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Globe and Mail
05-05-2025
- Business
- Globe and Mail
Stocks Set to Open Lower as Trade Concerns Resurface, Fed Meeting and Earnings in Focus
June S&P 500 E-Mini futures (ESM25) are down -0.75%, and June Nasdaq 100 E-Mini futures (NQM25) are down -1.02% this morning, pointing to a lower open on Wall Street as uncertainty about U.S. trade policy weighed on investors' risk appetite. U.S. President Donald Trump on Sunday announced a 100% tariff on foreign-produced films imported into the U.S., tempering last week's optimism about a potential easing of trade tensions. Also, President Trump stated that he had no plans to speak with his Chinese counterpart, Xi Jinping, this week, though he indicated that trade agreements with other unspecified partners could be announced as early as this week. This week, investors look ahead to the Federal Reserve's interest rate decision as well as a fresh batch of U.S. economic data and corporate earnings reports. In Friday's trading session, Wall Street's major equity averages closed higher, with the S&P 500 and Nasdaq 100 notching 5-week highs and the Dow posting a 1-month high. DexCom (DXCM) surged over +16% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the medical devices maker reported better-than-expected Q1 revenue. Also, chip stocks rallied, with Arm Holdings (ARM) climbing more than +6% and ON Semiconductor (ON) gaining over +5%. In addition, Duolingo (DUOL) soared more than +21% after the mobile learning platform posted upbeat Q1 results and raised its full-year bookings guidance. On the bearish side, Apple (AAPL) fell over -3% and was the top percentage loser on the Dow after the iPhone maker reported weaker-than-expected revenue from Greater China in FQ2. The U.S. Labor Department's report on Friday showed that nonfarm payrolls rose 177K in April, stronger than expectations of 138K. Also, U.S. April average hourly earnings rose +0.2% m/m and +3.8% y/y, weaker than expectations of +0.3% m/m and +3.9% y/y. In addition, the U.S. unemployment rate was unchanged at 4.2% in April, in line with expectations. Finally, U.S. March factory orders rose +4.3% m/m, slightly weaker than expectations of +4.4% m/m. 'A lot of people — based on Liberation Day and the events since — have forecast economic Armageddon, and every time economic Armageddon doesn't happen, it's good news. Maybe it's just too early. A lot of the phenomenon that people fear haven't really had time to sink into the data yet,' said Lawrence Creatura, a fund manager at PRSPCTV Capital LLC. The U.S. Federal Reserve's interest rate decision and Chair Jerome Powell's post-policy meeting press conference will take center stage this week. The central bank is widely expected to keep the Fed funds rate unchanged in a range of 4.25% to 4.50%, despite recent pressure from President Trump to lower interest rates. Market watchers' attention will be on any indications of whether rates might be lowered later this year to support the economy amid tariff-related pressures. The Fed is growing more concerned about economic growth and will likely 'cut interest rates as soon as it can be reasonably sure that inflation is not spiraling out of control,' according to Commerzbank analysts. First-quarter corporate earnings season continues, and investors await new reports from notable companies this week, including Advanced Micro Devices (AMD), Arm (ARM), Palantir Technologies (PLTR), Arista Networks (ANET), Uber Tech (UBER), Ford (F), Walt Disney (DIS), Applovin (APP), DoorDash (DASH), and Shopify (SHOP). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year. In addition, investors will continue to monitor economic data for signs of how tariffs and the uncertainty they create are affecting economic activity. This week's noteworthy data releases include U.S. Unit Labor Costs (preliminary), Nonfarm Productivity (preliminary), Initial Jobless Claims, Wholesale Inventories, Exports, Imports, Trade Balance, and Consumer Credit. On Friday, the Fed's blackout period ends, with Fed officials Williams, Kugler, Goolsbee, Waller, and Cook set to deliver remarks. Today, investors will focus on the U.S. ISM Non-Manufacturing PMI and S&P Global Services PMI, set to be released in a couple of hours. Economists forecast the April ISM services index to be 50.2 and the S&P Global services PMI to be 51.4, compared to the previous values of 50.8 and 54.4, respectively. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.324%, up +0.09%. The Euro Stoxx 50 Index is up +0.11% this morning as investors monitor developments on the trade front and await monetary policy decisions from several central banks in the region. U.S. President Donald Trump said he had no plans to speak with his Chinese counterpart, Xi Jinping, this week, though he signaled openness to lowering tariffs on Chinese imports to help reinvigorate trade momentum. Energy stocks underperformed on Monday as crude oil prices plunged after OPEC+ agreed to further increase output. A survey released on Monday showed that investor morale in the Eurozone rebounded more sharply than anticipated in May after Trump's tariffs led to a sharp decline in sentiment across the bloc last month. 