FINWIRES · TerminalLIVE
FINWIRES

Stocks Rise Pre-Bell as Investors Await More Earnings, Monitor Middle East Developments

By

US equity futures were trending higher on Tuesday as traders await a fresh batch of corporate earnings and monitor developments in the Middle East.

The S&P 500 and the Dow Jones Industrial Average rose 0.3% each in premarket activity, while the Nasdaq added 0.6%. The indexes finished the previous trading session lower.

Shopify (SHOP), Pfizer (PFE), Duke Energy (DUK), KKR (KKR), Ferrari (RACE), American Electric Power (AEP), Transdigm (TDG), PayPal (PYPL) and Rockwell Automation (ROK) report their latest financial results before the bell, among others.

Advanced Micro Devices (AMD), Arista Networks (ANET) and Strategy (MSTR) are expected to announce their earnings after the markets close.

Shares of Palantir Technologies (PLTR) fell 3.3% pre-bell even though the software maker raised its full-year revenue outlook and reported first-quarter results above Wall Street's expectations. Pinterest (PINS) jumped 17% as the image-sharing platform company recorded better-than-expected first-quarter results.

Investors were watching developments in the Middle East closely after a day of heightened tensions in the Strait of Hormuz. The US military destroyed six Iranian boats on Monday in the strait after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command. A senior Iranian military official reportedly disputed that claim.

Iran fired missiles and drones at the United Arab Emirates, the UAE's Defense Ministry said in a post on X.

President Donald Trump told Fox News on Monday that Iran will be "blown off the face of the Earth" if they attack US vessels that support his initiative to escort commercial ships through the Strait of Hormuz.

West Texas Intermediate crude oil declined 2.2% to $104.09 a barrel before the opening bell, while Brent decreased 1.4% to $112.79.

"Absent a reopening of the strait within the next several weeks, the global oil market, in our view, is likely to enter a period of explicit demand rationing within the current quarter," Wells Fargo Investment Institute Chief Investment Officer Darrell Cronk said Monday.

Tuesday's economic calendar has the international trade in goods and services report for March at 8:30 am ET, followed by the purchasing managers' index composite final report from S&P Global (SPGI) for April at 9:45 am.

New home sales reports for February and March are expected to be out at 10 am, along with the Institute for Supply Management's services index for the previous month. The Job Openings and Labor Turnover Survey for March also posts at 10 am.

Federal Reserve Vice Chair for Supervision Michelle Bowman is slated to speak at 10 am, while Fed Governor Michael Barr speaks at 12:30 pm.

New York Fed President John Williams said Monday that the Middle East conflict could keep inflation elevated for some time.

Treasury yields were down in premarket action, with the two-year rate retreating 2.8 basis points to 3.93% and the 10-year rate off 2.2 basis points to 4.42%.

Gold inclined 0.7% to $4,563 per troy ounce, while bitcoin advanced 1% to $80,756.

