Stock Market Update

Equity futures point to a modestly higher opening this morning following a flattish showing yesterday that saw stocks largely drift sideways ahead of key mega-cap tech earnings. 

Meta Platforms (META 728.10, +59.37, +8.9%), Tesla (TSLA 440.70, +10.24, +2.4%), and Microsoft (MSFT 448.50, -33.13, -6.9%) all reported earnings after the close yesterday, with each company topping expectations. However, the price action has been different among the stocks, with Meta Platforms issuing strong guidance while Microsoft's softer guidance and somewhat underwhelming cloud services revenue weigh heavily on the stock in the pre-market. 

Apple (AAPL 257.73, +1.29, +0.5%) will also report its earnings after the close today. 

Headlines are relatively quiet outside of earnings reports, but there are plenty to keep the market busy, with nearly 100 S&P 500 names set to report by the end of the week. 

In Washington, CNN reports that the White House and Senate are getting closer to a deal to avert a government shutdown. The deal would extend funding for Defense, Labor, State, and Transportation until September 30, while extending DHS funding for a shorter period of time so immigration changes can be worked out.

In corporate news:

• Meta Platforms (META 728.10, +59.37, +8.9%) beat EPS expectations by $0.67, beat revenue expectations, and guided Q1 revenues above consensus. 
• Microsoft (MSFT 448.50, -33.13, -6.9%) beat EPS expectations by $0.23 and beat revenue expectations. The company saw Azure revenue growth of 38% CC vs. 37% CC prior guidance. 
• Nvidia (NVDA 191.08, -0.44, -0.2%), Microsoft (MSFT), and Amazon.com (AMZN 241.87, -1.14, -0.5%) are aiming to invest $60 billion in OpenAI, according to The Information.
• Tesla (TSLA 440.70, +10.24, +2.4%) beat EPS expectations by $0.05 and reported revenues in line. 

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note with another new record in South Korea's Kospi (+1.0%) and a multi-year high in Hong Kong's Hang Seng (+0.5%). Japan's Nikkei: UNCH, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: +0.2%, India's Sensex: +0.3%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: -0.2%.

In news:

• SK Hynix reported record revenue and profit for Q4.
• South Korea's industry minister is visiting Washington amid the delay in implementing the trade deal with the U.S.
• The Monetary Authority of Singapore concluded its latest meeting with no policy changes.

In economic data:

• Japan's January Household Confidence 37.9 (expected 37.1; last 37.2)
• Singapore's Q4 Unemployment Rate 2.0% (last 2.0%)
• Australia's Q4 Import Price Index 0.9% qtr/qtr (expected -0.2%; last -0.4%) and Export Price Index 3.2% qtr/qtr (last -0.9%)
• New Zealand's December trade surplus NZD52 mln (expected surplus of NZD30 mln; last deficit of NZD355 mln). January ANZ Business Confidence 64.1 (last 73.6) and January NBNZ Own Activity 51.6% (last 60.9%)

Major European indices trade on a mostly higher note while Germany's DAX (-1.1%) is revisiting its January low after underwhelming results from SAP. STOXX Europe 600: +0.5%, Germany's DAX: -1.1%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.8%.

In news:

• STMicroelectronics reported strong results and guidance. British Prime Minister Starmer visited Beijing today.
• Sweden's Riksbank held its policy rate at 1.75%, as expected.

In economic data:

• Eurozone's January Business and Consumer Survey 99.4 (expected 97.0; last 97.2). December Private Sector Loans 3.0% yr/yr (expected 2.9%; last 2.9%) and loans to nonfinancials 3.0% yr/yr (last 3.1%)
• France's December jobseeker total 3.117 mln (last 3.129 mln)
• Italy's non-EU trade surplus EUR8.39 bln (last surplus of EUR7.04 bln). November Industrial Sales -0.1% m/m (last -0.6%); 0.0% yr/yr (last 1.7%)
• Spain's December Retail Sales 2.9% yr/yr (last 6.0%). January Business Confidence -3.0 (last -3.4)
• Swiss December trade surplus CHF1.036 bln (expected surplus of CHF4.85 bln; last surplus of CHF3.841 bln)