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Yahoo
3 days ago
- Business
- Yahoo
Stocks Climb Before the Open on Chip Tariff Relief and Ukraine Truce Hopes
September S&P 500 E-Mini futures (ESU25) are up +0.81%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.78% this morning as U.S. President Donald Trump's 100% tariff threat on chip exporters included exemptions for firms investing in the U.S., while hopes for a truce in Russia's war with Ukraine further boosted sentiment. President Trump announced late Wednesday a roughly 100% tariff on semiconductors entering the U.S., but noted that tech firms like Apple investing in domestic manufacturing would be exempt from the duties. Mr. Trump said that 'if you're building in the United States of America, there's no charge.' Also aiding sentiment, the Kremlin confirmed that Presidents Donald Trump and Vladimir Putin are set to hold summit talks in the coming days, fueling hopes for a potential truce in Russia's war with Ukraine. Increasing speculation that the Federal Reserve will resume rate cuts in September is also buoying sentiment as U.S. reciprocal tariffs took effect against dozens of countries a minute past midnight Washington time on Thursday. In a social-media post, Mr. Trump said, 'Billions of dollars in tariffs are now flowing into the United States of America.' More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Investors now look ahead to U.S. jobless claims data for further insight into the health of the labor market. In yesterday's trading session, Wall Street's three main equity benchmarks closed higher. Apple (AAPL) climbed over +5% and was the top percentage gainer on the Dow following reports that the tech titan is set to announce a fresh $100 billion investment in the U.S. in an effort to avoid steep tariffs on iPhones. Also, Arista Networks (ANET) surged more than +17% and was the top percentage gainer on the S&P 500 after the company reported stronger-than-expected Q2 results and issued solid Q3 revenue guidance. In addition, Shopify (SHOP) soared over +21% and was the top percentage gainer on the Nasdaq 100 after the company posted upbeat Q2 results. On the bearish side, Super Micro Computer (SMCI) plummeted more than -18% and was the top percentage loser on the S&P 500 after the AI server maker reported downbeat FQ4 results and provided disappointing FQ1 guidance. 'There are a lot of narratives to keep track of in today's investing environment, but earnings remain the main catalyst for stocks. While pullbacks are possible — particularly due to macro-related influences and poor seasonality trends — those pullbacks will likely prove to be buying opportunities,' said Bret Kenwell at eToro. Minneapolis Fed President Neel Kashkari said on Wednesday that a slowing of the U.S. economy could warrant an interest rate cut in the near term, and he still sees two cuts by the end of the year. Also, Fed Governor Lisa Cook described the July jobs report as 'concerning' and suggested it may mark a turning point for the U.S. economy. 'These revisions are somewhat typical of turning points,' Cook said. In addition, San Francisco Fed President Mary Daly said that policymakers will likely need to adjust interest rates in the coming months to prevent further labor market weakness. Meanwhile, U.S. rate futures have priced in a 93.2% chance of a 25 basis point rate cut and a 6.8% chance of no rate change at September's monetary policy meeting. Today, investors will focus on U.S. Initial Jobless Claims data, which is set to be released in a couple of hours. Economists expect this figure to be 221K, compared to last week's number of 218K. U.S. Unit Labor Costs and Nonfarm Productivity preliminary data will also be closely watched today. Economists forecast Q2 Unit Labor Costs to be +1.6% q/q and Nonfarm Productivity to be +1.9% q/q, compared to the first-quarter numbers of +6.6% q/q and -1.5% q/q, respectively. U.S. Wholesale Inventories data will be released today. Economists expect the final June figure to be +0.2% m/m, compared to -0.3% m/m in May. U.S. Consumer Credit data will be released today as well. Economists expect this figure to be $7.40 billion in June, compared to the previous figure of $5.10 billion. In addition, market participants will parse comments today from Atlanta Fed President Raphael Bostic. On the earnings front, notable companies like Eli Lilly (LLY), Gilead (GILD), ConocoPhillips (COP), Constellation Energy (CEG), Vistra Energy (VST), and Monster Beverage (MNST) are set to report their quarterly figures today. According to Bloomberg Intelligence, S&P 500 companies are on track to post a 9.1% increase in Q2 profits from a year earlier, well above analysts' forecast of 2.8%. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.215%, down -0.35%. The Euro Stoxx 50 Index is up +1.14% this morning as upbeat earnings from some of the region's biggest companies outweighed weak economic data. Sentiment was further boosted after the Kremlin confirmed that Presidents Donald Trump and Vladimir Putin are set to hold summit talks in the coming days, fueling hopes for a potential truce in Russia's war with Ukraine. Insurance and travel stocks outperformed on Thursday. Data released on Thursday showed that German monthly industrial production saw its steepest decline in nearly a year in June, heightening concerns that Europe's largest economy may have contracted more sharply last quarter than previously estimated. Separately, data showed that Germany's goods exports to the U.S. fell further in June, as the effects of tariffs on the country's export-driven economy continued to take a toll. Meanwhile, investors await the Bank of England's monetary policy decision due later in the session, with the central bank widely expected to cut its benchmark rate by 25 basis points to 4.00%. On the trade front, Switzerland's president departed Washington without announcing any progress in reducing the 39% tariff imposed by President Trump on her country. In corporate news, Ap Moller-Maersk A/S ( rose over +2% after the shipping group boosted its full-year profit guidance. Also, Allianz SE ( climbed more than +5% on solid quarterly results. In addition, Henkel ( gained over +1% after the company posted better-than-expected Q2 results and raised the lower end of its adjusted