Related Articles

US Markets

Budweiser APAC's Profit Slips in Q1 as China Spend Weighs; Shares Rise Nearly 2%

Budweiser Brewing Company APAC (HKG:1876) posted a slight decline in profit attributable to equity holders in the first quarter as revenue fell despite a marginal increase in volumes.The brewer reported profit attributable to equity holders of $226 million for the three months ended March 31, compared with $234 million a year earlier, according to a Tuesday Hong Kong bourse filing.Earnings per share declined to $1.68 from $1.76 a year earlier, though it came in well above the Visible Alpha consensus estimate of $0.02.Revenue fell 0.7% to $1.49 billion, topping the Visible Alpha estimate of $1.44 billion, while revenue per hectoliter declined 0.8% due to increased investments in China.Analysts at Jefferies said sales were 3% above estimates, supported by both East and West, led by stronger India volumes.India delivered strong double-digit growth in both volumes and revenue, supported by continued premiumization across its portfolio.In China, volumes declined 1.5%, though the pace of decline narrowed, while revenue fell 4% amid increased investments in channels and brand activation.The increased investments in China were mainly directed toward supporting wholesalers, expanding the in-home route-to-market and online-to-offline (O2O) channels, and stepping up brand and marketing initiatives.This included higher spending on campaigns such as the nationwide rollout of Budweiser Magnum, supported by a partnership with Erling Haaland and the FIFA World Cup platform.In South Korea, volumes declined by low-teens while revenue fell by mid-single-digits against a high base, reflecting shipment phasing ahead of a price increase in April 2025.Separately, the company flagged ongoing legal and tax-related issues at its South Korean unit, Oriental Brewery, which has recorded $86 million in cumulative exceptional charges linked to customs audit claims that it is contesting.The matter escalated in 2025 with indictments tied to alleged embezzlement, commercial bribery, and customs tax issues related to malt imports.Several entities and senior executives were also named as joint defendants, with proceedings ongoing.The subsidiary has also received tax assessments totaling about $71 million from Korean authorities for prior years and has prepaid around $62 million while it challenges portions of the claims."We believe investors will focus on: 1) strategy in China; 2) raw material cost trends and margin outlook; 3) price hike potential in APAC East amid a soft industry; and 4) potential in India," said Jefferies analysts in a note to clients.Shares of Budweiser APAC were up marginally in Tuesday morning trade.

HKG:1876
US Markets

Palantir Technologies Raises 2026 Revenue Guidance After First-Quarter Beat

Palantir Technologies (PLTR) late Monday raised its 2026 revenue outlook following first-quarter results that outperformed Wall Street expectations as the software maker's US sales more than doubled.Adjusted earnings totaled $0.33, compared with the FactSet-polled consensus of $0.28. Consolidated revenue improved 85% to $1.63 billion, ahead of the Street's view for $1.54 billion.US revenue advanced 104% year over year to $1.28 billion in the first quarter, with commercial sales more than doubling from last year, Palantir said.Shares were up 0.6% in after-hours trade.Palantir's software is used by both government and commercial enterprises, including the American defense sector. Its Artificial Intelligence Platform drives automation across operational processes.Late last month, Wedbush Securities expected Palantir to log a strong first-quarter performance, driven by its AIP, which accelerated demand from government and commercial clients."We continue to believe Palantir has the potential to be a trillion-dollar market cap company in the next few years as the AI revolution takes hold and the company sees accelerating demand for its AI products and services," Wedbush analysts, including Dan Ives, said.For 2026, the company raised its revenue outlook to between $7.650 billion and $7.662 billion from $7.182 billion and $7.198 billion, reflecting an upgraded outlook for the US commercial business. Market projections point to consolidated sales of $7.25 billion.Palantir forecasts second-quarter revenue of $1.797 billion to $1.801 billion, compared with the Street's $1.68 billion estimate.Palantir is expanding its federal footprint, including a recent $300 million Department of Agriculture contract to manage farmland assets amid rising geopolitical risks, Ives said. The company is also eyeing a deal with the Federal Aviation Administration to integrate AI tools for air traffic controls."With the company continuing to strategically innovate its product suite while investing in top talent and maintaining a global presence, we believe that (Palantir) has a golden path to become the next stalwart software company over the coming years and will grow into its valuation," Wedbush said.The stock is down nearly 18% year to date through Monday's close.

