[BRIEFING.COM] The major averages continue to chart session highs this morning.

Advanced Micro Devices (AMD 407.16, +51.90, +14.61%) is powering to new all-time highs after a standout Q1 report, extending its recent surge with shares now up over 100% since the start of April. The fabless chipmaker beat on the top and bottom lines, with revenue increasing 37.8% year-over-year to $10.25 billion. Q2 guidance was also nicely above expectations, with revenue guided to $10.90-11.50 billion, but the more bullish takeaway appears to be the longer-term commentary around Data Center drivers, particularly server CPU demand as inference and agentic AI workloads scale.

This was a standout report from AMD. Beyond the upside results and guidance, the key driver behind the move appears to be the longer-term commentary around Data Center, particularly server CPUs. The updated CPU outlook suggests a much stronger demand environment than previously anticipated, with inference and agentic AI workloads increasing the need for CPU compute alongside GPUs. Overall, the report strengthens AMD's position as a broader AI infrastructure player. The sharp surge does raise the bar significantly, and execution around supply, margins, the next-generation ramp, and customer deployments will be closely watched. Still, the upside results, and significantly improved long-term outlook are driving shares today.

The PHLX Semiconductor Index is up 2.8%, and the broader information technology sector (+1.6%) remains one of the best-performing S&P 500 sectors today. 

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.1%), and DJIA (+1.2%) are maintaining their solid early gains.

While tech names are garnering a substantial amount of coverage this morning, there are several other notable earnings-driven moves this morning.

Walt Disney (DIS 108.18, +7.70, +7.67%) is surging following a strong fiscal Q2 earnings report that featured beats on both the top and bottom lines, alongside an upward revision to full-year EPS guidance that came in just above the FactSet consensus, reinforcing investor confidence in new CEO Josh D'Amaro's strategic direction. Total segment operating income grew 4% year-over-year, and all three of Disney's major business segments - Entertainment, Experiences, and Sports - delivered revenue growth in the quarter.

Disney's quarter reflects a company that is executing more cleanly than it has in several years, albeit not in dramatic fashion, but with the steady, compounding cadence that long-term investors in quality media franchises have long awaited. The EPS and revenue beats are incremental, but the qualitative signal from D'Amaro's debut as CEO is arguably the more important takeaway.

The stock is the top performer in the DJIA and the top mover in the communication services (+1.6%) S&P 500 sector.

The sector's largest component, Alphabet (GOOG 389.77, +5.50, +1.43%), also holds a solid gain after The Information reported Anthropic is aiming to spend $200 billion on Google's cloud and chips.

[BRIEFING.COM] The stock market is off to a higher start this morning as enthusiasm across the AI trade and retreating oil prices create an environment of broad strength and mega-cap leadership.

The S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) opened to fresh record highs, with the S&P 500 eclipsing the 7,300 mark for the first time. The DJIA (+1.1%) holds a similar gain, while the Russell 2000 (+0.6%) and S&P Mid Cap 400 (+1.3%) are also firmly higher.

The top-weighted information technology sector (+1.5%) is once again near the top of the leaderboard, buoyed by a busy morning for the AI trade.

Advanced Micro Devices (AMD 412.54, +57.28, +16.12%) and Super Micro Computer (SMCI 32.67, +4.84, +17.39%) both rocket higher after earnings, while Corning (GLW 184.08, +21.98, +13.56%)holds a similar gain after announcing a partnership with NVIDIA (NVDA 203.88, +7.38, +3.76%).

The PHLX Semiconductor Index is up 3.0%, and the Vanguard Mega-Cap Growth ETF is up 1.1%.

While tech is back in the driver's seat, the broader market is also registering solid gains, with eight S&P 500 sectors trading higher.

Weakness is most evident in the energy sector (-3.5%), which is burdened by a falling price of oil amid reports that the U.S. and Iran could be nearing a deal to end the war.

The defensive utilities sector (-1.4%) is also underperforming amid the strength in growth stocks today.

The stock market remains on track for a considerably higher opening that will likely see the S&P 500 and Nasdaq Composite establish new record highs this morning.

Meanwhile, the DJIA remains 2.4% below its all-time high levels, though the index is on pace to soon reclaim the 50,000 mark.

Retreating oil prices, AI-enthusiasm, and more solid earnings growth across the broader market look to be key drivers behind this morning's strength, helping fuel the market's continued push into record territory.

The S&P 500 futures currently trade 50 points above fair value. 

