Stock Market Update

Equity futures point to a higher opening this morning after the S&P 500 and Nasdaq Composite set fresh record highs for the second consecutive session in yesterday's action. Though the gains at the index level were more modest compared to recent sessions, participation broadened out, and investors were quick to buy the dip on early tech weakness, which helped the Nasdaq Composite notch its 12th straight session of higher finishes.

Headlines are relatively quiet again today, though the path of least resistance continues to point higher as stocks have yet to face any real selling interest since the major averages finished recovering losses incurred since the start of the war in Iran. The geopolitical backdrop remains constructive, with the U.S. and Iran likely to resume talks over the weekend, while Israel and Lebanon agreed on a 10-day ceasefire. {resident Trump reiterated his view that the war should be over soon at an event in Las Vegas.

Oil prices moved higher yesterday, but WTI crude is currently down $3.21 (-3.5%) to $87.96 per barrel.

Corporate news flow is on the lighter side this morning, though the market has another slate of earnings reports to assess.

There are no economic data releases scheduled for today.

In corporate news:

• Apple (AAPL 267.25, +3.85, +1.5%) saw iPhone shipments increase 20% in China in Q1, according to Reuters.
• Netflix (NFLX 96.36, 11.43, -10.6%) is sharply lower in the premarket after the company beat EPS expectations by $0.47, reported revenues in-line, guided Q2 EPS and revenues below consensus, and reaffirmed its FY26 guidance.
• Truist Financial (TFC 49.0, -0.43, -0.9%) beat EPS expectations by $0.09, reported revenues in-line, guided Q2 revenues below consensus, and guided FY26 revenues in-line.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower showing to end the week with Japan's Nikkei (-1.8%) backing down from record territory. Japan's Nikkei: -1.8%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: -0.1%, India's Sensex: +0.7%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: -0.1%.

In news:

• Expectations for an April rate hike from the Bank of Japan have continued receding with the market growing concerned that the lack of a hike could spark a drop in the yen.
• The People's Bank of China increased the cap on bank lending to offshore entities.
• Fitch noted that China's credit outlook remains bogged down by weak domestic demand.

In economic data:

• Singapore's March trade surplus SGD11.22 bln (last surplus of SGD4.57 bln). March non-oil exports 3.0% m/m (last 3.9%); 15.3% yr/yr (last 4.0%)
• New Zealand's March Electronic Card Retail Sales 0.7% m/m (last 1.4%); 2.7% yr/yr (last 1.5%). March FPI -0.6% m/m (last -0.1%)

Major European indices are seeking a mostly higher finish to the week while the U.K.'s FTSE (-0.4%) lags amid weakness in miners, energy, and consumer names. STOXX Europe 600: +0.1%, Germany's DAX: +0.5%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: UNCH.

In news:

• French train manufacturer Alstom has fallen about 30% after withdrawing its free cash flow guidance.
• European Central Bank policymaker Muller said that it should not be assumed that the energy shock will be temporary, adding that he is not ruling out a rate hike this month.

In economic data:

• Eurozone's February trade surplus EUR11.5 bln (expected surplus of EUR11.7 bln; last deficit of EUR1.0 bln). February Current Account surplus EUR24.9 bln (expected surplus of EUR29.8 bln; last surplus of EUR40.4 bln)
• Italy's February trade surplus EUR4.944 bln (expected surplus of EUR3.83 bln; last surplus of EUR1.13 bln)