Stock Market Update

Equity futures point to a mostly lower opening as disappointing earnings results from several key tech names set the stage for broader weakness across tech names.

The information technology sector lagged yesterday, with weakness across software names and a poor showing from mega-cap stocks in general denying the S&P 500 a ten-day win streak.

Sotware names are poised for a lower opening as CrowdStrike Holdings (CRWD 675.99, -71.62, -9.6%) provided disappointing guidance with its earnings release yesterday after the close.

Semiconductor stocks, which outperformed yesterday despite the broader tech weakness, are also facing some earnings-driven pressure in the premarket after Broadcom (AVGO 407.13, -72.10, -15.0%) beat EPS expectations on in-line revenues.

On a more positive note, crude oil is moving lower this morning after President Trump told advisors he will not resume all-out war with Iran unless additional U.S. troops are killed, according to The Wall Street Journal.

Today will be another relatively light day on the economic data front, with the market set to receive the weekly initial jobless claims report (Briefing.com consensus 216K) at 8:30 a.m. ET.

In corporate news:

• Broadcom (AVGO 407.13, -72.10, -15.0%) beat EPS expectations by $0.04, reported revenues in-line, and guided Q3 revenues above consensus.
• CrowdStrike Holdings (CRWD 675.99, -71.62, -9.6%) beat EPS and revenue expectations, guided Q2 EPS in-line with revenues above consensus, raised its FY27 EPS and revenue guidance above consensus, and announced a four-for-one stock split.
• JP Morgan (JPM 303.90, +3.05, +1.0%) CEO Jamie Dimon will discuss SpaceX (SPCX) IPO with high-net-worth clients, according to Bloomberg.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region came under selling pressure Thursday, mirroring the weakness seen in the U.S. market on Wednesday that was led by the mega-cap stocks and technology sector. Japan's Nikkei: -1.4%, Hong Kong's Hang Seng: -1.5%, China's Shanghai Composite: -0.6%, India's Sensex: flat, South Korea's KOSPI: -1.8%, Australia's All Ordinaries: -1.1%.

In news:

• Markets in Japan and South Korea saw weakness in the tech stocks act as a primary drag, while regional weakness was also an offshoot of concerns about stubbornly high oil prices and the USTR proposal to increase tariffs due to forced labor.
• Japan and South Korea were also digesting chatter about potential intervention to support weakening currencies.
• BOJ Governor Ueda, in a speech, spoke of inflation risks, which in turn increased speculation that the central bank will increase its policy rate this month.

In economic data:

• Australia's April Trade Balance A$1.791 bln (expected (A$1.230 bln; last A$-1.024 bln); Exports 7.2% m/m (last -2.5%) and Imports 0.8% (last 12.2%)
• Hong Kong's May CPI 0.2% m/m (expected 0.3%; last 0.3%) and 0.6% yr/yr (expected 0.8%; last 0.6%); May Unemployment Rate 3.0% (expected 3.0%; last 3.0%)

Major European bourses have traded in mixed fashion on Thursday, handcuffed somewhat by the ongoing conflict between the U.S. and Iran that has kept oil prices and inflation risks elevated. STOXX Europe 600: -0.2%, Germany's DAX Index: +0.5%, U.K.'s FTSE 100: -0.7%, France's CAC 40: +0.8%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: +0.6%.

In news:

• Markets are also feeling some carryover selling pressure within the technology space, as investors look to take some money off the table following a big run.
• Not much in the way of notable economic news to move the market.
• Construction PMI readings for May were improved from last month but still below 50.0, which is the demarcation line between expansion and contraction.

In economic data:

• Eurozone's May HCOB Construction PMI 43.7 (last 41.7); April Retail Sales -0.4% m/m (expected -0.3%; last 0.8%) and 1.0% yr/yr (expected 0.3%; last 2.1%)
• Germany's May HCOB Construction PMI 42.4 (last 42.1)
• France's May HCOB Construction PMI 39.6 (last 38.1)
• Italy's May HCOB Construction PMI 49.4 (last 44.8)
• U.K.'s May S&P Global Construction PMI 38.2 (expected 40.4; last 39.7)
• Spain's April Industrial Production 2.0% yr/yr (expected 2.0%; last 1.9%)