June S&P 500 E-Mini Futures (ESM24) Nasdaq 100 E-mini June futures (NQM24) were +0.63 this morning as investors braced for the release of the Fed's preferred inflation measure, while upbeat quarterly results from tech giants Alphabet and Microsoft boosted sentiment. % and +0.86%. .
Alphabet (GOOGL) Google's parent company reports first-quarter earnings that easily beat analysts' expectations, announces first-ever dividend of $0.20 per share, and announces additional $70 billion in share buybacks It then soared more than +11% in pre-market trading. Additionally, Microsoft (MSFT) rose more than +3% in pre-market trading after the tech giant reported better-than-expected Q3 results.
In yesterday's trading, Wall Street's major indexes closed in the red. Meta Platforms (META) plunges more than -10%, leading to a drop in the S&P 500 and Nasdaq 100 after Facebook's parent company gave a weaker-than-expected second-quarter earnings outlook and increased its annual capital spending forecast. This was the highest rate of decline. Additionally, Textron (TXT) fell over -9% after the conglomerate reported lackluster first-quarter results. Additionally, International Business Machines (IBM) announced a deal to acquire Hashicorp for $35 per share in cash, after the technology giant reported lower-than-expected first-quarter earnings. It fell more than 8%, making it the biggest decliner in the Dow Jones Industrial Average. On the bullish side, Newmont (NEM) soared more than +12%, pushing the S&P 500 higher after the company beat quarterly profit expectations and revealed plans to sell non-core assets and reduce employees. It had the highest rate of increase.
Preliminary figures released by the U.S. Department of Commerce on Thursday showed that the U.S. economy grew at an annualized rate of 1.6% in the first quarter, lower than the expected 2.5% growth rate. At the same time, the US Q1 Core Personal Consumption Expenditure Price Index rose +3.7%, beating expectations of +3.4%. Additionally, U.S. pending home sales increased +3.4% m/m in March, beating expectations of +0.3% m/m. Finally, the number of Americans filing new unemployment claims over the past week fell -5,000 to 207,000, a two-month low and above expectations of 214,000.
“[The GDP] The report was the worst of both worlds, with economic growth slowing and inflationary pressures continuing. “The Fed wants inflation to start falling sustainably, but the market wants economic growth and corporate profits to rise,” said Chris Zaccarelli of the Independent Advisor Alliance.
Meanwhile, U.S. interest rate futures are pricing in a 2.9% probability of a 25 basis point rate cut at the May policy meeting and an 11.3% probability of a 25 basis point rate cut at the June FOMC meeting.
On the earnings front, notable companies such as Exxon Mobil (XOM), Abbvie (ABBV), Chevron (CVX), and Colgate-Palmolive (CL) are scheduled to report their quarterly results today.
Today, all eyes are on the release of the US Core Personal Consumption Expenditure Price Index, the Fed's preferred measure of inflation, in the coming hours. On average, economists expect the core PCE price index to be +0.3% m/m and +2.6% y/y in March, compared to previous readings of +0.3% m/m and +2.8% y/y. Expect. Hi.
Investors will also be keeping an eye on the Michigan Consumer Confidence Index, which hit 79.4 in March. Economists expect April's reading to be 77.8.
U.S. personal spending data will also be released today. Economists expect this figure to be +0.6% month-on-month for March. In contrast, the previous figure was +0.8% month-on-month.
In the bond market, the benchmark 10-year US Treasury yield fell -0.40% to 4.689%.
Euro Stoxx 50 futures rose +0.75% this morning as investors cheered blockbuster earnings from Microsoft and Alphabet. Technology and construction stocks led gains on Friday. A survey on Friday revealed that French consumer confidence fell slightly in April from March. Meanwhile, the results of a survey by the German Institute for Economic Research revealed that the downturn in the German economy is beginning to affect the labor market. In corporate news, ThyssenKrupp AG (TKA .D.DX) soared more than +11%. Meanwhile, Amundi (AMUN.FP) rose more than 6% after Europe's largest fund manager reported higher-than-expected first-quarter net inflows. Additionally, NatWest Group (NWG.LN) beat first quarter profit estimates and rose more than +4%.
French consumer confidence data was released today.
France's consumer confidence index in April was 90, lower than the expected 92.
