June S&P 500 E-Mini futures (ESM26) are trending up +0.20% this morning, signaling that the rally that drove the benchmark to a record high could have further to run.
Some positive corporate news is supporting S&P 500 futures on Friday. Apple (AAPL) rose over +2% in pre-market trading after the iPhone maker reported better-than-expected FQ2 results and gave a surprisingly strong FQ3 revenue growth forecast. Also, Atlassian Corp. (TEAM) jumped more than +25% in pre-market trading after the workflow software company posted upbeat FQ3 results and raised its full-year revenue growth guidance. In addition, Twilio (TWLO) surged over +20% in pre-market trading after the customer engagement platform reported stronger-than-expected Q1 results and boosted its FY26 revenue growth guidance.
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The price of WTI crude edged higher on Friday, holding in triple-digit territory as U.S.-Iran talks remain deadlocked. U.S. President Donald Trump said he would maintain a naval blockade of Iranian ports, heightening concerns that the vital Strait of Hormuz will not reopen anytime soon. Meanwhile, Iran on Thursday warned the U.S. against potential military action after Axios reported that Washington was weighing new strikes to break the negotiating impasse.
In yesterday’s trading session, Wall Street’s major indices ended in the green, with the S&P 500 and Nasdaq 100 posting new record highs. Alphabet (GOOGL) climbed about +10% after Google’s parent company reported stronger-than-expected Q1 results. Also, Qualcomm (QCOM) surged more than +15% and was the top percentage gainer on the Nasdaq 100 after the chip company reported better-than-expected FQ2 results and CEO Cristiano Amon told analysts that initial shipments of a custom data-center chip are slated to begin in the December quarter with a hyperscaler. In addition, Quanta Services (PWR) jumped over +15% and was the top percentage gainer on the S&P 500 after the key AI infrastructure player posted upbeat Q1 results and raised its full-year guidance. On the bearish side, Meta Platforms (META) sank more than -8% and was the top percentage loser on the Nasdaq 100 after the social media giant raised its full-year capital expenditure guidance.
Economic data released on Thursday were mixed. The number of Americans filing for initial jobless claims in the past week fell by -26K to a 57-year low of 189K, compared with the 213K expected. Also, U.S. March personal spending climbed +0.9% m/m, in line with expectations, and personal income rose +0.6% m/m, stronger than expectations of +0.3% m/m. In addition, the U.S. Bureau of Economic Analysis, in its initial estimate of Q1 GDP growth, said the economy expanded at a +2.0% annualized rate, supported by an AI-driven surge in business investment. However, the economy did not grow as quickly as economists had expected, held back by softer consumer spending growth. Meanwhile, the U.S. core PCE price index, a key inflation gauge monitored by the Fed, rose +0.3% m/m and +3.2% y/y in March, in line with expectations. The annual figure rose at its fastest pace since November 2023.
“As long as the economy continues to grow and companies are able to grow earnings, we can see higher stock prices even in the face of higher energy prices and inflation,” said Chris Zaccarelli at Northlight Asset Management.
In tariff news, President Trump said on Thursday he will remove tariffs on products linked to whisky from the U.K., stating that King Charles III had convinced him to lift the levies. Mr. Trump posted on Truth Social that he will be “removing the Tariffs and Restrictions on Whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon.” Tariffs on Scotch whisky from the U.K. currently stand at 10% but were set to rise to 25% in June.
Today, investors will focus on the U.S. ISM Manufacturing PMI and S&P Global Manufacturing PMI, set to be released in a couple of hours. Economists expect the April ISM manufacturing index to be 53.1 and the S&P Global manufacturing PMI to be 54.0, compared to the previous month’s values of 52.7 and 52.3, respectively.
On the earnings front, notable companies like Exxon Mobil (XOM), Chevron (CVX), Colgate-Palmolive (CL), Dominion Energy (D), and Estée Lauder (EL) are set to report their quarterly figures today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +12% increase in quarterly earnings for Q1 compared to the previous year, marking the sixth consecutive quarter of double-digit growth.
U.S. rate futures have priced in a 94.8% probability of no rate change and a 5.2% chance of a 25 basis point rate cut at the next central bank meeting in June.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.39%, up +0.34%.
Most European markets are closed today for the Labor Day holiday.
Japan’s Nikkei 225 Stock Index (NIK) closed up +0.38%, while China’s financial markets were closed for a holiday.