'This is remarkable, as it shows that investors have largely abandoned the recession fears they expressed last month,' said Sentix in a statement. Meanwhile, investors are awaiting the Bank of England's monetary policy decision on Thursday. The BoE is widely expected to lower its benchmark rate by 25 basis points to 4.25% amid recent softer inflation data and falling energy prices. Investors will also focus on the monetary policy decisions from Norges Bank and Riksbank on Thursday. In corporate news, Erste Group Bank AG ( climbed over +5% after the Austrian lender agreed to buy around a 49% stake in Poland-based Santander Bank Polska and 50% of Polish asset manager Santander TFI. Eurozone's Sentix Investor Confidence Index was released today. Eurozone May Sentix Investor Confidence Index came in at -8.1, stronger than expectations of -14.9. Financial markets in Japan and China were closed for holidays. China's Shanghai Composite Index was closed today for the Labor Day holiday. Mainland China's financial markets will reopen on Tuesday. Japan's Nikkei 225 Stock Index was closed today for the Children's Day holiday. Financial markets in Japan will remain closed on Tuesday in observance of Greenery Day. The markets will reopen on Wednesday. Pre-Market U.S. Stock Movers Berkshire Hathaway (BRK.A) dropped more than -2% in pre-market trading after legendary investor Warren Buffett said he would step down as CEO of the conglomerate at the end of the year. Netflix (NFLX) slumped over -3% and Walt Disney (DIS) fell more than -1% in pre-market trading after President Trump on Sunday announced a 100% tariff on foreign-produced films imported into the U.S. Energy stocks are falling in pre-market trading, with the price of WTI crude down more than -2% after OPEC+ agreed to further increase output. Exxon Mobil (XOM), Devon Energy (DVN), Occidental Petroleum (OXY), and Schlumberger (SLB) are down more than -2%. Microsoft (MSFT) slid over -1% in pre-market trading after Phillip Securities downgraded the stock to Accumulate from Buy. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Monday - May 5th Palantir (PLTR), Vertex (VRTX), Williams (WMB), CRH (CRH), Realty Income (O), Cummins (CMI), Ford Motor (F), Diamondback (FANG), Ares Management (ARES), BioNTech (BNTX), Tyson Foods (TSN), Zimmer Biomet (ZBH), Coterra Energy (CTRA), Loews (L), ON Semiconductor (ON), Clorox (CLX), Corebridge Financial (CRBG), Sun (SUI), Aecom Technology (ACM), CNA Financial (CNA), Neurocrine (NBIX), BWX Tech (BWXT), Bellring (BRBR), Hims Hers Health (HIMS), TIM Participacoes (TIMB), Henry Schein (HSIC), Fabrinet (FN), Corcept (CORT), Regal Beloit (RRX), Bright Horizons (BFAM), Vornado (VNO), Lattice (LSCC), TG (TGTX), JBTMarel (JBTM), Viper Energy Ut (VNOM), Axsome Therapeutics Inc (AXSM), Air Lease (AL), Mattel (MAT), Celanese (CE), Sterling Construction (STRL), Sterling Construction (STRL), Inspire Medical Systems (INSP), One Gas Inc (OGS), Paymentus (PAY), Mueller Water Products (MWA), Cabot Corp (CBT), Sabra (SBRA), Palomar (PLMR), Kilroy (KRC), Golub (GBDC), Freshpet Inc (FRPT), Matson (MATX), Inter Parfums (IPAR), Primoris (PRIM), National Health Investors (NHI), Dorman (DORM), Otter Tail (OTTR), Black Stone Minerals (BSM), National Storage Affiliates Trust (NSA), IAC/InterActiveCorp (IAC), Titan America (TTAM), Twist Bioscience (TWST), Recursion Pharmaceuticals (RXRX), Certara (CERT), Park Hotels & Resorts (PK), Tidewater (TDW), Addus (ADUS), Crescent Energy (CRGY), BioCryst (BCRX), Atlas Energy Solutions (AESI), Upwork (UPWK), Playa Hotels & Resorts (PLYA).
Globe and Mail
02-05-2025
- Business
- Globe and Mail
Stock Index Futures Gain on U.S.-China Trade Optimism, Jobs Report in Focus
June S&P 500 E-Mini futures (ESM25) are up +0.44%, and June Nasdaq 100 E-Mini futures (NQM25) are up +0.30% this morning as sentiment got a boost after China said it is assessing the possibility of trade talks with the U.S., with the focus now shifting to the key U.S. payrolls report. China's Commerce Ministry stated on Friday that it had observed senior U.S. officials repeatedly voicing their readiness to engage with Beijing on tariffs, and called on Washington to demonstrate 'sincerity' toward China. 'The U.S. has recently sent messages to China through relevant parties, hoping to start talks with China. China is currently evaluating this,' the ministry added. However, disappointing earnings from Apple and Amazon limited gains in stock index futures. Apple (AAPL) fell over -2% in pre-market trading after the iPhone maker reported weaker-than-expected FQ2 sales in China. Also, (AMZN) slid more than -2% in pre-market trading after the world's largest online retailer provided a below-consensus Q2 operating income forecast. In yesterday's trading session, Wall Street's major indices closed in the green, with the S&P 500 and Dow notching 4-week highs and the Nasdaq 100 posting a 5-week high. Microsoft (MSFT) surged over +7% and was the top percentage gainer on the Dow after the world's largest software maker reported stronger-than-expected FQ3 results and provided an upbeat FQ4 revenue growth forecast for the Azure cloud unit. Also, Meta Platforms (META) climbed more than +4% after the maker of Facebook and Instagram posted upbeat Q1 results. In addition, Nvidia (NVDA) gained over +2% after Bloomberg reported that the U.S. was considering a possible relaxation of restrictions on the chipmaker's sales to the United Arab Emirates. On the bearish side, Becton Dickinson & Co. (BDX) tumbled more than -18% and was the top percentage loser on the S&P 500 after cutting its annual adjusted EPS guidance. Also, Qualcomm (QCOM) slumped over -8% and was the top percentage loser on the Nasdaq 100 after the mobile chip designer provided a tepid FQ3 revenue forecast. Economic data released on Thursday showed that the U.S. ISM manufacturing index fell to a 5-month low of 48.7 in April, though it came in above expectations of 48.0. Also, U.S. March construction spending unexpectedly fell -0.5% m/m, weaker than expectations of +0.2% m/m and the largest decline in 6 months. In addition, the number of Americans filing for initial jobless claims in the past week rose +18K to a 2-month high of 241K, compared with the 224K expected. Meanwhile, U.S. rate futures have priced in a 93.2% probability of no rate change and a 6.8% chance of a 25 basis point rate cut at next week's FOMC meeting. On the earnings front, notable companies like Exxon Mobil (XOM), Chevron (CVX), Cigna (CI), and Apollo Global Management (APO) are slated to release their quarterly results today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year. Today, all eyes are focused on the U.S. monthly payroll report, which is set to be released in a couple of hours. Economists, on average, forecast that April Nonfarm Payrolls will come in at 138K, compared to the March figure of 228K. U.S. Average Hourly Earnings data will also be closely watched today. Economists expect April figures to be +0.3% m/m and +3.9% y/y, compared to the previous numbers of +0.3% m/m and +3.8% y/y. U.S. Factory Orders data will be released today. Economists foresee this figure coming in at +4.4% m/m in March, compared to the previous number of +0.6% m/m. The U.S. Unemployment Rate will be reported today as well. Economists forecast that this figure will remain steady at 4.2% in April. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.202%, down -0.69%. The Euro Stoxx 50 Index is up +1.35% this morning as signs of a possible easing in U.S.-China trade tensions boosted sentiment, while investors digest a wave of corporate earnings reports and key economic data from the region. Mining and bank stocks led the gains on Friday. The benchmark index is on track to end the week higher. Preliminary data from Eurostat released on Friday showed that the Eurozone's headline inflation remained slightly above the European Central Bank's target in April, while underlying inflation picked up more than expected, likely causing concern among some ECB policymakers. Separately, a survey showed that Eurozone manufacturing output expanded at the quickest rate in just over three years in April, despite overall factory activity staying in contraction territory, as the region's three largest economies showed signs of improvement. In corporate news, Shell Plc ( rose over +3% after the oil major posted better-than-expected Q1 profit and announced a $3.5 billion share buyback. Also, Danske Bank A/S ( gained more than +2% after Denmark's biggest lender reported stronger-than-expected Q1 profit and reaffirmed its full-year profit guidance. In addition, Airbus SE ( climbed over +4% after the planemaker posted upbeat quarterly results and reaffirmed its full-year guidance. Eurozone's Manufacturing PMI, Eurozone's CPI (preliminary), Eurozone's Core CPI (preliminary), and Eurozone's Unemployment Rate were released today. Eurozone April Manufacturing PMI stood at 49.0, stronger than expectations of 48.7. Eurozone April CPI came in at +2.2% y/y, stronger than expectations of +2.1% y/y. Eurozone April Core CPI arrived at +2.7% y/y, stronger than expectations of +2.5% y/y. Eurozone March Unemployment Rate was 6.2%, weaker than expectations of 6.1%. Japan's Nikkei 225 Stock Index (NIK) closed up +1.04%, while mainland China's financial markets were closed for a holiday. Japan's Nikkei 225 Stock Index closed higher today on positive comments from the nation's chief trade negotiator. A weaker yen also boosted appetite for Japanese stocks. In addition, optimism surrounding potential trade talks between China and the U.S. bolstered sentiment across the region. Pharmaceutical and chemical stocks led the gains on Friday. The benchmark index posted its seventh consecutive session of gains, marking its longest winning streak since August 2023. It also notched a third consecutive weekly gain. Japan's top trade representative, Ryosei Akazawa, stated on Thursday that he aims to reach a trade agreement with the U.S. in June, with the high-stakes bilateral talks anticipated to speed up in mid-May. His remarks followed the conclusion of the latest round of talks in Washington. Meanwhile, Japan's Finance Minister Katsunobu Kato said the country's U.S. Treasury holdings could be a card in its trade talks with Washington. 'Whether or not we use that card is a different decision,' he added. On the economic front, government data released on Friday showed that Japan's unemployment rate unexpectedly edged up in March. In corporate news, Yamato Holdings climbed over +5% after the package delivery services provider issued strong full-year operating profit guidance. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.87% to 26.74. The Japanese March Unemployment Rate was 2.5%, weaker than expectations of 2.4%. China's Shanghai Composite Index was closed today for the Labor Day holiday. Mainland China's financial markets will reopen on Tuesday, May 6th. Pre-Market U.S. Stock Movers Apple (AAPL) fell over -2% in pre-market trading after the iPhone maker reported weaker-than-expected FQ2 sales in China. (AMZN) slid more than -2% in pre-market trading after the world's largest online retailer provided a below-consensus Q2 operating income forecast. Atlassian (TEAM) tumbled over -16% in pre-market trading after the collaboration and productivity software firm issued weak FQ4 revenue guidance. Reddit (RDDT) climbed more than +8% in pre-market trading after the company posted upbeat Q1 results and gave strong Q2 revenue guidance. Block (XYZ) plummeted over -21% in pre-market trading after the digital-payments company reported weaker-than-expected Q1 results and cut its full-year gross profit guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Friday - May 2nd Exxon Mobil (XOM), Chevron (CVX), Eaton (ETN), Cigna (CI), Apollo Global Management (APO), Natwest Group (NWG), Imperial Oil (IMO), DuPont De Nemours (DD), Cboe Global (CBOE), T Rowe (TROW), Brookfield Renewable (BEP), Westlake Chemical (WLK), Magna Intl (MGA), Franklin Resources (BEN), nVent Electric (NVT), The AES (AES), Fluor (FLR), United States Cellular (USM), Brookfield Business (BBU), Madison Square Garden Sports (MSGS), Piper Sandler (PIPR), Telephone&Data Systems (TDS), Cinemark (CNK), Brightspring Health Services (BTSG), Atmus Filtration Tech (ATMU), The Wendy's Co (WEN), Amneal Pharma (AMRX), Terex (TEX), Arbor (ABR), Criteo Sa (CRTO), Patria Investments (PAX), Perella Weinberg Partners (PWP), WisdomTree (WT), Xenia Hotels & Resorts (XHR), Interface (TILE).
