Stock Market Update

The S&P 500 futures are up 20 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 75 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are up 167 points and are trading 0.4% above fair value.

There's a positive bias in early trading, driven by ongoing momentum. The bias may shift following this morning's economic releases. April Housing Starts and Building Permits are out at 8:30 ET and the preliminary May University of Michigan Consumer Sentiment survey is out at 10:00 ET.

Treasury yields are lower, supporting the upside skew in equities. The 10-yr yield is down six basis points to 4.40%, and the 2-yr yield is down three basis points to 3.94%.

On the tariff front, President Trump told reporters that his staff will be sending letters to various trading partners within weeks regarding setting tariff rates, according to Bloomberg.

In corporate news:

• Apple (AAPL 211.66, +0.21, +0.1%): Fortnite says "Apple has blocked our Fortnite submission so we cannot release to the US App Store or to the Epic Games Store for iOS in the European Union. Now, sadly, Fortnite on iOS will be offline worldwide until Apple unblocks it"
• Novo Nordisk A/S (NVO 63.19, -2.96, -4.5%): Lars Fruergaard Jørgensen to step down as CEO of Novo Nordisk
• Boeing (BA 206.80, +0.56, +0.3%) and GE Aerospace (GE 230.30, +0.92, +0.4%): secured a $14.5 billion commitment from Etihad Airways to invest in 28 American-made Boeing 787 and 777X aircraft powered by GE engines
• Applied Materials (AMAT 165.29, -9.46, -5.4%): beats by $0.08, reports revs in-line; guides Q3 EPS in-line, revs in-line
• Take-Two (TTWO 227.80, -4.54, -2.0%): reports Q4 (Mar) results, beats on net bookings; guides Q1 EPS and net bookings in-line

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: UNCH (+0.7% for the week), Hong Kong's Hang Seng: -0.5% (+2.1% for the week), China's Shanghai Composite: -0.4% (+3.9% for the week), India's Sensex: -0.2% (+3.6% for the week), South Korea's Kospi: +0.2% (+1.9% for the week), Australia's ASX All Ordinaries: +0.6% (+1.4% for the week).
  • In economic data:
    • Japan's Q1 GDP -0.2% q/q (expected -0.1%; last +0.6%); -0.7% yr/yr (expected -0.2%; last +2.4%). Q1 GDP Private Consumption 0.0% q/q (expected +0.1%; last +0.1%). Q1 GDP Capital Expenditure +1.4% q/q (expected +0.8%; last +0.8%). Q1 GDP External Demand -0.8% q/q (expected -0.6%; last +0.7%). Q1 GDP Price Index +3.2% yr/yr (expected +3.2%; last +2.9%). March Industrial Production 0.2% m/m (expected -1.1%; last 2.3%) and Capacity Utilization -2.4% m/m (last -1.1%)
    • South Korea's April Export Price Index +0.7% yr/yr (last +6.3%) and Import Price Index -2.3% yr/yr (last +3.4%)
    • Hong Kong's Q1 GDP 1.9% qtr/qtr (expected 2.0%; last 0.8%); 3.1% yr/yr, as expected (last 2.4%)
    • Singapore's April trade surplus SGD14.20 bln (last surplus of SGD5.35 bln). April non-oil exports +10.4% m/m (last -7.5%); 12.4% yr/yr (expected 4.0%; last 5.4%)
    • New Zealand's April Business NZ PMI 53.9 (last 53.2). Q1 Inflation Expectations 2.3% q/q (last 2.1%). April RBNZ Offshore Holdings 58.80% (last 59.20%)
  • In news:
    • Japan's preliminary GDP reading for Q1 showed a slight contraction (-0.2%) after three consecutive quarters of growth.
    • Bank of Japan policymaker Nakamura warned that additional rate hikes from the BoJ could dampen consumption and investment given the ongoing tariff uncertainty.
    • The Trump administration is reportedly considering adding two Chinese chipmakers to the China entity list.
• Major European indices are seeking a higher finish to the week. STOXX Europe 600: +0.6% (+2.3% week-to-date), Germany's DAX: +0.7% (+1.5% week-to-date), U.K.'s FTSE 100: +0.4% (+1.4% week-to-date), France's CAC 40: +0.6% (+2.0% week-to-date), Italy's FTSE MIB: +0.7% (+3.4% week-to-date), Spain's IBEX 35: +0.9% (+3.5% week-to-date).
  • In economic data:
    • Eurozone's March trade surplus EUR36.8 bln (expected surplus of EUR17.5 bln; last surplus of EUR24.8 bln)
    • France's Q1 Unemployment Rate 7.4%, as expected (last 7.3%)
    • Italy's April CPI 0.1% m/m (expected 0.2%; last 0.3%); 1.9% yr/yr (expected 2.0%; last 1.9%). March trade surplus EUR3.657 bln (expected surplus of EUR5.150 bln; last surplus of EUR4.444 bln)
    • Swiss Q1 Industrial Production 8.5% yr/yr (last 2.1%)
  • In news:
    • The European Parliament's trade committee backed increased EU tariffs on certain agricultural imports from Russia and Belarus.
    • Luxury goods group Richemont reported higher sales, providing some positive individual stock news amidst a quieter day for major earnings.
    • British Prime Minister Starmer said that he is confident in reaching a trade deal with the EU ahead of Monday meeting with EU leaders.