EBIT margin forecast. Germany's Exports, Germany's Imports, and Germany's Industrial Production data were released today. The German June Exports rose +0.8% m/m, stronger than expectations of +0.5% m/m. The German June Imports rose +4.2% m/m, stronger than expectations of +1.0% m/m. The German June Industrial Production fell -1.9% m/m, weaker than expectations of -0.4% m/m. Asian stock markets today closed in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.16%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.65%. China's Shanghai Composite Index closed slightly higher today as upbeat trade data from the country helped extend the recent rally despite fresh U.S. tariff threats. Rare earth stocks gained ground on Thursday. Customs data released on Thursday showed that China's export growth unexpectedly picked up pace in July, marking the fastest increase since April, indicating that U.S. tariffs haven't slowed China's export engine, even as trade with the U.S. has declined. The trade data reinforces investor confidence that China's growth will hold up, supporting the Politburo's decision last week to refrain from additional stimulus measures. Investors are also waiting for clarity on whether the tariff truce between Beijing and Washington will be extended ahead of the August 12th deadline. U.S. President Donald Trump said on Tuesday that he was 'getting very close to a deal' with China to extend the truce. At the same time, Mr. Trump said on Wednesday that he may impose additional tariffs on Chinese goods, similar to the 25% levies placed on India over its purchases of Russian oil, depending on what happens. The U.S. president also said a tariff of around 100% would be imposed on semiconductor chips imported from countries that do not manufacture in the U.S. or plan to, though analysts noted the move would have only a limited impact on Chinese chipmakers and could even speed up domestic production. Investor attention is now on China's inflation data, scheduled for release on Saturday, for further clues about domestic demand and the overall state of the economy. The Chinese July Trade Balance stood at $98.24B, weaker than expectations of $105.20B. The Chinese July Exports rose +7.2% y/y, stronger than expectations of +5.4% y/y. The Chinese July Imports rose +4.1% y/y, stronger than expectations of -1.0% y/y. Japan's Nikkei 225 Stock Index closed higher today, tracking overnight gains on Wall Street. Utilities, financial, and technology stocks outperformed on Thursday. Preliminary data from the Cabinet Office released on Thursday showed that Japan's leading economic indicators index, which gauges the economic outlook for a few months ahead based on data such as job offers and consumer sentiment, rose to a 3-month high in June. Meanwhile, a new divergence in interpretations of the U.S.-Japan trade deal emerged on Thursday, as Japan's chief negotiator, Ryosei Akazawa, traveled to Washington to push for the implementation of a promise to reduce the car import tariff to 15%. Akazawa said earlier this week that 'there will be no stacking' of new 15% tariffs on top of existing levies, but Japanese media reports said that Washington would not exempt Tokyo from an order imposing 15% across-the-board tariffs on top of existing duties. In other news, foreign investors bought a net 193 billion yen worth of Japanese stocks in the week ended August 2nd, marking the smallest weekly total in six weeks. In corporate news, Sony Group rose over +4% after the game and camera maker lifted its annual operating profit guidance. Also, Shiseido surged about +11% after the company reported a 21.3% increase in core operating profit for the first half of the year. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -4.77% to 25.15. The Japanese June Leading Index stood at 106.1, stronger than expectations of 106.0. Pre-Market U.S. Stock Movers Apple (AAPL) rose over +3% in pre-market trading after announcing a $100 billion U.S. investment that could exempt it from President Trump's threatened tariff on chip imports. Duolingo (DUOL) soared more than +25% in pre-market trading after the language-learning app posted upbeat Q2 results and raised its full-year bookings guidance. DraftKings (DKNG) climbed over +7% in pre-market trading after the online gaming company reported better-than-expected Q2 revenue. Fortinet (FTNT) tumbled more than -20% in pre-market trading after the cybersecurity company issued weak Q3 revenue guidance. Airbnb (ABNB) slid over -5% in pre-market trading after projecting slower growth for the second half of the year. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - August 7th Eli Lilly (LLY), Gilead (GILD), ConocoPhillips (COP), Constellation Energy (CEG), Brookfield (BN), Parker-Hannifin (PH), Motorola (MSI), Vistra Energy (VST), Canadian Natural (CNQ), Monster Beverage (MNST), Flutter Entertainment (FLUT), Sempra Energy (SRE), Cheniere Energy (LNG), Becton Dickinson (BDX), Atlassian Corp Plc (TEAM), Block (XYZ), Datadog (DDOG), Wheaton Precious Metals (WPM), The Trade Desk (TTD), Take-Two (TTWO), Kenvue (KVUE), Consolidated Edison (ED), Martin Marietta Materials (MLM), Targa Resources (TRGP), Microchip (MCHP), Live Nation Entertainment (LYV), Sun Life Financial (SLF), Warner Bros Discovery (WBD), Restaurant Brands Int (QSR), Pinterest (PINS), Expedia (EXPE), Godaddy Inc (GDDY), BCE Inc (BCE), Pembina Pipeline (PBA), Insmed (INSM), Insulet (PODD), US Foods (USFD), Twilio (TWLO), Erie Indemnity (ERIE), Natera Inc (NTRA), Ralph Lauren (RL), Zimmer Biomet (ZBH), Gen Digital (GEN), Alliant Energy (LNT), Evergy (EVRG), Sharkninja (SN), Warner Music (WMG), Somnigroup International (SGI), YPF Sociedad Anonima (YPF), Nuscale Power (SMR), Nebius NV (NBIS), Hyatt (H), Solventum (SOLV), Maplebear (CART), Chime Financial (CHYM), Texas Roadhouse (TXRH), MP Materials (MP), Ascendis Pharma AS (ASND), Wynn Resorts (WYNN), Akamai (AKAM), Doximity (DOCS), Celsius (CELH), Viatris (VTRS), MACOM Tech (MTSI), Kratos Defense&Security (KTOS), ADS (WMS), EPAM Systems (EPAM), Open Text (OTEX), Nova (NVMI), Dropbox (DBX), Genpact (G), Globus Medical (GMED), Starwood Property (STWD), Stepstone (STEP), Elanco Animal Health (ELAN), UWM Holdings (UWMC), Millicom (TIGO), Karman Holdings (KRMN), Installed Building (IBP), Crocs (CROX), Post (POST), Main Street Capital (MAIN), Nexstar (NXST), D Wave Quantum (QBTS), Construction Partners (ROAD), Sezzle (SEZL), ESCO Technologies (ESE), B2Gold (BTG), Jfrog (FROG), Acushnet Holdings (GOLF), Victory Capital (VCTR), Americold Realty (COLD), SoundHound AI (SOUN), Onto Innovation (ONTO), IAMGold (IAG), Zai Lab (ZLAB), ACI Worldwide (ACIW), Adtalem Education (ATGE), Assured Guaranty (AGO), Maximus (MMS), Arcosa (ACA), Cytokinetics Inc (CYTK), Granite Construction (GVA), PTC Therapeutics (PTCT). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