Globe and Mail
02-05-2025
- Business
- Globe and Mail
Stock Index Futures Gain as China Mulls Trade Talks, U.S. Jobs Report in Focus
June S&P 500 E-Mini futures (ESM25) are up +0.30%, and June Nasdaq 100 E-Mini futures (NQM25) are up +0.17% this morning as sentiment got a boost after China said it is assessing the possibility of trade talks with the U.S., with the focus now shifting to the key U.S. payrolls report. China's Commerce Ministry stated on Friday that it had observed senior U.S. officials repeatedly voicing their readiness to engage with Beijing on tariffs, and called on Washington to demonstrate 'sincerity' toward China. 'The U.S. has recently sent messages to China through relevant parties, hoping to start talks with China. China is currently evaluating this,' the ministry added. However, disappointing earnings from Apple and Amazon limited gains in stock index futures. Apple (AAPL) fell over -2% in pre-market trading after the iPhone maker reported weaker-than-expected FQ2 sales in China. Also, (AMZN) slid more than -2% in pre-market trading after the world's largest online retailer provided a below-consensus Q2 operating income forecast. In yesterday's trading session, Wall Street's major indices closed in the green, with the S&P 500 and Dow notching 4-week highs and the Nasdaq 100 posting a 5-week high. Microsoft (MSFT) surged over +7% and was the top percentage gainer on the Dow after the world's largest software maker reported stronger-than-expected FQ3 results and provided an upbeat FQ4 revenue growth forecast for the Azure cloud unit. Also, Meta Platforms (META) climbed more than +4% after the maker of Facebook and Instagram posted upbeat Q1 results. In addition, Nvidia (NVDA) gained over +2% after Bloomberg reported that the U.S. was considering a possible relaxation of restrictions on the chipmaker's sales to the United Arab Emirates. On the bearish side, Becton Dickinson & Co. (BDX) tumbled more than -18% and was the top percentage loser on the S&P 500 after cutting its annual adjusted EPS guidance. Also, Qualcomm (QCOM) slumped over -8% and was the top percentage loser on the Nasdaq 100 after the mobile chip designer provided a tepid FQ3 revenue forecast. Economic data released on Thursday showed that the U.S. ISM manufacturing index fell to a 5-month low of 48.7 in April, though it came in above expectations of 48.0. Also, U.S. March construction spending unexpectedly fell -0.5% m/m, weaker than expectations of +0.2% m/m and the largest decline in 6 months. In addition, the number of Americans filing for initial jobless claims in the past week rose +18K to a 2-month high of 241K, compared with the 224K expected. Meanwhile, U.S. rate futures have priced in a 93.2% probability of no rate change and a 6.8% chance of a 25 basis point rate cut at next week's FOMC meeting. On the earnings front, notable companies like Exxon Mobil (XOM), Chevron (CVX), Cigna (CI), and Apollo Global Management (APO) are slated to release their quarterly results today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year. Today, all eyes are focused on the U.S. monthly payroll report, which is set to be released in a couple of hours. Economists, on average, forecast that April Nonfarm Payrolls will come in at 138K, compared to the March figure of 228K. U.S. Average Hourly Earnings data will also be closely watched today. Economists expect April figures to be +0.3% m/m and +3.9% y/y, compared to the previous numbers of +0.3% m/m and +3.8% y/y. U.S. Factory Orders data will be released today. Economists foresee this figure coming in at +4.4% m/m in March, compared to the previous number of +0.6% m/m. The U.S. Unemployment Rate will be reported today as well. Economists forecast that this figure will remain steady at 4.2% in April. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.202%, down -0.69%. The Euro Stoxx 50 Index is up +1.35% this morning as signs of a possible easing in U.S.-China trade tensions boosted sentiment, while investors digest a wave of corporate earnings reports and key economic data from the region. Mining and bank stocks led the gains on Friday. The benchmark index is on track to end the week higher. Preliminary data from Eurostat released on Friday showed that the Eurozone's headline inflation remained slightly above the European Central Bank's target in April, while underlying inflation picked up more than expected, likely causing concern among some ECB policymakers. Separately, a survey showed that Eurozone manufacturing output expanded at the quickest rate in just over three years in April, despite overall factory activity staying in contraction territory, as the region's three largest economies showed signs of improvement. In corporate news, Shell Plc ( rose over +3% after the oil major posted better-than-expected Q1 profit and announced a $3.5 billion share buyback. Also, Danske Bank A/S ( gained more than +2% after Denmark's biggest lender reported stronger-than-expected Q1 profit and reaffirmed its full-year profit guidance. In addition, Airbus SE ( climbed over +4% after the planemaker posted upbeat quarterly results and reaffirmed its full-year guidance. Eurozone's Manufacturing PMI, Eurozone's CPI (preliminary), Eurozone's Core CPI (preliminary), and Eurozone's Unemployment Rate were released today. Eurozone April Manufacturing PMI stood at 49.0, stronger than expectations of 48.7. Eurozone April CPI came in at +2.2% y/y, stronger than expectations of +2.1% y/y. Eurozone April Core CPI arrived at +2.7% y/y, stronger than expectations of +2.5% y/y. Eurozone March Unemployment Rate was 6.2%, weaker than expectations of 6.1%. Japan's Nikkei 225 Stock Index (NIK) closed up +1.04%, while mainland China's financial markets were closed for a holiday. Japan's Nikkei 225 Stock Index closed higher today on positive comments from the nation's chief trade negotiator. A weaker yen also boosted appetite for Japanese stocks. In addition, optimism surrounding potential trade talks between China and the U.S. bolstered sentiment across the region. Pharmaceutical and chemical stocks led the gains on Friday. The benchmark index posted its seventh consecutive session of gains, marking its longest winning streak since August 2023. It also notched a third consecutive weekly gain. Japan's top trade representative, Ryosei Akazawa, stated on Thursday that he aims to reach a trade agreement with the U.S. in June, with the high-stakes bilateral talks anticipated to speed up in mid-May. His remarks followed the conclusion of the latest round of talks in Washington. Meanwhile, Japan's Finance Minister Katsunobu Kato said the country's U.S. Treasury holdings could be a card in its trade talks with Washington. 