One of the themes which had been dominating this earnings season had been strong results and mixed guidance followed by selloffs as investors took profits against the news. Overnight, investors have responded positive to earnings and guidance from Microsoft and Meta Platforms, sending their shares soaring 8.7% and 11.2% in premarket trading, and pushing NASDAQ futures up 1.2%.
These overnight gains appear to be a bullish sign heading toward this afternoon’s earnings numbers from Apple and Amazon.com. Expectations could be tempered, however, by the less enthusiastic response to semiconductor sector results where ARM Holdings and Lam Research are both down about 7.7% in premarket trading.
Reports that the US is making progress toward a trade deal with China has Dow futures up 0.3% this morning, although surprisingly Hong Kong and Shanghai fell 1.6% and1.2% respectively overnight. Europe is mixed today with the DAX down 0.1% and the FTSE up 0.4%.
Yesterday the Fed decided to keep its benchmark interest rate steady, disappointing those who had been hoping for a rate cut. This sent the US Dollar climbing and weighed on commodities. More tariff talk from President Trump on copper sent the price of the orange metal down over 20% in late trading yesterday. This morning finds Gold up 0.2%, Silver down 1.2%, the Euro up 0.3%, and the Loonie steady.
With the turn of the month, economic news is ramping up. US Core PCE inflation, the Fed’s preferred reading, came in higher than expected (2.8% vs Street 2.7%). US Chicago PMI is due at 9:45 am EDT. Tomorrow brings US nonfarm payrolls (Street 110K) and Manufacturing PMI reports from around the world.