Equity indices in the Asia-Pacific region had a strong showing on Wednesday with South Korea's Kospi (+6.5%) powering to a fresh record after returning from yesterday's closure while Japan's Nikkei will reopen tomorrow. The Japanese yen extended last week's bounce against the dollar, prompting speculation about an intervention from Japan's Ministry of Finance. China has called on the U.S. to drop the Section 301 investigation into China's excess capacity ahead of President Trump's upcoming meeting with President Xi. New Zealand's Unemployment Rate dipped to 5.3% from 5.4% in April, but average hourly earnings decelerated.

• In economic data:
  • China's April RatingDog Services PMI 52.6 (expected 52.0; last 52.1)
  • South Korea's April CPI 0.5% m/m, as expected (last 0.3%); 2.6% yr/yr, as expected (last 2.2%)
  • Hong Kong's April Manufacturing PMI 48.6 (last 49.3) and March Retail Sales 12.8% yr/yr (last 19.3%)
  • New Zealand's Q1 Employment Change 0.2% qtr/qtr (expected 0.3%; last 0.5%) and Q1 Labor Cost Index 0.5% qtr/qtr (expected 0.4%; last 0.4%). Q1 Unemployment Rate 5.3% (expected 5.4%; last 5.4%) and Participation Rate 70.4% (expected 70.5%; last 70.5%). April AIG Construction Index -19.3 (last -57.1) and AIG Manufacturing Index -27.9 (last -28.6)
  • India's April Services PMI 58.8 (expected 57.9; last 57.5)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: +1.2%
• China's Shanghai Composite: +1.2%
• India's Sensex: +1.2%
• South Korea's Kospi: +6.5%
• Australia's ASX All Ordinaries: +1.3%

Major European indices trade on a firmly higher note, encouraged by news that President Trump ordered a pause to the U.S. control over movement of ships through the Strait of Hormuz due to progress in negotiations with Iran's leadership. France's President Macron is expected to name Emmanuel Moulin to succeed outgoing Bank of France Governor Villeroy de Galhau. Mr. Moulin previously served as secretary general to the president. Bank of England Governor Bailey said that investors should be mindful of risks associated with private credit.

• In economic data:
  • Eurozone's April Services PMI 47.6 (expected 47.4; last 50.2). March PPI 3.4% m/m (expected 3.3%; last -0.6%); 2.1% yr/yr (expected 1.8%; last -3.0%)
  • Germany's April Services PMI 46.9, as expected (last 50.9)
  • U.K.'s April Services PMI 52.7 (expected 52.0; last 50.5)
  • France's March Industrial Production 1.0% m/m (expected 0.5%; last -0.9%). April Services PMI 46.5, as expected (last 48.8)
  • Italy's April Services PMI 49.8 (expected 47.9; last 48.8). March Retail Sales 0.8% m/m (expected -0.4%; last -0.1%); 3.7% yr/yr (last 1.6%)
  • Spain's April Services PMI 47.9 (expected 51.9; last 53.3)

---Equity Markets---

• STOXX Europe 600: +2.3%
• Germany's DAX: +2.2%
• U.K.'s FTSE 100: +2.3%
• France's CAC 40: +3.1%
• Italy's FTSE MIB: +2.0%
• Spain's IBEX 35: +2.4%

The S&P 500 futures currently trade 59 points above fair value. 

The ADP Employment Change Report saw 109K jobs added in April (Briefing.com consensus 79K) from a prior revised level of 61K (from 62K).

Equity futures point to a higher opening this morning after yesterday's easing in oil prices and tech rally sent the S&P 500 and Nasdaq Composite to fresh record highs.

Those catalysts will be in play this morning, with Axios reporting that the White House believes the U.S. and Iran are close to a deal to end the war that would involve Iran agreeing to a 12--15-year moratorium on nuclear enrichment in exchange for sanctions relief. Both sides would agree to lift restrictions on the Strait of Hormuz. However, nothing has been officially agreed to yet.

Crude oil is currently down $10.68 (-1.04%) to $91.59 per barrel.

Several leading tech names are poised for large gains at the open, adding to the enthusiasm in the futures market this morning. Advanced Micro Devices (AMD 422.11, +66.85, +18.8%) is sharply higher in the premarket after a blowout earnings report, while NVIDIA (NVDA 201.68, +5.18, +2.6%), Alphabet (GOOG 389.40, +5.09, +1.3%), and Corning (GLW 190.47, +28.37, +17.5%) add to the AI enthusiasm with headlines of their own.