'Whether or not we use that card is a different decision,' he added. On the economic front, government data released on Friday showed that Japan's unemployment rate unexpectedly edged up in March. In corporate news, Yamato Holdings climbed over +5% after the package delivery services provider issued strong full-year operating profit guidance. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.87% to 26.74. The Japanese March Unemployment Rate was 2.5%, weaker than expectations of 2.4%. China's Shanghai Composite Index was closed today for the Labor Day holiday. Mainland China's financial markets will reopen on Tuesday, May 6th. Pre-Market U.S. Stock Movers Apple (AAPL) fell over -2% in pre-market trading after the iPhone maker reported weaker-than-expected FQ2 sales in China. (AMZN) slid more than -2% in pre-market trading after the world's largest online retailer provided a below-consensus Q2 operating income forecast. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Friday - May 2nd Exxon Mobil (XOM), Chevron (CVX), Eaton (ETN), Cigna (CI), Apollo Global Management (APO), Natwest Group (NWG), Imperial Oil (IMO), DuPont De Nemours (DD), Cboe Global (CBOE), T Rowe (TROW), Brookfield Renewable (BEP), Westlake Chemical (WLK), Magna Intl (MGA), Franklin Resources (BEN), nVent Electric (NVT), The AES (AES), Fluor (FLR), United States Cellular (USM), Brookfield Business (BBU), Madison Square Garden Sports (MSGS), Piper Sandler (PIPR), Telephone&Data Systems (TDS), Cinemark (CNK), Brightspring Health Services (BTSG), Atmus Filtration Tech (ATMU), The Wendy's Co (WEN), Amneal Pharma (AMRX), Terex (TEX), Arbor (ABR), Criteo Sa (CRTO), Patria Investments (PAX), Perella Weinberg Partners (PWP), WisdomTree (WT), Xenia Hotels & Resorts (XHR), Interface (TILE).
Globe and Mail
29-04-2025
- Automotive
- Globe and Mail
Stock Index Futures Gain on Auto Tariff Reprieve, U.S. JOLTs Report and Earnings in Focus
June S&P 500 E-Mini futures (ESM25) are up +0.20%, and June Nasdaq 100 E-Mini futures (NQM25) are up +0.17% this morning as signs of easing trade tensions bolstered sentiment, while investors await the latest reading on U.S. job openings and a new round of corporate earnings reports. U.S. President Donald Trump is expected to soften the impact of his auto tariffs by removing some levies on foreign parts used in cars and trucks manufactured in the U.S. Imported automobiles would also receive a reprieve from separate tariffs on aluminum and steel, a White House official said Monday. The official announcement is expected to be made later today. As a result, shares of U.S. automakers rose in pre-market trading, with Ford (F) and General Motors (GM) up about +1%. In yesterday's trading session, Wall Street's main stock indexes ended mixed. Boeing (BA) rose over +2% and was the top percentage gainer on the Dow after Bernstein upgraded the stock to Outperform from Market Perform with a price target of $218. Also, Progressive (PGR) advanced more than +1% after BofA upgraded the stock to Buy from Neutral with a price target of $312. In addition, Amplify Energy (AMPY) climbed over +8% after announcing the termination of its merger agreement with Juniper Capital Advisors. On the bearish side, Nvidia (NVDA) slid more than -2% and was the top percentage loser on the Dow and Nasdaq 100 after the Wall Street Journal reported that China's Huawei Technologies was preparing to test its latest and most powerful AI processor, aiming to replace some higher-end products of the U.S. chip giant. 'We expect a choppy market in the intermediate term that could be rangebound until clarity is achieved on what effect tariffs have on corporate earnings, which as of now remains very unclear,' said Brian Buetel at UBS Wealth Management. First-quarter corporate earnings season is in full swing, with investors looking ahead to new reports from prominent companies today, including Visa (V), Coca-Cola (KO), Booking (BKNG), Pfizer (PFE), Altria (MO), Starbucks (SBUX), and PayPal (PYPL). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year. On the economic data front, all eyes are focused on the U.S. JOLTs Job Openings figures, set to be released in a couple of hours. Economists, on average, forecast that the March JOLTs Job Openings will arrive at 7.490M, compared to the February figure of 7.568M. Investors will also focus on the U.S. Conference Board's Consumer Confidence Index, which came in at 92.9 in March. Economists expect the April figure to be 87.7. The U.S. S&P/CS HPI Composite - 20 n.s.a. will be reported today. Economists foresee the February figure coming in at +4.6% y/y, compared to +4.7% y/y in January. U.S. Wholesale Inventories data will be released today as well. Economists forecast the preliminary March figure at +0.6% m/m, compared to +0.3% m/m in February. U.S. rate futures have priced in a 91.1% chance of no rate change and an 8.9% chance of a 25 basis point rate cut at the conclusion of the Fed's May meeting. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.236%, up +0.47%. The Euro Stoxx 50 Index is up +0.16% this morning as investors digest a flurry of corporate earnings reports and economic data. Financial and industrial stocks outperformed on Tuesday, while healthcare and energy stocks slumped. A survey released on Tuesday showed that German consumer sentiment unexpectedly improved heading into May as the prospect of a new government seemed to reassure households. Separately, preliminary data from the National Statistics Institute showed that Spain's annual inflation rate eased to 2.2% in April from 2.3% in March. Meanwhile, European Central Bank Executive Board member Piero Cipollone stated on Tuesday that U.S. trade tariffs could impact Eurozone inflation in the near term as they hamper global economic growth. 'The short to medium-term effects may even prove disinflationary for the euro area, where real rates have increased and the euro has appreciated following US tariff announcements,' Cipollone said. In corporate news, Deutsche Bank AG ( climbed over +4% after Germany's largest lender posted a 39% increase in Q1 profit. Also, HSBC Holdings Plc ( rose more than +2% after launching a $3 billion share buyback. At the same time, Volvo Car AB ( slumped over -8% after the automaker reported a steep drop in Q1 profit and suspended its annual guidance. In addition, BP Plc ( slid more than -3% after the oil giant posted weaker-than-expected Q1 profit. Germany's GfK Consumer Climate Index, Spain's CPI (preliminary), Spain's GDP (preliminary), Eurozone's Business and Consumer Survey, and Eurozone's Consumer Confidence data were released today. The German May GfK Consumer Climate Index came in at -20.6, stronger than expectations of -25.6. The Spanish April CPI stood at +2.2% y/y, stronger than expectations of +2.0% y/y. The Spanish GDP has been reported at +0.6% q/q in the first quarter, weaker than expectations of +0.7% q/q. Eurozone April Business and Consumer Survey arrived at 93.6, weaker than expectations of 94.5. Eurozone April Consumer Confidence came in at -16.7, in line with expectations. China's Shanghai Composite Index (SHCOMP) closed down -0.05%, while Japanese financial markets were closed for a holiday. China's Shanghai Composite Index ended slightly lower today as investors remained cautious amid ongoing uncertainty over U.S.-China trade relations. Consumer and financial stocks lost ground on Tuesday, while healthcare stocks outperformed. China reiterated that it is not involved in trade negotiations with the U.S., clarifying that President Xi Jinping has not spoken with U.S. President Donald Trump, despite Trump's assertions in a recent Time interview. China stated in a commentary in the People's Daily on Tuesday that the U.S. should cease its wrongdoing of imposing tariffs. Foreign Minister Wang Yi also said that if nations opt to remain silent, compromise, and retreat, it will only encourage the bullies to make further advances. Meanwhile, China is refraining from introducing new stimulus measures as it aims to maintain composure, betting that Washington will blink first in a prolonged trade war. However, U.S. Treasury Secretary Scott Bessent stated on Monday that it's up to Beijing to take the first step in de-escalating the tariff fight, emphasizing that China exports significantly more to the U.S. than it imports. In other news, China's commerce ministry stated on Tuesday that U.S. tariffs disrupted the global air transport market, severely affecting its airlines and Boeing. In corporate news, WuXi AppTec rose over +3% in Hong Kong after the biotech firm reported better-than-expected Q1 revenue. Investors are now awaiting China's PMI data for April, set to be released on Wednesday, with readings expected to dip due to trade tensions and a normalization following a seasonal bump in March. Japan's Nikkei 225 Stock Index was closed today for the Showa Day holiday. The markets will reopen on Wednesday. Pre-Market U.S. Stock Movers Leggett & Platt (LEG) surged over +14% in pre-market trading after the company posted better-than-expected Q1 adjusted EPS and reaffirmed its full-year guidance. NXP Semiconductors N.V. (NXPI) slumped more than -7% in pre-market trading after the semiconductor firm announced a new chief executive officer and warned of 'a very uncertain environment.' You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Tuesday - April 29th Visa (V), Coca-Cola (KO), Booking (BKNG), S&P Global (SPGI), Pfizer (PFE), Honeywell (HON), Spotify Tech (SPOT), American Tower (AMT), Altria (MO), Starbucks (SBUX), Mondelez (MDLZ), Sherwin-Williams (SHW), United Parcel Service (UPS), Enterprise Products Partners LP (EPD), Ecolab (ECL), Regeneron Pharma (REGN), PayPal (PYPL), Royal Caribbean Cruises (RCL), Hilton Worldwide (HLT), ONEOK (OKE), PACCAR (PCAR), Fair Isaac (FICO), General Motors (GM), Coca-Cola European (CCEP), Corning (GLW), Entergy (ETR), Kraft Heinz (KHC), Sysco (SYY), Arch Capital (ACGL), CoStar (CSGP), Extra Space Storage (EXR), Xylem (XYL), Equity Residential (EQR), Expand Energy (EXE), PPG Industries (PPG), Veralto (VLTO), Edison (EIX), Labcorp Holdings (LH), Essex Property (ESS), Seagate (STX), Axa Equitable (EQH), Banco De Chile (BCH), Snap (SNAP), First Solar (FSLR), Ares Capital (ARCC), SoFi Technologies (SOFI), Unum (UNM), W P Carey (WPC), Regency Centers (REG), Zebra (ZBRA), Tenet Healthcare (THC), Logitech (LOGI), BXP Inc (BXP), Incyte (INCY), AO Smith (AOS), Repligen (RGEN), CommVault (CVLT), ExlServices (EXLS), Shift4 Payments Inc (FOUR), Brinker (EAT), UMB Financial (UMBF), BridgeBio Pharma (BBIO), Gildan Activewear (GIL), STAG Industrial (STAG), Caesars (CZR), Armstrong World Industries (AWI), Stride (LRN), Qorvo Inc (QRVO), Flowserve (FLS), OneMain Holdings (OMF), PJT Partners Inc (PJT), Option Care Health (OPCH), Kite Realty (KRG), Landstar (LSTR), Sonoco Products (SON), Littelfuse (LFUS), Asbury Automotive (ABG), Freshworks (FRSH), Franklin Electric (FELE), Tenable (TENB), Kadant (KAI), NorthWestern (NWE), Mirion Technologies (MIR), Highwoods Properties (HIW), Artisan Partners AM (APAM), Insperity (NSP), Community Bank System (CBU), First Interstate BancSystem (FIBK), WesBanco (WSBC), New Gold (NGD), NMI Holdings (NMIH), Enova International Inc (ENVA), Oddity Tech (ODD), Acadia (AKR), Northern Oil&Gas (NOG), Vicor (VICR), Huron (HURN), Cushman & Wakefield (CWK), Empire State Realty (ESRT).
