June S&P 500 E-Mini futures (ESM25) are up +1.18%, and June Nasdaq 100 E-Mini futures (NQM25) are up +1.68% this morning as forecast-beating quarterly results from Microsoft and Meta boosted sentiment.
Microsoft (MSFT) surged over +8% in pre-market trading after the world’s largest software maker reported stronger-than-expected FQ3 results and provided an upbeat FQ4 revenue growth forecast for the Azure cloud unit. Also, Meta Platforms (META) climbed more than +6% in pre-market trading after the maker of Facebook and Instagram posted upbeat Q1 results.
Also lifting sentiment were signs that the Trump administration could be nearing an announcement of the first round of trade deals to lower planned tariffs. On Wednesday, U.S. President Donald Trump’s trade representative stated that the nation was close to announcing a first tranche of trade agreements under which the White House would reduce planned tariffs on its trading partners.
Investors now await a new round of U.S. economic data and earnings reports from “Magnificent Seven” companies Apple and Amazon.
In yesterday’s trading session, Wall Street’s major indexes ended mixed. Seagate Technology (STX) surged over +11% and was the top percentage gainer on the S&P 500 after the data storage company posted upbeat FQ3 results. Also, Western Digital (WDC) climbed more than +7% after the company issued solid FQ4 guidance. In addition, Booking Holdings (BKNG) rose over +3% after reporting better-than-expected Q1 results. On the bearish side, Super Micro Computer (SMCI) plunged more than -11% and was the top percentage loser on the S&P 500 after the artificial intelligence server maker reported weaker-than-expected preliminary FQ3 results.
Economic data released on Wednesday reinforced concerns about an economic slowdown. The U.S. Bureau of Economic Analysis’ advance estimate showed that the economy contracted at a 0.3% annualized pace in the first quarter, weaker than expectations of +0.2% q/q and the steepest pace of contraction in 3 years. Also, the U.S. ADP employment change rose by 62K in April, weaker than expectations of 114K and the smallest increase in 9 months. At the same time, the U.S. core PCE price index, a key inflation gauge monitored by the Fed, came in at unchanged m/m and +2.6% y/y in March, compared to expectations of +0.1% m/m and +2.6% y/y.
“Weak data could hasten Fed cuts. The Fed is now more likely to step in sooner with its rate cuts to support an ailing economy, while the weakness in data could also encourage Trump to ease off on tariffs and make deals, quicker,” said Fawad Razaqzada at City Index and Forex.com.
Meanwhile, U.S. rate futures have priced in a 95.0% chance of no rate change and a 5.0% chance of a 25 basis point rate cut at the Fed’s monetary policy committee meeting next week.
First-quarter corporate earnings season continues in full swing, and market participants await reports today from high-profile companies such as Apple (AAPL), Amazon (AMZN), Eli Lilly (LLY), Mastercard (MA), McDonald’s (MCD), Amgen (AMGN), and CVS Health Corp. (CVS). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +6.7% increase in quarterly earnings for Q1 compared to the previous year.
On the economic data front, all eyes are focused on the U.S. ISM Manufacturing PMI, which is set to be released in a couple of hours. Economists, on average, forecast that the April ISM manufacturing PMI will be 48.0, compared to the March figure of 49.0.
Investors will also focus on the U.S. S&P Global Manufacturing PMI, which stood at 50.2 in March. Economists expect the final April figure to be 50.5.
U.S. Construction Spending data will be reported today. Economists foresee this figure coming in at +0.2% m/m in March, compared to +0.7% m/m in February.
U.S. Initial Jobless Claims data will be released today as well. Economists expect this figure to be 224K, compared to last week’s number of 222K.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.143%, down -0.77%.
Major European markets are closed today for the Labor Day holiday.
Japan’s Nikkei 225 Stock Index (NIK) closed up +1.13%, while China’s financial markets were closed for a holiday.
Japan’s Nikkei 225 Stock Index closed higher today after the Bank of Japan left interest rates unchanged, pushed back the timeline for achieving its inflation target, and cut its growth projections amid trade uncertainty. The outcome boosted expectations that the BOJ would hold off on further rate hikes and pushed the yen to its lowest level in nearly three weeks against the dollar. Electronics stocks led the gains on Thursday. A private-sector survey released on Thursday showed that Japan’s factory activity was revised slightly upward for April, but it remained in contraction for the 10th consecutive month due to weaker overseas demand and mounting concerns over U.S. tariffs. Separately, data showed that Japan’s consumer confidence index fell in April to its lowest level in over two years. Meanwhile, as widely expected, the BOJ kept its benchmark rate unchanged at 0.5% as policymakers monitor the potential economic impact of U.S. tariffs. Also, the Japanese central bank stated that it anticipates inflation will align with its 2% target around the latter half of its outlook period, which was extended by one year to include fiscal 2027. In addition, the bank cut its economic growth forecast to 0.5% for this fiscal year, down from the 1.1% growth projected in January. It projects growth of 0.7% in the year ending March 2027 and 1.0% in the following year. Still, in a post-decision briefing, BOJ Governor Kazuo Ueda stated that pushing back the central bank’s price target does not necessarily imply postponing rate hikes. Investor focus now shifts to trade negotiations between the U.S. and Japan. Later in the day, Japanese Economy Minister Ryosei Akazawa is expected to conduct his second round of talks in Washington on a tariff deal. U.S. President Donald Trump stated on Wednesday that agreements with Japan, South Korea, and India could be near. In corporate news, Murata Manufacturing plunged over -12% after it reported disappointing financial results. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -3.60% to 26.25.
