Stocks Pause as Investors Digest Recent Gains

US equities are pausing this morning following a mixed Monday session that saw the NASDAQ advance while the Russell 2000 declined. Traders appear to be digesting recent gains amid signs of increased share supply, with IPOs and large financings reportedly on the way from SpaceX, Alphabet, Anthropic, and potentially other companies including OpenAI in the coming months.

Monday’s stronger than expected US Manufacturing PMI and Construction Spending reports continued to support a rally in copper, which is up again this morning. The economic calendar is quiet today, but investors continue to respond positively to earnings, with Hewlett Packard Enterprises up 27.5% in premarket trading after reporting earnings of $0.79 per share, above the Street’s $0.53 estimate.

US futures are modestly lower, with NASDAQ futures down 0.1% and Dow futures down 0.4%. Overseas, the Nikkei fell 0.3%, while the Hang Seng rose 2.5%. In Europe, the DAX is up 0.8% and the FTSE is up 0.3%.

Commodities are mixed. Crude oil is down 1.5% and gasoline is down 0.9%, while gold is up 1.1%, silver is up 1.7%, and copper is up 1.3%. In fixed income, the US 10-year Treasury note yield is steady just below 4.50%, while the US 30-year Treasury note yield is steady just below 5.00%. The US dollar is climbing against other currencies today, while the Loonie is flat after weakening on Monday. The Euro is down 0.2%.

Focus this week turns to economic news, with US ADP payrolls and global Service PMI reports due Wednesday, followed by US Nonfarm Payrolls on Friday. Earnings reports of note include Macy’s and Broadcom* on Wednesday, followed by Ciena* and lululemon on Thursday.

*Shares of Broadcom and Ciena are held in some portfolios managed by SIA Wealth Management.

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