Stocks Bounce, Gold, Gas, Tesla and Bitcoin – Five Things To Know

Here are five things you must know for Tuesday, March 8:

1. — Stock Futures Bounce From Correction Lows, Oil Extends Surge

U.S. equity futures edged higher Tuesday, with investors remaining focused on the surge in global crude prices and the broader commodity complex, as global markets continue to count the costs from Russia’ invasion of Ukraine.

As fighting enters its thirteenth day in the war-torn region, the UN high commissioner for refugees said Tuesday that more than 2 million people have been displaced, with the government establishing its first formal evacuation route from the eastern city of Sumy.

Russian forces have, however, reportedly suffered severe losses in the fighting, including two senior army generals, as soldier continue to advance towards the Ukrainian capital.

Oil prices continued their overnight climb, with crude testing $127 per barrel, after Deputy Prime Minister Alexander Novak warned that Russia could cut off gas supplies to western Europe if leaders join a U.S.-lead boycott of Russia energy exports.

WTI futures for April delivery were marked $2.88 higher at $122.28 per barrel while Brent contracts for May surged $3.08 to $126.26 per barrel during London trading.

In U.S. markets, where the CBOE’s VIX volatility gauge remains stuck near the highest levels in more than a year, investors are looking to support stocks following last night’s slump into correction territory for the Dow and the S&P 500, as well as the confirmed bear market close for the tech-focused Nasdaq.

Futures contracts linked to the Dow Jones Industrial Average are priced for a modest 95 point opening bell gain while those linked to the S&P 500, which is down 11.8% for the year, are priced for a 20 point bump.

Nasdaq Composite futures are indicating a 32 point gain as Apple (AAPL) – Get Apple Inc. Report and Tesla (TSLA) – Get Tesla Inc Report book pre-market gains, but the advance was limited as 10-year Treasury note yields rose to 1.844% in overnight trading.

2. — Gold Tops $2,000 As Commodity Prices Soar

Gold prices topped $2,000 an ounce in overnight trading, testing the highest levels in more than two years, as investors continue to drive cash into safe-haven assets as Russia troops advance their march on Kyiv.

Spot gold prices have risen more than 9.6% so far this year, in fact, despite a hawkish pivot from the Federal Reserve on interest rates that has boosted bets on near-term rate hikes and increased the return prospects on yield-driven U.S. assets.

Gold’s advance, however, comes amid an impressive surge in global commodity prices triggered by the war’s broader impact, with nickel, wheat, palladium and other raw materials notching their strongest year-to-date gains in more than a century, according to data compiled by Bank of America’s weekly ‘Flow Show’ report.

Gold prices were last seen 0.3% higher from Monday’s close and trading at $2,004.10 per ounce. Gold’s all-time high of $2,067.15 was printed in August of 2020.

3. — Gas Prices Hit Record High, Surge May Last ‘For Months’

U.S. gasoline prices are set for another day of record highs Tuesday as crude prices push higher amid plans for a U.S.-lead boycott of Russian crude exports.

The White House has indicated that it may go it alone in shunning the 5 million to 7 million barrels of Russian crude sold on global markets each day – although that figure represents on a small total of overall U.S. imports.

In the meantime, OPEC’s reluctance to increase monthly production rates from its cartel members, the lowest levels of domestic crude supplies in more than two years and a threat from Russia’s Deputy Prime Minister to shut off gas supplies to western Europe have all carried crude prices to the highest levels in more than a decade.

At the pumps, the average cost for a gallon of gas hit an all-time high of $4.104 yesterday, according to the consumer website Gasbuddy.com, topping the $4.103 level set during the peak of the global financial crisis in 2008.

“Americans have never seen gasoline prices this high, nor have we seen the pace of increases so fast and furious,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “It’s a dire situation and won’t improve any time soon. The high prices are likely to stick around for not days or weeks, like they did in 2008, but months.”

4. — Bitcoin Edges Higher Ahead of Biden Order on Crypto Study

Bitcoin prices edged higher Tuesday as investors braced for an executive order from President Joe Biden that would set out his administration’s strategy for dealing with cryptocurrencies in the broader financial markets.

Reports suggest Biden is ready to sign an order that would direct the Justice Department, as well as the U.S. Treasury, to study the impact of a central-bank issued digital currency.

It may also recommend tighter regulation for existing markets for digital currencies — such as bitcoin and ethereum — after the Financial Crimes Enforcement Network cautioned Monday that they could be used to avoid sanctions imposed on financial assets and other commercial entities in Russia.

Bitcoin prices were marked 3.55% higher on the session at $38,950 each in overnight trading, a move that still leaves the world’s biggest cryptocurrency down 18.4% for the year.

5. — Tesla China Sales Hold Steady, Shares Gain

Tesla (TSLA) – Get Tesla Inc Report shares moved modestly higher pre-market trading after official data showed solid gains for the carmaker’s February sales in China.

The China Passenger Car Association (CPCA) said Tuesday that Tesla sold 56,515 domestically-made vehicles last month, including 33,315 for export. The headline tally was more than double the pace of sales recorded last year, but down around 5.6% from January levels.

Overall passenger car sales were up 4.7% to 1.27 million units, the CPAC said, with Tesla rival Nio (NIO) – Get NIO Inc. (China) Report delivering 6,131 vehicles — a 10% year-on-year increase — and Xpeng delivering 6,225 vehicles.