synopsis

Notwithstanding the resurgence seen since last week, the market is likely to end April with a monthly loss, with the S&P 500 down 0.90% with a session to go.

U.S. stock futures slid in Asian trading hours on Wednesday after the S&P 500 Index extended its winning streak to six days in the previous session, as traders look ahead to some market-moving earnings and economic data.

As of 10:16 p.m. ET, the S&P 500, Nasdaq 100, Dow, and Russell 2000 futures trended down 0.47%, 0.67%, 0.20%, and 0.29%, respectively.

After the recent string of gains, there will likely be some profit-taking. Earnings from tech bellwethers Microsoft (MSFT) and Meta Platforms (META), due after the market close, might also keep traders on tenterhooks.

Other key earnings on the deck include those of Caterpillar (CAT), GE Healthcare (GEHC), GlaxoSmithKline (GSK), Humana (HUM), eBay (EBAY), and Qualcomm (QCOM).

The tech space could be in for some weakness following a few negative headlines. 

Meta's smaller rival, Snap, Inc. (SNAP), refrained from issuing guidance, citing tariff uncertainty.

Super Micro Computer's (SMCI) subpar preliminary third-quarter results dragged the stock and that of its partner Nvidia (NVDA) in the after-hours. 

To make matters worse, President Donald Trump returned to bashing Federal Reserve Chair Jerome Powell, stating at a rally to mark his 100th day in office that the central bank chief wasn't doing a good job.

Wednesday's economic calendar is loaded with some first-tier data that typically moves the market. Key among the data releases are:

  • ADP private payrolls report for April (120,000 expected vs 155,000 for March)
  • Personal income and spending report for April, which consists of the Federal Reserve's key inflation gauge)
  • Advance first quarter GDP report (0.4% expected vs. 2.4% in Q4'24)
  • Chicago business barometer for April (45.5 expected vs. 47.6 in March)
  • Pending home sales for March
  • Q1 employment cost index

 

Crude oil and gold futures extended their losses in overnight trading. The 10-year U.S. Treasury note slipped further in the extended session after closing below 4.20% on Tuesday.

Notwithstanding the resurgence seen since last week, the market will likely end April with a monthly loss. With a session to go, the S&P 500 is down 0.90%.

According to LPL Chief Equity Strategist Jeff Buchbinder, this does not augur well for the rest of the year.

He noted that historically, a lower close in April generated, on average, a 0.2% drop for the whole year. 

While noting that stocks advanced strongly in 2024 despite a monthly drop in April, the strategist said the markets don't have the same tailwinds that powered 2024's strong gains.

"U.S. stocks may continue to chop along in the near future, with the potential for more bouts of volatility in the months ahead," he added.

On Tuesday, stocks rallied in the afternoon after showing indecision as Commerce Secretary Howard Lutnick told CNBC that the first of the U.S. trade deals was nearly done. 

The SPDR S&P 500 ETF (SPY) exchange-traded fund (ETF) ended Tuesday's session up 0.63% at $554.32, the Invesco QQQ Trust (QQQ) ETF rose 0.66% to $475.53, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.73% to $405.21.

The iShares Russell 2000 ETF (IWM) ended up 0.59% at $196.09.

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