Stock Market Update

Equity futures point to a lower open as oil prices move higher while the market assesses a hefty slate of earnings reports.

The major averages are coming off a mostly higher finish, which saw the S&P 500 and Nasdaq Composite notch fresh record highs. The gains were modest in nature, and leadership remains concentrated across mega-cap names. Weakness in the broader market pushed the DJIA modestly lower for the session. The market's weightiest components will come further into focus this week, as five "magnificent seven" names are set to deliver earnings, starting tomorrow after the close.

This morning's batch of earnings also features some heavyweights, with several large tech and other blue-chip stocks in the mix.

On the geopolitical front, Reuters reported that a U.S. official says President Trump is not satisfied with Iran's proposal to end the war and open the Strait of Hormuz because it delays nuclear negotiations to a later date. Oil is sharply higher this morning, with WTI crude back above the $100 per barrel mark.

In corporate news:

• OpenAI missed its own user and revenue targets, according to The Wall Street Journal.
• Coca-Cola (KO 77.50, +2.06, +2.73) beat EPS expectations by $0.05 and beat revenue expectations.
• Corning (GLW 150.00, -18.01, -10.7%) beat EPS expectations by $0.01, beat revenue expectations, and guided Q2 EPS and revenues in-line.
• Spotify (SPOT 436.00, -59.82, -12.1%) beat EPS expectations by €0.50, reported revenues in-line; and guided Q2 revenues in-line

Equity indices in the Asia-Pacific region had a mostly lower showing on Tuesday. Japan's Nikkei: -1.0%, Hong Kong's Hang Seng: -1.0%, China's Shanghai Composite: -0.2%, India's Sensex: -0.5%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: -0.6%.

In news:

• China's National Development and Reform Commission blocked Meta's planned $2 bln acquisition of Chinese AI startup Manus.
• The Bank of Japan left its policy rate at 0.75%, as expected, though three out of nine policymakers voted for a hike.
• The central bank lowered its domestic growth forecast for the year to 0.5% from 1.0% and raised its inflation forecast to 2.5-3.0% from 1.9-2.0%.
• Moody's raised China's outlook to Stable from Negative.

In economic data:

• Japan's March jobs/applications ratio 1.18, as expected (last 1.19) and March Unemployment Rate 2.7% (expected 2.6%; last 2.6%). February BoJ Core CPI 2.5% yr/yr (last 2.2%)
• Hong Kong's March trade deficit $89.1 bln (last deficit of HKD64.2 bln). March Imports 41.2% m/m (last 29.9%) and Exports 35.8% m/m (last 24.7%)

Major European indices trade mixed. STOXX Europe 600: -0.5%, Germany's DAX: -0.6%, U.K.'s FTSE 100: unch, France's CAC 40: -0.3%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.4%.

In news:

• The European Central Bank released its Consumer Expectations survey for March, showing a jump in year-ahead inflation expectations to 4.0% from 2.5% while the three-year outlook increased to 3.0% from 2.5%.
• The survey also showed that the economy is expected to contract by 2.1%, down from the previous forecast for a contraction of 0.9%.
• Barclays reported good results for Q1 and reaffirmed its guidance while BP reported strong results.

In economic data:

• Italy's February Industrial Sales 0.6% m/m (last -0.2%); 0.5% yr/yr (last -0.8%). March PPI 4.4% m/m (last -0.4%); 4.2% yr/yr (last -2.7%)
• Spain's Q1 Unemployment Rate 10.83% (expected 9.80%; last 9.93%) and March Retail Sales 4.1% yr/yr (last 2.3%)