OPENING CALL

Stock futures rose Thursday, driven by bumper earnings for big tech companies Microsoft and Meta Platforms .

Signs that the Magnificent Seven could ride out market volatility, alongside growing hopes for trade deals, were reassuring investors.

Eyes will be on ISM manufacturing data, due at 1100 ET, as well as earnings from Apple and Amazon after the bell.

Stocks to Watch

Apple shares were down 1.4% after a U.S. federal judge said it was violating an antitrust ruling.

Meta shares were up 6.5%, while Microsoft rose 8%, following better-than-expected earnings.

MGM Resorts rose 3.3% on an earnings beat.

Robinhood Markets was up 3.2% after results beat analysts' expectations.

Tesla was up 0.4%

Qualcomm fell 5.4% after forecasting below-consensus revenue for the third quarter.

Economic Insight

The Trump administration earlier this week moved to soften the impact of automotive tariffs and has signalled progress in trade talks with other countries.

"Trump is likely to score easy wins with deals with India, Japan, South Korea and Japan, but deals with the EU and China will prove trickier," Jefferies said.

The market's focus is likely to shift to the economic impact of tariff policies but this won't be seen in data before the second half of May, it added.

Watch For:

Weekly Jobless Claims; ISM Report on Business Manufacturing PMI for April; Earnings for Amazon.com, Apple, Canadian National Railway, CVS Health, Mastercard and McDonald's

Today's Top Headlines/Must Reads:

- Bank of Japan Slashes Growth Forecast as Trade War Hits

- The Rush to Beat Tariffs Is Distorting the Economy. There's More to Come.

- Inside Ford's Kentucky Truck Plant, It's About as American as Can Be

MARKET WRAPS

Forex:

The dollar rose to a two-week high as its recent selloff took a pause amid optimism that the global trade war was easing.

The euro fell, and could extend its decline against the dollar as the reduction in dollar risk continues, ING said.

A slightly more positive environment has seen risk premium come out of the dollar, boosted by optimism over trade talks and the U.S. signing a minerals deal with Ukraine.

"Many European markets are closed for the Labour Day public holiday, but the euro could drift towards the $1.1250/60 area unless the [U.S. ISM manufacturing data] has a big miss on the downside."

Bonds:

Treasury yields fell on improved risk appetite.

Short-dated yields in particular are pulled lower as investors increasingly expect interest-rate cuts from the Federal Reserve, with money markets pricing in 100 basis points of reductions this year, LSEG data show.

"The declining U.S. 2-year yield suggests that part of the stock rebound is being driven by rising expectations of deeper Fed cuts," Swissquote Bank said.

Energy:

Oil prices fell as concerns over weakening demand intensified after the latest data showed the economy contracted.

The outlook was also clouded by prospects of OPEC+ accelerating its unwinding of output cuts for the second straight month in June, with Reuters reporting that Saudi Arabia has signaled it can handle a prolonged period of low prices.

"April has been a turbulent month for the crude oil market, shaken by negative demand signals, strategic decisions by producers, and evolving geopolitical tensions," XS.com said.

MUFG sad the oil market was expected to face a large surplus this year due to softer global demand growth and robust supply.

"The U.S. administration's volatile tariff policy strategy has made traders that were already skittish on the longstanding oversupply this year nervous about loosening fundamentals."

Metals:

Gold futures slumped, with a stronger dollar further dampenng enthusiasm for the metal as a safe-haven.

Further losses may be limited however, as interest rate cut expectations have also been lifted following a string of weak economic data releases.

Copper Price

Copper prices gained as fundamentals appeared positive in the near term.

Prices are higher given its tight supply in the global market, TF Futures said, adding that copper inventories have been clearing effectively in China.

However, copper prices may face some pressure in 2Q due to the uncertainty around trade tensions with China, it noted.

TODAY'S TOP HEADLINES

Rio Tinto Shareholders Reject Activist Bid for Review of London Listing

PERTH, Australia-Rio Tinto shareholders voted against an independent review of the miner's dual-listed structure, rejecting an activist investor's proposal aimed at getting the company to drop a decades-old primary London listing.

The miner, the world's second biggest by market value, said Thursday that 80.65% of shareholder votes were cast against Palliser Capital's call for a transparent review of Rio Tinto's dual-listed structure.

Berkshire's Annual Meeting Is Coming. 10 Tough Questions for Warren Buffett.

Berkshire Hathaway investors are eager for this Saturday's annual meeting in Omaha, Neb., because it's the only time each year that they get to hear CEO Warren Buffett hold forth at length about the company.

It also could be one of the last meetings for the 94-year-old Buffett, who told shareholders in the company's annual letter earlier this year that "it won't be long before" a successor takes over as CEO, likely Greg Abel, a Berkshire executive.

