Stock Market Update

Equity futures point to a higher opening this morning as investors assess a hefty batch of earnings reports and monitor developments on the geopolitical front.

The major averages finished mostly lower yesterday, snapping a 13-session winning streak for the Nasdaq Composite as tech and mega-cap names took a modest step back after an impressive rally. The broader market, however, fared relatively well, and the S&P 500 Equal Weighted Index finished with a modest gain.

Oil prices are flattish this morning after a bounce yesterday as the state of U.S.-Iran negotiations remains tenuous, with Vice President JD Vance set to travel to Pakistan for the next round of talks.

While the market will still react to geopolitical swings, the recovery of all losses since the start of the Iran war suggests investors are largely looking past the conflict, as a ceasefire seems the most feasible option for all parties involved. Attention now shifts to earnings season, where solid results and steady guidance from several Dow components reporting today are helping maintain growth projections and reinforce the view that earnings momentum is continuing to build.

On the macro front, the Senate will hold a confirmation hearing for Fed Chairman Kevin Warsh this morning, according to CBS News.

In corporate news:

• Apple (AAPL 272.50, -0.55, -0.2%) announced that Tim Cook will become executive chairman of the board of directors and John Ternus, senior vice president of Hardware Engineering, will become the next CEO, effective on September 1, 2026.
• Amazon (AMZN 255.84, +7.57, +3.1%) has agreed to invest up to $25 billion in Anthropic as part of an AI infrastructure deal, according to CNBC. 
• 3M (MMM 147.00, -4.40, -2.9%) beat EPS expectations by $0.16, reported revenues in-line, and reaffirmed its FY26 EPS and revenue guidance.
• UnitedHealth (UNH 346.27, +22.95, +7.1%) beat EPS expectations by $0.65, beat revenue expectations, and guided Fy26 EPS above consensus.
• Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: +0.1%, India's Sensex: +1.0%, South Korea's Kospi: +2.7%, Australia's ASX All Ordinaries: UNCH.

In news:

• South Korea's exports were up 49.4% through the first 20 days of April with chip exports jumping 182.5%.
• China Securities Journal noted that measures aimed at stabilizing the stock market have gained traction.
• Fitch expects China's fiscal deficit to remain at 7.3% of GDP in 2026.
• New Zealand's CPI remained above target for the second consecutive quarter in the reading for Q1.

In economic data:

• New Zealand's Q1 CPI 0.9% qtr/qtr (expected 0.8%; last 0.6%); 3.1% yr/yr (expected 2.9%; last 3.1%). Q1 NZIER Business Confidence -4% (last 48%) and Q1 NZIER Capacity Utilization 91.2% (last 89.8%)

Major European indices trade with modest gains. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.5%.

In news:

• European Central Bank policymaker Rehn said that there is no set rate path and that the current starting point is "reasonably balanced."
• Meanwhile, ECB President Lagarde said that the central bank's response will be determined by the duration of the energy shock.
• French Prime Minister Lecornu is seeking EUR4 bln in spending cuts.
• Germany's ZEW institute noted that expectations are slipping into negative territory.

In economic data:

• Eurozone's April ZEW Economic Sentiment -20.4 (expected -12.7; last -8.5)
• Germany's April ZEW Economic Sentiment -17.2 (expected -6.7; last -0.5) and ZEW Current Conditions -73.7 (expected -70.0; last -62.9)
• U.K.'s February three-month employment change 25,000 (last 84,000). February Average Earnings Index + Bonus 3.8% yr/yr (expected 3.6%; last 4.1%). February Unemployment Rate 4.9%(expected 5.2%; last 5.2%) and March Claimant Count change 26,800 (expected 21,400; last 17,100)
• Spain's February trade deficit EUR3.30 bln (last deficit of EUR4.00 bln)
• Swiss March trade surplus CHF3.177 bln (last surplus of CHF4.105 bln)