S&P 500 futures remained relatively unchanged on Tuesday morning, with investors bracing for the release of May’s retail sales data. Consensus suggests a modest increase of 0.2% from April anticipated by economists surveyed by Dow Jones. The day is also set to bring a suite of economic reports, shedding light on industrial production and business inventories. Adding to the uncertainty is, several Federal Reserve officials, including Boston Fed President Susan Collins and Richmond Fed President Tom Barkin, are slated to deliver speeches at various events nationwide.

European stock markets experienced an uptick in Tuesday’s trading session, shaking off the uncertainty that began the week. Investors’ attention is now focused on the upcoming policy rate decision from the Bank of England, scheduled for Thursday. The consensus among economists suggests that the Bank will maintain the current interest rate at 5.25%. This expectation is bolstered by a Reuters poll, where a majority of economists predict that the Bank of England might opt for a rate cut in August.

Asia-Pacific stock markets experienced a significant rebound on Tuesday, buoyed by a positive overnight performance on Wall Street. The upswing came as investors digested the latest interest rate decision from the Reserve Bank of Australia. In response to the central bank’s move, the Australian S&P/ASX 200 index saw a notable increase of 1.01%. Meanwhile, Japan’s Nikkei 225 index recovered from Monday’s nearly 2% drop, rising by 1%. The broader Topix index also enjoyed gains, albeit more modest, finishing 0.58% higher. In South Korea, the Kospi index ascended by 0.72%.

Economic Calendar

Earnings Calendar

Notable reports for Tuesday before the bell include CRMT, CGNT, & PDCO.  After the bell include KBH.

News & Technicals’

Apple is currently under significant scrutiny by the European Union due to several “very serious” concerns related to the Digital Markets Act (DMA), as stated by the EU’s competition chief, Margrethe Vestager, in a CNBC interview on Tuesday. The DMA represents a comprehensive legislative effort to curb the influence of major technology companies. In March, the European Commission, which is the executive branch of the EU, initiated an investigation into Apple’s practices under this new regulation. This probe is part of a broader initiative to ensure that tech giants operate within a framework that promotes fair competition. Vestager has indicated that the findings of this investigation are expected to be disclosed “hopefully soon,” which could have significant implications for Apple’s operations within the European market.

Fisker, the American electric vehicle (EV) manufacturer, has sought bankruptcy protection, a move announced late Monday. The company has been grappling with a swift depletion of funds, primarily due to the costs associated with rolling out its “Ocean” SUVs in both the United States and Europe. In a strategic pivot aimed at addressing its financial woes, Fisker is now looking to sell its assets and restructure its debt under Chapter 11. The decision comes after a thorough review of potential avenues for the business, with the company stating, “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.” This development marks a significant turn for Fisker, as it seeks to navigate through its current challenges and find a sustainable path forward in the competitive EV market.

The Kremlin has confirmed that President Vladimir Putin is set to embark on a ‘friendly state visit’ to the Democratic People’s Republic of Korea (DPRK), accepting an invitation from North Korea’s leader, Kim Jong Un. This announcement, made on Monday, has sparked considerable attention on social media platform X, where videos and images depict the streets of Pyongyang adorned with Russian flags and portraits of Putin, signaling preparations for his anticipated arrival. The visit is drawing scrutiny from geopolitical analysts, with one commenting that the burgeoning relationship between Moscow and Pyongyang represents “a threat like no other” to Western interests. This visit underscores the deepening ties between the two nations and could have far-reaching implications for international relations and security dynamics.

Boeing’s CEO, Dave Calhoun, is set to confront a Senate panel amid escalating concerns over safety and quality control issues plaguing the aircraft manufacturer. The hearing, convened by the Senate Homeland Security Committee’s Permanent Subcommittee on Investigations, is scheduled to commence at 2 p.m. ET on Tuesday. This comes in the wake of a recent incident where a door plug was ejected from a Boeing 737 Max plane mid-flight, an event that has intensified scrutiny on the company. The nearly new aircraft’s mishap in January has put Boeing squarely in the hot seat, as it grapples with the fallout and faces tough questions from lawmakers about its commitment to safety standards.

After Monday’s surge higher it’s likely the retail sales data will determine if the bulls can follow though for another winning day.  Expect price volatility Fed members pontificate interest rates with speaking engagements around the county today.  Remember the market is closed on Wednesday so plan your trading risk accordingly.

Trade Wisely,

Doug