Globe and Mail
24-04-2025
- Business
- Globe and Mail
Stocks Slip Before the Open After Mixed Tariff News, Alphabet Earnings on Tap
June S&P 500 E-Mini futures (ESM25) are down -0.59%, and June Nasdaq 100 E-Mini futures (NQM25) are down -0.79% this morning as mixed signals from the Trump administration prompted investors to temper their expectations for swift progress in resolving the U.S.-China tariff dispute. U.S. President Donald Trump indicated that the U.S. is going to have a fair deal with China, adding late Wednesday that the country could be assigned a new tariff rate within the next two to three weeks. At the same time, U.S. Treasury Secretary Scott Bessent stated that President Trump has not proposed removing U.S. tariffs on China on a unilateral basis. Also, China's Commerce Ministry said on Thursday that no negotiations have taken place on economic and trade matters, and urged the U.S. to remove all unilateral tariffs if it truly aims to resolve problems between the two nations. In yesterday's trading session, Wall Street's major indexes closed sharply higher. Tesla (TSLA) climbed over +5% after CEO Elon Musk said he would 'significantly' scale back his involvement in the Department of Government Efficiency. Also, chip stocks rallied on hopes for easing U.S.-China trade tensions, with Marvell Technology (MRVL) rising more than +6% and GlobalFoundries (GFS) gaining over +4%. In addition, Boeing (BA) advanced more than +6% and was the top percentage gainer on the Dow after the beleaguered planemaker reported a narrower-than-expected Q1 loss. On the bearish side, Enphase Energy (ENPH) tumbled over -15% and was the top percentage loser on the S&P 500 after reporting downbeat Q1 results and issuing weak Q2 revenue guidance. Economic data released on Wednesday showed that the U.S. S&P Global manufacturing PMI unexpectedly rose to 50.7 in April, stronger than expectations of 49.0. Also, U.S. March new home sales rose +7.4% m/m to a 6-month high of 724K, stronger than expectations of 684K. At the same time, the U.S. S&P Global services PMI fell to 51.4 in April, weaker than expectations of 52.8. Meanwhile, the Federal Reserve said Wednesday in its Beige Book survey of regional business contacts that U.S. economic activity was little changed in recent weeks, with uncertainty surrounding international trade widespread across all districts. Tariffs were mentioned 107 times in the Fed report, more than twice the count recorded in the previous Beige Book. The report stated that the outlook in several regions 'worsened considerably' as economic uncertainty grew. 'Prices increased across districts, with six characterizing price growth as modest and six characterizing it as moderate, similar to the previous report,' according to the Beige Book. The report also said that employment was little changed to up slightly. Cleveland Fed President Beth Hammack said on Wednesday during a Q&A session after her speech that she does not support making any adjustments to interest rates. 'There's still a lot of uncertainty around how policies are going to play out and what those impacts are going to be. This is not a good time to be preemptive. This is a good time to sit and wait and watch,' Hammack said. U.S. rate futures have priced in a 93.9% probability of no rate change and a 6.1% chance of a 25 basis point rate cut at the next FOMC meeting in May. First-quarter corporate earnings season continues in full flow, and investors look forward to fresh reports from major companies today, including Alphabet (GOOGL), Procter & Gamble (PG), T-Mobile US (TMUS), Merck (MRK), PepsiCo (PEP), Gilead (GILD), and Intel (INTC). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year. On the economic data front, all eyes are focused on U.S. Durable Goods Orders and Core Durable Goods Orders data, set to be released in a couple of hours. Economists forecast March Durable Goods Orders at +2.1% m/m and Core Durable Goods Orders at +0.3% m/m, compared to the prior figures of +0.9% m/m and +0.7% m/m, respectively. Investors will also focus on U.S. Initial Jobless Claims data. Economists expect this figure to be 222K, compared to last week's number of 215K. U.S. Existing Home Sales data will be released today as well. Economists foresee the March figure standing at 4.14M, compared to 4.26M in February. In addition, market participants will be anticipating a speech from Minneapolis Fed President Neel Kashkari. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.349%, down -0.87%. The Euro Stoxx 50 Index is down -0.79% this morning, giving back some of the previous day's gains as investors digest mixed corporate earnings reports while trade uncertainty persists. Luxury stocks slumped on Thursday, with Kering ( falling over -4% after the luxury group posted weaker-than-expected Q1 sales. A survey released on Thursday showed that German business morale unexpectedly rose to a 9-month high in April, likely reflecting firms' approval of government initiatives to boost defense spending and investments. Separately, data from the statistics agency Insee showed that France's household confidence indicator held steady in April. Meanwhile, the situation regarding tariffs on China remains uncertain after Beijing stated that no economic and trade negotiations have taken place and urged the U.S. to remove all unilateral tariff measures if it genuinely seeks a resolution, while U.S. Treasury Secretary Scott Bessent previously noted that President Trump would not act unilaterally. In other corporate news, BNP Paribas SA ( slid over -4% after reporting a drop in Q1 profit. At the same time, Adidas AG ( rose more than +1% after the German sportswear and apparel maker reported stronger-than-expected Q1 results. Germany's Ifo Business Climate Index and France's Consumer Confidence data were released today. The German April Ifo Business Climate Index came in at 86.9, stronger than expectations of 85.1. The French April Consumer Confidence stood at 92, stronger than expectations of 91. Asian stock markets today settled in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.03%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.49%. China's Shanghai Composite Index closed just above the flatline today as sentiment remained cautious after U.S. Treasury Secretary Scott Bessent cast doubt on a swift resolution to the U.S.