Opening Comment — Friday, April 25, 2025
DJIA: 40,093.40, up 486.83
S&P 500: 5,484.77, up 108.91
NASDAQ: 17,166.04, up 457.99
Stocks lower to end out week
Stock futures are lower Friday morning as investors are looking forward to today’s finalized April reading of consumer sentiment from the University of Michigan. As of 7:17 AM ET, the Dow is decreasing 0.4%, while the S&P 500 is down 0.1%. The Nasdaq 100 is also falling 0.1% relative to fair value on the GLOBEX.
U.S. equities were higher on Thursday as the preliminary reading of durable goods orders for March increased significantly more than expected, rising 9.2% month-over-month (MoM). Existing home sales experienced a decline of 5.9% in March. Meanwhile, initial jobless claims rose, though continuing claims declined. The Dow was up 1.2%, while the tech-heavy Nasdaq Composite rose 2.7%. The S&P 500 increased 2.0% with 10 of 11 sectors finishing in positive territory. The Information Technology sector was the top performer, rising 3.5%, while the Consumer Staples sector was the bottom performer, falling 1.0%.
On the data front, the April finalized reading of consumer sentiment from the University of Michigan is expected to come in at 50.5 versus the prior reading of 50.8, while one-year and 5-10-year inflation expectations are expected to come in at 6.80% and 4.40%, respectively, compared to the prior readings of 6.70% and 4.40%, respectively. The Federal Reserve Bank of Kansas City will release their Survey of Tenth District Services for April.
Across the pond, European stocks are mostly higher in mid-day trading as the U.K.’s March retail sales increased by 0.4% MoM versus forecasts for a decline, while year-over-year (YoY) growth came in stronger-than-projections. Meanwhile, France’s manufacturing business confidence unexpectedly rose in April.
Overnight in Asia, stocks were mixed following Japan’s Tokyo Consumer Price Index accelerating more than expected in April on both a headline and core basis, reaching 3.5% and 3.1% YoY, respectively. Meanwhile, the country’s nationwide March department-store sales declined 2.8% YoY.
In FOREX trading, the dollar is higher as investors continue awaiting further developments on trade talks.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.9% lower at $62.22/barrel driven by surplus-related unease.
In the metals complex, gold is 1.0% lower at $3,300.40/ounce following a strengthening dollar.