Stock Market Update

Equity futures point to a slightly lower opening this morning after the major averages finished mostly higher to start the week. Solid gains across software, mega-cap, and high beta names lifted the S&P 500 and Nasdaq Composite higher, while broadening strength saw the DJIA capture the slight gain it needed to notch a record high. 

Tech could be poised for another strong day after Taiwan Semiconductor Manufacturing (TSM 365.26, +9.85, +2.8%) posted a 37% increase in January revenues. 

The market also has a decent batch of earnings reports to assess this morning, which will continue to ramp throughout the week and see over 75 S&P 500 companies report earnings. 

Macro headlines are relatively quiet, though there will be a few consequential labor and inflation readings later this week. This morning's action will feature several economic data releases, including the December Retail Sales Report (Briefing.com consensus 0.4%) and the Q4 Employment Cost Index (Briefing.com consensus 0.8%) at 8:30 a.m. ET. 

The January NFIB Small Business Optimism Index contracted slightly to 99.3, from a prior reading of 99.5. 

In corporate news:

• The Trump administration will exempt Microsoft (MSFT 415.54, +1.83, +0.4%), Apple (AAPL 273.45, -1.17, -0.4%), and Amazon (AMZN 209.85, +1.13, +0.5) from upcoming chip tariffs, according to Financial Times. 
• Taiwan's top trade negotiator said it would be impossible to relocate 40% of the island's semiconductor supply chain to the U.S. before the end of President Trump's second term, according to CNBC.
• Coca Cola (KO 75.01, -2.96, -3.8%) beat EPS expectations by $0.02 and missed revenue expectations. The company delivered its FY26 outlook, expecting to deliver organic revenue growth of 4-5%. 
• Credo Technology Group (CRDO 140.50, +17.09, +13.9%) guides January Q and April Q revenue well above expectations. 
• Marriott International (MAR 340.01, +8.80, +2.7%) missed EPS estimates by $0.02, reported revenues in-line, guided Q1 EPS above consensus, and guided FY26 EPS in line. 
• Taiwan Semiconductor Manufacturing (TSM 365.26, +9.85, +2.8%) saw January revenues rise 37%, its highest monthly revenues ever, according to CNBC. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region traded higher Tuesday, with Japan's Nikkei (+2.2%) continuing to run on stimulus expectations following the LDP's convincing snap election victory over the weekend. Japan's Nikkei: +2.2%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: +0.1%, India's Sensex: +0.3%, South Korea's Kospi: +0.1%, Australia's All Ordinaries: +0.1%.

In news:

• Other markets registered more modest gains, supported in part by the dollar's weakness.
• Taiwan's top trade negotiator said it would be impossible to relocate 40% of the island's semiconductor supply chain to the U.S. before the end of President Trump's second term, according to CNBC.
• President Trump and President Xi are expected to meet in China in early April, but a White House official reportedly said that meeting has not yet been finalized.
• FTSE Russell is going to be postponing its stock index review for Indonesia that had been scheduled for March 2026 due to the potential for adverse turnover and uncertainty in determining accurate free float percentages of Indonesian securities.

In economic data:

• Japan's M2 Money Stock 1.6% yr/yr (expected 1.7%; prior 1.7%); Machine Tool Orders 25.3% yr/yr (prior 10.9%)
• Australia's February Westpac Consumer Sentiment 90.5 (prior 92.9); January NAB Confidence 3 (prior 2)

Major European indices are showing modest gains, with the exception of the U.K.'s FTSE 100 (-0.5%), which has been weighed down by losses in BP after the oil giant suspended its share buybacks to shore up its balance sheet. STOXX Europe 600: UNCH, Germany's DAX: -0.1%, U.K.'s FTSE 100: -0.5%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.3%.

In news:

• Better-than-expected results from French company Kering put a bid in fellow luxury stocks.
• ECB member Villeroy will be resigning from his post on June 1, 2026, versus the officially scheduled end date of October 2027.
• UK Prime Minister Starmer has reportedly garnered support to remain in power, although questions remain surrounding his leadership due to the associated fallout from the Epstein scandal.

In economic data:

• UK's January Retail Sales Monitor 2.3% yr/yr (expected 1.3%; prior 1.0%)
• France's Q4 Unemployment Rate 7.9% (expected 7.8%; prior 7.7%)