Moderna Earnings Are Up Next. A Worsening Political Environment Adds to a Tough Year.

Moderna, the bloodied Covid-era prizefighter of the healthcare sector, stumbles toward its next earnings report on Thursday morning, with investors increasingly worried it's headed for knockout.

Moderna shares are down more than 30% this year, and around 75% over the past 12 months. The company has a packed pipeline, but sales of its Covid-19 shot have evaporated, and its respiratory syncytial virus vaccine has thus far been a commercial flop.

Beijing-Backed Accounts Hint at U.S. Outreach on Trade as China Keeps Door Open

Beijing-backed social media accounts say U.S. officials have reached out to Chinese counterparts through multiple channels to discuss trade, as the world watches for any sign of tariff talks between the two sides.

Posts from three widely followed state-backed social media accounts in China made similar statements early Thursday, citing unnamed sources hinting at U.S. outreach.

Chinese Automakers Report Robust Sales Growth in April

Chinese automakers' latest monthly sales show that demand for electric vehicles in the world's second-largest economy remains strong, with Tesla rivals such as XPeng posting robust April numbers.

Analysts had expected solid results for April as government subsidies boosted consumption and seasonally weak Lunar New Year period came to an end.

This Is the Highest-Paid CEO in America Is Someone You've Probably Never Heard Of

The highest-paid CEO of 2024 wasn't Jensen Huang, or Tim Cook, or even Elon Musk. Instead, it was James Anderson, the newly appointed CEO of Coherent, a technology company based in Saxonburg, Pa., that makes equipment and products for networking and laser systems.

The little-known Anderson was the only CEO out of 100 in a new study by compensation consulting group Equilar to receive a nine-figure pay package-$101,497,009, to be exact-besting the runner-up, Brian Niccol, the new CEO of Starbucks, by a cool $5.7 million.

Senate Effort to Repeal Trump's 'Liberation Day' Tariffs Fails

WASHINGTON-A bid to reject President Trump's worldwide "Liberation Day" tariffs fell short in the Senate on Wednesday, as most Republicans stayed aligned with the White House despite growing concerns about the economy.

The measure championed by Republican Sen. Rand Paul (R., Ky.) failed to win a majority, with 49 in favor and 49 against, hurt by the absences of two tariff opponents-Sen. Sheldon Whitehouse (D., R.I.), who was returning from an event in South Korea, and Sen. Mitch McConnell (R., Ky.).

RFK Jr. Bets $500 Million on Universal Vaccines in Shift From Covid-19 Funding

In a shift away from next-generation Covid-19 vaccines, the Trump administration is investing $500 million in a vaccine project championed by two scientists who were recently tapped to serve in senior roles within the National Institutes of Health, according to emails reviewed by The Wall Street Journal.

The unusually large sum comes as the nation's health agencies are cutting budgets, shrinking staff and terminating hundreds of active research grants.

Trump Wants a New Air Force One So Badly He's Refurbishing a Qatari Plane

President Trump is done waiting for Boeing.

Frustrated by delays on Boeing's work to deliver a new Air Force One, Trump has commissioned a smaller defense contractor to ready an interim presidential plane by year's end.

U.S. Army Plans Massive Increase in Its Use of Drones

HOHENFELS, Germany-The U.S. Army is embarking on its largest overhaul since the end of the Cold War, with plans to equip each of its combat divisions with around 1,000 drones and to shed outmoded weapons and other equipment.

The plan, the product of more than a year of experimentation at this huge training range in Bavaria and other U.S. bases, draws heavily on lessons from the war in Ukraine, where small unmanned aircraft used in large numbers have transformed the battlefield.

Write to don.forbes@wsj.com

TODAY IN CANADA

Earnings:

AltaGas Ltd. 1Q

Andlauer Hlthcare 1Q

ARC Resources

Aritzia Inc. 4Q

Black Diamond 1Q

Bombardier Inc. 1Q

Bombardier Inc. 1Q

Cameco Corp 1Q

Cnd Ntnl Railway 1Q

Capstone Copper 1Q

Colabor Grp 1Q

Eldorado Gold 1Q

Endeavour Mining 1Q

Fairfax Fncl Hldgs 1Q

Hammond Pwer 1Q

Lithium Royalty 1Q

Martinrea Intl Inc. 1Q

NexGen Energy 1Q

Pason Syss Inc. 1Q

Polaris Rnwbl Engy 1Q

TC Energy Corp 1Q

Thomson Reuters 1Q

Trisura Grp Ltd. 1Q

Economic Indicators $(ET)$:

Canada Manufacturing PMI for April

Stocks to Watch:

(MORE TO FOLLOW) Dow Jones Newswires

May 01, 2025 06:00 ET (10:00 GMT)

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