Major indices are moving higher and currently sitting near session highs. This comes as investors react to the plethora of earnings, economic data, and continue to monitor the Iran Ceasefire.

Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG/L), and Meta Platforms (META) reported earnings yesterday after the bell; however, Alphabet is the only one seeing a boost from the results.

Apple (AAPL) is set to report after the bell. Investors will focus on iPhone demand trends amid tariff concerns given Apple's heavy China manufacturing exposure, progress on Apple Intelligence and AI monetization. In addition, the Street wants to see if Services revenue can sustain its growth trajectory as the company's key margin driver.

The only sector in the red is Technology (XLK) driven lower by software names and its Magnificent Seven components. Meanwhile, Alphabet is helping Communication Services (XLC) to the top of the leaderboard. Industrials (XLI) is the runner up and getting a boost from several favorable earnings reactions of firms such as: Caterpillar (CAT), Carrier Global (CARR), Quanta Services (PWR), and Trane Technologies (TT).

Oil futures initially moved higher following Trump’s rejection of Iran’s proposal and mulling of new strike targets; however, since they have reversed and are now lower on the day. Notably, OPEC+ is set to meet Sunday and are expected to boost production targets.

While the Ten Year Treasury Yield (TNX) saw an initial boost in the early morning, it has since reversed to a 3 basis point dip.

The EU is drafting a new Chips act set for late May that would allow direct investment in large cross border semiconductor projects.

Economic Data

March personal income rose by 0.6% M/M from a flat prior reading and above estimates of a 0.3% increase. On the other hand, personal spending for March rose 0.9% M/M from a 0.6% increase in February, in-line with forecasts.

March Headline PCE rose 0.7% M/M from a 0.4% increase in February and in-line with expectations. Additionally, March Core PCE rose 0.3% M/M from a 0.4% rise in February and also in-line with forecasts.

Energy goods, as expected, contributed to the bulk of the headline increase. However, there were also notable increases in health care, motor vehicles, and financial services.

The Q1 Real GDP Growth Rate came in at an annualized rate of 2%, up from 0.5% in the prior quarter, but below the expected 2.3%.

Chicago PMI for April fell to 49.2 from 52.8 in March and missed the anticipated reading of 53. The decline was largely attributed to rising energy costs from the Iran Conflict.

The Conference Board Leading Index (LEI) rose 0.3% M/M in February ahead of the expected 0.1% decline. However, it then gave back the gains falling 0.6% M/M in March. Building permits, consumer expectations, and the S&P 500 performance all contributed the most to the decline in March.

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