25-07-2025
- Business
- Yahoo
Nasdaq Futures Climb on Upbeat Alphabet Results and Trade Deal Optimism, U.S. PMI Data in Focus
September Nasdaq 100 E-Mini futures (NQU25) are trending up +0.36% this morning as investors cheer forecast-beating quarterly results from Alphabet and remain optimistic that the U.S. may strike more trade deals soon. Alphabet (GOOGL) rose over +3% in pre-market trading after the Google parent reported stronger-than-expected Q2 results, boosted by demand for AI products. The company also projected a $10 billion increase in its capital spending for the year, with CEO Sundar Pichai attributing the move to the 'strong and growing demand for our cloud products and services.' More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Also aiding sentiment, reports emerged that the European Union and the U.S. are making headway on a deal that would impose a 15% tariff on most EU imports. In addition, Bloomberg reported that the U.S. and South Korea have discussed creating a fund to invest in American projects as part of a trade agreement. Investors now look ahead to U.S. business activity data and the next round of corporate earnings reports. In yesterday's trading session, Wall Street's three main equity benchmarks ended higher. Lamb Weston Holdings (LW) surged over +16% and was the top percentage gainer on the S&P 500 after the producer of frozen potato products posted upbeat FQ4 results and introduced a new cost savings program. Also, Baker Hughes (BKR) climbed more than +11% and was the top percentage gainer on the Nasdaq 100 after the company reported better-than-expected Q2 results. In addition, GE Vernova (GEV) advanced over +14% after the company reported stronger-than-expected Q2 results and said it expects full-year revenue to trend toward the 'higher end' of its $36B-$37B guidance. On the bearish side, Texas Instruments (TXN) plunged more than -13% and was the top percentage loser on the Nasdaq 100 after the semiconductor company issued disappointing Q3 earnings guidance. Economic data released on Wednesday showed that U.S. June existing home sales fell -2.7% m/m to a 9-month low of 3.93M, weaker than expectations of 4.00M. 'With the Aug. 1 deadline looming, investors have been encouraged by the recent trade-deal announcements,' said Ian Lyngen and Vail Hartman at BMO Capital Markets. 'The progress on the trade war will provide clarity and help the market move forward to incorporate the new global trade environment.' Second-quarter corporate earnings season continues in full flow, and investors look forward to fresh reports from notable companies today, including Blackstone (BX), Honeywell (HON), Union Pacific (UNP), Intel (INTC), and L3Harris Technologies (LHX). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +3.2% increase in quarterly earnings for Q2 compared to the previous year, slightly above the pre-season forecast of +2.8%. On the economic data front, all eyes are focused on S&P Global's flash U.S. purchasing managers' surveys, set to be released in a couple of hours. Economists, on average, forecast that the July Manufacturing PMI will come in at 52.7, compared to last month's value of 52.9. Also, economists expect the July Services PMI to be 53.0, compared to 52.9 in June. Investors will also focus on U.S. New Home Sales data. Economists foresee this figure coming in at 649K in June, compared to 623K in May. U.S. Initial Jobless Claims data will be released today as well. Economists estimate this figure will come in at 227K, compared to last week's number of 221K. Meanwhile, U.S. President Donald Trump is set to visit the Federal Reserve's headquarters later today. President Trump has repeatedly criticized Fed Chair Jerome Powell for his reluctance to cut interest rates. U.S. rate futures have priced in a 97.4% probability of no rate change and a 2.6% chance of a 25 basis point rate cut at next week's policy meeting. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.396%, up +0.16%. The Euro Stoxx 50 Index is up +0.52% this morning, buoyed by a slew of upbeat earnings reports and optimism over the EU-U.S. trade agreement, with attention now shifting to the European Central Bank's monetary policy decision. Bank stocks led the gains on Thursday. Telecom, healthcare, and industrial stocks also gained ground. The European Union and the U.S. are making headway on a deal that would impose a 15% tariff on most EU imports, avoiding a steeper 30% duty set to take effect on August 1st, according to diplomats familiar with the talks. Adding to the positive sentiment, a survey released on Thursday showed that Eurozone business activity expanded at the fastest pace in 11 months in July, driven by a notable improvement in the services sector and continued signs of stabilization in manufacturing. At the same time, a separate survey showed that German consumer sentiment is set to weaken heading into August, as rising economic uncertainty prompted households to prioritize saving over spending. Meanwhile, investors are awaiting the ECB's interest rate decision later in the session, with the central bank widely expected to keep the deposit rate unchanged at 2.00% following seven straight cuts. Market participants will be watching for any hints on when it might lower interest rates again, though analysts said the central bank will likely seek to avoid sending signals about the September meeting. 