Stock Market Update

27-May-25 07:50 ET

Futures point firmly higher

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: +87.00. Nasdaq futures vs fair value: +328.00.

U.S. equity futures point to a firmly higher start with futures on the S&P 500 trading 87 points above fair value.

Equity futures rallied overnight, encouraged by news that President Trump will delay the implementation of extra tariffs on imports from Europe until July 9. The advance in equity futures has been accompanied by gains in Treasury futures and other sovereign debt. The 10-yr yield is down five basis points at 4.47% while the 2-yr yield is down two basis points at 3.98%.

The market will receive a few economic reports today, starting with the 8:30 ET release of Durable Orders for April (Briefing.com consensus -8.1%), followed by March FHFA Housing Price Index (Briefing.com consensus 0.2%) and March S&P Case-Shiller Home Price Index (Briefing.com consensus 4.4%) at 9:00 ET, and May Consumer Confidence (Briefing.com consensus 87.0) at 10:00 ET.

In U.S. corporate news:

AutoZone (AZO 3826.46, 0.00, unch): missed Q3 EPS expectations on above-consensus revenue.
AMC (AMC 3.36, +0.12, +3.7%): hit new record revenue for Memorial Day weekend.
CoreWeave (CRWV 106.50, +3.76, +3.7%): Barclays downgraded the stock to Equal Weight from Overweight with a $100 target.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei +0.5%, Hong Kong's Hang Seng +0.4%, China's Shanghai Composite -0.2%).
- In economic data:
  - Japan's April Corporate Services Price Index 3.1% yr/yr (expected 3.0%; last 3.3%). March BoJ Core CPI 2.4% yr/yr (expected 2.3%; last 2.2%)
  - China's April Industrial Profit 1.4% YTD (last 0.8%)
  - South Korea's May Consumer Confidence 101.8 (last 93.8)
- In news:
  - Japanese debt advanced for the second consecutive day after last week's fall to record lows in longer tenors. The advance was assisted by a report that Japan's Ministry of Finance will reduce its issuance of ultra-long bonds.
  - Two big Japanese insurers said that they are not concerned about unrealized bond losses.
  - Moody's reaffirmed China's A1 rating with a Negative outlook.
Major European indices trade in the green. Germany's DAX +0.9%, U.K.'s FTSE +0.8%, France's CAC +0.2%.
- In economic data:
  - Eurozone's May Business and Consumer Survey 94.8 (expected 94.0; last 93.8)
  - Germany's April GfK Consumer Climate -19.9, as expected (last -20.8)
  - U.K.'s May CBI Distributive Trades Survey -27 (expected -18; last -8)
  - France's flash May CPI -0.1% m/m (expected 0.1%; last 0.6%); 0.7% yr/yr (expected 0.9%; last 0.8%)
  - Swiss April trade surplus CHF6.358 bln (expected surplus of CHF5.550 bln; last surplus of CHF6.290 bln)
- In news:
  - Bloomberg reported that the EU will focus on critical sectors in negotiations with the U.S. to avoid tariffs.
  - FT reported that the British government is shifting its focus toward issuing shorter-term debt.
  - European Central Bank President Lagarde said that the strong euro will counter some of the tariff impact.