MARKET SNAPSHOT

U.S. stocks fell, despite favorable economic data. Treasury yields rose as the U.S. services sector kept showing signs of expanding activity. Oil fell after OPEC+ agreed to raise output by 411,000 barrels a day in June. Gold rallied -- finishing up 2.5% -- while the dollar fell.

MARKET WRAPS

EQUITIES

The big stock rebound showed some signs of exhaustion.

The S&P 500 fell 0.6%, while the Dow Jones Industrial Average slipped 0.2%, despite some better-than-expected economic data and fresh promises of trade deals from Treasury Secretary Scott Bessent.

The Institute for Supply Management reported stronger-than-expected U.S. services activity. The purchasing-managers index rose to 51.6 in April, up from 50.8 in March. Also supporting stocks were comments from Bessent, who said that 17 countries had approached the Trump administration with "very good trade proposals" to avoid higher U.S. tariffs on their exports.

Mainland China markets on Monday were closed for the Chinese Labor Day holiday. Hong Kong's Hang Seng was closed for the Vesek Day holiday.

Markets in Japan were closed for the Children's Day holiday.

Australian stocks slipped, as the S&P/ASX 200 declined 1.0%, snapping a seven-session winning streak. Meanwhile, stocks in New Zealand rose, as the S&P/NZX 50 gained 0.8% -- the third consecutive session of increases.

COMMODITIES

Crude futures fell after OPEC+ agreed to raise output by 411,000 barrels a day in June, speeding up the gradual return of 2.2 million barrels a day in voluntary production cuts.

With WTI below $60 a barrel, oil rig counts are apt to decline and could eventually slow U.S. output enough to begin offering price support, "especially if accompanied by other key non-OPEC producers such as Brazil, Canada and Norway," Ritterbusch said.

West Texas Intermediate settled down 2% at $57.13 a barrel, while Brent crude fell 1.7% to $60.23.

Gold futures finished higher, with the front-month contract closing up 2.5% to $3,311.30 a troy ounce.

In addition to uncertainty surrounding the Federal Reserve's next interest rate decision and President Trump's tariff negotiations, Peter Cardillo of Spartan Capital Securities said that geopolitical concerns in Israel and Ukraine helped support gold.

TODAY'S TOP HEADLINES

Bessent Seeks to Reassure Investors the U.S. Is Still the 'Premier Destination'

Treasury Secretary Scott Bessent on Monday tried to reassure a group of investors and power brokers that the U.S. is still "the premier destination for international capital." Only a month ago, Bessent told a group of bankers it is "Main Street's turn" after the wealth spurred by globalization accrued to Wall Street.

Bessent delivered his remarks at the Milken Institute Global Conference at the Beverly Hilton in Los Angeles after one of the most volatile months for stocks in history. After falling more than 10% during April, the S&P 500 finished the month about even as traders digested President Donald Trump's tariff announcements and delays. Some analysts have dubbed the broad-based selloff of U.S. stocks, Treasuries, and the dollar the "Sell America" trade.

Services sector, the main engine of the U.S. economy, strengthened in April

The numbers: The Institute for Supply Management said on Monday that its service-sector PMI rose to 51.6% in April from 50.8% in the prior month.

Economists polled by the Wall Street Journal had expected the ISM index to slip to 50.4%.

Key details: A measure of new orders rose to 52.3% in April from 50.4 in the prior month.

Ford's First Quarter Profit Drops 64%, Suspends Outlook

Production halts and an unprofitable EV business nearly wiped out Ford Motor's net profit in the first quarter, the company said Monday.

Ford reported net income of $471 million, down from $1.3 billion a year earlier. Revenue fell to $40.7 billion, down from $42.8 billion in the first quarter of 2024. Wholesale deliveries fell 7% to 971,000 during the three-month period, which Ford attributed to slower production of some models.

Adjusted pretax income shrank to $1 billion, from $2.8 billion a year earlier. The result exceeded analyst and Ford's own forecast in February, when it projected adjusted earnings of around $0 for the quarter.

Palantir Stock Slides Despite Strong Earnings. That's the Price of a Sky-High Valuation.

Software-maker Palantir exceeded high expectations for its first-quarter earnings results on Monday afternoon. Its shares were still down sharply in after-hours trading.

Adjusted earnings-per-share were in-line with Wall Street's consensus estimate of 13 cents, and up from eight cents last year. Revenue for the quarter reached $884 million, above expectations of $862 million, and up 39% on the year.

Palantir stock was down as much as 9% in after-hours trading following the release. Heading into the release, shares were up 65% this year.

Skechers to Go Private in $9.4 Billion 3G Deal

Robert Greenberg never ran Skechers like a typical public company. The longtime chief executive avoided quarterly earnings calls. He tapped his son as his No. 2 executive. Soon, he won't have to worry about reporting financial results or securities filings.

The Skechers founder agreed to sell the maker of comfy sneakers in a deal worth about $9.4 billion to 3G Capital, a private-equity firm that has a history in the consumer-goods sector and had a hand in deals with AB InBev and Kraft Heinz.

Greenberg, 85, stands to collect a more than $1 billion payout from the stake he controls in the company through trusts. The CEO and other executives, including his son Michael Greenberg, have agreed to stay on to run the business. They will also take a stake in the privately held company.

Expected Major Events for Tuesday

00:30/SIN: Apr Singapore Whole Economy PMI

01:00/PHI: Apr CPI

01:30/AUS: Mar Building Approvals

01:45/CHN: Apr China Services PMI

03:00/THA: Apr CPI

08:20/TAI: Apr International Reserves

22:45/NZ: 1Q Labour Cost Index (Salary & Wage Rates)

22:45/NZ: 1Q Quarterly Employment Survey

22:45/NZ: 1Q Household Labour Force Survey

23:00/AUS: Apr Australian PMI

23:00/AUS: Apr Australian PCI

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

May 05, 2025 16:59 ET (20:59 GMT)

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