Today's data slate is notably thin. The MBA Mortgage Applications Index for the week ended May 2 decreased 4.4%, from a prior decrease of 1.6%.

In corporate news:

• Advanced Micro Devices (AMD 422.11, +66.85, +18.8%) beat EPS expectations by $0.08, beat revenue expectations, and guided Q2 revenues above consensus.
• Anthropic is aiming to spend $200 billion on Alphabet (GOOG 389.40, +5.09, +1.3%) cloud and chips, according to The Information.
• NVIDIA (NVDA 201.68, +5.18, +2.6%) and Corning (GLW 190.47, +28.37, +17.5%) announced a long-term partnership to strengthen U.S. manufacturing for AI infrastructure, with the expansion including the construction of three new advanced manufacturing facilities in North Carolina and Texas.
• Walt Disney (DIS 104.76, +4.28, +4.2%) beat EPS expectations by $0.08, beat revenue expectations, and guided FY26 EPS above consensus.

Equity indices in the Asia-Pacific region had a strong showing on Wednesday with South Korea's Kospi (+6.5%) powering to a fresh record after returning from yesterday's closure while Japan's Nikkei will reopen tomorrow. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +1.2%, China's Shanghai Composite: +1.2%, India's Sensex: +1.2%, South Korea's Kospi: +6.5%, Australia's ASX All Ordinaries: +1.3%.

In news:

• The Japanese yen extended last week's bounce against the dollar, prompting speculation about an intervention from Japan's Ministry of Finance.
• China has called on the U.S. to drop the Section 301 investigation into China's excess capacity ahead of President Trump's upcoming meeting with President Xi.
• New Zealand's Unemployment Rate dipped to 5.3% from 5.4% in April, but average hourly earnings decelerated.

In economic data:

• China's April RatingDog Services PMI 52.6 (expected 52.0; last 52.1)
• South Korea's April CPI 0.5% m/m, as expected (last 0.3%); 2.6% yr/yr, as expected (last 2.2%)
• Hong Kong's April Manufacturing PMI 48.6 (last 49.3) and March Retail Sales 12.8% yr/yr (last 19.3%)
• New Zealand's Q1 Employment Change 0.2% qtr/qtr (expected 0.3%; last 0.5%) and Q1 Labor Cost Index 0.5% qtr/qtr (expected 0.4%; last 0.4%). Q1 Unemployment Rate 5.3% (expected 5.4%;last 5.4%) and Participation Rate 70.4% (expected 70.5%; last 70.5%). April AIG Construction Index -19.3 (last -57.1) and AIG Manufacturing Index -27.9 (last -28.6)
• India's April Services PMI 58.8 (expected 57.9; last 57.5)

Major European indices trade on a firmly higher note, encouraged by news that President Trump ordered a pause to the U.S. control over movement of ships through the Strait of Hormuz due to progress in negotiations with Iran's leadership. STOXX Europe 600: +2.5%, Germany's DAX: +2.9%, U.K.'s FTSE 100: +2.5%, France's CAC 40: +3.3%, Italy's FTSE MIB: +2.1%, Spain's IBEX 35: +2.9%.

In news:

• France's President Macron is expected to name Emmanuel Moulin to succeed outgoing Bank of France Governor Villeroy de Galhau. Mr. Moulin previously served as secretary general to the president.
• Bank of England Governor Bailey said that investors should be mindful of risks associated with private credit.

In economic data:

• Eurozone's April Services PMI 47.6 (expected 47.4; last 50.2). March PPI 3.4% m/m (expected 3.3%; last -0.6%); 2.1% yr/yr (expected 1.8%; last -3.0%)
• Germany's April Services PMI 46.9, as expected (last 50.9)
• U.K.'s April Services PMI 52.7 (expected 52.0; last 50.5)
• France's March Industrial Production 1.0% m/m (expected 0.5%; last -0.9%). April Services PMI 46.5, as expected (last 48.8)
• Italy's April Services PMI 49.8 (expected 47.9; last 48.8). March Retail Sales 0.8% m/m (expected -0.4%; last -0.1%); 3.7% yr/yr (last 1.6%)
• Spain's April Services PMI 47.9 (expected 51.9; last 53.3)

[BRIEFING.COM] The stock market rebounded nicely from yesterday's weakness, with the S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) notching fresh record highs, while the DJIA (+0.7%) notched a similar gain for the day. The Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.3%) outperformed, underscoring the risk-on tone.

The major averages were supported by broad strength, with all eleven S&P 500 sectors finishing at or above their flatlines. A solid gain from the top-weighted information technology sector (+1.6%) contributed to the index-level gains, as semiconductor names outperformed after a weaker showing yesterday.

