March 1, 2022

Markets:

U.S. stock futures pointed to a rough start to March for the equity market as oil prices surged and investors continue to monitor the fighting between Russia and Ukraine.

The decline in index futures came as satellite cameras captured a convoy of Russian military vehicles apparently on its way to Kyiv, the Ukrainian capital.

The continued aggression from Russia pushed energy prices higher. West Texas Intermediate crude futures jumped 5% on Tuesday morning, breaking above $101 per barrel and hitting its highest level in seven years. The rise in energy prices added to inflation fears in the U.S. and Europe.

Treasury yields were mostly lower, with the benchmark 10-year note most recently at 1.73%. Yields move opposite prices, so the decline represents a rush into safe-haven bonds amid the stock market turmoil.

Monday also marked the final trading day of February. The Dow lost 3.5% for the month. The S&P 500 and Nasdaq fell 3.1% and 3.4%, respectively.

As corporate earnings season winds down, cloud giant Salesforce reports results after the close. On the economic front, February’s Markit Manufacturing PMI will be released at 9:45 a.m. on Tuesday. ISM manufacturing PMI for February will be out at 10 a.m.

Portfolio:

We enter today's session holding positions in AEHR, PENN, EQNR, NOV, and ITRM. Portfolio looks strong in premarket overall.  We will most likely be adding today so please be ready.  We love the start of a new month.  As we've been stating, queue is igniting and we have not even entered the best period yet for traders.  Be ready and let's have a great session.