$PLTR
US Markets

S&P 500, Nasdaq Retreat From Record, Oil Jumps Amid Renewed US-Iran Tensions

The S&P 500 and the Nasdaq retreated from record highs as oil prices jumped amid signs that the Middle East conflict could intensify again.The S&P 500 lost 0.4% to close at 7,200.8, while the Nasdaq fell 0.2% to 25,067.8. The Dow Jones Industrial Average ended 1.1% lower at 48,941.9. Barring energy, all sectors were in the red, led by materials.Brent crude jumped 5.3% to $113.87 per barrel, while West Texas Intermediate crude rose 3.1% to $105.12.The US military destroyed six Iranian boats in the Strait of Hormuz on Monday after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command.A senior Iranian military official disputed that claim, Fox News reported, citing Iranian media. US President Donald Trump told news agency that Iran will be "blown off the face of the Earth" if they attack US vessels that support Trump's initiative to escort commercial ships through the Strait of HormuzTehran fired missiles and drones at the United Arab Emirates, the UAE's Defense Ministry said in a post on X earlier in the day.Two US-flagged vessels passed through the strait, the Central Command said Monday, denying claims from Iran that a US ship had been hit. Iran's Islamic Revolutionary Guard Corps said no commercial vessels or oil tankers had transited the narrow waterway, CNN reported.Meanwhile, the Israeli military reportedly issued an evacuation order for 10 villages in southern Lebanon.The broader conflict paused following two separate ceasefires; one between Washington and Tehran and the other involving Israel and Lebanon. However, a framework for a permanent truce is yet to be reached.The cumulative supply disruption due to the conflict has now reached an estimated 600 million barrels by early May, Wells Fargo Investment Institute said in a note."Absent a reopening of the strait within the next several weeks, the global oil market, in our view, is likely to enter a period of explicit demand rationing within the current quarter," Wells Fargo Investment Institute Chief Investment Officer Darrell Cronk said. "Rationing on the order of four million to five million barrels per day would be required within weeks to rebalance the system, with a typical 30-day lag before flow disruptions fully translate into end-market shortages."US Treasury yields were higher, with the 10-year rate up 6.3 basis points at 4.44% and the two-year rate rising 6.6 basis points to 3.96%."Notwithstanding the recent powerful rallies in stocks, challenges remain to finding resolution for the conflict and in our view persist as a potential negative overhang to market performance with news flow from the Middle East, the price of oil, and supply chain disruptions adding to inflation risks near term," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a report. "That said, stock prices in the US continue to reflect in our view an appreciation for the fundamentals that matter most for revenue and profit growth."On the monetary policy front, New York Fed President John Williams said Monday that the Middle East conflict could keep inflation elevated for some time.Switching to quarterly results, S&P 500 companies' earnings and revenue growth accelerated compared with figures from a week ago, Oppenheimer Asset Management said Monday.Advanced Micro Devices (AMD), Disney (DIS), Uber Technologies (UBER), Shopify (SHOP), Pfizer (PFE) and McDonald's (MCD) are among major companies that are scheduled to release quarterly financials this week.Traders will be looking ahead to fresh labor market data later this week, beginning with the Job Openings and Labor Turnover Survey for March on Tuesday, followed by the ADP employment report for April on Wednesday. The Challenger Job Cut report and the government's nonfarm payrolls data, both for last month, are scheduled to be released on Thursday and Friday, respectively."Focus shifts from Big Tech to consumer-facing earnings and macro validation," Saxo Bank said in a report. "US earnings from Disney, Airbnb (ABNB), and McDonald's will test demand resilience, while the US jobs report will determine whether strong growth can sustain current equity levels."In company-specific news, Tyson Foods' (TSN) shares jumped 8%, the best performer on the S&P 500. The meat producer's fiscal second-quarter results surpassed Wall Street's expectations, lifted by price and volume gains in the chicken and prepared foods segments.Norwegian Cruise Line (NCLH) lowered its full-year earnings outlook on Monday amid higher fuel costs and weak consumer demand due to the Middle East conflict, while the cruise operator's first-quarter revenue fell short of market estimates. The stock fell 8.6%, among the worst performers on the S&P 500.EBay (EBAY) shares advanced 5.1%, among the best performers on the S&P 500, after video game retailer GameStop (GME) proposed to acquire the e-commerce company in a cash-and-stock deal worth about $55.5 billion. Shares of GME slumped 10%.Gold fell 2.6% to $4,524.40 per troy ounce, while silver declined 4% to $73.42 per ounce.

Dow JonesNasdaq CompositeS&P 500$ABNB$AMD$DIS$EBAY$GME$MCD$NCLH$PFE$SHOP$UBER