Tuesday's Close

E-mini S&P 500 Futures (June): Settled at 4155.50, down 20.75

E-mini Nasdaq-100 Futures (June): Settled at 13,897.25, down 132.25

U.S. benchmarks still pointed lower ahead of the bell and several macro narratives have been weighing on the tape. Still, all things considered, this is a very expected pullback after the S&P and NQ both went a little too far, a little too quickly. 

Although Covid-19 cases from India to Japan and other parts of the world continue to accelerate, the 7-day moving average in the U.S. dropped for the 5th day in a row yesterday. Japan’s Nikkei is on a 2-day, 3.5% slide. 

Geopolitical factors are also in the mix. Chinese President Xi, in a speech, directed friction toward the U.S., calling for “fairer world order.” Japan’s Prime Minister Suga visited President Biden at the White House last week and together released a joint statement calling for “peace and stability” in Taiwan. Shortly after, China carried out aerial bombing drills in a show of strength. 

Separately, Russia is amassing its largest military presence ever on the Ukrainian border, reaching an estimate of 150,000 troops. Russia also bombed Syria yesterday, reportedly “killing 200 terrorists.” Russian President Putin is expected to speak later today at President Biden’s climate conference, and it’s uncertain whether this is a sign of diplomacy or aggression.

On the earnings front, Johnson & Johnson and Procter & Gamble both beat top and bottom-line estimates. Lockheed Martin beat on earnings, but revenues fell short. All 3 stocks were lower ahead of the bell. Netflix reports after the closing bell.