Stock Market Update

The S&P 500 futures are up 50 points and are trading 0.9% above fair value, the Nasdaq 100 futures are up 240 points and are trading 1.2% above fair value, and the Dow Jones Industrial Average futures are up 302 points and are trading 0.7% above fair value.

Contracts tied to the S&P 500, the Nasdaq 100, and the Dow industrials are higher. The market's focus remains on tariff-related developments after indications that President Trump is set to announce a trade deal framework with the U.K. later today, fueling optimism about a shift in the global trade tensions.

Also, the Bank of England lowered its bank rate by 25-basis points to 4.25%, as expected.

U.S. Treasuries are seeing early selling. The 10-yr yield is up three basis points to 4.31% and the 2-yr yield is up three basis points to 3.82%.

In corporate news:

• Ford (F 10.35, +0.07, +0.7%): raised prices on three vehicles due to tariffs, according to WSJ
• Cleveland-Cliffs (CLF 7.82, -0.67, -7.9%): misses by $0.10, reports revs in-line
• Tesla (TSLA 279.58, +3.36, +1.2%): Robotaxi and Cybercab trademarks have run into issues ahead of launch, according to Tech Crunch
• Arm Holdings plc (ARM 114.64, -9.55, -7.8%): beats by $0.03, reports revs in-line; guides Q1 EPS below consensus, revs in-line
• AppLovin (APP 344.00, +40.54, +13.4%): beats by $0.23, beats on revs; to sell mobile gaming business to Tripledot for $400 mln and approximately 20% stake in Tripledot
• Shopify (SHOP 85.15, -8.35, -8.8%): reports Q1 (Mar) results, beats on revs 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: +0.3%, India's Sensex: -0.5%, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: +0.3%.
  • No data today
  • In news:
    • Bank of Japan Governor Ueda testified before Japan's parliament but did not offer any updated views.
    • Chinese press speculated that Chinese bonds will enter a "slow bull market" on expectations of more easing.
    • Nikkei reported that Japan may include shipbuilding in a potential trade deal with the United States.
    • New Zealand's Prime Minister Luxon said that the budget will allocate more money to capital projects.
• Major European indies trade in the green. STOXX Europe 600: +0.8%, Germany's DAX: +1.2%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.2%, Spain's IBEX 35: +0.1%.
  • In economic data:
    • Germany's March trade surplus EUR21.1 bln (expected surplus of EUR19.0 bln; last surplus of EUR17.9 bln). March Imports -1.4% m/m (expected 0.4%; last 0.5%) and Exports 1.1% m/m (expected 1.0%; last 1.8%). March Industrial Production 3.0% m/m (expected 0.9%; last -1.3%); -0.4% yr/yr (last -4.1%)
    • U.K.'s April Halifax House Price Index 0.3% m/m (expected 0.2%; last -0.5%); 3.2% yr/yr (expected 2.6%; last 2.9%)
    • Spain's March Industrial Production 1.0% yr/yr (last -1.9%)
  • In news:
    • There are indications that President Trump is set to announce a trade deal framework with the U.K. later today, raising hopes for broader de-escalation in global trade disputes.
    • Corporate earnings provided mixed results, with brewer AB InBev reporting strong profits while shipping group Maersk cautioned on container demand due to geopolitical uncertainty.
    • Germany's Industrial Production (3.0%; expected 0.9%) was well ahead of expectations in March, but the boost expected to be short-lived.
    • The Bank of England lowered its bank rate by 25-basis points to 4.25%, as expected.