June S&P 500 E-Mini futures (ESM26) are up +0.14%, and June Nasdaq 100 E-Mini futures (NQM26) are up +0.27% this morning, buoyed by gains in technology stocks, while investors await the Federal Reserve’s interest rate decision, a Senate committee vote on a new Fed chairman, a slew of U.S. economic data, and earnings reports from four Magnificent Seven companies.
Futures on the Nasdaq 100 outperformed as memory and storage stocks rallied in pre-market trading after strong results and guidance from Seagate Technology signaled the AI boom continues to fuel demand for data storage. Chip stocks also advanced in pre-market trading, led by a more than +18% jump in NXP Semiconductors N.V. after it reported better-than-expected Q1 results and issued strong Q2 guidance.
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However, gains in U.S. equity futures are limited as the price of WTI crude climbed more than +3% on Wednesday after The Wall Street Journal reported that President Trump had told his aides to prepare for an extended blockade of Iran, leaving the Strait of Hormuz impassable. Mr. Trump assessed that this option poses less risk for the U.S. than resuming hostilities or exiting the conflict without securing a deal that curbs Iran’s nuclear activities, the report said.
In yesterday’s trading session, Wall Street’s major indexes ended in the red. AI infrastructure stocks and OpenAI partners slumped after The Wall Street Journal reported that the ChatGPT developer recently missed its own targets for new users and revenue, with Arm Holdings (ARM) sinking about -8% to lead losers in the Nasdaq 100 and Sandisk (SNDK) sliding over -6%. Also, Alexandria Real Estate Equities (ARE) plunged more than -11% and was the top percentage loser on the S&P 500 after the healthcare REIT posted weaker-than-expected Q1 revenue. In addition, Rambus (RMBS) tumbled over -21% after the semiconductor and silicon technology company issued soft Q2 product revenue guidance. On the bullish side, Centene (CNC) surged more than +13% and was the top percentage gainer on the S&P 500 after the health insurer reported better-than-expected Q1 results and raised its full-year guidance.
Economic data released on Tuesday were better than expected. The U.S. Conference Board’s consumer confidence index unexpectedly rose to a 4-month high of 92.8 in April, stronger than expectations of 89.0. Also, the U.S. Richmond Fed manufacturing index rose to a 14-month high of 3 in April, stronger than expectations of 2. In addition, the U.S. February S&P/CS HPI Composite - 20 n.s.a. eased to +0.9% y/y from +1.2% y/y in January, better than expectations of +1.1% y/y.
Today, all eyes are focused on the Federal Reserve’s monetary policy decision. The Federal Open Market Committee is widely expected to leave the Fed funds rate unchanged in a range of 3.50% to 3.75% as officials assess the fallout from the Middle East conflict. The conflict has sent energy prices soaring and pushed inflation to its highest level in nearly two years. Investors will be watching the FOMC’s post-meeting statement and a press conference by outgoing Chair Jerome Powell to gauge how concerned the central bank is about the lasting effects of higher oil prices. Some economists believe the Fed could adjust its communication moderately toward a more explicitly two-sided risk outlook—either a rate cut or a rate hike. Market participants will also watch to see whether Mr. Powell signals that he will remain on the Board of Governors after his term as chair ends in May or step down entirely.
Meanwhile, the Senate Banking Committee is expected to advance Kevin Warsh's nomination to lead the Fed later today, after Senator Thom Tillis signaled he was satisfied with the Justice Department’s decision to drop its investigation of Mr. Powell. If the Senate committee advances Warsh’s nomination, the full Senate will proceed with a confirmation vote.
First-quarter corporate earnings season kicks into full gear. Investors will be closely monitoring earnings reports today from a quartet of the Magnificent Seven companies—Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), and Meta Platforms (META). Notably, these Big Tech behemoths have never before reported earnings on the same day. Prominent companies like KLA Corp. (KLAC), Qualcomm (QCOM), Carvana Co. (CVNA), Ford (F), and Chipotle Mexican Grill (CMG) are also scheduled to release their quarterly results 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.
On the economic data front, investors will focus on U.S. Durable Goods Orders and Core Durable Goods Orders data, set to be released in a couple of hours. Economists expect March Durable Goods Orders to rise +0.4% m/m and Core Durable Goods Orders to rise +0.4% m/m, compared to the prior numbers of -1.3% m/m and +0.8% m/m, respectively.
U.S. Building Permits (preliminary) and Housing Starts data for March will be released today. Notably, the release will also incorporate the February figures. Economists expect March Building Permits to be 1.390 million and Housing Starts to be 1.380 million.