'There is just too much uncertainty clouding policy right now, with the EU and U.S. still not finalizing a trade deal,' said FP Markets' Aaron Hill. In corporate news, Deutsche Bank AG ( climbed over +6%, and BNP Paribas SA ( rose more than +2% after both lenders reported stronger-than-expected Q2 earnings. At the same time, STMicroelectronics ( plunged over -9% after the chipmaker posted its first quarterly loss in more than a decade. Germany's GfK Consumer Climate Index, Eurozone's Composite PMI (preliminary), Eurozone's Manufacturing PMI (preliminary), and Eurozone's Services PMI (preliminary) data were released today. The German August GfK Consumer Climate Index stood at -21.5, weaker than expectations of -19.4. Eurozone's July Composite PMI has been reported at 51.0, stronger than expectations of 50.8. Eurozone's July Manufacturing PMI came in at 49.8, stronger than expectations of 49.7. Eurozone's July Services PMI arrived at 51.2, stronger than expectations of 50.6. Asian stock markets today settled in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.65%, and Japan's Nikkei 225 Stock Index (NIK) closed up +1.59%. China's Shanghai Composite Index ended higher today as signs of improvement in U.S.-China relations boosted sentiment. Rare earth stocks led the gains on Thursday. Tourism stocks also advanced, with China Tourism Group Duty Free climbing +10% after a launch plan was announced for the Hainan Free Trade Port. The benchmark index closed above the 3,600 level for the first time since January 2022. Chinese stocks have been climbing in recent weeks, supported by Beijing's measures to rein in excessive competition and overcapacity, along with signs of improving U.S.-China trade ties. U.S. President Donald Trump said on Wednesday that the U.S. was in the process of finalizing a trade agreement with China and would implement straight tariffs for most countries. Meanwhile, U.S. Treasury Secretary Scott Bessent will meet his Chinese counterparts in Stockholm next week for economic and trade talks. In other news, European Commission President Ursula von der Leyen called for an 'essential' recalibration of trade relations with China during a tense summit on Thursday with President Xi Jinping. Investors are also looking to the country's July Politburo meeting, where policymakers will deliberate on economic policies for the second half of the year. In corporate news, WuXi Biologics rose over +3% in Hong Kong after projecting higher first-half profits. Japan's Nikkei 225 Stock Index closed sharply higher and hit a new one-year high today, extending yesterday's gains after Tokyo struck a long-awaited trade deal with Washington. Bank stocks led the gains on Thursday as investors speculated that the economic clarity provided by the trade agreement would enable the Bank of Japan to resume interest rate hikes later this year. The trade deal unveiled late Tuesday by U.S. President Donald Trump lowered the reciprocal tariff and auto-specific duties to 15%, down from the 25% Trump had previously threatened in a letter to the Japanese government. U.S. Treasury Secretary Scott Bessent cautioned that the U.S. will review the implementation of the trade agreement on a quarterly basis, and if Trump is unhappy, tariffs will return to the 25% rate for both automobiles and other Japanese goods. On the economic front, preliminary business surveys released on Thursday showed that Japan's manufacturing activity unexpectedly fell into contraction territory in July amid uncertainty over U.S. tariffs, while the country's service sector expanded at the quickest rate in five months, driven by strong demand. Meanwhile, concerns persist over Japan's domestic politics. Prime Minister Shigeru Ishiba has rejected local media reports claiming he plans to resign following his party's loss of an upper house majority, while uncertainty surrounding the country's fiscal policy remains. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.63% to 23.10. The Japanese July au Jibun Bank Manufacturing PMI (preliminary) stood at 48.8, weaker than expectations of 50.2. Pre-Market U.S. Stock Movers Alphabet (GOOGL) rose over +3% in pre-market trading after the Google parent reported stronger-than-expected Q2 results, boosted by demand for AI products. The company also projected a $10 billion increase in its capital spending for the year, with CEO Sundar Pichai attributing the move to the 'strong and growing demand for our cloud products and services.' Tesla (TSLA) slid more than -6% in pre-market trading after CEO Elon Musk cautioned about tough times ahead for the company as incentives such as the EV tax credit phase out in the U.S. 'We probably could have a few rough quarters,' Musk said. ServiceNow (NOW) climbed more than +7% in pre-market trading after the enterprise software company posted upbeat Q2 results and raised its full-year subscription revenue guidance. Las Vegas Sands (LVS) gained over +6% in pre-market trading after the casino company reported stronger-than-expected Q2 results. Chipotle Mexican Grill (CMG) plunged over -11% in pre-market trading after the burrito chain reported weaker-than-expected Q2 revenue and cut its full-year comparable restaurant sales growth forecast. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - July 24th Blackstone (BX), Honeywell (HON), Union Pacific (UNP), Intel (INTC), Newmont Goldcorp (NEM), Digital (DLR), Ameriprise Financial (AMP), Nasdaq Inc (NDAQ), L3Harris Technologies (LHX), Valero Energy (VLO), Keurig Dr Pepper (KDP), Edwards Lifesciences (EW), Westinghouse Air Brake (WAB), Tractor Supply (TSCO), STMicroelectronics (STM), VeriSign (VRSN), Dover (DOV), CenterPoint Energy (CNP), Dow (DOW), Labcorp Holdings (LH), Flex (FLEX), Teck Resources (TECK), Comfort Systems (FIX), Weyerhaeuser (WY), TransUnion (TRU), Deckers Outdoor (DECK), West Pharmaceutical Services (WST), Textron (TXT), RPM (RPM), TechnipFMC (FTI), Healthpeak Properties (DOC), Gaming & Leisure Properties (GLPI), Mobileye Global (MBLY), Lincoln Electrics (LECO), Pool (POOL), Kinsale Capital (KNSL), Ovintiv (OVV), AO Smith (AOS), LKQ (LKQ), South State (SSB), Old Republic (ORI), American Airlines (AAL), FirstService (FSV), Mohawk Industries (MHK), Ryder System (R), ADT (ADT), SLM (SLM), Boyd Gaming (BYD), FirstCash (FCFS), Darling Ingredients (DAR), Moelis & Co (MC), FTI Consulting (FCN), Valley National (VLY), Glacier (GBCI), Group 1 Automotive (GPI), Lazard (LAZ), Columbia Banking (COLB), Hexcel (HXL), Phillips Edison Co (PECO), CNX Resources (CNX), AllianceBernstein Holding LP (AB), SkyWest (SKYW), Brunswick (BC), Associated Banc-Corp (ASB), Integer Hld (ITGR), Iridium (IRDM), WSFS (WSFS), The Bancorp (TBBK), Eastern Bankshares (EBC), TRI Pointe Homes (TPH), Visteon (VC), Bread Financial Holdings (BFH), Enova International Inc (ENVA), CVB Financial (CVBF), McGrath (MGRC), Ardagh Metal Packaging (AMBP), Sonic Automotive (SAH), Atlantic Union (AUB), Seacoast Banking Florida (SBCF), HNI (HNI), Garrett Motion (GTX), Provident (PFS), WNS Holdings (WNS), First Financial Bancorp (FFBC), Boston Beer (SAM), Liberty Oilfield (LBRT), Customers Bancorp (CUBI), Minerals Technologies (MTX), Phinia (PHIN), Novocure Ltd (NVCR), Knowles Cor (KN), Imax (IMAX), 1st Source (SRCE), S&T Bancorp (STBA), Coursera (COUR), Ladder Capital (LADR), Alexander&Baldwin (ALEX), Dime Community (DCOM), CTS Corp (CTS), Byline Bancorp (BY), Berkshire Hills Bancorp (BHLB). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
