Stock Market Update

The S&P 500 futures are up 10 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 37 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up 41 points and are trading 0.1% above fair value.

This morning's modestly positive bias is rooted in carryover interest from yesterday's rebound effort, as well as some pleasing earnings results from industrial companies like General Motors (GM), GE Aerospace (GE), Danaher (DHR), and UPS (UPS).

Tesla (TSLA) headlines the earnings reporters after today's close along with Texas Instruments (TXN) and Dow component Visa (V).

A continued downturn in oil prices ($81.50, -0.40, -0.5%) has helped improve sentiment a bit, although Treasury yields remain elevated with the 2-yr note yield again pressing 5.00% and the 10-yr note yield sitting at 4.64%. There is a $69 billion 2-yr note auction today. Results will be released at 1:00 p.m. ET and they hold market-moving potential.

Today's economic calendar features the March New Home Sales Report (Brieifng.com consensus 670K; prior 662K) at 10:00 a.m. ET

In corporate news:

• Apple (AAPL 165.78, -0.06, -0.04%): Q1 iPhone sales in China declined 19%, according to Bloomberg
• Boeing (BA 170.75, +0.27, +0.2%): anticipates a slower increase in its 787 jet rate of production as it wrestles supplier shortages, according to Yahoo Finance citing Reuters
• Cadence Design (CDNS 267.00, -18.02, -6.3%): beats by $0.04, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; guides FY24 EPS in-line, revs in-line
• Danaher (DHR 251.84, +15.76, +6.7%): beats by $0.20, beats on revs
• GE Aerospace (GE 157.75, +7.56, +5.0%):  beats by $0.17; raises FY24 operating profit outlook
• General Motors (GM 45.41, +2.20, +5.1%): beats by $0.49, beats on revs; raises FY24 EPS and EBIT guidance
• Kimberly-Clark (KMB 134.00, +5.07, +3.9%): beats by $0.38, beats on revs; raises FY24 outlook for Organic Net Sales and EPS constant currency
• PepsiCo (PEP 176.28, -0.18, -0.1%): beats by $0.09, reports revs in-line; reaffirms FY24 EPS guidance
• Sherwin-Williams (SHW 299.44, -9.82, -3.2%): misses by $0.05, misses on revs; guides FY24 EPS below consensus, revs in-line
• Spotify (SPOT 296.17, +23.93, +8.8%): beats by €0.35, reports revs in-line; guides Q2 revs above consensus
• Tapestry (TPR 40.15, -0.16, -0.4%): FTC sues to block the company's previously disclosed acquisition of Capri (CPRI)
• UPS (UPS 146.40, +1.04, +0.7%): beats by $0.13, reports revs in-line; guides FY24 revs in-line

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: +1.9%, China's Shanghai Composite: -0.7%, India's Sensex: +0.1%, South Korea's Kospi: -0.2%, Australia's ASX All Ordinaries: +0.5%.
  • In economic data:
    • Japan's flash April Manufacturing PMI 49.9 (expected 48.0; last 48.2) and flash Services PMI 54.6 (last 54.1). February BoJ Core CPI 2.2% yr/yr (last 2.3%)
    • South Korea's March PPI 0.2% m/m (last 0.3%); 1.6% yr/yr (last 1.5%)
    • India's flash April Manufacturing PMI 59.1 (last 59.1) and flash Services PMI 61.7 (last 61.2)
    • Singapore's March CPI -0.1% m/m (last 1.1%); 2.7% yr/yr (expected 3.1%; last 3.4%). March Core CPI 3.1% yr/yr (last 3.6%)
    • Hong Kong's March CPI 0.0% m/m (last 0.4%); 2.0% yr/yr (last 2.1%)
    • Australia's flash April Manufacturing PMI 49.9 (last 47.3) and flash Services PMI 54.2 (last 54.4)
  • In news:
    • Flash April Manufacturing PMI readings from Japan and Australia came in at 49.9, suggesting that a return to expansionary territory will follow soon.
    • China's Finance Ministry will support growth in government bond trading volume and it vowed to improve the tax system in capital markets.
    • The U.S. is reportedly preparing to cut some Chinese banks off from the global financial system via sanctions.
    • Fitch affirmed Japan's A rating with a Stable outlook.
• Major European indices trade in the green. STOXX Europe 600: +1.0%, Germany's DAX: +1.2%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.7%, Italy's FTSE MIB: +1.5%, Spain's IBEX 35: +1.3%.
  • In economic data:
    • Eurozone's flash April Manufacturing PMI 45.6 (expected 46.5; last 46.1) and flash Services PMI 52.9 (expected 51.8; last 51.5)
    • Germany's flash April Manufacturing PMI 42.2 (expected 42.8; last 41.9) and flash Services PMI 53.3 (expected 50.6; last 50.1)
    • U.K.'s March Public Sector Net Borrowing GBP11.02 bln (expected GBP8.90 bln; last GBP8.60 bln). Flash April Manufacturing PMI 48.7 (expected 50.3; last 50.3) and flash Services PMI 54.9 (expected 53.0; last 53.1)
    • France's flash April Manufacturing PMI 44.9 (expected 46.9; last 46.2) and flash Services PMI 50.5 (expected 48.9; last 48.3)
  • In news:
    • Flash April PMI readings from the region showed a return to expansion in Germany's and France's services while manufacturing remained in contraction.
    • European Central Bank policymaker De Guindos said that a rate cut in June looks like a done deal while Bank of England policymaker Haskel said that British food inflation is unusually high.