Early Look

Monday, April 21, 2025

US stock futures fall more than -1% overnight as investors prepare for another week of developments on President Trump’s fast-moving tariff policies and for the kickoff of Big Tech earnings reports. The S&P 500 fell about -1.5% in a shortened trading week last week, while the Nasdaq Composite and Dow each declined roughly -2.6%. All three indexes are down over -5% since Trump’s April 2 tariff event at the White House. Stocks still remain well off their all-time highs reached in February and late last year with the Russell 2000 now -23.75% below its all-time high of 2,466.49, the S&P 500 index price is now -14.07% below its all-time high of 6,147.43 and the Nasdaq Composite is now -19.39% below its all-time high of 20,204.58. In Asian markets, The Nikkei Index declined -450 points to 34,279, the Shanghai Index rose 14 points to 3,291, and the Hang Seng Index gained 338 points to 21,395. In Europe, the German DAX is down by -105 points to 21,205, while the FTSE 100 is flat at 8,275. President Trump ratcheted up his attack on Fed Chairman Powell again with his top economist saying on Friday that the president is studying whether he’s able to oust Powell. The US dollar index (DXY) extends last week’s decline, down another -1.15% at 98.22 to its lowest level since March 2022. The Euro rises 1.17% to highs 1.1524 while the Japanese Yen strengthens to 140.92. Gold prices meanwhile continue to make new highs daily, rising another 2.3% to $3,404. Bitcoin +2.53% at $87,240, rising alongside gold prices while stock futures remain pressured.

• The Dow Jones Industrial Average fell -527.16 points, or 1.33%, to 39,142.23
• The Nasdaq Composite dropped -20.71 points, or 0.13%, to 16,286.45
• The Russell 2000 Index advanced 17.14 points, or 0.92% to 1,880.62

• Earnings After the Close: AGNC AZZ BOKF CADE CALX CATY FLXS HBCP HXL MCB MEDP SFBS SMBK TRST WRB WTFC ZION

• Klaus Schwab announced on Monday that he is stepping down from the role of chair of the World Economic Forum (WEF) effective immediately, confirming earlier reports.
• Bank of Japan officials see little need to change their existing stance of gradually raising interest rates for now despite uncertainties stemming from US tariffs, sources say – Bloomberg reports
• Chinese state-backed funds are cutting off new investment in US private equity, according to several people familiar with the situation, in the latest salvo of Donald Trump’s trade war – Reuters.
• U.S. economic activity may appear “artificially high” before dropping off this summer, Chicago Federal Reserve President Austan Goolsbee said Sunday, as businesses and consumers look to stock up before the Trump administration’s tariffs take effect. “That kind of preemptive purchasing is probably even more pronounced on the business side,” Goolsbee said in an interview on CBS News’ “Face the Nation” on Sunday.

• QXO, Inc. (QXO) announced today that it is extending its all-cash tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc. (BECN) for $124.35 per share.
• Tesla’s (TSLA) production launch for an affordable car has been delayed, Reuters reports, citing three sources with knowledge of the matter. Global production of the lower-cost Model Y is expected to begin in the U.S.

• China’s largest shipping line, Cosco Shipping, said the US plans to impose levies on Chinese vessels docking at US ports would erode stability in global trade and supply chains.
• The European Union, EU, is looking to make it easier for U.S. gas exports to comply with its methane emission rules, as it attempts to avoid a trade war with U.S. President Donald Trump – Reuters.

• Comerica (CMA) Q1 EPS $1.25 with net interest income $575M vs. est. $563M; NIM 3.18% vs. est. 3.15% and Provision for credit losses $20M, vs. est. $22.9M.
• Global Payments (GPN) downgraded to Hold at Jefferies after Worldpay acquisition and cut its tgt to $75 from $100 saying it is clear that scale-driven deals in merchant acquiring are unlikely to work, says the firm.
• Independent Bank (INDB) Q1 adj EPS $1.06 vs est. $1.16 on NII $145.505Mm vs est. $144.97, NIM 3.42%; raised quarterly dividend by 4% in Q1.

• Regeneron Pharmaceuticals (REGN) and Sanofi (SNY) announced that the U.S. FDA has approved Dupixent for the treatment of adults and adolescents aged 12 years and older with chronic spontaneous urticaria who remain symptomatic despite histamine-1 antihistamine treatment.

• Nvidia (NVDA) shares -3% overnight after reports Huawei Technologies plans to begin mass shipments of its advanced 910C artificial intelligence chip to Chinese customers as early as next month, two people familiar with the matter said as per Reuters. Some shipments have already been made, they added.
• Cognizant (CTSH) announced an expanded partnership with DocuSign (DOCU) to enhance customer support and drive digital transformation.
• Disney (DIS) upgraded to Outperform from Peer Perform at Wolfe Research with $112 tgt.
• Tempus AI (TEM) initiated with a Buy at BTIG. PT $60.