17-07-2025
- Business
- Yahoo
Stocks Muted Before the Open as Investors Await U.S. Retail Sales Data, Netflix Earnings on Tap
September S&P 500 E-Mini futures (ESU25) are up +0.05%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.13% this morning, pointing to a muted open on Wall Street after yesterday's volatile session, with attention now turning to U.S. retail sales data and an earnings report from streaming giant Netflix. U.S. President Donald Trump said in an interview aired on Real America's Voice on Wednesday that the U.S. is very close to finalizing a trade deal with India, while a deal with Europe is also possible, though it is too early to determine whether an agreement can be reached with Canada. Earlier on Wednesday, President Trump stated that he would send letters to over 150 countries informing them of tariff rates, with the imposed levies potentially set at 10% or 15%. 'We'll have well over 150 countries that we're just going to send a notice of payment out, and the notice of payment is going to say what the tariff' rate will be, Trump told reporters. More News from Barchart Dear Google Stock Fans, Mark Your Calendars for July 23 Retirement Ready: 3 Dividend Stocks to Set and Forget Dear UnitedHealth Stock Fans, Mark Your Calendars for July 29 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! In yesterday's trading session, Wall Street's three main equity benchmarks ended in the green. Global Payments (GPN) climbed over +6% and was the top percentage gainer on the S&P 500 after the Financial Times reported that activist hedge fund Elliott Management had built a 'sizeable' stake in the payments processing company. Also, Johnson & Johnson (JNJ) advanced more than +6% and was the top percentage gainer on the Dow after the drug and medical device maker posted better-than-expected Q2 results and raised its full-year guidance. In addition, Arm Holdings (ARM) rose over +4% and was the top percentage gainer on the Nasdaq 100 after BNP Paribas Exane upgraded the stock to Outperform from Neutral with a $210 price target. On the bearish side, ASML Holding N.V. (ASML) slid more than -8% and was the top percentage loser on the Nasdaq 100 after the Dutch supplier of chip-making equipment said it could no longer guarantee growth in 2026 due to rising uncertainty stemming from President Trump's tariffs. Economic data released on Wednesday showed that the U.S. producer price index for final demand came in at unchanged m/m and +2.3% y/y in June, weaker than expectations of +0.2% m/m and +2.5% y/y. Also, the core PPI, which excludes volatile food and energy costs, was unchanged m/m and rose +2.6% y/y in June, weaker than expectations of +0.2% m/m and +2.7% y/y. In addition, U.S. June industrial production rose +0.3% m/m, stronger than expectations of +0.1% m/m, while manufacturing production rose +0.1% m/m, stronger than expectations of no change m/m. 'Disinflation remains, but the Fed will be undeterred in keeping rates steady until September. As long as the labor market remains strong and resilient, rates aren't likely to move meaningfully lower, and that's a good thing,' said Jamie Cox at Harris Financial Group. New York Fed President John Williams said on Wednesday that he anticipates tariffs will have a bigger impact on inflation in the coming months, making the Fed's current restrictive stance 'entirely appropriate.' Meanwhile, the Fed said Wednesday in its Beige Book survey of regional business contacts that U.S. economic activity 'increased slightly' between late May and early July. 'That represented an improvement over the previous report, in which half of districts reported at least slight declines in activity,' according to the Beige Book. Still, the report said that 'uncertainty remained elevated, contributing to ongoing caution by businesses.' The report also said that all 12 regions of the country saw price increases, with businesses facing 'modest to pronounced input cost pressures related to tariffs.' U.S. rate futures have priced in a 97.4% chance of no rate change and a 2.6% chance of a 25 basis point rate cut at the conclusion of the Fed's July meeting. Second-quarter corporate earnings season is gathering pace, and investors look forward to new reports from prominent companies today, including Netflix (NFLX), GE Aerospace (GE), Abbott Labs (ABT), and PepsiCo (PEP). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +2.8% increase in quarterly earnings for Q2 compared to the previous year, marking the smallest rise in two years. On the economic data front, all eyes are focused on U.S. Retail Sales data, which is set to be released in a couple of hours. Economists, on average, forecast that Retail Sales will show a +0.1% m/m rise in June following a -0.9% m/m decline in May. Investors will also focus on U.S. Core Retail Sales data, which came in at -0.3% m/m in May. Economists expect the June figure to be +0.3% m/m. The U.S. Philadelphia Fed Manufacturing Index will be reported today. Economists foresee the Philly Fed manufacturing index standing at -1.2 in July, compared to last month's value of -4.0. U.S. Export and Import Price Indexes will come in today. Economists anticipate the export price index to be unchanged m/m and the import price index to rise +0.3% m/m in June, compared to the previous figures of -0.9% m/m and unchanged m/m, respectively. U.S. Initial Jobless Claims data will be released today as well. Economists estimate this figure will come in at 233K, compared to last week's number of 227K. In addition, market participants will be anticipating speeches from Fed Governors Adriana Kugler, Lisa Cook, and Christopher Waller, along with San Francisco Fed President Mary Daly. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.469%, up +0.34%. The Euro Stoxx 50 Index is up +0.54% this morning as investors digest strong corporate earnings reports and remain optimistic about a potential trade agreement between the U.S. and the European Union. Industrial stocks led the gains on Thursday, boosted by upbeat quarterly results from ABB, Legrand, and Diploma. Also, chip stocks recouped some losses from the prior session after TSMC reported a record Q2 profit and raised its full-year revenue growth guidance. Final data from Eurostat released on Thursday confirmed that the Eurozone's annual inflation rate edged up to 2.0% in June from 1.9% in May. Separately, data from the Office for National Statistics showed that Britain's labor market continued to cool in May, increasing pressure on the Bank of England to lower interest rates next month, despite last month's surprise rise in inflation. Meanwhile, investors await clarity on U.S.-EU trade talks, with the bloc preparing retaliatory measures in case negotiations with Washington break down. U.S. President Donald Trump said in an interview aired on Real America's Voice on Wednesday that a deal with Europe could potentially be reached soon. EU trade chief Maros Sefcovic traveled to Washington on Wednesday for trade talks and is expected to meet with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. In other corporate news, Ocado Group Plc ( jumped over +11% after the British online grocery and technology company announced it aims to achieve positive cash flow in its next financial year. U.K.'s Average Earnings ex Bonus, U.K.'s Unemployment Rate, Eurozone's CPI, and Eurozone's Core CPI data were released today. U.K. Average Earnings ex Bonus came in at 5.0% in the three months to May, stronger than expectations of 4.9%. The U.K. Unemployment Rate was 4.7% in the three months to May, weaker than expectations of 4.6%. Eurozone's June CPI rose +0.3% m/m and +2.0% y/y, in line with expectations. Eurozone's June Core CPI rose +0.4% m/m and +2.3% y/y, in line with expectations. Asian stock markets today settled in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.37%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.60%. China's Shanghai Composite Index ended higher today as sentiment got a boost after Citi upgraded domestic equities. Technology stocks jumped on Thursday, lifted by Taiwan Semiconductor Manufacturing Co.'s Q2 earnings beat and upward revision to full-year revenue guidance, along with news that Nvidia will ramp up the supply of its H20 AI chips to China. Automobile stocks also advanced after China's cabinet vowed to curb 'irrational competition' in the nation's rapidly expanding electric-vehicle sector, as deflationary pressures continue to weigh on the world's second-largest economy. Meanwhile, Citi analysts upgraded China equities to Overweight, pointing to a relatively stronger earnings outlook, reasonable valuations, and structural themes like AI and corporate governance reforms. Internet stocks are among the top picks, as recent news about the resumption of AI chip sales by U.S. firms to China could have a marginally positive impact, according to Citi. On the trade front, Bloomberg reported that U.S. President Donald Trump has softened his confrontational stance toward China in a bid to secure a summit with counterpart Xi Jinping and reach a trade agreement with the world's second-largest economy. In corporate news, CanSino Biologics climbed over +3% in Hong Kong after the company received clinical trial approval in China for its Recombinant Trivalent Poliomyelitis Vaccine. Investor focus is now on the upcoming Politburo meeting, which is expected to guide economic policy for the remainder of the year. Citi economists said that China might introduce additional policy measures to boost consumption, potentially including the rollout of a long-awaited childcare subsidy. Japan's Nikkei 225 Stock Index reversed earlier losses and closed higher today as a weaker yen boosted sentiment. Pharmaceutical stocks led the gains on Thursday. The benchmark index also got a boost from technology stocks in the final hour after the world's biggest contract chipmaker, TSMC, posted better-than-expected Q2 profit and raised its full-year revenue growth forecast. Data from the Ministry of Finance released on Thursday showed that Japan's exports fell for the second consecutive month in June, heightening concerns that U.S. tariffs could stall the country's economic recovery and complicate the Bank of Japan's policy plans. Japan's shipments to the U.S. dropped 11.4% from a year earlier in June, marking the largest monthly percentage decline since February 2021 and underscoring the impact of higher tariffs. U.S. President Donald Trump has consistently expressed frustration that Japan is not purchasing enough American goods and threatened to impose a 'reciprocal' 25% tariff on Japanese exports beginning August 1st. That tariff, along with the existing 25% duties on cars and 50% tariffs on steel and aluminum, could potentially reduce Japan's gross domestic product by 1%, according to Stefan Angrick at Moody's Analytics. Japanese officials have traveled to Washington and held meetings with the Trump administration, but it is still uncertain how close they are to finalizing a trade agreement. Meanwhile, Japan's government stated that its top trade negotiator, Ryosei Akazawa, had a 45-minute phone conversation with U.S. Commerce Secretary Howard Lutnick on Thursday regarding U.S. tariffs. 'The two sides re-confirmed each other's position on U.S. tariff measures and engaged in deep conversation,' the government said in a statement. Investors are also cautiously awaiting the outcome of Japan's Upper House election scheduled for July 20th. Multiple local polls indicate that the ruling coalition could lose its majority, potentially adding further complexity to trade negotiations with the U.S. In corporate news, Seven & i Holdings plunged over -9% after Canada's Alimentation Couche-Tard abandoned its $47 billion bid to buy the company. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +0.33% to 24.35. The Japanese June Trade Balance stood at 153.1B yen, weaker than expectations of 353.9B yen. The Japanese June Exports unexpectedly fell -0.5% y/y, weaker than expectations of +0.5% y/y. The Japanese June Imports unexpectedly rose +0.2% y/y, stronger than expectations of -1.6% y/y. Pre-Market U.S. Stock Movers U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) rose over +4% in pre-market trading after the world's biggest contract chipmaker reported better-than-expected Q2 profit and raised its full-year revenue growth forecast. Archer Daniels Midland (ADM) slid over -5% in pre-market trading after President Trump said that Coca-Cola had agreed to use real cane sugar in the U.S. United Airlines Holdings (UAL) fell more than -2% in pre-market trading after the carrier reported weaker-than-expected Q2 revenue and narrowed its full-year adjusted EPS guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - July 17th Netflix (NFLX), GE Aerospace (GE), Abbott Labs (ABT), PepsiCo (PEP), Marsh McLennan (MMC), Interactive Brokers (IBKR), Cintas (CTAS), Elevance Health (ELV), U.S. Bancorp (USB), Travelers (TRV), Fifth Third (FITB), Citizens Financial Group Inc (CFG), Snap-On (SNA), Webster Financial (WBS), Western Alliance (WAL), Bank Ozk (OZK), FNB (FNB), Texas Capital (TCBI), Cohen Steers (CNS), Simmons First National (SFNC), ManpowerGroup (MAN), OFG Bancorp (OFG), Metropolitan Bank (MCB), Insteel Industries (IIIN), Bank7 (BSVN). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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Yahoo
18-06-2025
- Business
- Yahoo
Stock Index Futures Gain as Investors Await Fed Rate Decision, Middle East in Focus
June S&P 500 E-Mini futures (ESM25) are up +0.29%, and June Nasdaq 100 E-Mini futures (NQM25) are up +0.36% this morning, pointing to a slightly higher open on Wall Street after yesterday's drop, while investors await the Federal Reserve's policy decision and updated projections, as well as Chair Jerome Powell's remarks. Investors also await updates on whether the U.S. plans to become directly involved in the conflict in the Middle East. The conflict between Israel and Iran entered a sixth day on Wednesday, showing no signs of easing. U.S. President Donald Trump demanded Iran's unconditional surrender on Tuesday and threatened a potential strike against the country's leader. In yesterday's trading session, Wall Street's main stock indexes closed lower. Solar stocks cratered after Senate Republicans outlined revisions to President Trump's tax-and-spending bill that would phase out solar, wind, and energy tax credits by 2028, with Sunrun (RUN) plummeting over -40%, and Enphase Energy (ENPH) tumbling more than -23% to lead losers in the S&P 500. Also, Lennar (LEN) slumped over -4% after the homebuilder posted weaker-than-expected FQ2 adjusted EPS. In addition, T-Mobile US (TMUS) slid over -4% after Bloomberg reported that shareholder SoftBank Group sold 21.5 million shares of the wireless network operator to finance its AI initiatives. On the bullish side, Jabil Circuit (JBL) climbed more than +8% and was the top percentage gainer on the S&P 500 after the supplier of electronic parts posted upbeat FQ3 results and raised its full-year revenue guidance. Economic data released on Tuesday showed that U.S. retail sales slumped -0.9% m/m in May, weaker than expectations of -0.5% m/m, while core retail sales, which exclude motor vehicles and parts, unexpectedly fell -0.3% m/m, weaker than expectations of +0.2% m/m. Also, U.S. May industrial production fell -0.2% m/m, weaker than expectations of no change m/m, while manufacturing production rose +0.1% m/m, in line with expectations. In addition, the U.S. import price index was unchanged m/m in May, stronger than expectations of -0.2% m/m. 'Investors should still expect some volatility in economic data due to lingering effects of trade policy. The economy and the consumer are holding up for now, but there are signs of vulnerability. That could present risks in the second half of the year — particularly if we see a further slowdown in jobs or spending,' said Bret Kenwell at eToro. Today, all eyes are focused on the Federal Reserve's monetary policy decision later in the day. The Federal Open Market Committee is widely expected to keep the Fed funds rate unchanged in a range of 4.25% to 4.50%. Market watchers will follow Chair Jerome Powell's post-policy meeting press conference for hints on what could ultimately prompt the central bank to make a move on interest rates and when that might happen. The Fed's quarterly 'dot plot' in its Summary of Economic Projections, which shows FOMC members' forecasts regarding the path of interest rates, will also be closely watched. Economists expect the Fed's rate forecasts to remain largely unchanged – two cuts this year, followed by additional policy rate reductions in 2026. A survey conducted by 22V Research revealed that the current tariff environment would lead to 25 basis points of cuts this year. 'Investors believe that if the dot plot stays at two cuts, it will be because the inflation forecast doesn't move up,' said Dennis DeBusschere, founder of 22V. On the economic data front, investors will focus on U.S. Initial Jobless Claims data, which is set to be released in a couple of hours. Economists expect this figure to be 246K, compared to last week's number of 248K. U.S. Building Permits (preliminary) and Housing Starts data will also be reported today. Economists forecast May Building Permits at 1.420M and Housing Starts at 1.350M, compared to the prior figures of 1.422M and 1.361M, respectively. U.S. Crude Oil Inventories data will be released today as well. Economists foresee this figure standing at -2.300M, compared to last week's value of -3.644M. Meanwhile, the U.S. stock markets will be closed tomorrow in observance of the Juneteenth federal holiday. The markets will reopen on Friday. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.385%, down -0.11%. The Euro Stoxx 50 Index is down -0.02% this morning as investors digest regional inflation data and look ahead to the Fed's interest rate decision. Investors also continued to monitor the conflict between Israel and Iran, which entered its sixth day, with concerns intensifying about more direct U.S. involvement in the conflict. Healthcare stocks lost ground on Wednesday, while defense and bank stocks outperformed. Final data from Eurostat confirmed on Wednesday that the Eurozone's annual inflation rate eased to 1.9% in May from 2.2% in April, falling below the European Central Bank's target for the first time since September 2024. Separately, data showed that U.K. inflation eased slightly in May but remained well above the Bank of England's target, making it unlikely to influence BOE rate setters. Meanwhile, Sweden's central bank lowered its key policy rate by 25 basis points to 2.00% on Wednesday and noted there was a slight possibility of additional easing later this year if economic weakness continues and inflation declines further. Investor focus now turns to the BOE's monetary policy decision on Thursday, with the central bank widely expected to leave its key interest rate unchanged at 4.25%. In corporate news, Airbus SE ( rose over +2% after the planemaker lifted the upper end of its dividend payout target ahead of a business update. European Central Bank Governing Council member Fabio Panetta said on Wednesday that the central bank would maintain a flexible approach to monetary policy decisions amid a backdrop where the conflict between Israel and Iran adds to the risks posed by Washington's trade policy. U.K.'s CPI, U.K.'s Core CPI, Eurozone's CPI, and Eurozone's Core CPI data were released today. U.K. May CPI has been reported at +0.2% m/m and +3.4% y/y, compared to expectations of +0.2% m/m and +3.3% y/y. U.K. May Core CPI came in at +0.2% m/m and +3.5% y/y, in line with expectations. Eurozone May CPI arrived at unchanged m/m and +1.9% y/y, in line with expectations. Eurozone May Core CPI stood at unchanged m/m and +2.3% y/y, in line with expectations. Asian stock markets today closed in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.04%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.90%. China's Shanghai Composite Index closed just above the flatline today as investors were underwhelmed by the opening of the annual Lujiazui Forum, which offered few new policy signals. Sentiment also remained cautious as Israel and Iran exchanged new missile strikes, extending their conflict into a sixth consecutive day. Technology stocks advanced on Wednesday after China's securities regulator unveiled plans to establish a new segment on Shanghai's tech-focused STAR market aimed at hosting pre-profit growth firms and supporting innovation. The watchdog also said that China will promote the development of science and technology bonds to foster innovation. Also, Li Yunze, the head of China's financial regulator, said that China's financial opening and expanding consumer market benefit the nation and provide improved asset allocation opportunities for global investors. Meanwhile, the country's foreign exchange regulator pledged to maintain stability in the yuan exchange rate and guard against external shocks and risks. With few policy surprises emerging from the forum, investors now turn their attention to the upcoming July Politburo meeting for clearer guidance on economic support. In other news, state media Securities Times reported on Wednesday that China will distribute the remainder of its consumer goods trade-in funds in an orderly manner, and the central government is currently directing local governments to utilize the funds at a steady pace. In corporate news, Li Auto slid over -4% in Hong Kong after Chinese media reported that Meituan founder Wang Xing, a major shareholder in the EV maker, further reduced his stake in the company. Japan's Nikkei 225 Stock Index closed higher today, hitting its highest level in four months. Video game and brokerage stocks led the gains on Wednesday. However, the benchmark index's gains were limited by geopolitical tensions, as investors grew increasingly concerned about the prospect of a more direct U.S. military involvement in the Middle East. Meanwhile, investors also digested a slew of weak economic data from the country that reinforced expectations that the impact of U.S. President Trump's tariffs could limit the Bank of Japan's ability to raise rates. Data from the Ministry of Finance released on Wednesday showed that Japan's exports fell in May for the first time in eight months as major automakers like Toyota were impacted by sweeping U.S. tariffs. Also, Japan's imports dropped in May at the sharpest pace since January 2024. In another sign of waning demand and sentiment potentially linked to the uncertainty, separate data showed that Japan's monthly core machinery orders tumbled in April, marking the weakest reading since April 2020. The data came a day after the BOJ held its policy rate steady amid trade uncertainty, and Governor Kazuo Ueda delivered cautious remarks about the outlook, further delaying expectations for the next rate hike. It remains unclear whether Japan's efforts to secure an exemption from higher U.S. tariffs will succeed. Japanese Prime Minister Shigeru Ishiba said on Tuesday that his country has yet to reach a comprehensive tariff agreement with the U.S., as some disagreements between the two nations remain. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.10% to 24.91. The Japanese May Trade Balance came in at -637.6B yen, stronger than expectations of -893.0B yen. The Japanese May Exports arrived at -1.7% y/y, stronger than expectations of -3.8% y/y. The Japanese May Imports stood at -7.7% y/y, weaker than expectations of -6.7% y/y. The Japanese April Core Machinery Orders came in at -9.1% m/m and +6.6% y/y, stronger than expectations of -9.3% m/m and +4.0% y/y. Pre-Market U.S. Stock Movers Circle Internet Group (CRCL) gained more than +3% in pre-market trading after the Senate passed the Genius Act, legislation aimed at regulating stablecoins. Hasbro (HAS) rose nearly +1% in pre-market trading after the Wall Street Journal reported that the toy maker had cut about 3% of its global workforce. La-Z-Boy (LZB) fell over -1% in pre-market trading after the furniture maker posted weaker-than-expected FQ4 adjusted EPS and issued soft FQ1 revenue guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Wednesday - June 18th Korn Ferry (KFY), GMS (GMS), Smith & Wesson (SWBI), Aurora Cannabis (ACB), Euroseas (ESEA). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
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).
