Futures Edge Lower as Iran Tensions Linger and Earnings Season Heats Up

Stock futures are lower to begin Thursday’s trading, with S&P 500 futures (/ES) down about -0.20%. Markets seem to be taking a breather as the major indices remain near all-time highs after President Trump yesterday extended the U.S. ceasefire in the Iran war; however, peace talks seem to be stalling out and the Iranian navy yesterday said they seized two container ships in the Strait of Hormuz.

IBM (IBM) is down about -7.69% and Tesla (TSLA) is down -3.35% after both companies reported earnings, while Texas Instruments (TXN) is up about +9.6%. Today’s economic data includes Initial Jobless Claims and S&P PMI Flash, while earnings on the docket include Intel (INTC) and American Express (AXP).

Snapshot (as of 7 AM ET)

• Oil (/CL) – Oil is on the move to the upside, up +0.56% in early trading near 93.65, with yesterday’s close of 92.87 marking a +17.7% rally since Apr. 17.
• Gold (/GC) – Gold is flat near 4,752, following a +0.41% move yesterday that closed at 4,758.3.
• Bitcoin (/BTC) – The cryptocurrency futures are taking a pause with a -1.44% slide near 77,735 after a +3.61% rally yesterday, marking a nearly +22% rally since Mar. 30 as of yesterday’s close.
• VIX – The VIX is near 19.30 after a muted day yesterday that closed at 18.92 following a spike on Tuesday that hit highs of 20.85.
• U.S. Dollar (/DX) – The greenback is up +0.12% at about 98.71 from yesterday’s +0.24% move, continuing a two-day rally.

Biggest Premarket Movers (as of 7 AM ET)

1. UNITED RENTALS (URI): +15.61%
2. WEST PHARMACEUTICAL (WST): +11.16%
3. TEXAS INSTRUMENTS (TXN): +10.05%
4. COMCAST (CMCSA): +6.37%
5. CHARTER COMMUNICATIONS (CHTR): +4.33%

1. SERVICENOW (NOW): -12.68%
2. SUPER MICRO COMPUTER (SMCI): -9.60%
3. FREEPORT-MCMORAN (FCX): -7.62%
4. IBM CORP (IBM): -7.43%
5. LULULEMON ATHLETICA (LULU): -5.17%

Economic Data

• 8:30 AM ET: Unemployment Claims
• 9:45 AM ET: Flash Manufacturing PMI, Flash Services PMI
• 10:30 AM ET: Natural Gas Storage

Notable Earnings

• Premarket: AXP, TMO, NEE, UNP, HON, LMT, SNY, CMCSA, FCX, BX, NOK, INFY, STM, PCG, KDP, DOW, PHM, HELE
• Postmarket: INTC, SAP, NEM, DLR, EW, BYD
• Premarket Tomorrow: PG, HCA, NSC, CHTR
• Postmarket Tomorrow: N/A

Upgrades/Downgrades

• Rothschild & Co Redburn upgrades McDonald’s (MCD) to Neutral from Sell
• BofA upgrades Texas Instruments (TXN) to Buy from Neutral
• B. Riley upgrades Onsemi (ON) to Buy from Neutral
• Morgan Stanley downgrades CSX (CSX) to Underweight from Equal Weight
• HSBC downgrades TE Connectivity (TEL) to Hold from Buy
• Piper Sandler downgrades Investar Holding (ISTR) to Neutral from Overweight

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.