On Tuesday, U.S. stock futures displayed a muted response as the Feds higher for longer theme continued in Monday speeches. The futures tied to the Nasdaq-100 saw a slight dip, decreasing by approximately 0.1%. In a similar vein, the futures for the Dow Jones Industrial Average exhibited a fractional decline, a sentiment echoed by the S&P 500 futures.

The bears made in entrance as Hong Kong’s Hang Seng index emerged as the biggest loser among Asia-Pacific markets on Tuesday, with a sharp decline of more than 2%. The drop was primarily driven by a slump in the basic materials and industrials sectors. Concurrently, the CSI300 index in mainland China experienced a modest fall of 0.4%, closing at 3,676.16.

European markets experienced a modest downturn on Tuesday morning. The Stoxx 600 index, a key benchmark for European equities, was down by 0.36% as of 10 a.m. London time, indicating a broad-based decline across sectors. Initially, all sectors were bathed in red, signaling a market-wide retreat. However, a glimmer of resilience was observed in the health-care sector, which managed a modest uptick of 0.1%.

Economic Calendar

Earnings Calendar

Notable reports for Tuesday before the bell include AZO, EXP, JHX, LOW, & M. After the bell include MOD, SKY, TOL, URBN, & VSAT.

News & Technicals’

In the first quarter, Lowe’s Companies Inc. surpassed Wall Street forecasts for both earnings and revenue, signaling a robust start to the fiscal year despite a downturn in sales compared to the previous year. The company noted a shift in consumer behavior, with do-it-yourself (DIY) customers showing a reluctance to spend on high-ticket items, a trend that may reflect broader economic sentiments. This performance comes in stark contrast to Lowe’s main competitor, Home Depot, which recently reported a shortfall in revenue, highlighting the competitive dynamics within the home improvement retail sector. Lowe’s ability to exceed expectations amidst a challenging market environment underscores its strategic focus and operational resilience.

A significant incident occurred at Tesla’s vehicle assembly plant in Fremont, California, where a two-alarm fire erupted late Monday afternoon. The Fremont Fire Department swiftly responded to the emergency, and fortunately, there were no injuries reported. The fire, which demanded an intense response from the firefighters, was successfully subdued within three hours, allowing the emergency teams to be released from the scene. Investigations are currently underway to determine the cause of the fire. Meanwhile, local air quality regulators have acknowledged the incident and are actively evaluating the potential impact on the environment. This event underscores the importance of stringent safety measures and rapid emergency response protocols in industrial settings.

Scarlett Johansson has leveled a serious accusation against OpenAI, claiming that her distinctive voice was duplicated without her consent for the ChatGPT AI’s new voice feature, “Sky.” Johansson expressed her astonishment and frustration, stating that the similarity was so profound that even those closest to her and various media outlets were deceived. Despite being contacted by OpenAI’s CEO, Sam Altman, in the previous year and shortly before the recent launch of ChatGPT4.O, Johansson maintains that her voice was used without her permission. Altman, however, has categorically denied these claims, emphasizing that “Sky’s” voice was not modeled after Johansson’s and any resemblance was unintentional.

Peloton, the connected fitness company, has initiated a strategic maneuver termed “global refinancing” to restructure its financial obligations. This move is aimed at repurchasing its existing debt and prolonging the maturity dates of its loans, providing the company with a more manageable timeline to stabilize its finances. As part of this effort, Peloton is venturing into the private capital market with an offering of $275 million in convertible senior notes. This financial reshuffling comes at a critical time when Peloton is grappling with a deceleration in sales and a balance sheet that reflects significant losses. The refinancing is a pivotal step for Peloton as it seeks to regain its footing and chart a path towards long-term profitability.

Today with higher for longer speeches are likely to continue with eight Fed member speeches scheduled just the day before the FOMC minutes on Wednesday. Of course anything is possible with the highly anticipated NVDA earnings after the bell on Thursday. 

Trade Wisely,

Doug