Morning View
US stock indices rise after Trump moderates comments on Powell and China tariffs
International
The main US equity indices resumed yesterday's uptrend, after Trump's moderation of his speech regarding Fed Chairman Powell's actions and the tariffs on China. In this sense, the Nasdaq advanced +2.5%, followed by the S&P 500 with +1.7% and at a slower pace by the Dow Jones with +1.1%. Thus, the indices accumulated declines of -13.5%, -8.6% and -6.9%, respectively, for the year.
In the US, the S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 50.7 in April, above the 49-point estimate and the March reading. Meanwhile, the services sector PMI came in at 51.4, below expectations (52.8). It is worth noting that a figure above 50 points implies expansion, and one below contraction of activity.
US Treasury yields traded mixed in yesterday's trading, widening in the short and mid-range of the curve, and compressing in the long maturities. The 1-year bond closed at 4.01% versus 3.98% previously, the 3-year bond at 3.87% versus 3.83% in the previous session, while the 10-year bond eased to 4.38% versus 4.39% previously.
Regarding the Q1 earnings season, AT&T reported earnings per share (EPS) of USD 0.51, slightly below expectations of USD 0.52, and revenues of USD 30.6 billion, beating expectations of USD 30.39 billion. Meanwhile, Phillips Morris and IBM reported EPS and revenues above estimates. Reports from Alphabet, Procter & Gamble, T-Mobile US, Nestle and PepsiCo, among the major companies, are expected today.
Fuente: PUENTE Hnos, Bloomberg
IMF cuts global growth forecast to +2.8% in 2025 due to trade tensions
International
The International Monetary Fund (IMF) downgraded the global growth outlook for 2025, expecting +2.8% y/y compared to the +3.3% projected in January. This follows from the World Economic Outlook (WEO) published yesterday, which justifies this downward correction by the impact on growth of escalating trade tensions and political uncertainty.
US Treasury bond yields were mixed in yesterday's trading, with short and medium-term yields compressing and long maturities compressing. Thus, the 1-year bond closed at 3.98% versus 3.94% previously, the 3-year bond advanced to 3.83% versus 3.78% in the previous session, while the 10-year bond eased to 4.39% versus 4.40% previously.
The main US equity indices closed higher, reversing Monday's declines. Thus, the Nasdaq and the Dow Jones each posted +2.7%, followed by the S&P 500 with +2.5%. Thus, the indices accumulated declines of -15.6%, -7.9% and -10.1%, respectively, for the year.
Looking at the Q1 earnings season, Tesla reported earnings per share (EPS) of USD 0.27 and revenue of USD 19.34 billion, below estimates of USD 0.42 and USD 21.4 billion, respectively. Meanwhile, Verizon and Lockheed Martin beat EPS and revenue expectations, while Kimberly-Clark only reported EPS above expectations. Today, the focus will be on reports from AT&T, IBM, Phillip Morris, among the most notable companies.
Fuente: PUENTE Hnos, Bloomberg
