Stock Market Update

The S&P 500 futures are down 15 points and are trading 0.2% below fair value, the Nasdaq 100 futures are down 73 points and are trading 0.4% below fair value, and the Dow Jones Industrial Average futures are down 140 points and are trading 0.3% below fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are lower ahead of the final session of the week. There has been a negative response to earnings results from the likes of FedEx (FDX), NIKE (NKE), Micron (MU), and Lennar (LEN), contributing to the early trading bias.

Treasury yields are lower, extending this week's rally. The 10-yr yield is down two basis points from yesterday, and ten basis points this week, to 4.21%.

There is no top-tier economic data today.

In corporate news:

• FedEx (FDX 226.50, -19.71, -8.0%): misses by $0.05, beats on revs; guides FY25 EPS below consensus, revs in-line
• NIKE (NKE 67.30, 4.56, -6.4%): beats by $0.24, beats on revs, gross margin decreased 330 bps to 41.5%; Expect Q4 revenues to be down in the mid-teens range, albeit at the low end
• Micron (MU 99.19, -3.81, -3.7%): beats by $0.13, beats on revs; guides Q3 EPS in-line, revs above consensus
• Lennar (LEN 115, -4.94, -4.1%): beats by $0.44, beats on revs; Issues 2Q25 guidance, sees deliveries of 19,500-20,500
• Microsoft (MSFT 385.84, -1.00, -0.3%): briefly revealed new Xbox UI that appeared to list Steam games, combining Xbox and Windows, according to The Verge
• Southwest Air (LUV 34.07, -0.08, -0.2%): ticks slightly lower after one of its flight's nearly took off from an Orlando, Florida taxiway before air traffic control stopped the departure, according to NBC News

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mixed note with Hong Kong's Hang Seng (-2.2%) seeing continued pressure in technology stocks. Japan's Nikkei: -0.2% (+1.7% for the week), Hong Kong's Hang Seng: -2.2% (-1.1% for the week), China's Shanghai Composite: -1.3% (-1.6% for the week), India's Sensex: +0.7% (+4.2% for the week), South Korea's Kospi: +0.2% (+3.0% for the week), Australia's ASX All Ordinaries: +0.1% (+1.8% for the week).
  • In economic data:
    • Japan's February National CPI -0.1% m/m (last 0.5%); 3.7% yr/yr (last 4.0%). February National Core CPI 3.0% yr/yr (expected 2.9%; last 3.2%)
    • South Korea's February PPI 0.0% m/m (last 0.6%); 1.5% yr/yr (last 1.8%)
    • New Zealand's February trade surplus NZD510 mln (expected deficit of NZD235 mln; last deficit of NZD544 mln). February Credit Card Spending 0.9% yr/yr (last 1.3%)
  • In news:
    • China's Shanghai Composite Index fell 1.3%, influenced by concerns over a potential economic slowdown amid looming U.S. tariffs.
    • Foreign investors bought JPY3.4 trln worth of Japanese bonds last week by using proceeds from stock sales.
    • Indonesia's equity market saw a continuation of its recent weakness amid calls for a strengthening of the country's central bank.
    • South Korea's opposition party called for the impeachment of acting President Choi.
• Major European indices are on track for a mostly lower finish to the week. STOXX Europe 600: -0.6% (+0.6% week-to-date), Germany's DAX: -0.8% (-0.6% week-to-date), U.K.'s FTSE 100: -0.4% (+0.4% week-to-date), France's CAC 40: -0.6% (+0.2% week-to-date), Italy's FTSE MIB: -0.4% (+1.0% week-to-date), Spain's IBEX 35: +0.1% (+2.4% week-to-date).
  • In economic data:
    • Eurozone's January Current Account surplus EUR35.4 bln (last surplus of EUR38.4 bln)
    • U.K.'s February Public Sector Net Borrowing GBP10.71 bln (expected GBP7.00 bln; last -GBP13.32 bln)
    • France's March Business Survey 96 (expected 97; last 97)
  • In news:
    • Airline stocks are under pressure after a fire near London's Heathrow airport closed the airport for the day.
    • Germany's upper house approved a borrowing increase and a EUR500 bln infrastructure and defense spending fund.
    • The U.K. borrowed more than GBP10 bln in February, inviting some renewed concerns about fiscal stability with a budget address looming next week.