Stocks Retreat as Iran Strike Reports Lift Energy Prices

Equity market declines have accelerated overnight on reports that the US is preparing to launch a new round of military strikes against Iran, while Energy prices are climbing sharply. Earnings season, meanwhile, is off to a positive start, with PepsiCo beating Street expectations. Bonds and Currencies are quiet so far.

NASDAQ futures are down 0.6%, while Dow futures are down 0.7%. Overseas, the Nikkei and Hang Seng both fell 1.4%. In Europe, the DAX is down 0.8%, while the FTSE is down 0.1%.

PepsiCo’s sales and earnings exceeded expectations, with EPS of $2.34 beating the Street’s $2.29 forecast and International sales outpacing North American sales. Shares are up 1.7% in premarket trading despite a reduction in sales guidance.

Crude Oil is up 4.5%, retaking $90.00/bbl and approaching $92.50/bbl, while Brent Crude is also up 4.5%, rallying towards $105.00/bbl. Gasoline has gained 4.0% to trade near $3.35/gallon. Metals are mixed, with Gold up 0.2% near $4,150/oz, Copper down 0.1% near $6.65/lb, and Silver down 2.0%.

US Treasury yields are steady, with the 10-year near 5.35% and the 30-year near 5.70%. The US Dollar Index, Euro, and Loonie are also little changed.

Looking ahead, Aritzia reports after today’s close, followed by Delta Air Lines and Canada’s employment report on Friday morning. Earnings season ramps up Monday, with several major US banks set to report.

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