Asian stock markets were calm in the green today. China's Shanghai Composite Index (SHCOMP) ended at +1.17%, and Japan's Nikkei 225 Stock Index (NIK) ended at +0.81%.
China's Shanghai Composite Index ended higher today. Financial services stocks outperformed on Friday after the State Council, the country's highest policy-making body, said it intends to encourage the strengthening of major securities firms. Meanwhile, China's top parliament passed a customs law on Friday that will take effect from December 1. The law spells out various legal aspects of tariffs on China's imports and exports, from tax incentives to China's power to retaliate against countries that fail to comply with trade agreements. In other news, Beijing city authorities announced subsidies for companies buying domestically produced artificial intelligence chips. Foreign investors bought net Chinese stocks worth 22.4 billion yuan ($3.09 billion) on Friday through northbound trading links. In corporate news, CNOOC rose more than +3% in Hong Kong after China's largest offshore oil producer reported a 24% year-on-year increase in first-quarter profit. BYD also rose about +5% on Thursday after the EV maker bought back $27.6 million worth of stock.
Japan's Nikkei stock average index ended higher today after the Bank of Japan left its interest rate target unchanged. Real estate, technology and healthcare stocks led gains on Friday. Core inflation in the Japanese capital slowed for the second straight month in April, hitting its lowest level since March 2022, according to Japanese statistical data on Friday. Meanwhile, the yen reversed its initial gains and hit a new 34-year low against the dollar. Friday following the Bank of Japan's decision. As widely expected, the Bank of Japan maintained its benchmark interest rate range at 0%-0.1% at the end of its meeting on Friday. In its quarterly outlook released on Friday, the Bank of Japan predicted that inflation would remain at or near its target level through fiscal 2026, with inflation expected to reach 2.8% this fiscal year. The Bank of Japan also noted that real gross domestic product growth in 2024 is expected to be slower than initially expected, mainly due to a decline in consumer spending. In corporate news, shares plummeted by more than 6% after the silicon maker announced that Shin-Etsu Chemical would offer a significant premium in its takeover bid for Mimasu Semiconductor. Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, fell -2.98% to 20.82.
Japan's April Tokyo Core CPI was +1.6% year-on-year, lower than the expected +2.2% year-on-year.
Premarket US Stock Mover
Alphabet (GOOGL) Google's parent company reports first-quarter earnings that easily beat analysts' expectations, announces first-ever dividend of $0.20 per share, and announces additional $70 billion in share buybacks It then soared more than +11% in pre-market trading.
Microsoft (MSFT) rose more than +3% in pre-market trading after the tech giant reported better-than-expected Q3 results.
Snap (SNAP) soared nearly +24% in pre-market trading after the Snapchat owner reported upbeat first-quarter results and provided better-than-consensus second-quarter revenue guidance.
Intel (INTC) fell more than -6% in pre-market trading after the largest maker of personal computer processors reported lower-than-expected second-quarter guidance.
The Dow (DOW) rose approximately +1% in pre-market trading after JPMorgan upgraded the stock from neutral to overweight with a price target of $61.
Spotify (SPOT) rose more than 2% in pre-market trading after Philip Securities upgraded the stock to Buy from Accumulate with a price target of $340.
You can see more pre-market stock movers here
Today's US Earnings Spotlight: Friday – April 26th
Exxon Mobil (XOM), Chevron (CVX), AbbVie (ABBV), HCA (HCA), Colgate Palmolive (CL), NatWest Group (NWG), Aon (AON), Roper Technologies (ROP), Charter Communications (CHTR) ), Fomento Economico Mexico (FMX), Centene (CNC), LyondellBasell Industries (LYB), T Row (TROW), BALL (BALL), Avanter (AVTR), Saia (SAIA), Autoliv (ALV), Gentex (GNTX), AutoNation (AN), Trinet Grou (TNET), Moog (MOGa), Piper Sandler (PIPR), Sensient Technologies (SXT), Newell Brands (NWL), First Hawaiian (FHB), Carter's (CRI), Barnes (B), Virtus (VRTS), WisdomTree (WT), US Silica (SLCA), GrafTech (EAF), Civeo (CVEO), Oil States (OIS).
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On the date of publication, Oleksandr Pirypenko did not have any positions (directly or indirectly) in any securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see his Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