Japan’s Nikkei 225 Stock Index closed higher today, recouping part of the previous session’s losses. Strength in several trading house stocks lent support to the overall market on Friday. Sumitomo Corp. jumped over +17% after reporting a higher full-year net profit and announcing the sale of a nickel project in Madagascar. Also, Mitsubishi Corp. rose more than +4% after giving a strong full-year forecast. In addition, Itochu gained over +2% after saying it expects a 6% increase in annual net profit. Electronics stocks also climbed. At the same time, utility stocks tumbled after domestic power providers warned of losses as procurement costs surged. The benchmark index notched a modest weekly loss, snapping a three-week winning streak. Government data released on Friday showed that annual core inflation in Tokyo unexpectedly eased in April amid expanded childcare subsidies, remaining below the Bank of Japan’s target, a result that backs the bank’s cautious stance on resuming interest rate hikes. Separately, a private-sector survey showed that Japan’s manufacturing activity expanded at its fastest pace in more than four years in April, as companies boosted production and stockpiled goods amid supply chain disruptions caused by the Middle East conflict. Meanwhile, the yen resumed gains in late afternoon trading in Tokyo after an earlier pause in the rally sparked by Japan’s first currency market intervention since 2024. While the nation’s top currency diplomat, Atsushi Mimura, has declined to confirm intervention, Bloomberg reported that authorities entered the market on Thursday. Mimura continued his warnings on Friday that speculative moves were evident in markets, issuing a blunt signal that Tokyo stands ready to step back in. A firmer yen eased inflation concerns, pushing Japanese government bond yields lower. Elsewhere, foreign investors bought a net 807.9 billion yen worth of Japanese stocks in the week through April 25th, extending the buying streak to a fourth consecutive week, according to Ministry of Finance data. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +39.22% to 39.79.
The Japanese April Tokyo Core CPI rose +1.5% y/y, weaker than expectations of +1.8% y/y.
The Japanese April S&P Global Manufacturing PMI was revised higher to 55.1 from the preliminary reading of 54.9.
China’s Shanghai Composite Index was closed today for the Labor Day holiday. Mainland China’s financial markets will reopen on Wednesday, May 6th.
Pre-Market U.S. Stock Movers
Apple (AAPL) rose over +2% in pre-market trading after the iPhone maker reported better-than-expected FQ2 results and gave a surprisingly strong FQ3 revenue growth forecast.
Atlassian Corp. (TEAM) jumped more than +25% in pre-market trading after the workflow software company posted upbeat FQ3 results and raised its full-year revenue growth guidance.
Twilio (TWLO) surged over +20% in pre-market trading after the customer engagement platform reported stronger-than-expected Q1 results and boosted its FY26 revenue growth guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - May 1st
Exxon Mobil (XOM), Chevron (CVX), Linde (LIN), Colgate-Palmolive Company (CL), Dominion Energy (D), Ares Management (ARES), Cboe Global Markets (CBOE), The Estée Lauder Companies (EL), LyondellBasell Industries (LYB), nVent Electric (NVT), Church & Dwight Co. (CHD), Brookfield Renewable Partners (BEP), Moderna (MRNA), Magna International (MGA), TPG Inc. (TPG), IES Holdings (IESC), Brookfield Renewable (BEPC), HF Sinclair (DINO), The AES Corporation (AES), Chart Industries (GTLS), BrightSpring Health Services (BTSG), Federal Realty Investment Trust (FRT), Hudbay Minerals (HBM), Affiliated Managers Group (AMG), Terex (TEX), AutoNation (AN), OneMain Holdings (OMF), Gates Industrial Corporation (GTES), Lear Corporation (LEA), TXNM Energy (TXNM), Piper Sandler Companies (PIPR), Portland General Electric Company (POR), Atmus Filtration Technologies (ATMU), Lazard (LAZ), International Bancshares (IBOC), Amneal Pharmaceuticals (AMRX), Liberty Global (LBTYA), Cinemark Holdings (CNK), WisdomTree (WT), Perella Weinberg Partners (PWP), NextDecade (NEXT), Newell Brands (NWL), Xenia Hotels & Resorts (XHR), Proto Labs (PRLB), UFP Technologies (UFPT), GH Research (GHRS), IRADIMED CORPORATION (IRMD), Whitestone REIT (WSR), Virtus Investment Partners (VRTS), Shenandoah Telecommunications Company (SHEN), Shattuck Labs (STTK), Aquestive Therapeutics (AQST), Fulgent Genetics (FLGT), Wabash National (WNC), Civeo (CVEO), Gran Tierra Energy (GTE), Minerva Neurosciences (NERV), Protara Therapeutics (TARA), GrafTech International (EAF), Stoneridge (SRI), Pro-Dex (PDEX), Silvercrest Asset Management Group (SAMG).
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. For more information please view the Barchart Disclosure Policy here.
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