U.S. Stock Futures Are Lower Despite Initial Post Report Rise

U.S. stock futures are lower:   February payrolls increased 678,000 versus 440,000 consensus. The unemployment rate declined to 3.8%.  Futures have risen post report but still down in morning trading and the 10y yields is inching lower.  Energy prices continue to remain elevated and Powell’s comments from yesterday reinforced a potential 25 bps increase next month.  Next week inflation numbers will be released.  European markets are down as the Russian invasion intensifies and Asian equities closed lower.  Credit spreads are wider but eased back over the last week.  The funding markets for corporate bonds were initially tighter in the opening days of the Russian invasion but has opened up and the new issue market is active.  Overall, the U.S funding markets are fairly resilient and limited possible contagion from Russian related sanctions.