Stock Market Update

The S&P 500 futures are up 29 points and are trading 0.5% above fair value, the Nasdaq 100 futures are up 115 points and are trading 0.6% above fair value, and the Dow Jones Industrial Average futures are up 160 points and are trading 0.4% above fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are higher after a selloff on Monday. The market is trying to stabilize a little after big losses of late, but early upside moves are relatively limited. 

Treasuries are seeing some selling after big gains amid fallout in the stock market. The 10-yr yield is up two basis points to 4.23% and the 2-yr yield is up one basis point to 3.91%.

The NFIB Small Business Optimism Survey dropped to 100.7 in February from 102.8.

In corporate news:

• Oracle (ORCL 148.75, -0.04, -0.3%): misses by $0.02, misses on revs; increases dividend; Guides MayQ EPS and revs below consensus
• Delta Air Lines (DAL 46.95, -3.38, -6.7%): lowers its Q1 guidance due to recent reductions in consumer and corporate confidence caused by increased macro uncertainty
• Vail Resorts (MTN 157.80, +4.22, +2.8%): beats by $0.27, reports revs in-line; midpoint of FY25 (Jul) Resort Reported EBITDA guidance remains unchanged
• Illumina (ILMN 88.20, +2.23, +2.5%): ticks higher after aiming to cut $100 mln in costs, lowers FY25 adjusted EPS guidance, according to WSJ; addresses recent developments in China
• Asana (ASAN 12.20, -4.48, -26.9%): beats by $0.01, reports revs in-line; guides Q1 EPS above consensus, revs below consensus; guides FY26 EPS above consensus, revs below consensus; Co-Founder, CEO and Chair, Dustin Moskovitz, informs company of his intention to transition to role of Chair when a new CEO begins

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: -0.6%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: +0.4%, India's Sensex: UNCH, South Korea's Kospi: -1.3%, Australia's ASX All Ordinaries: -1.1%.
  • In economic data:
    • Japan's Q4 GDP 0.6% qtr/qtr (expected 0.7%; last 0.3%); annualized 2.2% qtr/qtr (last 1.2%). Q4 Capital Expenditure 0.6% qtr/qtr (expected 0.5%; last -0.1%), External Demand 0.7% qtr/qtr, as expected (last -0.2%), Private Consumption 0.0% qtr/qtr (expected 0.1%; last 0.7%), and GDP Price Index 2.9% yr/yr (expected 2.8%; last 2.4%). January Household Spending -4.5% m/m (expected -1.9%; last 2.3%); 0.8% yr/yr (expected 3.7%; last 2.7%). February Machine Tool Orders 3.5% yr/yr (expected 4.7%; last 11.2%)
    • Australia's March Westpac Consumer Sentiment 4.0% (last 0.1%). February NAB Business Confidence -1 (last 5) and Business Survey 4 (last 3)
    • New Zealand's Q4 Manufacturing Sales Volume 1.1% qtr/qtr (last -0.9%)
  • In news:
    • The Wall Street Journal reported that plans are being made for a June meeting between President Trump and China's President Xi.
    • Japan reported slightly weaker-than-expected GDP for Q4.
    • A former Bank of Japan policymaker said that the rate hike is likely to take place in June.
    • South Korea's exports were up 2.9% yr/yr through the first ten days of March with chip exports showing no change yr/yr.
• Major European indices trade near their flat lines. STOXX Europe 600: -0.4%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.2%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.2%.
  • No data today
  • In news
    
    • Volkswagen missed profit expectations for the full year while its revenue beat estimates. The company expects that revenue will grow again this year.
    • British homebuilder Persimmon beat quarterly expectations and guided for higher home completions.
    • German politicians are hoping to formalize the recently-announced changes to military financing rules later this week.