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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
30-04-2025
- Business
- Globe and Mail
S&P Futures Slip With U.S. GDP and PCE Inflation Data in Focus, Microsoft and Meta Earnings on Tap
June S&P 500 E-Mini futures (ESM25) are trending down -0.30% this morning as investors cautiously await a barrage of U.S. economic data, including the Fed's favorite inflation gauge and the first estimate of first-quarter GDP, as well as earnings reports from 'Magnificent Seven' companies Microsoft and Meta. Some negative corporate news is weighing on stock index futures, with Super Micro Computer (SMCI) tumbling over -14% in pre-market trading after the artificial intelligence server maker reported weaker-than-expected preliminary Q3 results. Also, Starbucks (SBUX) slid over -6% in pre-market trading after the coffee chain posted weaker-than-expected FQ2 results. On the trade front, U.S. President Donald Trump on Tuesday signed two executive orders intended to ease the impact of his auto tariffs, while his Commerce Secretary Howard Lutnick told CNBC that the U.S. had reached its first trade deal with an undisclosed country. In yesterday's trading session, Wall Street's three main equity benchmarks closed higher. SBA Communications (SBAC) climbed over +6% and was the top percentage gainer on the S&P 500 after raising its full-year revenue guidance. Also, Honeywell International (HON) advanced more than +5% and was the top percentage gainer on the Dow after the industrial conglomerate reported stronger-than-expected Q1 results and raised the lower end of its full-year adjusted EPS guidance. In addition, Cadence Design Systems (CDNS) rose over +5% and was the top percentage gainer on the Nasdaq 100 after the company lifted its full-year guidance. On the bearish side, NXP Semiconductors N.V. (NXPI) slumped more than -6% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the semiconductor firm announced a new chief executive officer and warned it was navigating 'a very uncertain environment' due to tariffs. A Labor Department report released on Tuesday showed that the U.S. JOLTs job openings fell to a 6-month low of 7.192M in March, weaker than expectations of 7.490M. Also, the U.S. Conference Board's consumer confidence index fell to a nearly 5-year low of 86.0 in April, weaker than expectations of 87.7. In addition, the U.S. February S&P/CS HPI Composite - 20 n.s.a. eased to +4.5% y/y from +4.7% y/y in January, weaker than expectations of +4.6% y/y. 'Many are still calling for a recession and even lower equity levels, but we think the 'Trump put' is real for equities while the 'Fed put' is real for the economy. And while tops and bottoms are hard to recognize as they are happening, we think the worst is behind us,' said Andrew Brenner at NatAlliance Securities. Meanwhile, U.S. rate futures have priced in a 92.3% probability of no rate change and a 7.7% chance of a 25 basis point rate cut at May's monetary policy meeting. First-quarter corporate earnings season rolls on, with investors looking forward to fresh reports from major companies today, including Microsoft (MSFT), Meta Platforms (META), Qualcomm (QCOM), Caterpillar (CAT), and KLA Corp. (KLAC). 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 on the Commerce Department's first estimate of gross domestic product, set to be released in a couple of hours. Economists, on average, forecast that U.S. GDP growth will stand at +0.2% q/q in the first quarter, compared to the fourth-quarter figure of +2.4% q/q. Investors will also focus on the U.S. core personal consumption expenditures price index, the Fed's preferred price gauge. Economists expect the core PCE price index to be +0.1% m/m and +2.6% y/y in March, compared to the previous figures of +0.4% m/m and +2.8% y/y. The U.S. ADP Nonfarm Employment Change data will be closely monitored today. Economists foresee the April figure coming in at 114K, compared to the March figure of 155K. U.S. Personal Spending and Personal Income data will be reported today. Economists anticipate March Personal Spending to be +0.6% m/m and Personal Income to be +0.4% m/m, compared to February's figures of +0.4% m/m and +0.8% m/m, respectively. The U.S. Employment Cost Index will be released today. Economists expect this figure to arrive at +0.9% q/q in the first quarter, matching the fourth quarter's figure. U.S. Pending Home Sales data will come in today. Economists forecast the March figure at +0.9% m/m, compared to the previous figure of +2.0% m/m. The U.S. Chicago PMI will be released today as well. Economists expect this figure to come in at 45.9 in April, compared to the previous value of 47.6. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.161%, down -0.31%. The Euro Stoxx 50 Index is down -0.08% this morning as investors digest a wave of corporate earnings reports and key economic data from the region. Automobile stocks outperformed on Wednesday after U.S. President Donald Trump signed an executive order softening the impact of his auto tariffs. At the same time, mining stocks slumped, with Glencore Plc ( sliding over -4% after it reported a 30% drop in Q1 copper production. The benchmark index is on track for the second consecutive monthly drop. Eurostat data released on Wednesday showed that the Eurozone economy expanded at a quicker rate in the first quarter, supported by U.S. companies stockpiling imported goods ahead of anticipated tariff increases. Separately, preliminary data showed that France's annual inflation rate held steady in April, while Italy's annual inflation rate for April edged up slightly. Meanwhile, European Central Bank Governing Council member Gediminas Simkus said on Wednesday that he is a 'proponent of a 25-basis-points cut' at the central bank's next meeting in June. Investor focus is now on Germany's preliminary inflation data for April, due later in the session. In other corporate news, Societe Generale ( gained over +2% after reporting better-than-expected Q1 results. At the same time, Ssab Ab ( fell more than -4% after the Swedish steelmaker posted a 57% decline in Q1 operating profit. Germany's Retail Sales, Germany's Unemployment Change, Germany's Unemployment Rate, France's CPI (preliminary), Italy's CPI (preliminary), and Eurozone's GDP (preliminary) data were released today. The German March Retail Sales stood at -0.2% m/m, stronger than expectations of -0.4% m/m. The German April Unemployment Change arrived at 4K, stronger than expectations of 16K. The German April Unemployment Rate was 6.3%, in line with expectations. The French April CPI came in at +0.5% m/m and +0.8% y/y, compared to expectations of +0.4% m/m and +0.8% y/y. The Italian April CPI arrived at +0.2% m/m and +2.0% y/y, in line with expectations. Eurozone GDP has been reported at +0.4% q/q and +1.2% y/y in the first quarter, stronger than expectations of +0.2% q/q and +1.0% y/y. Asian stock markets today closed mixed. China's Shanghai Composite Index (SHCOMP) closed down -0.23%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.57%. China's Shanghai Composite Index closed lower today as investors digested weak PMI data from the country. Bank stocks led the declines on Wednesday. An official survey released on Wednesday showed that China's factory activity shrank at the fastest rate in 16 months in April, revealing initial harm to the world's second-largest economy from the trade war with the U.S. Also, a private measure of Chinese manufacturing activity showed a slowdown in April, though it remained in expansion territory for the seventh consecutive month. In addition, the non-manufacturing gauge showed that activity in construction and services expanded at a slower-than-expected pace. The readings heightened concerns over the wider economic impact of trade tensions and boosted expectations for stronger government stimulus. Earlier this week, the vice head of China's state planner promised the rollout of new policies over the second quarter. Meanwhile, Reuters reported on Wednesday that China has compiled a list of U.S.-made goods to be exempted from its 125% tariffs and is quietly informing companies about the policy, as Beijing looks to soften the impact of its trade war with Washington. U.S. President Donald Trump stated on Tuesday that he thought a trade deal with China was on the horizon. 