Stock Market Update

Equity futures point to a slightly higher opening this morning as the market gears up for a day full of potential catalysts.

Stocks are coming off a mostly lower session in which further profit-taking across semiconductor names and weakness in mega-cap stocks denied the S&P 500 and Nasdaq Composite of another record high day.

This morning, investors have plenty of earnings reports to assess, while the earnings of four "magnificent seven" names loom after the close.

This afternoon will also feature the April FOMC decision at 2:00 p.m. ET. While the Fed is widely expected to leave rates unchanged, investors will be closely focused on whether commentary surrounding the recent surge in oil prices alters expectations for potential rate cuts later this year or revives the possibility of a rate hike.

Additionally, there is plenty of economic data on the calendar this morning. The MBA Mortgage Applications Index for the week ended April 25 decreased 1.6%, from a prior increase of 7.9%.

On the geopolitical front, oil prices are higher again this morning, with The Wall Street Journal reporting that President Trump has told his aides to prepare for an extended blockade of Iran in order to compel it to give up its nuclear ambitions. WTI Crude is currently up $3.40 (+3.4%) to $103.33 per barrel.

In corporate news:

• Seagate Technology (STX 684.40, +105.37, +18.20) beat EPS expectations by $0.59, beat revenue expectations, and guided Q$ EPS and revenues above consensus
• Starbucks (SBUX 102.29, +5.01, +5.2%) beat EPS expectations by $0.07 and beat revenue expectations. The company raised its FY26 EPS and Global and U.S. comparable sales growth guidance.
• Visa (V 327.00, +17.70, +5.7%) beat EPS expectations by $0.21 and beat revenue expectations.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note while markets in Japan were closed for a holiday with more holiday closures scheduled over the next week. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +1.7%, China's Shanghai Composite: +0.7%, India's Sensex: +0.8%, South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: -0.2%.

In news:

• Still, Finance Minister Katayama said that her office is ready to respond to sudden moves in the foreign exchange market.
• China is reportedly planning to double its refined fuel exports in May.
• China halted the issuance of autonomous vehicle permits after Baidu's fleet suffered a mass outage.
• Australia's Treasury expects inflation to peak at higher levels, given the recent jump in energy prices.

In economic data: 

• Australia's Q1 CPI 1.4% qtr/qtr, as expected (last 0.6%); 4.1% yr/yr (expected 4.2%; last 3.6%). March Monthly CPI Indicator 4.6% (expected 4.8%; last 3.7%)

Major European indices trade in the red. STOXX Europe 600: -0.4%, Germany's DAX: -0.2%, U.K.'s FTSE 100: -0.8%, France's CAC 40: -0.4%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.6%.

In news: 

• The Times Shadow committee voted 5-4 to recommend no BoE policy change.
• Adidas beat Q1 revenue expectations while Airbus reaffirmed its delivery targets.
• Germany's flash CPI report for April will be released at 8:00 ET, expected to show an acceleration in headline CPI to 3.0% yr/yr from 2.7% in March.

In economic data:

• Eurozone's April Business and Consumer Survey 93.0 (expected 95.2; last 96.2). March Private Sector Loans 3.0% yr/yr (expected 3.1%; last 3.0%) and loans to nofinancials 3.2% (last 2.9%)
• Spain's April CPI 0.4% m/m (expected 0.6%; last 1.2%); 3.2% yr/yr (expected 3.5%; last 3.4%). April Core CPI 2.8% yr/yr (last 2.9%)
• Italy's April Consumer Confidence 90.8 (expected 91.2; last 92.6) and Business Confidence 87.9 (expected 88.0; last 88.7)
• Swiss April ZEW Expectations -30.3 (last -35.0)