Opening Comment — Tuesday, April 07, 2026
DJIA: 46,669.88, up 165.21
S&P 500: 6,611.83, up 29.14
NASDAQ: 21,996.34, up 117.16
Stocks lower ahead of Strait deadline
Stock futures are lower Tuesday morning ahead of tonight’s deadline from President Donald Trump for Iran to reopen the Strait of Hormuz. Meanwhile, investors are looking forward to today’s economic releases, including February’s consumer credit data and preliminary reading of durable goods orders. As of 7:15 AM ET, the Dow is decreasing 0.3%, while the S&P 500 is down 0.4%. The Nasdaq 100 is falling 0.5% relative to fair value on the GLOBEX.
U.S. equities were higher on Monday as the Institute for Supply Management’s services purchasing managers’ index (PMI) for March declined more than anticipated, slipping to 54.0, while the prices paid component increased more than expected, climbing to 70.7. The Dow was up 0.4%, while the tech-heavy Nasdaq Composite rose 0.5%. The S&P 500 increased 0.4% with eight of 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 0.8%, while the Utilities sector was the bottom performer, falling 0.4%.
On the data front, the preliminary reading of February’s durable goods orders is forecasted to show a decline of 1.2% month-over-month (MOM), compared to the prior month’s little change. The Federal Reserve (Fed) Bank of New York will release their March Survey of Consumer Expectations, including a measure of inflation expectations. Consumer credit is expected to have expanded by $10.25 billion in February, more than the prior month’s increase of $8.05 billion.
Across the pond, European stocks are higher in mid-day trading as the Sentix Investor Confidence Index for the eurozone saw a sharp decline in April, dropping to negative 19.2 from negative 3.1 in March. Meanwhile, the U.K.’s official reserves declined by $7.88 billion in March, following a $2.02 billion increase the prior month. The finalized March services and composite PMIs for the eurozone were revised upward to 50.2 and 50.7, respectively, while France’s readings were also revised higher to 48.8 for both indices. In contrast, the U.K.’s finalized March services and composite PMIs were revised lower to 50.5 and 50.3, respectively, while Germany’s services PMI was revised down to 50.9 and the composite PMI held steady at 51.9.
Overnight in Asia, stocks were mostly higher as Australia’s Melbourne Institute inflation gauge recorded an increase of 1.3% MOM and 4.3% year-over-year (YOY) in March. The country’s finalized March services and composite PMIs from S&P Global were revised slightly lower to 46.3 and 46.6, respectively. Meanwhile, Australian household spending increased 0.3% MOM and 4.6% YOY in February. Japan’s preliminary composite leading index for February ticked up and the country’s household spending declined more than expected in February, falling 1.8% YOY. China’s foreign reserves fell more than expected in March.
In FOREX trading, the U.S. dollar is little changed ahead of today’s U.S. economic releases.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.7% higher at $114.31/barrel.
In the metals complex, gold is 0.1% higher at $4,654.42/ounce.