'But it's going to be a fair deal,' he added. In corporate news, Industrial & Commercial Bank of China fell over -3% after the lender posted weak Q1 results. The Chinese April Manufacturing PMI stood at 49.0, weaker than expectations of 49.7. The Chinese April Caixin Manufacturing PMI came in at 50.4, stronger than expectations of 49.7. The Chinese April Non-Manufacturing PMI arrived at 50.4, weaker than expectations of 50.6. Japan's Nikkei 225 Stock Index closed higher today as trading resumed after a holiday. Sentiment was boosted by remarks from U.S. Treasury Secretary Scott Bessent, who said the administration held 'substantial talks' with Japan regarding a potential trade deal. Also, Japan's top trade negotiator, Ryosei Akazawa, stated that he aims to achieve steady progress in tariff talks with the U.S. He is set to travel to Washington later in the day to meet his counterparts for a second round of talks. Bank and electronics stocks led the gains on Wednesday. The benchmark index notched its first monthly gain since December. Meanwhile, data from the Ministry of Economy, Trade and Industry released on Wednesday showed that Japan's industrial production fell more than expected in March, signaling that manufacturers became cautious amid the U.S. tariff uncertainty. A separate government data release showed that retail sales growth in March came in below expectations. Investor focus now shifts to the Bank of Japan's monetary policy decision. The central bank is widely expected to keep its policy rate steady at 0.5% on Thursday, but it remains on a rate-hike path due to strong domestic fundamentals, according to Barclays economists. In corporate news, Sony Group climbed over +7% after Bloomberg reported that the group is considering spinning off its semiconductor unit. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -5.48% to 27.23. The Japanese March Industrial Production (preliminary) arrived at -1.1% m/m, weaker than expectations of -0.5% m/m. The Japanese March Retail Sales stood at +3.1% y/y, weaker than expectations of +3.6% y/y. The Japanese February Leading Index came in at 107.9, in line with expectations. Pre-Market U.S. Stock Movers Super Micro Computer (SMCI) tumbled over -14% in pre-market trading after the artificial intelligence server maker reported weaker-than-expected preliminary Q3 results. Snap (SNAP) plunged more than -13% in pre-market trading after the company declined to issue Q2 guidance due to global macroeconomic uncertainty. Starbucks (SBUX) slid over -6% in pre-market trading after the coffee chain posted weaker-than-expected FQ2 results. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Wednesday - April 30th Microsoft (MSFT), Meta Platforms (META), Qualcomm (QCOM), Caterpillar (CAT), ADP (ADP), KLA Corp. (KLAC), Equinix (EQIX), Trane Technologies (TT), Illinois Tool Works (ITW), Canadian Pacific Kansas City (CP), Aflac (AFL), Allstate (ALL), MetLife (MET), Public Storage (PSA), Crown Castle (CCI), Robinhood Markets (HOOD), Yum! Brands (YUM), Hess (HES), Public Service Enterprise (PEG), Garmin (GRMN), Prudential Financial (PRU), Cognizant (CTSH), Fannie Mae (FNMA), VICI Properties (VICI), Vulcan Materials (VMC), Tradeweb Markets (TW), Humana (HUM), eBay (EBAY), Martin Marietta Materials (MLM), Ventas (VTR), AvalonBay (AVB), American Water Works (AWK), ANSYS (ANSS), PPL (PPL), International Paper (IP), CGI Inc (GIB), Invitation Homes (INVH), Mid-America Apartment (MAA), EMCOR (EME), PTC (PTC), Gfl Environmental (GFL), Everest (EG), Sprouts Farmers (SFM), UDR (UDR), Western Digital (WDC), Lineage (LINE), Brookfield Infrastructure Partners (BIP), United Therapeutics (UTHR), Align (ALGN), Pilgrims Pride (PPC), Morningstar (MORN), Alamos Gold (AGI), Annaly Capital Management (NLY), Clean Harbors (CLH), XPO (XPO), SCI (SCI), Antero Resources Corp (AR), FTAI Aviation (FTAI), Penske Automotive (PAG), CH Robinson (CHRW), Lincoln Electrics (LECO), Globe Life (GL), DT Midstream (DTM), Host Hotels Resorts (HST), Stanley Black Decker (SWK), MGM (MGM), Evercore (EVR), Antero Midstream (AM), Confluent (CFLT), Norwegian Cruise Line (NCLH), Axis Capital (AXS), Parsons (PSN), Open Text (OTEX), National Fuel Gas (NFG), Albemarle (ALB), Generac (GNRC), Wyndham Hotels (WH), Wingstop Inc (WING), Waystar Holding (WAY), Guardant Health (GH), MGIC Investment (MTG), Clearway Energy (CWEN), The Hanover Insurance (THG), Credit Acceptance (CACC), Clearwater Analytics Holdings (CWAN), Oshkosh (OSK), Silgans (SLGN), Comstock Resources (CRK), Glaukos Corp (GKOS), Enact Holdings (ACT), Lancaster Colony (LANC), FMC (FMC), Siteone Landscape Supply (SITE), Reynolds (REYN), Etsy Inc (ETSY), Bausch + Lomb (BLCO), Ionis Pharma (IONS), Gates Industrial Corp (GTES), Timken (TKR), Independence Realty Trust Inc (IRT), Federal Signal (FSS), Cognex (CGNX), Spire (SR), Wex (WEX), Radian (RDN), Avnet (AVT), Bloom Energy (BE), Magnolia Oil (MGY), PureTech Health (PRTC).
