US EQUITY OPEN: Indices continue on recent strength, although Health lags on UNH weakness

Analysis details (14:51)

OPEN: Indices opened with slight gains and continued the strength seen on Monday in wake of the positive US/China trade talks. US CPI was largely cooler than expected, which spurred some upside in US equity futures and T-Notes, alongside a kneejerk lower in the Dollar, although the move swiftly pared. Elsewhere, US President Trump arrived in the Middle East, whereby he signed a strategic partnership with Saudi Crown Prince MBS. Sectors opened largely in the green, but Health is the distinct laggard and weighed on by UnitedHealth (UNH) (-14%) after they announced a CEO transition and suspended 2025 outlook. Consumer Discretionary, Technology, and Industrials sit atop of the pile as the earnings slate has significantly quietened down. The Dollar is lower, with Antipodeans seeing the greatest gains and CAD the only one weaker vs. the Greenback. Treasuries are curve flattening. WTI and Brent gaining by c. USD 0.70/bbl and on USD 62/bbl and USD 65/bbl handles, respectively, ahead of the weekly private inventory data after-hours. The calendar ahead is sparse with no Fed speak, but as always desks will be attentive to any remarks from Trump.

STOCK SPECIFICS:

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  Coinbase (COIN): Will replace Discover Financial (DFS) in the S&P 500 BMO on May 19th


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  Boeing (BA): China lifted its month-long ban on Boeing aircraft deliveries


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  Hertz (HTZ): Reported a deeper loss per share than expected & revenue missed


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  Honda Motor (HMC): Sees FY operating profit tumbling 59% citing US tariffs & a stronger JPY currency; postponed plans to build EV value chain in Canada by 2yrs


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  On Holding (ONON): Top line beat; raised FY25 net sales growth


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  UnitedHealth (UNH): Announced leadership transition; suspended 2025 outlook as medical expenditures expected to be higher than anticipated.


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  Under Armour (UAA): EPS & revenue beat with a solid next quarter profit view


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  Amazon (AMZN): Signs deal with FedEx (FDX).
  

13 May 2025 - 14:51- ForexData- Source: Newsquawk