The Japanese April au Jibun Bank Manufacturing PMI came in at 48.7, stronger than expectations of 48.5.
The Japanese April Household Confidence stood at 31.2, weaker than expectations of 33.9.
China’s Shanghai Composite Index was closed today for the Labor Day holiday. Mainland China’s financial markets will reopen on Tuesday, May 6th.
Pre-Market U.S. Stock Movers
Microsoft (MSFT) surged over +8% in pre-market trading after the world’s largest software maker reported stronger-than-expected FQ3 results and provided an upbeat FQ4 revenue growth forecast for the Azure cloud unit.
Meta Platforms (META) climbed more than +6% in pre-market trading after the maker of Facebook and Instagram posted upbeat Q1 results.
Apple (AAPL) fell over -1% in pre-market trading after a federal judge stated that the tech giant had violated an antitrust order related to App Store restrictions.
Robinhood Markets (HOOD) rose more than +4% in pre-market trading after the company reported better-than-expected Q1 results.
Qualcomm (QCOM) slumped over -5% in pre-market trading after the mobile chip designer provided a tepid FQ3 revenue forecast.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - May 1st
Apple (AAPL), Amazon.com (AMZN), Eli Lilly (LLY), Mastercard (MA), McDonald’s (MCD), Amgen (AMGN), Stryker (SYK), Southern (SO), MicroStrategy (MSTR), KKR & Co (KKR), CVS Health Corp (CVS), Arthur J Gallagher (AJG), Parker-Hannifin (PH), Airbnb (ABNB), Motorola (MSI), Air Products (APD), Canadian National Railway (CNI), Atlassian Corp Plc (TEAM), Becton Dickinson (BDX), Howmet (HWM), Carrier Global (CARR), TC Energy (TRP), WW Grainger (GWW), AIG (AIG), Dominion Energy (D), Roblox (RBLX), Quanta Services (PWR), Ametek (AME), Targa Resources (TRGP), Block (XYZ), IDEXX Labs (IDXX), Cardinal Health (CAH), Hershey Co (HSY), Alnylam (ALNY), Live Nation Entertainment (LYV), Ingersoll Rand (IR), Blue Owl Capital (OWL), Kellanova (K), DTE Energy (DTE), Broadridge (BR), DexCom (DXCM), Monolithic (MPWR), Ameren (AEE), Iron Mountain (IRM), Godaddy Inc (GDDY), Church&Dwight (CHD), Fortive (FTV), Reddit (RDDT), Mettler-Toledo (MTD), Eversource Energy (ES), Smurfit Westrock (SW), Estee Lauder (EL), Cameco (CCJ), Hubbell (HUBB), Biogen (BIIB), Summit Therapeutics PLC (SMMT), Duolingo (DUOL), Ryan Specialty Group Holdings (RYAN), Baxter (BAX), AMH 4 Rent (AMH), Twilio (TWLO), Kimco Realty (KIM), Builders FirstSource (BLDR), Hologic (HOLX), IDEX (IEX), Aptiv (APTV), Camden Property (CPT), Reinsurance of America (RGA), Biomarin Pharma (BMRN), Juniper (JNPR), Omega Healthcare (OHI), Pinnacle West (PNW), ITT (ITT), Moderna (MRNA), Paylocity Holdng (PCTY), Hyatt (H), Maplebear (CART), Api Group Corp (APG), Ascendis Pharma AS (ASND), MasTec (MTZ), Roku (ROKU), United States Steel (X), AptarGroup (ATR), Procore Technologies (PCOR), CubeSmart (CUBE), Applied Industrial Technologies (AIT), Huntington Ingalls Industries (HII), EXACT Sciences (EXAS), WESCO (WCC), Allison Transmission (ALSN), Floor & Decor (FND), Graphic Packaging (GPK), ATI Inc (ATI), Madrigal Pharma (MDGL), Casella (CWST), Cullen/Frost Bankers (CFR), Dolby Labs (DLB), AAON (AAON), ESAB Corp (ESAB), Sirius XM (SIRI), Bio-Rad Labs (BIO), Mohawk Industries (MHK), IDACORP (IDA), AGCO (AGCO), SPX Corp (SPXC), Teleflex (TFX), Universal Display (OLED), HF Sinclair (DINO), Arrow Electronics (ARW), Blueprint Medicines Corp (BPMC), Caretrust Inc (CTRE), Healthcare RT (HR), Kirby (KEX), Ryman Hospitality Properties (RHP), Janus Henderson (JHG), InterDigital (IDCC), Itron (ITRI), Alkermes Plc (ALKS), Chart Industries (GTLS), Vontier (VNT), Cousins Properties (CUZ), WillScot A (WSC), Insight Enterprises (NSIT), Red Rock Resorts (RRR), Workiva Inc (WK), Belden (BDC), Dun And Bradstreet (DNB), Exponent (EXPO), Eldorado Gold (EGO), Wayfair (W), Schneider National (SNDR), Shake Shack Inc (SHAK), Lumen Technologies (LUMN), Hecla Mining (HL), Granite Construction (GVA).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
