Equity futures point to a higher opening this morning as investors assess a hefty batch of earnings reports and monitor developments on the geopolitical front.

The major averages finished mostly lower yesterday, snapping a 13-session winning streak for the Nasdaq Composite as tech and mega-cap names took a modest step back after an impressive rally. The broader market, however, fared relatively well, and the S&P 500 Equal Weighted Index finished with a modest gain.

Oil prices are flattish this morning after a bounce yesterday as the state of U.S.-Iran negotiations remains tenuous, with Vice President JD Vance set to travel to Pakistan for the next round of talks.

While the market will still react to geopolitical swings, the recovery of all losses since the start of the Iran war suggests investors are largely looking past the conflict, as a ceasefire seems the most feasible option for all parties involved. Attention now shifts to earnings season, where solid results and steady guidance from several Dow components reporting today are helping maintain growth projections and reinforce the view that earnings momentum is continuing to build.

On the macro front, the Senate will hold a confirmation hearing for Fed Chairman Kevin Warsh this morning, according to CBS News.

In corporate news:

• Apple (AAPL 272.50, -0.55, -0.2%) announced that Tim Cook will become executive chairman of the board of directors and John Ternus, senior vice president of Hardware Engineering, will become the next CEO, effective on September 1, 2026.
• Amazon (AMZN 255.84, +7.57, +3.1%) has agreed to invest up to $25 billion in Anthropic as part of an AI infrastructure deal, according to CNBC. 
• 3M (MMM 147.00, -4.40, -2.9%) beat EPS expectations by $0.16, reported revenues in-line, and reaffirmed its FY26 EPS and revenue guidance.
• UnitedHealth (UNH 346.27, +22.95, +7.1%) beat EPS expectations by $0.65, beat revenue expectations, and guided Fy26 EPS above consensus.
• Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: +0.1%, India's Sensex: +1.0%, South Korea's Kospi: +2.7%, Australia's ASX All Ordinaries: UNCH.

In news:

• South Korea's exports were up 49.4% through the first 20 days of April with chip exports jumping 182.5%.
• China Securities Journal noted that measures aimed at stabilizing the stock market have gained traction.
• Fitch expects China's fiscal deficit to remain at 7.3% of GDP in 2026.
• New Zealand's CPI remained above target for the second consecutive quarter in the reading for Q1.

In economic data:

• New Zealand's Q1 CPI 0.9% qtr/qtr (expected 0.8%; last 0.6%); 3.1% yr/yr (expected 2.9%; last 3.1%). Q1 NZIER Business Confidence -4% (last 48%) and Q1 NZIER Capacity Utilization 91.2% (last 89.8%)

Major European indices trade with modest gains. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.5%.

In news:

• European Central Bank policymaker Rehn said that there is no set rate path and that the current starting point is "reasonably balanced."
• Meanwhile, ECB President Lagarde said that the central bank's response will be determined by the duration of the energy shock.
• French Prime Minister Lecornu is seeking EUR4 bln in spending cuts.
• Germany's ZEW institute noted that expectations are slipping into negative territory.

In economic data:

• Eurozone's April ZEW Economic Sentiment -20.4 (expected -12.7; last -8.5)
• Germany's April ZEW Economic Sentiment -17.2 (expected -6.7; last -0.5) and ZEW Current Conditions -73.7 (expected -70.0; last -62.9)
• U.K.'s February three-month employment change 25,000 (last 84,000). February Average Earnings Index + Bonus 3.8% yr/yr (expected 3.6%; last 4.1%). February Unemployment Rate 4.9%(expected 5.2%; last 5.2%) and March Claimant Count change 26,800 (expected 21,400; last 17,100)
• Spain's February trade deficit EUR3.30 bln (last deficit of EUR4.00 bln)
• Swiss March trade surplus CHF3.177 bln (last surplus of CHF4.105 bln)

[BRIEFING.COM] The stock market started the week on a subdued note following last week's push to record highs, as mega-cap and tech names saw some profit-taking amid renewed geopolitical uncertainty.