U.S. Wholesale Inventories data will come in today. Economists forecast the preliminary March figure at +0.4% m/m, compared to +0.8% m/m in February.
The EIA’s weekly crude oil inventories report will be released today as well. Economists estimate this figure to be 0.3 million barrels, compared to last week’s value of 1.9 million barrels.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.37%, up +0.41%.
The Euro Stoxx 50 Index is down -0.22% this morning as investors digest a mixed batch of corporate earnings reports. Sentiment also weakened as oil prices rose after The Wall Street Journal reported that U.S. President Donald Trump had instructed his aides to prepare for a prolonged blockade of Iran. Insurance and bank stocks slid on Wednesday. Healthcare stocks also fell, dragged lower by declines in GSK Plc (GSK.LN) and AstraZeneca Plc (AZN.LN) following their quarterly results. Limiting losses, technology stocks advanced, partially rebounding from yesterday’s slump. In addition, energy stocks climbed. The European Commission said on Wednesday that confidence among companies and consumers in the Eurozone plunged in April to its lowest level since November 2020, when strict pandemic restrictions were weighing on households and businesses. At the same time, preliminary data from the statistics agency INE showed that Spain’s annual inflation rate unexpectedly eased in April. In addition, data showed that lending growth to Eurozone businesses accelerated in March, even as the Middle East conflict dampened economic sentiment and drove up energy costs. Investors are now awaiting preliminary inflation data from Germany for April due later in the session. Attention will then turn to the Federal Reserve’s latest interest rate decision at what is expected to be Jerome Powell’s final meeting as chair. In corporate news, Adidas AG (ADS.D.DX) climbed over +7% after the German sportswear maker posted better-than-expected Q1 operating profit. Also, UBS Group AG (UBSG.Z.EB) gained more than +4% after the Swiss bank reported stronger-than-expected Q1 net profit. At the same time, Deutsche Bank AG (DBK.D.DX) fell over -2% as the lender took a hit from its exposure to commercial real estate.
Spain’s CPI (preliminary), Eurozone’s Business and Consumer Survey, and Eurozone’s Consumer Confidence data were released today.
The Spanish April CPI rose +0.4% m/m and +3.2% y/y, weaker than expectations of +0.6% m/m and +3.5% y/y.
Eurozone’s April Business and Consumer Survey stood at 93.0, weaker than expectations of 95.2.
Eurozone’s April Consumer Confidence came in at -20.6, in line with expectations.
China’s Shanghai Composite Index (SHCOMP) closed up +0.71%, while Japan’s financial markets were closed for a national holiday.
China’s Shanghai Composite Index closed higher today, led by gains in rare earth and battery names. Rare earth stocks surged on Wednesday following a wave of strong Q1 earnings and the announcement of government plans to crack down on illegal production. Northern Rare Earth jumped +10% after its Q1 net profit more than doubled, while leading magnet producer JL Mag Rare-Earth gained over +8% after its earnings increased by a fifth. In a renewed push to reinforce Beijing’s “total control” regime over the geopolitically vital industry, the government on Tuesday set out detailed penalties for unauthorized production. Battery and new energy stocks also climbed. At the same time, bank stocks fell after Reuters reported that China’s central bank had directed some commercial banks to increase loan issuance in April. Meanwhile, the Politburo, the ruling Communist Party’s top decision-making body, announced no new policy measures on Tuesday, as widely expected. Leaders at the meeting reaffirmed China’s “proactive” fiscal stance and “appropriately loose” monetary policy. In other news, Reuters reported on Wednesday that the U.S. Department of Commerce last week ordered multiple chip equipment makers to suspend certain tool shipments to China’s second-largest chipmaker, Hua Hong. In corporate news, Longi Green Energy Technology fell over -2% after the solar giant reported a wider net loss in Q1, despite stronger module pricing and exports. Investor focus is now squarely on China’s official PMIs for April, scheduled for release on Thursday, as surveys elsewhere begin to reflect the strain from supply-chain disruptions and price pressures stemming from the Middle East conflict. Many economists anticipate a pullback in both gauges, with some projecting a drop back below the 50 threshold that separates contraction from expansion.
Japan’s Nikkei 225 Stock Index was closed today for the Showa Day holiday. The markets will reopen on Thursday.
Pre-Market U.S. Stock Movers
Seagate Technology Holdings (STX) jumped over +16% in pre-market trading after the hard-drive maker posted upbeat FQ3 results and delivered FQ4 guidance that smashed Wall Street expectations. Other memory and storage stocks also climbed in pre-market trading, with Western Digital (WDC) surging more than +9% and Sandisk (SNDK) rising over +5%.
