US Market Overview

Daily Market Analysis

Friday US Open – Modest gains indicated as the market looks to close out the rough week on a high note.

The S&P 500 futures trade seven points, or 0.2%, above fair value at the end of a negative week in which the major indices are down between 1-2%. The benchmark index is on track to snap a four-week winning streak, barring a comeback today. 


The positive bias in the futures trade is modest, perhaps due to the market still chewing on the growing prospect that the Biden administration will raise the capital gains tax rate on the wealthy. Goldman Sachs reportedly posited that the increase in the capital gains tax rate could more likely be negotiated to around 28%, versus 39.6%, for those making $1 million or more. 

In more recent news, Dow components Intel (INTC 61.39, -1.18, -1.9%), American Express (AXP 142.50, -4.66, -3.2%), and Honeywell (HON 225.20, -4.06, -1.8%) are trading lower in pre-market action despite each beating EPS expectations. INTC issued downside Q2 guidance, and AXP missed revenue estimates. 

On the data front, investors will receive the preliminary IHS Markit Manufacturing and Services PMIs for April at 9:45 a.m. ET, followed by New Home Sales for March (Briefing.com consensus 912,000) at 10:00 a.m. ET. Overseas, the eurozone mainly reported better than expected flash Manufacturing and Services PMI readings for April. 

U.S. Treasuries trade little changed for the third day in a row. The 2-yr yield is up to one basis point to 0.15%, and the 10-yr yield is flat at 1.55%. The U.S. Dollar Index is down 0.4% to 91.01. WTI crude futures are up 0.5% to $61.76/bbl. 

In U.S. Corporate news:

Intel (INTC 61.39, -1.18): -1.9% after guiding Q2 EPS and revenue below consensus, overshadowing its better-than-expected Q1 results. The company slightly raised FY21 guidance and said it expects it’ll take two years for the ecosystem to address semiconductor shortages. 

American Express (AXP 142.50, -4.66): -3.2% after providing mixed results, beating EPS estimates on below-consensus revenue. 

Honeywell (HON 225.20, -4.06): -1.8% despite beating top and bottom-line estimates and raising its FY21 guidance. 

Mattel (MAT 22.21, +1.33): +6.4% after beating top and bottom-line estimates.

Quidel (QDEL 105.65, -16.57): -13.6% after issuing downside guidance for Q1. 

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