US EQUITY OPEN: Stocks tilted to the downside, while GOOGL earnings beat puts Communications in the green

OPEN: OPEN: US indices open mixed (SPX -0.2%, NDX unch, DJI -0.5%, RUT -0.8%) amid mixed trade developments concerning the US and China, as well as an earnings beat from Alphabet (GOOGL, +2.8%). On trade, overnight BBG reports noted that China is said to be exempting some US goods from tariffs on cost increases, specifically removing levies for medical equipment and some industrial chemicals. That said, dialogue between the US and China remains to be seen, and later US President Trump noted in a Times interview (which occurred on April 22nd) that Xi has called him and said it'd be a "total victory" if there are high tariffs present year from now. Sectors open with a downward bias, Communications outperform with gains boosted by the aforementioned earnings beat from Alphabet, which also announced a USD 70bln share buyback and maintained their CapEx FY25 guidance. Meanwhile, Healthcare and Materials are the biggest losers, and Tech is unchanged, following Intel's (INTC, -7.9%) Q2 guidance underwhelming despite positive Q1 results. In FX, the Dollar is stronger against all G10 peers as the risk-on theme surrounding US assets continues; Yen and Kiwi underperform. In fixed, longer-duration Treasuries are bid with the short end sold, leaving spreads flattening. On the bond market, Trump noted he was not worried during the April bond market stress. In energy,  crude prices are off earlier lows but remain lower by ~ USD 0.20 ahead of US-Iran technical nuclear talks on Saturday. Elsewhere, precious metals (XAU, XAH) are both lower by USD 72/oz and USD 0.63/oz, respectively. The day ahead is set to be fairly quiet, with scheduled events including the weekly US Baker Hughes rig count and possible updates from the meeting bewteen EU Economy Commissioner and US Treasury Secretary Bessent.

EARNINGS

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  Alphabet (GOOGL): EPS & rev beat; authorised USD 70bln buyback, raised dividend by 5% and backed FY25 CapEx view.     


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  Intel (INTC): Q2 guidance disappointed.    


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  T-Mobile US (TMUS): Q1 postpaid phone net customers fell short.     


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  AbbVie (ABBV): Q1 EPS, revenue & 2025 adj. EPS outlook beat.     


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  Gilead Sciences (GILD): Q1 revenue missed; cut FY EPS view. 


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  Colgate-Palmolive (CL): Q1 profit & revenue topped expectations.     


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  Aon (AON): Q1 profit and revenue underwhelmed.     


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  Skechers (SKX): Q1 revenue missed; withdrew FY25 annual outlook.     

STOCK SPECIFICS

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  Apple (AAPL): Plans to shift the assembly of all US-sold iPhones to India as soon as next year.     


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  Meta Platforms (META): Laying off an unspecified number of workers in its Reality Labs unit. 


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  Charles Schwab (SCHW):  Upgraded to 'Buy' from 'Neutral' at Goldman Sachs.

25 Apr 2025 - 15:06- EquitiesGeopolitical- Source: Newsquawk