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US Equity Futures Gain Pre-Bell as Traders Keep Eye on Potential Re-Escalation of Middle East Hostilities

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-- US equity futures were higher pre-bell Tuesday as traders kept a close watch on the potential re-escalation of hostilities in the Middle East.

Dow Jones Industrial Average futures were 0.4% higher, S&P 500 futures were up 0.5%, and Nasdaq futures were 0.8% higher.

The UAE said that it was attacked by Iranian drones and missiles, while the US said it sank Iranian boats in the Strait of Hormuz.

President Donald Trump had said that the US would help guide vessels stranded in the Persian Gulf. In a post Monday on Truth Social, he said that a South Korean cargo ship had been damaged by Iran, but the US had shot down seven Iranian small boats.

"Other than the South Korean Ship, there has been, at this moment, no damage going through the Strait," Trump said.

Traders digested the latest round of earnings, with Palantir Technologies (PLTR) and Vertex Pharmaceuticals (VRTX) reporting higher Q1 adjusted earnings and revenue. HSBC (HSBC) also posted an increase in Q1 earnings and revenue.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 2.2% at $111.91 per barrel and US West Texas Intermediate crude 3.2% lower at $103.04 per barrel.

The US international trade deficit widened to $60.31 billion in March from a $57.78 billion gap in February, compared with a $61.0 billion gap expected in a survey compiled by Bloomberg as of 7:40 am ET.

The S&P Global purchasing managers' index composite final report for April, due at 9:45 am ET, is seen reporting 52.1 versus 52.0 previously.

March new home sales report, due at 10 am ET, is expected to post a 652,000 annual rate. The April Institute for Supply Management's services index is projected at 53.7 versus 54.0 previously. March job openings from the US Department of Labor's Job Openings and Labor Turnover Survey are expected to come in at 6.850 million compared with 6.882 million in the prior month.

Federal Reserve Vice Chair for Supervision Michelle Bowman and Fed Governor Michael Barr are due to speak today.

In other world markets, Japan's Nikkei and China's Shanghai Composite were closed due to public holidays. Hong Kong's Hang Seng ended 0.8% lower. The UK's FTSE 100 was down 1.4%, and Germany's DAX index was 1.6% higher in Europe's early afternoon session.

In equities, Intel (INTC) shares were up 3.8% after Bloomberg reported the Apple (AAPL) has held early discussions with the company and Samsung Electronics on producing key device processors in the US. Anheuser-Busch InBev (BUD) stock was up 6.6% after the company reported fiscal Q1 underlying earnings and revenue that beat analysts' estimates. Pinterest (PINS) shares were up 18% after the company posted higher Q1 non-GAAP earnings and revenue that beat analysts' consensus.

On the losing side, Palantir and HSBC shares were down 1.3% and 3.9%, respectively, after they reported Q1 financial results. Shopify (SHOP) stock was 5.9% lower after the company reported a Q1 loss while analysts expected earnings.

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Mining & Metals

Bravo Mining Up 1.4% As Provides Latest Assays from Luanga Project in Brazil

Bravo Mining (BRVO.V) reported Tuesday assays from eight drill holes in the Central sector and newly tested Crescent zone at the Luanga palladium-platinum-rhodium-gold-nickel deposit in Brazil.Highlights include 70 meters at 1.9 grams per tonne platinum group metals and gold (PGM+Au) plus 0.28% nickel, including 20 m at 3.6 g/t PGM+Au plus 0.40% nickel, as well as 19 m at 3.2 g/t PGM+Au, and 8 m at 1.94% copper plus 0.6 g/t PGM+Au.The results continue to demonstrate potential to expand and upgrade Luanga's mineral resource, Bravo said, adding it has completed 400 drill holes to date, with results reported for 355 drill holes to date. Assays are pending for 37 holes."Infill drilling is consistently intercepting thicknesses and grades often comparable to, or exceeding results from, earlier drilling. Drill sections in this news release also demonstrate that grades continue to be consistent, with excellent continuity from hole to hole and section to section," said Luis Azevedo, Chairman and CEO. "We are also encouraged with positive results from the new Crescent Zone, a regional target outside Luanga's three main PGM sectors. The Crescent Zone was delineated through reinterpretation and relogging triggered by the completion of the 2025 geophysical surveys. We've also intercepted another encouraging copper occurrence (DDH26LU307) at the eastern end of the Crescent Zone that warrants further investigation."Shares in BRVO were up 1.4% in Canada at last look.Price: $3.55, Change: $+0.05, Percent Change: +1.43%

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Oil & Energy

EMEA Oil Update: Oil Prices Edge Lower Despite US-Iran Firefight

Oil prices dipped on Tuesday as the US military launched Project Freedom to break the blockade of the Strait of Hormuz.Front-month Murban crude futures fell 1.2% to $106 per barrel, while Brent futures fell 2% to $112.06/bbl.However, the decline was sharply checked by a direct exchange of fire between US and Iranian forces and a drone strike on the UAE's Fujairah oil terminal, which shattered a month-long ceasefire and reignited fears of a prolonged global energy crisis, analysts said.Analysts noted that the oil market remains on high alert following breaking news of an attack on a US Navy vessel.The hostilities broke out as the US initiated a mission to extract commercial ships currently trapped within the Persian Gulf.While US Central Command reportedly confirmed that two American merchant ships successfully completed their transit through the Strait of Hormuz, a subsequent direct fire exchange between US and Iranian forces now endangers the survival of the ceasefire established four weeks ago.The regional fallout intensified as the UAE reported its first defensive interceptions of Iranian missiles and drones since the April 8 ceasefire began.However, one Iranian drone successfully struck an oil terminal at the Port of Fujairah, sparking a major fire at the facility.Record-breaking supply losses of 10 million barrels per day have already depleted global inventories, and experts warn that if the Strait remains obstructed, this energy crisis could extend through late 2026 and into 2027.

Research

Research Alert: Huntington Ingalls Posts Q1: Sales Growth Offset By Margin Pressure

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:HII reported Q1 revenues of $3.1B, up 13.4% Y/Y and 2.7% above consensus, though operating margin compressed 89 bps to 5.0% despite revenue growth. Q1 EPS of $3.79 matched the prior year and exceeded consensus by $0.08. The results underscore a tension we've been monitoring: while top-line growth validates the favorable demand environment, the path to achieving 9%-10% shipbuilding margin targets is proving more gradual than expected. Management reaffirmed FY26 guidance with shipbuilding revenues of $9.7B-$9.9B, operating margins of 5.5%-6.5% and FCF of $500M-$600M. Newport News drove growth with revenues up 19.3% to $1.7B, though segment margin declined 80 bps to 5.3% due to the absence of favorable Virginia-class contract adjustments. Free cash flow remained negative at $461M. We believe the pending Virginia Block VI and Columbia Build II contract awards remain critical catalysts, as these should incorporate current cost structures and enable better margin capture on future work.

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