Globe and Mail
30-04-2025
- Business
- Globe and Mail
S&P Futures Tick Lower With U.S. GDP and PCE Inflation Data in Focus, Microsoft and Meta Earnings on Tap
June S&P 500 E-Mini futures (ESM25) are trending down -0.11% this morning as investors cautiously await a barrage of U.S. economic data, including the Fed's favorite inflation gauge and the first estimate of first-quarter GDP, as well as earnings reports from 'Magnificent Seven' companies Microsoft and Meta. In yesterday's trading session, Wall Street's three main equity benchmarks closed higher. SBA Communications (SBAC) climbed over +6% and was the top percentage gainer on the S&P 500 after raising its full-year revenue guidance. Also, Honeywell International (HON) advanced more than +5% and was the top percentage gainer on the Dow after the industrial conglomerate reported stronger-than-expected Q1 results and raised the lower end of its full-year adjusted EPS guidance. In addition, Cadence Design Systems (CDNS) rose over +5% and was the top percentage gainer on the Nasdaq 100 after the company lifted its full-year guidance. On the bearish side, NXP Semiconductors N.V. (NXPI) slumped more than -6% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the semiconductor firm announced a new chief executive officer and warned it was navigating 'a very uncertain environment' due to tariffs. A Labor Department report released on Tuesday showed that the U.S. JOLTs job openings fell to a 6-month low of 7.192M in March, weaker than expectations of 7.490M. Also, the U.S. Conference Board's consumer confidence index fell to a nearly 5-year low of 86.0 in April, weaker than expectations of 87.7. In addition, the U.S. February S&P/CS HPI Composite - 20 n.s.a. eased to +4.5% y/y from +4.7% y/y in January, weaker than expectations of +4.6% y/y. 'Many are still calling for a recession and even lower equity levels, but we think the 'Trump put' is real for equities while the 'Fed put' is real for the economy. And while tops and bottoms are hard to recognize as they are happening, we think the worst is behind us,' said Andrew Brenner at NatAlliance Securities. U.S. rate futures have priced in a 92.3% probability of no rate change and a 7.7% chance of a 25 basis point rate cut at May's monetary policy meeting. Meanwhile, U.S. President Donald Trump on Tuesday signed two executive orders intended to ease the impact of his auto tariffs, while his Commerce Secretary Howard Lutnick told CNBC that the U.S. had reached its first trade deal with an undisclosed country. First-quarter corporate earnings season rolls on, with investors looking forward to fresh reports from major companies today, including Microsoft (MSFT), Meta Platforms (META), Qualcomm (QCOM), Caterpillar (CAT), and KLA Corp. (KLAC). 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 on the Commerce Department's first estimate of gross domestic product, set to be released in a couple of hours. Economists, on average, forecast that U.S. GDP growth will stand at +0.2% q/q in the first quarter, compared to the fourth-quarter figure of +2.4% q/q. Investors will also focus on the U.S. core personal consumption expenditures price index, the Fed's preferred price gauge. Economists expect the core PCE price index to be +0.1% m/m and +2.6% y/y in March, compared to the previous figures of +0.4% m/m and +2.8% y/y. The U.S. ADP Nonfarm Employment Change data will be closely monitored today. Economists foresee the April figure coming in at 114K, compared to the March figure of 155K. U.S. Personal Spending and Personal Income data will be reported today. Economists anticipate March Personal Spending to be +0.6% m/m and Personal Income to be +0.4% m/m, compared to February's figures of +0.4% m/m and +0.8% m/m, respectively. The U.S. Employment Cost Index will be released today. Economists expect this figure to arrive at +0.9% q/q in the first quarter, matching the fourth quarter's figure. U.S. Pending Home Sales data will come in today. Economists forecast the March figure at +0.9% m/m, compared to the previous figure of +2.0% m/m. The U.S. Chicago PMI will be released today as well. Economists expect this figure to come in at 45.9 in April, compared to the previous value of 47.6. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.161%, down -0.31%. The Euro Stoxx 50 Index is down -0.08% this morning as investors digest a wave of corporate earnings reports and key economic data from the region. Automobile stocks outperformed on Wednesday after U.S. President Donald Trump signed an executive order softening the impact of his auto tariffs. At the same time, mining stocks slumped, with Glencore Plc ( sliding over -4% after it reported a 30% drop in Q1 copper production. The benchmark index is on track for the second consecutive monthly drop. Eurostat data released on Wednesday showed that the Eurozone economy expanded at a quicker rate in the first quarter, supported by U.S. companies stockpiling imported goods ahead of anticipated tariff increases. Separately, preliminary data showed that France's annual inflation rate held steady in April, while Italy's annual inflation rate for April edged up slightly. Meanwhile, European Central Bank Governing Council member Gediminas Simkus said on Wednesday that he is a 'proponent of a 25-basis-points cut' at the central bank's next meeting in June. Investor focus is now on Germany's preliminary inflation data for April, due later in the session. In other corporate news, Societe Generale ( gained over +2% after reporting better-than-expected Q1 results. At the same time, Ssab Ab ( fell more than -4% after the Swedish steelmaker posted a 57% decline in Q1 operating profit. Germany's Retail Sales, Germany's Unemployment Change, Germany's Unemployment Rate, France's CPI (preliminary), Italy's CPI (preliminary), and Eurozone's GDP (preliminary) data were released today. The German March Retail Sales stood at -0.2% m/m, stronger than expectations of -0.4% m/m. The German April Unemployment Change arrived at 4K, stronger than expectations of 16K. The German April Unemployment Rate was 6.3%, in line with expectations. The French April CPI came in at +0.5% m/m and +0.8% y/y, compared to expectations of +0.4% m/m and +0.8% y/y. The Italian April CPI arrived at +0.2% m/m and +2.0% y/y, in line with expectations. Eurozone GDP has been reported at +0.4% q/q and +1.2% y/y in the first quarter, stronger than expectations of +0.2% q/q and +1.0% y/y. Asian stock markets today closed mixed. China's Shanghai Composite Index (SHCOMP) closed down -0.23%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.57%. China's Shanghai Composite Index closed lower today as investors digested weak PMI data from the country. Bank stocks led the declines on Wednesday. An official survey released on Wednesday showed that China's factory activity shrank at the fastest rate in 16 months in April, revealing initial harm to the world's second-largest economy from the trade war with the U.S. Also, a private measure of Chinese manufacturing activity showed a slowdown in April, though it remained in expansion territory for the seventh consecutive month. In addition, the non-manufacturing gauge showed that activity in construction and services expanded at a slower-than-expected pace. The readings heightened concerns over the wider economic impact of trade tensions and boosted expectations for stronger government stimulus. Earlier this week, the vice head of China's state planner promised the rollout of new policies over the second quarter. Meanwhile, Reuters reported on Wednesday that China has compiled a list of U.S.-made goods to be exempted from its 125% tariffs and is quietly informing companies about the policy, as Beijing looks to soften the impact of its trade war with Washington. U.S. President Donald Trump stated on Tuesday that he thought a trade deal with China was on the horizon. 'But it's going to be a fair deal,' he added. In corporate news, Industrial & Commercial Bank of China fell over -3% after the lender posted weak Q1 results. The Chinese April Manufacturing PMI stood at 49.0, weaker than expectations of 49.7. The Chinese April Caixin Manufacturing PMI came in at 50.4, stronger than expectations of 49.7. The Chinese April Non-Manufacturing PMI arrived at 50.4, weaker than expectations of 50.6. Japan's Nikkei 225 Stock Index closed higher today as trading resumed after a holiday. Sentiment was boosted by remarks from U.S. Treasury Secretary Scott Bessent, who said the administration held 'substantial talks' with Japan regarding a potential trade