-China trade war. Bank stocks gained ground on Thursday, while software and hardware stocks underperformed. While Washington indicated a willingness to ease trade tensions with Beijing, Bessent noted that U.S. President Donald Trump would not act unilaterally, adding that formal negotiations have yet to start. Kenny Tang, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, said, 'The timetable is unclear, and that means the negotiations could take very long.' Meanwhile, China issued the first batch of special sovereign bonds for the year, as part of the stimulus measures introduced by authorities to mitigate the impact of ongoing trade tensions with the U.S. In other news, China's state regulator and planning council released an updated version of its 'negative list,' easing entry barriers into the world's second-largest economy by lowering the number of restricted industries to 106 from 117. Investors are looking ahead to the upcoming month-end politburo meeting, where HSBC analysts anticipate consumption will take center stage. Japan's Nikkei 225 Stock Index closed higher and hit a 3-week high today as sentiment remained upbeat following signals from the White House indicating a willingness to ease trade tensions with China. Financial stocks led the gains on Thursday. Automobile stocks also advanced after Bloomberg reported that the Trump administration is contemplating reducing specific tariffs targeting the auto industry. Data released on Thursday showed that a key gauge of Japan's service-sector inflation remained elevated in March, signaling sustained inflationary pressures ahead of the anticipated impact from U.S. tariffs. Meanwhile, investors continue to closely monitor developments related to U.S. tariffs following the 'big progress' in the Japan-U.S. trade talks last week. Japanese broadcaster NHK reported that the U.S. told Japan's trade delegation that Tokyo would not receive special treatment under Washington's current tariff regime. Also, Reuters reported that Japan's tariff negotiator Ryosei Akazawa is finalizing plans to visit the U.S. from April 30th for a second round of trade talks. Japanese Finance Minister Katsunobu Kato is expected to meet U.S. Treasury Secretary Scott Bessent in Washington later today on the sidelines of the International Monetary Fund and World Bank annual meetings. Investors are also awaiting Tokyo's consumer price data, a bellwether for national inflation, scheduled for release on Friday, which is expected to show price increases by companies at the start of Japan's new fiscal year in April. In corporate news, Nintendo climbed over +5% as early demand for the upcoming Switch 2 exceeded the video game maker's supply capacity for the gaming console. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +0.60% to 30.06. The Japanese March Corporate Services Price Index arrived at +3.1% y/y, stronger than expectations of +3.0% y/y. Pre-Market U.S. Stock Movers International Business Machines (IBM) slumped over -7% in pre-market trading after reporting Q1 results that failed to meet high market expectations. ServiceNow (NOW) climbed more than +9% in pre-market trading after the software company reported solid Q1 results and raised its full-year subscription revenue guidance. Texas Instruments (TXN) gained over +7% in pre-market trading after the analog chipmaker posted upbeat Q1 results and issued above-consensus Q2 guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - April 24th Alphabet (GOOGL), Procter & Gamble (PG), T-Mobile US (TMUS), Merck&Co (MRK), PepsiCo (PEP), Gilead (GILD), Union Pacific (UNP), Comcast (CMCSA), Fiserv (FI), Bristol-Myers Squibb (BMY), Intel (INTC), Republic Services (RSG), Agnico Eagle Mines (AEM), Digital (DLR), Freeport-McMoran (FCX), Keurig Dr Pepper (KDP), Ameriprise Financial (AMP), Nasdaq Inc (NDAQ), Xcel Energy (XEL), L3Harris Technologies (LHX), PG E (PCG), Valero Energy (VLO), Hartford (HIG), Willis Towers Watson (WTW), Tractor Supply (TSCO), CenterPoint Energy (CNP), VeriSign (VRSN), Dover (DOV), CMS Energy (CMS), Erie Indemnity (ERIE), Dow (DOW), SS&Cs (SSNC), Weyerhaeuser (WY), Teck Resources (TECK), Principal Financial (PFG), West Pharmaceutical Services (WST), TransUnion (TRU), Southwest Airlines (LUV), Gaming & Leisure Properties (GLPI), Healthpeak Properties (DOC), Comfort Systems (FIX), Textron (TXT), Pool (POOL), Kinsale Capital (KNSL), LKQ (LKQ), TechnipFMC (FTI), Encompass Health (EHC), Mobileye Global (MBLY), Celestica Inc. (CLS), Carpenter Technology (CRS), Old Republic (ORI), Eastman Chemical (EMN), South State (SSB), IPG (IPG), Appfolio (APPF), Webster Financial (WBS), FirstService (FSV), Hasbro (HAS), Skechers (SKX), VinFast (VFS), ADT (ADT), TAL Education (TAL), American Airlines (AAL), FTI Consulting (FCN), SLM (SLM), Merit (MMSI), Boyd Gaming (BYD), FirstCash (FCFS), Balchem (BCPC), Group 1 Automotive (GPI), Phillips Edison (PECO), Columbia Banking (COLB), SPS Commerce (SPSC), Valley National (VLY), Darling Ingredients (DAR), Glacier (GBCI), CNX Resources (CNX), Euronet (EEFT), Integer Hld (ITGR), AllianceBernstein Holding LP (AB), CBIZ (CBZ), SkyWest (SKYW), Associated Banc-Corp (ASB), First Bancorp (FBP), Eastern Bankshares (EBC), Brunswick (BC), WSFS (WSFS), Federated Investors B (FHI), Procept Biorobotics (PRCT), TRI Pointe Homes (TPH), Boston Beer (SAM), McGrath (MGRC), Curbline Properties (CURB), WNS Holdings (WNS), Bread Financial Holdings (BFH), The Bancorp (TBBK), First Financial Bancorp (FFBC), Provident (PFS), First Merchants (FRME), Seacoast Banking Florida (SBCF), Sonic Automotive (SAH), Visteon (VC), NBT Bancorp (NBTB).
