Market Overview
U.S. stock futures are slightly lower Thursday morning following two strong sessions. The Dow, S&P 500, and Nasdaq all gained over 1% Wednesday, though each index closed well off intraday highs. The Dow had surged more than 1,100 points at one point before paring back. Optimism over potential easing in U.S.-China trade tensions drove the move. President Trump indicated a softer stance on tariffs, and Treasury Secretary Bessent referenced the potential for a “big deal” with Beijing.
Equity markets also got a boost after Trump clarified he has “no intention” of removing Fed Chair Jerome Powell, helping settle Fed-related concerns.
Overnight, IBM dropped more than 7% despite topping Q1 estimates, while Chipotle (CMG) fell after posting its first same-store sales decline since 2020. On the upside, ServiceNow (NOW) and Texas Instruments (TXN) both moved higher following strong prints. Nasdaq futures lead modest pre-market declines.
Key Economic Releases
Thursday’s calendar is front-loaded with data due before the U.S. open:
-
Weekly Jobless Claims (12:30 GMT): For week ending April 19
-
Durable Goods Orders (12:30 GMT): March
-
Existing Home Sales (14:00 GMT): March
All three reports carry potential to impact sentiment, especially durable goods as a gauge of business investment and home sales as a consumer confidence proxy.
Notable Earnings
Several large caps and sector influencers are reporting today. Key names before the bell include:
-
American Airlines (AAL): -$0.66 EPS est.
PepsiCo (PEP): $1.49 EPS est.
Procter & Gamble (PG): $1.52 EPS est.
Merck (MRK): $2.14 EPS est.
Union Pacific (UNP): $2.74 EPS est.
Dow (DOW): -$0.01 EPS est.
After the close, attention turns to Alphabet (GOOGL). Analysts expect Q1 EPS of $2.01 on $89.2B revenue. The stock is down 20% YTD as ad-related macro risks and antitrust overhangs weigh. Results will be closely watched for ad trends and AI commentary. Intel (INTC) and T-Mobile (TMUS) also report after the bell.
Central Bank Activity
-
Minneapolis Fed President Neel Kashkari speaks at 21:00 GMT. Market participants will monitor his tone for any clues on inflation persistence or rate outlook, especially following Powell-related headlines earlier this week.
Pre-Opening Outlook
Despite a two-day rally, traders face a packed Thursday with high-impact earnings and economic releases. Pre-market softness suggests caution into Alphabet’s report and tariff uncertainty. Fed commentary from Kashkari could sway sentiment into the close.
With major indexes still range-bound and earnings providing mixed signals, market tone at the open will depend heavily on data outcomes and forward guidance from mega-caps.
More Information in our Economic Calendar.