The S&P 500 (-0.2%), Nasdaq Composite (-0.3%), and DJIA (flat) spent the session drifting modestly below their flatlines as investors reacted to mixed reports regarding the state of the next round of talks between the U.S. and Iran.

Stocks opened modestly lower in reaction to weekend developments that seemingly put the talks on hold, and moved to session lows shortly before midday after President Trump told Bloomberg that it is "highly unlikely" he will extend the current ceasefire if a deal is not reached this week.

However, the major averages quickly rebounded from their worst levels amid reports that delegates from both the U.S. and Iran will travel to Pakistan to engage in talks this week.

Crude oil futures settled today's session $5.18 higher (+6.2%) at $89.40 per barrel. While the rise in oil prices coincided with a pullback in select areas of the market, particularly recent leaders, crude remained below the $90 per barrel mark, signaling a degree of stabilization.

Sector strength was mixed and variable throughout the session, though weakness across mega-cap and tech-heavy sectors kept the major averages from making a move into positive territory.

The communication services sector (-1.4%) was the worst performer, as Meta Platforms (META 670.91, -17.64, -2.56%) and Alphabet (GOOG 335.40, -4.00, -1.18%) provided poor mega-cap leadership, while Netflix (NFLX 94.83, -2.48, -2.55%) declined further and failed to attract buy-the-dip interest following disappointing Q2 guidance in last week's earnings report.

The consumer discretionary sector (-0.7%) was another laggard, with Tesla (TSLA 392.49, -8.13, -2.03%) moving lower ahead of its own earnings release this week, while cruise lines and other oil-sensitive names retreated today.

Meanwhile, the information technology sector (flat) made a steady move higher throughout the afternoon, which saw it finish flat for the day. Intel (INTC 65.70, -2.80, -4.09%) was a notable laggard, but the PHLX Semiconductor Index (+0.5%) still managed a modest gain.

Elsewhere in the sector, computer hardware names such as Hewlett Packard Enterprise (HPE 27.82, +1.38, +5.22%) and Dell (DELL 204.25, +7.70, +3.92%) outperformed, while solid gains across software stocks pushed the iShares GS Software ETF 1.4% higher.

Additionally, Apple (AAPL 273.05, +2.82, +1.04%) was a mega-cap standout.

Late improvements to the information technology sector helped both the major averages and the Vanguard Mega Cap Growth ETF (-0.4%) finish considerably improved from their worst levels, though it was not enough to extend the Nasdaq Composite's winning streak, which was snapped after an impressive 13 sessions.

Elsewhere, strength was mixed, with five S&P 500 sectors posting modest gains.

The materials sector (+0.6%) captured the widest gain with Steel Dynamics (STLD 209.35, +9.03, +4.51%) finishing as one of the S&P 500's top movers ahead of its earnings release, while the financials sector (+0.3%) was supported by broad strength.

The S&P 500 Equal Weighted Index (+0.3%) outperformed the market-weighted S&P 500 (-0.2%), reflecting solid participation under the surface.

All told, it was a relatively quiet Monday session. There was some renewed geopolitical uncertainty coming out of the weekend, but the market's muted reaction suggests investors continue to view a more durable ceasefire as the base case, despite elevated near-term uncertainty. Growth stocks took a modest step back after a strong rally, but the major averages remain just below recent record highs. While the market continues to monitor U.S.-Iran developments, attention is set to shift more firmly toward earnings as reporting season ramps up this week, with investors looking for continued growth and forward guidance to sustain the recent momentum.

There was no economic data of note today. 

U.S. Treasuries began the week on a slightly lower note with the market showing limited concern over a weekend speedbump on the path to a peace deal with Iran. The 2-year note yield settled up two basis points to 3.72%, and the 10-year note yield finished unchanged at 4.25%. 

• Russell 2000: +12.5% YTD
• S&P Mid Cap 400: +11.0% YTD
• Nasdaq Composite: +5.0% YTD
• S&P 500: +3.9% YTD
• DJIA: +2.9% YTD