Stock Market Update

Equity futures point to a higher opening this morning after stocks advanced in broad fashion yesterday, with the major averages taking back a meaningful chunk of Monday's weakness. The S&P 500 enters today's session just a few points below its 50-day moving average (6,895.87). 

Software stocks saw a nice rebound yesterday, as some bargain hunting after Monday's slump combined with headlines that Anthropic's Claude Cowork will now include plugins to pair with traditional productivity software suites. 

Investors will have several high-profile software stock earnings reports to assess after the close, including that of Salesforce (CRM 183.80, -1.62, -0.9%).

Chipmaker giant NVIDIA (NVDA 194.20, +1.35, +0.7%) will also deliver its earnings after the close. 

On the trade front, Treasury Secretary Scott Bessent, in an interview, says the 15% global tariff will not be permanent. The global tariff will act like a bridge to other tariff authorities, such as 301 investigations. He expects 301 investigations will reach the previous IEEPA tariff level, according to NBC News. 

In corporate news:

• HP Inc. (HPQ 17.16, -1.04, -5.7%) beat EPS expectations by $0.02 and beat revenue expectations, guided Q2 EPS in line and reaffirmed FY26 EPS guidance but now expects to be at the low end of it.
• Lowe's (LOW 268.50, -10.09, -3.6%) beat EPS expectations by $0.04, beat revenue expectations, and guided FY27 EPS below consensus with revenues in-line. 
• Oracle (ORCL 149.59, +3.45, +2.4%) was upgraded to Outperform from Perform at Oppenheimer.
• Workday (WDAY 117.58, -12.65, -9.7%) beat EPS expectations by $0.15 and reported revenues in-line. 

Reviewing overnight developments:

It was a sea of green across Asia, as all the region's major markets advanced with Japan's Nikkei (+2.2%) and South Korea's Kospi (+1.9%) reaching fresh records. Japan's Nikkei: +2.2%, Hong Kong's Hang Seng: +0.7%, China's Shanghai Composite: +0.7%, India's Sensex: +0.1%, South Korea's Kospi: +1.9%, Australia's ASX All Ordinaries: +1.2%.

In news:

• China's Ministry of Commerce threated to impose countermeasures after the new global tariff took effect. In addition, China's Foreign Ministry has not confirmed President Trump's visit, which is expected at the end of March/start of April.
• Australia's CPI was a touch hotter than expected in January (3.8%; expected 3.7%), prompting speculation about three rate hikes from the Reserve Bank of Australia before the end of the year.

In economic data:

• Japan's January Corporate Services Price Index 2.6% yr/yr, as expected (last 2.6%). December BoJ Core CPI 1.7% yr/yr (expected 1.8%; last 1.9%)
• Hong Kong's Q4 GDP 1.0% qtr/qtr, as expected (last 0.9%); 3.8% yr/yr, as expected (last 3.7%). January CPI 0.2% m/m (last 0.3%); 1.1% yr/yr (expected 1.2%; last 1.4%)
• Australia's January CPI 3.8% yr/yr (expected 3.7%; last 3.8%) and Q4 Construction Work Done -0.1% qtr/qtr (expected 1.2%; last 0.1%)

Major European indices trade in the green with U.K.'s FTSE (+1.0%), France's CAC (+0.4%), and Italy's MIB (+1.0%) reaching fresh records with cyclical names leading the way. STOXX Europe 600: +0.5%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +0.4%, Italy's FTSE MIB: +1.0%, Spain's IBEX 35: +0.8%.

In news:

• HSBC reported strong results while distilling giant Diageo lowered its outlook and cut its dividend.
• German Chancellor Merz called for deeper economic ties with China during his visit to Beijing.

In economic data:

• Eurozone's January CPI -0.6% m/m (expected -0.5%; last 0.2%); 1.7% yr/yr, as expected (last 1.9%). January Core CPI 2.2% yr/yr, as expected (last 2.3%)
• Germany's Q4 GDP 0.3% qtr/qtr, as expected (last 0.0%); 0.4% yr/yr, as expected (last 0.3%). March GfK Consumer Climate -24.7 (expected -23.0; last -24.2)
• France's February Consumer Confidence 91 (expected 90; last 90)
• Spain's January PPI -2.9% yr/yr (last -3.0%)
• Swiss February ZEW Expectations 9.8 (last -4.7)