increases until later in the fall.
On Wall Street, futures contacts tied to the Dow Jones Industrial Average indicating a modest 65 point opening bell gain while those linked the S&P 500, which is down 1.85% for the month, are priced for a 1 point bump. Futures linked to the tech-focused Nasdaq are looking at a 20 point opening bell move to the upside.
2. -- Retail Sales In Focus As Gas Prices, Inflation, Hammer Spending
American consumers may have been forced to trim some of their discretionary spending last month amid the record surge in gasoline prices, clipping some of the gains from core retail sales, which are expected to be published prior to the start of trading Thursday.
Gasoline prices hit a record high national average of $4.311 in early March, according to AAA data, as oil prices surged in the wake of Russia's invasion of Ukraine. The move will add to the dollar value of gas sales, which are embedded in the headline retail sales reading, but will also likely trim spending in discretionary categories, which have also been hit by the fastest inflation in forty years and the fading of federal government Covid stimulus payments.
Analysts are looking for total retail sales to rise 0.6% from last month, with a higher "ex-autos' tally of +1%, as unit sales from major dealers and OEMs continue to slow from last year.
3. -- Apple Shares Edge Lower in MacBook Delay Reports
Apple (AAPL) shares edged lower in pre-market trading amid reports that shipments of some of the tech giant's key products could be delayed as a results of plant closures and production delays linked to China's Covid surge.
Bloomberg reported late Wednesday that U.S. consumers will face delays in receiving the flagship MacBook Pro laptop as China struggles to control its recent outbreak and defends its 'zero Covid' policies that have shuttered plants and factories, while locking down entire cities, over the past few weeks.
Other reports note that Taiwan-based Pegatron, a major iPhone manufacturer, has suspended production at two of its China-based plants, including one in Shanghai, as Chinese authorities extend their restrictions on factories and businesses in the country's biggest city.
Apple shares were marked 0.14% lower in pre-market trading to indicate an opening bell price of $170.16 each.
4. -- Amazon Plans Fuel Surcharge As Operating Expenses Continue to Rise
Amazon (AMZN) said late Wednesday it will impose a fuel-related 'surcharge' on goods that move through its U.S. fulfillment centers as the world's biggest online retailer looks to pass on some of its surging input costs.
Amazon, which boosted the price of its Prime membership costs earlier this year, will impose a 24 cents per-unit cost on its merchants, starting on April 28, and goods that are stored and shipped through Fulfillment by Amazon.
Amazon said its fourth quarter operating expenses were up 13% from last year to $133.95 million, a record high that was linked largely to labor and shipping cost increases.
"We have experienced significant cost increases and absorbed them, wherever possible, to reduce the impact on our selling partners," Amazon said in a message to merchants. "In 2022, we expected a return to normalcy as COVID-19 restrictions around the world eased, but fuel and inflation have presented further challenges."
Amazon shares were marked 0.1% lower in pre-market trading to indicate an opening bell price of $3,108.00 each.
5. -- UnitedHealth Shares Bump Higher After Q1 Profit Beat
UnitedHealth Group (UNH) shares edged higher in pre-market trading after it posted better-than-expected first quarter earnings Thursday, while boosting its full-year profit forecast, as revenues from its healthcare solutions division Optum paced topline gains.
UnitedHealth said adjusted profits for the three months ended in March came in at $5.49 a share, up 3.4% from the same period last year and 12 cents ahead of the Wall Street consensus forecast of $5.37 per share. Group revenue, UnitedHealth said, rose 14% to $80.1 billion, again topping analysts' estimates of a $78.8 billion tally, while Optum revenue rose 19% to $43.1 billion.
"Disciplined execution of our long-term strategy, with a sharp focus on ensuring access to care for the people we serve, enabled us to deliver high-quality, diversified growth across Optum and UnitedHealthcare during this first quarter of 2022,” said CEO Andrew Witty.
UnitedHealth shares were marked 0.6% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $540.00
