Early Look

Tuesday, April 22, 2025

U.S. stock futures are looking to rebound after major averages finished firmly in the red on Monday, with futures pointing to a solid open ahead of a heavy dose of large cap earnings this morning including GE, MMM, HAL, VZ and a handful of defense contractors (LMT, NOC, RTX) and tonight earnings from TSLA are expected. In Asian markets, The Nikkei Index fell -59 points to 34,220, the Shanghai Index gained 8 points to 3,299, and the Hang Seng Index rose 167 points to 21,562. In Europe, the German DAX is fell -45 points to 21,160, while the FTSE 100 is up 34 points to 8,310.

Gold prices soar, up another +1.3% to $3,470 an ounce, after earlier topping the $3,500 level for the first time ever. The precious metal is up nearly 30% in the year to date on safe-haven demand following U.S. tariff-driven trade war escalations and, more recently, President Trump’s threats to remove Federal Reserve Chair Jerome Powell. Crude futures edged higher after tumbling Monday following US President Donald Trump’s escalating criticism of Federal Reserve Chair Jerome Powell, which rattled global markets. Treasury yields extend gains with the 10-yr up 2bps t 4.43% while the dollar index (DXY) edges higher after tumbling in recent weeks.

U.S. stocks finished broadly lower on Monday, as all eleven S&P sectors declined with more than 2% declines for nearly all sectors (Materials and Consumer Staples down slightly less) as the dollar tumbled further (now down over -11% YTD against the euro to 1.15) and Treasury yields ended on highs on the long end (10-yr 4.41%). Threats by U.S. President Donald Trump to replace Federal Reserve Chair Jerome Powell for being “slow” to cut interest rates, along with the absence so far of trade deals with trading counterparties sent stocks broadly lower on Monday.

• The Dow Jones Industrial Average fell -971.82 points, or 2.48%, to 38,170.41
• The Nasdaq Composite stumbled -415.55 points, or 2.55%, to 15,870.90
• The Russell 2000 Index declined -40.30 points, or 2.14% to 1,840.32

• 8:55 AM EST                Johnson/Redbook Weekly Sales
• 10:00 AM EST              Richmond Fed Manufacturing for April
• 1:00 PM EST US Treasury to sell $69B in 2-year notes
• 4:30 PM EST API Weekly Inventory Data

• Earnings After the Close: ADC BDN BKR CASH CB COF ENPH EQT EWBC HAFC ISRG MANH MCRI MIND NBHC PEGA PFSI PKG PMT QCRH RNST RRC SAP STLD TRMK TSLA USNA VBTX WFG WFRD ZWS

• PulteGroup (PHM) Q1 EPS $2.57 vs. est. $2.42; Q1 revenue $3.89B vs. est. $3.82B; Q1 Backlog $7.22B, -12% y/y, Q1 Backlog 11,335, -16% y/y; Q1 net new orders 7,765, -7.3% y/y.
• Utz Brands (UTZ) downgraded to Hold from Buy at TD Cowen.

• AZZ Inc. (AZZ) Q4 EPS $0.67 vs est. $0.98 on sales $351.9Mm vs est. $368.55Mm; guides FY sales $1.625-1.725B vs est. $1.679B, adj EBITDA $360-400Mm vs est. $369.2Mm and adj EPS $5.50-6.10 vs est. $5.84.
• Barrick Gold (GOLD) is exiting an Alaskan mining project by selling its 50% stake to billionaire John Paulson and Novagold resources – Bloomberg news reports
• GE Aerospace (GE) Q1 adj EPS $1.49 vs. est. $1.27; Q1 revs $9B in-line with consensus; Q1 orders $12.3B; kept its 2025 profit and revenue forecasts unchanged but said they now assume the impact of announced tariffs; said its full-year forecast did not assume changes in planemakers’ delivery schedules.
• FlexSteel Industries (FLXS) Q3 adj EPS $1.13 vs est. $0.88 on sales $114Mm vs est. $111.94Mm; guides Q4 sales $109-116Mm vs est. $111.93Mm and adj op mgn 6.0-7.3%.
• Hexcel (HXL) Q1 EPS $0.37 vs. est. $0.43; Q1 sales fell -3.3% y/y to $456.5M vs. est. $475.7M; forecasts FY CAPEX less than $90M, forecast less than $100M; guides FY adj EPS $1.85-$2.05 vs. est. $2.12 and sales $1.88B-$1.95B vs. est. $1.99B
• Northrop Grumman (NOC) reports Q1 EPS $3.32; Q1 revs $9.47B vs. est. $9.95B; cuts FY25 adjusted EPS view to $24.95-$25.35 from prior $27.85-$28.25 (est. $28.05) while backs FY25 revenue view $42B-$42.5B.
• UPS (UPS) downgraded to Equal Weight from Overweight at Wells Fargo.