NXP Semiconductors N.V. (NXPI) popped more than +18% in pre-market trading after the chipmaker reported better-than-expected Q1 results and issued strong Q2 guidance.
Bloom Energy (BE) soared over +18% in pre-market trading after the renewable power provider reported strong Q1 results and raised its full-year guidance.
Visa (V) rose over +4% in pre-market trading after the credit-card company posted stronger-than-expected FQ2 results.
Robinhood Markets (HOOD) plunged more than -10% in pre-market trading after the online brokerage reported weaker-than-expected Q1 results.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - April 29th
Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META), AbbVie (ABBV), KLA Corporation (KLAC), Amphenol (APH), QUALCOMM (QCOM), Equinix (EQIX), Carvana Co. (CVNA), General Dynamics (GD), Automatic Data Processing (ADP), Canadian Pacific Kansas City (CP), O’Reilly Automotive (ORLY), Regeneron Pharmaceuticals (REGN), Canadian National Railway Company (CNI), Phillips 66 (PSX), Aflac (AFL), The Allstate Corporation (ALL), Entergy (ETR), Ford Motor Company (F), Garmin (GRMN), Old Dominion Freight Line (ODFL), eBay Inc. (EBAY), Yum! Brands (YUM), Chipotle Mexican Grill (CMG), Kinross Gold (KGC), EMCOR Group (EME), Vulcan Materials Company (VMC), Amrize AG (AMRZ), GE HealthCare Technologies (GEHC), VICI Properties (VICI), Humana (HUM), Biogen (BIIB), Tradeweb Markets (TW), Cognizant Technology Solutions (CTSH), American Water Works Company (AWK), Bunge Global (BG), SoFi Technologies (SOFI), Verisk Analytics (VRSK), SBA Communications (SBAC), FTAI Aviation (FTAI), AerCap Holdings (AER), C.H. Robinson Worldwide (CHRW), Woodward (WWD), Carpenter Technology (CRS), Alamos Gold (AGI), Lennox International (LII), Invitation Homes (INVH), Everest Group (EG), Mid-America Apartment Communities (MAA), IDEX Corporation (IEX), Regency Centers (REG), Tyler Technologies (TYL), Evercore (EVR), TTM Technologies (TTMI), BridgeBio Pharma (BBIO), UDR, Inc. (UDR), Align Technology (ALGN), Generac Holdings (GNRC), Stanley Black & Decker (SWK), Service Corporation International (SCI), Antero Resources (AR), Ionis Pharmaceuticals (IONS), American Financial Group (AFG), Flowserve (FLS), Penske Automotive Group (PAG), MGM Resorts International (MGM), Antero Midstream (AM), FormFactor (FORM), Viavi Solutions (VIAV), OGE Energy (OGE), Murphy USA (MUSA), National Fuel Gas Company (NFG), Tetra Tech (TTEK), Pilgrim's Pride (PPC), Virtu Financial (VIRT), AXIS Capital Holdings (AXS), Morningstar (MORN), Prosperity Bancshares (PB), Glaukos (GKOS), Federal Signal (FSS), Sprouts Farmers Market (SFM), Avis Budget Group (CAR), Lithia Motors (LAD), Wyndham Hotels & Resorts (WH), Plexus (PLXS), The Hanover Insurance Group (THG), SiteOne Landscape Supply (SITE), MGIC Investment (MTG), Avnet (AVT), Etsy, Inc. (ETSY), Brinker International (EAT), Bausch + Lomb (BLCO), Moelis & Company (MC), Parsons (PSN), Kite Realty Group Trust (KRG), Red Rock Resorts (RRR), UFP Industries (UFPI), Avantor (AVTR), MYR Group (MYRG), Sabra Health Care REIT (SBRA), West Fraser Timber (WFG), Graham Holdings Company (GHC), Lemonade (LMND), Waystar Holding (WAY), Wingstop (WING), NorthWestern Energy Group (NWE), Mattel (MAT), Cousins Properties (CUZ), TFS Financial (TFSL), The St. Joe Company (JOE), Dana Incorporated (DAN), Silgan Holdings (SLGN), Broadstone Net Lease (BNL), Independence Realty Trust (IRT), Viking Therapeutics (VKTX), The Scotts Miracle-Gro Company (SMG), Centerra Gold (CGAU), Materion (MTRN), Impinj (PI), First Interstate BancSystem (FIBK).
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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