The PHLX Semiconductor Index finished 4.4% higher, with Intel (INTC 108.18, +12.40, +12.95%) a notable standout after Bloomberg reported Apple (AAPL 284.18, +7.35, +2.66%) may source chips from the company for some of its products. Memory names Micron (MU 640.45, +64.00, +11.10%), Sandisk (SNDK 1406.32, +150.46, +11.98%), and Western Digital (WDC 465.26, +22.90, +5.18%) all extended their post-earnings strength by notching fresh record highs today, while Advanced Micro Devices (AMD 355.26, +13.72, +4.02%) also captured a nice gain ahead of its earnings release after the close.

Meanwhile, software names turned in mixed performances, with the iShares GS Software ETF finishing 0.2% lower. Palantir Technologies (PLTR 135.91, -10.12, -6.93%) was a laggard despite an impressive beat-and-raise earnings report.

Elsewhere, the materials sector (+1.7%) captured the widest gain across S&P 500 sectors after finishing at the bottom of the leaderboard yesterday. Nearly all of the sector's components traded higher, with DuPont (DD 49.23, +3.82, +8.41%) a standout after earnings, while a rebound in metals prices also contributed to the advance.

Gains were relatively modest elsewhere, as the industrials sector (+0.9%) was the only other S&P 500 sector to capture a gain wider than 0.5%. Rockwell Automation (ROK 435.93, +35.62, +8.90%) and Expeditors Intl (EXPD 152.97, +13.26, +9.49%) led the strength after solid earnings reports, with the latter rebounding from yesterday's sharp sell-off across courier names after Amazon (AMZN 273.52, +1.47, +0.54%) announced the launch of Amazon Supply Chain Services.

Other notable post-earnings gainers included Waters (WAT 342.53, +40.65, +13.47%) and Pinterest (PINS 22.28, +1.43, +6.86%), while Shopify (SHOP 107.62, -19.94, -15.63%) and Fiserv (FISV 57.28, -5.53, -8.80%) moved sharply lower after their own earnings reports.

On the geopolitical front, headlines were relatively quiet, with Trump administration officials telling reporters at a Pentagon press conference that the recent strikes from Iran do not count as a violation of the ongoing ceasefire. Secretary of State Marco Rubio said Operation Epic Fury is "over" and that the U.S. has moved on to "Project Freedom," which is a defensive operation to guide stranded ships through the Strait of Hormuz.

Crude oil futures settled today's session $4.12 lower (-3.9%) at $102.16 per barrel.

With earnings continuing to deliver solid growth and yesterday's geopolitical tensions fading into the background, the market was primed for a buy-the-dip rebound after starting the week on a softer note. Today's advance reinforces the market's push into record territory, with renewed leadership from technology and semiconductor names helping drive the move higher.

U.S. Treasuries showed some Tuesday resilience, reclaiming a portion of their losses from the start of the week. The 2-year note yield settled down two basis points to 3.94%, and the 10-year note yield settled down three basis points to 4.42%.

• Russell 2000: +14.6% YTD
• S&P Mid Cap 400: +10.8% YTD
• Nasdaq Composite: +9.0% YTD
• S&P 500: +6.0% YTD
• DJIA: + 2.6%

 Reviewing today's data:

• March Trade Balance -$60.3 bln (Briefing.com consensus -$60.3 bln); Prior was revised to -$57.8 bln from -$57.3 bln
  • The key takeaway from the report is that it has yet to fully capture the pickup in crude oil exports from the U.S. that has been driven by the Strait of Hormuz blockade. That pickup should be considerably higher in the next report and a boon for Q2 GDP growth forecasts.
• April S&P Global U.S. Services PMI - Final 51.0; Prior 51.3
• April ISM Non-Manufacturing Index 53.6% (Briefing.com consensus 53.9%); Prior 54.0%
  • The key takeaway from the report is that there was no real change in the key trends for the services sector, which include a modest expansion, contracting employment, and increasing prices.
• March JOLTs - Job Openings 6.886 mln; Prior was revised to 6.922 mln from 6.882 mln
• February New Home Sales 635K; Prior was revised to 583K from 587K, March New Home Sales 682K (Briefing.com consensus 654K); Prior 635K
  • The key takeaway from the report is that the bulk of the increase in sales was driven by lower-priced homes, which drove down average selling prices, but at the same time, the median price of a new home also fell. Altogether the pricing indications reflect some improved positioning for buyers.