U.S. stock futures trade flat following two consecutive winning sessions for major averages. However, semiconductor companies experienced declines in extended trading, with Qualcomm, Arm, and Skyworks Solutions losing approximately 5%, 4%, and 29%, respectively, after releasing their latest quarterly results. Ford Motor also saw a nearly 5% drop after projecting a challenging 2025. Despite initial concerns over tariffs announced by President Donald Trump—specifically a 10% levy on Chinese imports—investor sentiment improved as the president temporarily halted duties on Mexican and Canadian goods.

European markets experienced gains as investors analyzed earnings reports and awaited the Bank of England’s upcoming monetary policy decision. The Stoxx autos index managed to recover from early losses, trading 0.6% higher despite ongoing concerns about the impact of U.S. tariffs this year. Meanwhile, Sweden’s Volvo Cars saw a 9% drop after cautioning that 2025 would be a challenging year, with intensified competition from Chinese EV manufacturers and slower market growth. The Bank of England is anticipated to announce its first interest rate cut of the year during Thursday’s policy meeting.

Asia-Pacific markets showed positive momentum with most indexes trading higher. Australia’s S&P/ASX 200 climbed 1.23%, while Japan’s Nikkei 225 rose 0.61%, and the Topix added 0.25%. South Korea’s Kospi increased by 1.1%, and the small-cap Kosdaq advanced by 1.28%. Hong Kong’s Hang Seng Index gained 1.04%, with Mainland China’s CSI 300 up by 1.26%. In contrast, India’s benchmark Nifty 50 and BSE Sensex both saw declines of 0.48% and 0.43%, respectively. Investors are closely watching the Reserve Bank of India’s ongoing policy meeting, anticipating an interest rate cut aimed at stimulating the country’s struggling economy, with the decision expected on Friday.

Economic Calendar

Earnings Calendar

Notable reports for Thursday before the bell include WMS, AGCO, APD, AB, APTV, MT, ARW, AZN, BCE, BDX, BDC, BWA, BMY, GOOS, CLFD, CMS, COP, LLY, EMBC, ENTG, EFX, EQX, AGCO, GTES, HAE, HSY, HLT, HON, HII, NSIT, IDCC, IQV, ITT, K, KELYA, KVUE, LH, LSPD, LNC, LIN, MTSI, MKTX, MCFT, MDU, NVT, OMCL, OTEX, PATK, BTU, PTON, PBH, RL, RBLX, SNA, SPB, TPR, TRI, TW, UAA, VVV, WMG, XEL, XPO, YUMC, & ZBH.

After the bell reports include AFTM, AMZN, ATR, BILL, BYD, CPT, NET, CNO, CDP, CUZ, DOCS, ELF, EGP, EHC, ESE, EXPE, EXPO, FTNT, FBIN, G, GPRO, HUBG, ILMN, INVX, LESL, LGF.A, LITE, MTD, MCHP, MTX, MHK, MPWR, NMIH, ONTO, PCTY, PECO, PINS, POST, POWL, PFG, PRO, QLYS, QNST, REG, RGA, SKX, SONO, SSNC, STEP, SYNA, TTWO, VREX, VRSN, VCTR, WBTN, WERN, & WPM.

News & Technicals’

Investors are eagerly anticipating the upcoming nonfarm payrolls report on Friday, which is expected to shed light on the U.S. employment landscape. Economists surveyed by Dow Jones predict that 175,000 jobs were added last month, with the unemployment rate remaining steady at 4.1%. Additionally, investors are awaiting the latest weekly jobless claims report on Thursday and are keen to hear speeches from Federal Reserve governor Christopher Waller and Fed Bank of San Francisco President Mary Daly. Notably, the ADP reported on Wednesday that private payrolls increased by 183,000 jobs in January, surpassing the 150,000 forecasted by economists and improving upon the 176,000 jobs added in December.

Shipping giant Maersk’s shares surged by over 10% after reporting fourth-quarter profits that exceeded expectations, despite ongoing trade uncertainties. The company’s earnings before interest, depreciation, taxes, and amortization (EBITDA) rose by 26% to $12.13 billion for the full year, with the fourth quarter alone reaching $3.6 billion, surpassing analysts’ forecasts1. CEO Vincent Clerc attributed this success to strong global trade and a robust price environment, although Maersk anticipates softer earnings for 2025 due to macroeconomic uncertainties

Strategy, formerly known as MicroStrategy, has rebranded and shifted its primary focus towards Bitcoin. The company introduced a new name, and logo, and adopted an orange brand color to reflect this change. In the fourth quarter of 2024, Strategy reported the acquisition of 218,887 bitcoins for $20.5 billion, bringing their total holdings to 471,107 bitcoins, which accounts for approximately 2% of the total supply. Despite recording a fourth-quarter net loss of $670.8 million from its legacy software operations, the company is progressing well on its $42 billion capital plan to acquire more bitcoins. CEO Phong Le highlighted the strong support from both institutional and retail investors for this strategic direction.

Qualcomm kicked off 2025 with a strong Q1 earnings report, posting record revenues of $11.67 billion, an 18% increase year-over-year, and adjusted earnings per share (EPS) of $3.41, up 24% from the previous year. The growth was driven by a 20% surge in chip sales, particularly in the smartphone sect or1. However, concerns over the company’s licensing business following the expiration of a key agreement with Huawei led to a nearly 5% drop in stock price during after-hours trading. Qualcomm remains optimistic about its future, with promising forecasts for Q2 and ongoing diversification into automotive and IoT chips

Shaking off tariff worries the bulls have rushed back in to test price resistance levels with two consecutive winning sessions after the Monday recovery.  Volume, however, has been less than impressive and the market breadth has been on the decline.  That said, keep an eye out for possible big point whipsaws if the bears find any reason to attack.  As always focus on price action and plan your risk carefully as we test market highs.

Trade Wisely,

Doug