deal. Also, Japan's top trade negotiator, Ryosei Akazawa, stated that he aims to achieve steady progress in tariff talks with the U.S. He is set to travel to Washington later in the day to meet his counterparts for a second round of talks. Bank and electronics stocks led the gains on Wednesday. The benchmark index notched its first monthly gain since December. Meanwhile, data from the Ministry of Economy, Trade and Industry released on Wednesday showed that Japan's industrial production fell more than expected in March, signaling that manufacturers became cautious amid the U.S. tariff uncertainty. A separate government data release showed that retail sales growth in March came in below expectations. Investor focus now shifts to the Bank of Japan's monetary policy decision. The central bank is widely expected to keep its policy rate steady at 0.5% on Thursday, but it remains on a rate-hike path due to strong domestic fundamentals, according to Barclays economists. In corporate news, Sony Group climbed over +7% after Bloomberg reported that the group is considering spinning off its semiconductor unit. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -5.48% to 27.23. The Japanese March Industrial Production (preliminary) arrived at -1.1% m/m, weaker than expectations of -0.5% m/m. The Japanese March Retail Sales stood at +3.1% y/y, weaker than expectations of +3.6% y/y. The Japanese February Leading Index came in at 107.9, in line with expectations. Pre-Market U.S. Stock Movers Super Micro Computer (SMCI) tumbled over -14% in pre-market trading after the artificial intelligence server maker reported weaker-than-expected preliminary Q3 results. Snap (SNAP) plunged more than -13% in pre-market trading after the company declined to issue Q2 guidance due to economic uncertainty. Starbucks (SBUX) slid over -6% in pre-market trading after the coffee chain posted weaker-than-expected FQ2 results. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Wednesday - April 30th Microsoft (MSFT), Meta Platforms (META), Qualcomm (QCOM), Caterpillar (CAT), ADP (ADP), KLA Corp. (KLAC), Equinix (EQIX), Trane Technologies (TT), Illinois Tool Works (ITW), Canadian Pacific Kansas City (CP), Aflac (AFL), Allstate (ALL), MetLife (MET), Public Storage (PSA), Crown Castle (CCI), Robinhood Markets (HOOD), Yum! Brands (YUM), Hess (HES), Public Service Enterprise (PEG), Garmin (GRMN), Prudential Financial (PRU), Cognizant (CTSH), Fannie Mae (FNMA), VICI Properties (VICI), Vulcan Materials (VMC), Tradeweb Markets (TW), Humana (HUM), eBay (EBAY), Martin Marietta Materials (MLM), Ventas (VTR), AvalonBay (AVB), American Water Works (AWK), ANSYS (ANSS), PPL (PPL), International Paper (IP), CGI Inc (GIB), Invitation Homes (INVH), Mid-America Apartment (MAA), EMCOR (EME), PTC (PTC), Gfl Environmental (GFL), Everest (EG), Sprouts Farmers (SFM), UDR (UDR), Western Digital (WDC), Lineage (LINE), Brookfield Infrastructure Partners (BIP), United Therapeutics (UTHR), Align (ALGN), Pilgrims Pride (PPC), Morningstar (MORN), Alamos Gold (AGI), Annaly Capital Management (NLY), Clean Harbors (CLH), XPO (XPO), SCI (SCI), Antero Resources Corp (AR), FTAI Aviation (FTAI), Penske Automotive (PAG), CH Robinson (CHRW), Lincoln Electrics (LECO), Globe Life (GL), DT Midstream (DTM), Host Hotels Resorts (HST), Stanley Black Decker (SWK), MGM (MGM), Evercore (EVR), Antero Midstream (AM), Confluent (CFLT), Norwegian Cruise Line (NCLH), Axis Capital (AXS), Parsons (PSN), Open Text (OTEX), National Fuel Gas (NFG), Albemarle (ALB), Generac (GNRC), Wyndham Hotels (WH), Wingstop Inc (WING), Waystar Holding (WAY), Guardant Health (GH), MGIC Investment (MTG), Clearway Energy (CWEN), The Hanover Insurance (THG), Credit Acceptance (CACC), Clearwater Analytics Holdings (CWAN), Oshkosh (OSK), Silgans (SLGN), Comstock Resources (CRK), Glaukos Corp (GKOS), Enact Holdings (ACT), Lancaster Colony (LANC), FMC (FMC), Siteone Landscape Supply (SITE), Reynolds (REYN), Etsy Inc (ETSY), Bausch + Lomb (BLCO), Ionis Pharma (IONS), Gates Industrial Corp (GTES), Timken (TKR), Independence Realty Trust Inc (IRT), Federal Signal (FSS), Cognex (CGNX), Spire (SR), Wex (WEX), Radian (RDN), Avnet (AVT), Bloom Energy (BE), Magnolia Oil (MGY), PureTech Health (PRTC).
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).
