Stock Market Update

The S&P 500 futures are up ten points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 28 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are up 50 points and are trading 0.1% above fair value.

Early trading has been muted after yesterday's robust rally in the major indices. Contracts tied to the Nasdaq 100, S&P 500, and Dow industrials are slightly higher, but moves are limited. 

Ongoing uncertainty around the tariff announcements on April 2 has dampened investor sentiment. There's also some potentially market-moving data to get through this morning. The Conference Board's Consumer Confidence Index for March and the New Home Sales report for February are released at 10:00 ET. 

Treasuries have seen a continuation of yesterday's selling. The 10-yr yield is up three basis points to 4.36% and the 2-yr yield is up one basis point to 4.04%.

In corporate news:

• Tesla (TSLA 282.30, +3.91, +1.4%): February European Tesla sales fell 40% yr/yr, according to FT
• Meta Platforms (META 625.60, +7.16, +1.2%): EU expected to fine Meta $1 bln for allegedly violating antitrust rules, according to NY Post
• KB Home (KBH 56.79, -5.00, -8.1%): misses by $0.08, misses on revs, deliveries decreased 9%; Lowers FY25 housing revenue and housing gross profit margin guidance; Says that spring selling season was more muted than typical, pulling other homebuilder stocks lower
• Boeing (BA 181.43, +0.53, +0.3%): looks to withdraw guilty plea agreement reached during final months of the Biden administration, according to WSJ
• Cintas (CTAS 196.30, +1.73, +0.9%): terminates discussions with UniFirst (UNF) regarding its previously announced proposal to acquire the UNF for $275.00/share

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region had a mixed showing on Tuesday. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -2.4%, China's Shanghai Composite: UNCH, India's Sensex: UNCH, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: +0.1%.
  • In economic data:
    • Japan's January BoJ Core CPI 2.2% yr/yr, as expected (last 2.2%)
    • South Korea's March Consumer Confidence 93.4 (last 95.2)
    • Hong Kong's February trade deficit $36.3 bln (last surplus of $2.1 bln). February Imports 11.8% m/m (last 0.5%) and Exports 15.4% m/m (last 0.1%)
  • In news:
    • There was some optimism that Japan's trade minister's visit to Washington will result in some tariff breaks for Japan.
    • Hong Kong's Hang Seng (-2.4%) underperformed notably with tech stocks leading the weakness.
    • China's stimulus plans may include spending on services, according to FT.
    • Indonesia's rupiah fell to levels not seen since 1998 against the dollar, prompting speculation about an intervention from Bank Indonesia.
• Major European indices trade in the green. STOXX Europe 600: +0.9%, Germany's DAX: +1.2%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +1.3%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +1.1%.
  • In economic data:
    • Germany's March ifo Business Climate Index 86.7 (expected 86.8; last 85.3). March Current Assessment 85.7 (expected 85.5; last 85.0) and Business Expectations 87.7 (expected 87.9; last 85.6)
    • Spain's February PPI 6.6% yr/yr (last 2.6%)
  • In news:
    • Business sentiment in Germany saw some improvement in March, though not as much as the market had expected.
    • Bundesbank President Nagel cautioned that tariffs add to concerns about potential stagflation in the economy.
    • British Chancellor Reeves told Bloomberg that her growth strategy hinges on stability.
    • Spain's PPI jumped 6.6% yr/yr in February due to rising energy costs, representing the biggest increase since early 2023.