• BOK Financial (BOKF) Q1 $1.86 vs est. $1.99 on NII $316.3Mm vs est. $317Mm, NIM 2.78%.
• Cadence Bank (CADE) Q1 EPS $0.71 vs. est. $0.64; Improved net interest margin to 3.46%, up 8 bps q/q; Maintained strong regulatory capital with Common Equity Tier 1 Capital of 12.4% and Total Capital of 14.1%.
• Equity LifeStyle (ELS) Q1 normalized FFO/SHR $0.83 vs est. $0.83 on revs $387.3Mm vs est. $398.7Mm; guides Q2 FFO/SHR $0.66-0.72 vs est. $0.70, sees FY normalized FFO/SHR $3.01-3.11 vs est. $3.07.
• Metropolitan Bancorp (MCB) Q1 EPS $1.45 vs est. $1.35 on NII $67Mm vs est. $65.13Mm, NIM 3.68%.
• ServisFirst Bancshares (SFBS) Q1 EPS $1.16 vs est. $1.18 on NII $123.553Mm vs est. $126.08Mm; announces new Chief Credit Officer.
• Western Alliance Bancorp (WAL) Q1 EPS $1.79 vs est. $1.78 on NII $650.6Mm vs est. $605.78Mm; NIM 3.47%; credit loss provision -$31.2Mm.
• WR Berkley (WRB) Q1 EPS $1.04 vs. est. $0.98; Q1 Return on equity and operating return on equity of 19.9% and 19.3%, respectively; Q1 Record net premiums written grew to $3.1B; reported combined ratio was 90.9%, including current accident year catastrophe losses of $111.1M.
• Zions Bancorp (ZION) Q1 EPS $1.13 vs. est. $1.18; Q1 total deposits $75.69B; Q1 net income $169M vs. est. $174.5M; Q1 Net interest margin (NIM) 3.1%, provision for credit losses $18M, EST $31.1M; said Q1 saw 16 basis point increase in the net interest margin.
• The U.S. Department of Education today announces its Office of Federal Student Aid (FSA) will resume collections of its defaulted federal student loan portfolio on Monday, May 5^th.

• Elevance Health (ELV) Q1 adj EPS $11.97 vs, est. $11.48; Q1 revenue $48.8B vs. est. $46.25B; backs FY25 adjusted EPS view of $34.15-$34.85; Q1 benefit expense ratio 86.4%.
• Medpace Holdings (MEDP) Q1 EPS $3.67 tops consensus $3.08 and revs $558.6M vs. est. $527.15M; boosts FY25 EPS view to $12.26-$13.04 from $11.93-$12.69 (est. $12.48) and raises FY25 revenue view to $2.14B-$2.24B from $2.11B-$2.21B (est. $2.15B); board approved an increase of $1.0B to the Company’s stock repurchase program.
• Roche (RHHBY) announced that it will invest $50B into the United States of America in the next five years. These investments further strengthen Roche’s already significant US footprint with 13 manufacturing and 15 R&D sites across the Pharmaceutical and Diagnostics Divisions and are expected to create more than 12,000 new jobs, including nearly 6,500 construction jobs, as well as 1,000 jobs at new and expanded facilities. As part of this investment, Roche will increase its existing footprint of more than 25,000 employees in 24 sites.

• MongoDB (MDB) announced that Srdjan Tanjga, the company’s Interim Chief Financial Officer (CFO) has notified the Company of his intent to resign from his position, effective May 8, 2025.