Stock Market Update

The S&P 500 futures are down four points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 26 points and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are up 152 points and are trading 0.4% below fair value.

Contracts linked to the S&P 500 and Nasdaq 100 are little changed while futures tied to the Dow industrials are higher. Market participants are digesting a big slate of earnings news. 

UPS (UPS), Coca-Cola (KO), Sherwin-Williams (SHW), and Honeywell (HON) are among the stocks showing pre-open gains in response to earnings and/or guidance. NXP Semi (NXPI), Kraft Heinz (KHC), General Motors (GM), and BP (BP) are among the premarket losers after reporting results.

Investors are still waiting on key events this week, like earnings from Microsoft (MSFT), Apple (AAPL), Meta Platforms (META), and Amazon.com (AMZN). 

Today's calendar features the release of April Consumer Confidence (Briefing.com consensus 88.3; prior 92.9) and March Job Openings (prior 7.568 mln) at 10:00 ET.

Treasury yields are slightly higher. The 10-yr yield is up two basis points to 4.24% and the 2-yr yield is up three basis points to 3.71%.

In corporate news:

• Nucor (NUE 116.20, -0.37, -0.3%): beats by $0.06, beats on revs; seeing solid demand 
• Waste Mgmt (WM 225.10, -3.98, -1.7%): beats by $0.08, misses on revs
• NXP Semi (NXPI 180.68, -15.56, -7.9%): beats by $0.03, reports revs in-line; Rafael Sotomayor to succeed Mr. Sievers as President and CEO
• Cadence Design (CDNS 284.00, -1.74, -0.6%): beats by $0.08, reports revs in-line; guides FY25 EPS above consensus, revs in-line
• BP (BP 28.05, -1.08, -3.7%): misses by $0.02, beats on revs
• General Motors (GM 46.29, -0.95, -2.0%): beats by $0.10, beats on revs; will discuss guidance on conference call Thursday at 8:30 ET; initial guidance does not contemplate the potential impact of tariffs
• UPS (UPS 99.00, +1.91, +2.0%): beats by $0.11, beats on revs
• Coca-Cola (KO 72.69, +0.90, +1.3%): beats by $0.01, reports revs in-line; reaffirms FY25 EPS guidance
• Honeywell (HON 209.99, +9.33, +4.7%): beats by $0.30, beats on revs; guides FY25 EPS in-line, revs in-line
• Sherwin-Williams (SHW 342.00, +9.80, +3.0%): beats by $0.10, misses on revs; reaffirms FY25 EPS guidance
• Kraft Heinz (KHC 28.50, -0.31, -1.1%): beats by $0.02, reports revs in-line; lowers FY25 EPS and organic revenue outlook

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday while Japan's Nikkei was closed for a holiday. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.1%, India's Sensex: +0.1%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +1.0%.
  • In economic data:
    • Singapore's Q1 Unemployment Rate 2.1% (last 1.9%)
  • In news:
    • President Trump continued signaling willingness to reduce the tariff impact on automakers.
    • Vietnam's prime minister said that specific negotiating points will be ready imminently.
    • Japan's trade negotiator will be in Washington over the next three days.
    • New Zealand's Finance Minister Willis warned that the growth forecasts for 2025 and 2026 will be cut.
• Major European indices are mixed. STOXX Europe 600: +0.1%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.3%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: -0.9%.
  • In economic data:
    • Eurozone's April Business and Consumer Survey 93.6 (expected 94.5; last 95.0). March M3 Money Supply 3.6% yr/yr (expected 4.0%; last 4.0%). March Private Sector Loans 1.7% yr/yr (expected 1.6%; last 1.5%). March Loans to Non-Financial Corporations 2.3% yr/yr (last 2.2%)
    • Germany's May GfK Consumer Climate -20.6 (expected -25.6; last -24.3)
    • Spain's Q1 GDP 0.6% q/q (expected 0.7%; last 0.7%); 2.8% yr/yr (last 3.3%). April CPI 0.6% m/m (last 0.1%); 2.2% yr/yr (expected 2.0%; last 2.3%). April Core CPI 2.4% yr/yr (last 2.0%)
    • Italy's April Business Confidence 85.7 (last 86.0). April Consumer Confidence 92.7 (expected 94.0; last 95.0). February Industrial Sales -0.4% m/m (last 3.70%); -1.5% yr/yr (last 1.8%)
  • In news:
    • Positive results from companies like Deutsche Bank, whose CEO Christian Sewing acknowledged looming trade war shadows but expressed confidence, were countered by cautious updates, including Porsche cutting its outlook due to tariff impacts and China weakness.
    • European Central Bank executive board member Cipollone described U.S. tariffs as "unambiguously recessionary."
    • Spain and Portugal are recovering from yesterday's massive power outage across the Iberian Peninsula.