Stocks Pressured by Weakness in Chipmakers

The S&P 500 Index ($SPX) (SPY) today is down -0.15%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.06%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.21%.  June E-mini S&P futures (ESM26) are down -0.16%, and June E-mini Nasdaq futures (NQM26) are down -0.27%.

Stock indexes are slightly lower today, with the S&P 500 and Nasdaq 100 falling from new record highs.  Weakness in chipmakers today is pressuring the broader market.  Hopes for peace in the Middle East are supporting stocks. The US and Iran are considering extending their ceasefire, which ends this coming Tuesday, by another two weeks to allow more time to negotiate a peace agreement. 

Today’s US economic news was mixed as weekly jobless claims fell more than expected and the Philadelphia Fed business outlook survey unexpectedly rose to a 15-month high.  However, US manufacturing production unexpectedly declined.

US weekly initial unemployment claims fell -11,000 to 207,000, showing a stronger labor market than expectations of 213,000. 

The US Apr Philadelphia Fed business outlook survey unexpectedly rose +8.6 to a 15-month high of 26.7, stronger than expectations of a decline to 10.0.

US Mar manufacturing production unexpectedly fell -0.1% m/m, weaker than expectations of a +0.1% m/m increase.

New York Fed President John Williams signaled he favors steady Fed policy, saying monetary policy remains well-positioned to address the threat of a protracted supply shock from the war in the Middle East, which could raise inflation and dampen growth in the US. 

WTI crude oil prices (CLK26) are up more than +1% today as the US naval blockade of the Strait of Hormuz enters its fourth day.  On Monday, the US vowed to blockade all vessels passing through the Strait that call at Iranian ports or are headed there.  The blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.  Iran has been able to export crude oil during the war, exporting about 1.7 million bpd in March.

Earnings season began this week, with Q1 S&P 500 earnings projected to climb +12% y/y, according to Bloomberg Intelligence.  Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.

The markets are discounting a 2% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +0.50%.  China's Shanghai Composite climbed to a 4-week high and closed up +0.70%.  Japan's Nikkei Stock 225 rallied to a record high and closed up +2.38%.

Interest Rates

June 10-year T-notes (ZNM6) today are up by +3 ticks.  The 10-year T-note yield is down -1.4 bp to 4.270%.  T-notes are slightly higher on concerns about a slowdown in global manufacturing activity after US and UK manufacturing activity unexpectedly contracted.  Gains in T-notes are limited after US weekly jobless claims fell more than expected and the Apr Philadelphia Fed business outlook survey unexpectedly rose to a 15-month high, hawkish factors for Fed policy. 

European government bond yields are moving lower today.  The 10-year German bund yield is down -3.7 bp to 3.006%.  The 10-year UK gilt yield is down -1.8 bp to 4.797%.

Eurozone Mar CPI was revised upward by +0.1 to 2.6% y/y from the previously reported 2.5% y/y, the highest in 20 months.

UK Feb manufacturing production unexpectedly fell -0.1% m/m, weaker than expectations of a +0.3% m/m increase.

Swaps are discounting a 21% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.

US Stock Movers

Chipmakers are moving lower today, pressuring the overall market.  ASML Holding NV (ASML) is down more than -4% to lead losers in the Nasdaq 100.  Also, Marvell Technology (MRVL) is down more than -3%, and Nvidia (NVDA), KLA Corp (KLAC), Lam Research (LRCX), and Applied Materials (AMAT) are down more than -1%.

Software stocks are climbing for a second day today.  Atlassian (TEAM) is up more than +5% to lead gainers in the Nasdaq 100, and Oracle (ORCL) is also up more than +5%.  Also, Datadog (DDOG) is up more than +4%, and ServiceNow (NOW) is up more than +3%. In addition, Workday (WDAY) is up more than +2%, and Intuit (INTU), Autodesk (ADSK), Adobe (ADBE), and Salesforce (CRM) are up more than +1%. 

Okta (OKTA) is up more than +7% after Raymond James upgraded the stock to outperform from market perform with a price target of $85. 

JB Hunt Transport Services (JBHT) is up more than +5% to lead gainers in the Nasdaq 100 after reporting Q1 revenue of $3.06 billion, above the consensus of $2.96 billion. 

Hims & Hers Health (HIMS) is up more than +4%, adding to Wednesday’s 13% surge, after US Health Secretary Kennedy said the FDA is seeking to remove 12 peptides from Category 2 restrictions.   

PPG Industries (PPG) is up more than +4% after reporting Q1 preliminary adjusted EPS from continuing operations of $1.83, better than the consensus of $1.71. 

Voyager Technologies (VOYG) is up more than +3% after signing an order with NASA for the seventh private astronaut mission to the International Space Station.

Dick’s Sporting Goods (DKS) is up more than +1% after BTIG initiated coverage on the stock with a buy recommendation and a price target of $300. 

QuidelOrtho Corp. (QDEL) is down more than 31% after saying it expects negative free cash flow of $65 million to $70 million in Q1, as the Middle East conflict has delayed certain EMEA orders, negatively impacting quarterly revenue. 

Charles Schwab (SCHW) is down more than -4% to lead losers in the S&P 500 after reporting Q1 net revenue of $6.48 billion, below the consensus of $6.51 billion.

Abbott Laboratories (ABT) is down more than -4% after cutting its full-year profit forecast to $5.38 to $5.58 from a previous forecast of $5.55 to $5.80, below the consensus of $5.61. 

Fabrinet (FN) is down more than -4% after JPMorgan Chase downgraded the stock to neutral from overweight. 

Flutter Entertainment (FLUT) is down more than -3% after being double-downgraded by Citigroup to sell from buy with a price target of $90.

Corning (GLW) is down more than -3% after JPMorgan Chase downgraded the stock to neutral from overweight. 

Earnings Reports(4/16/2026)

Abbott Laboratories (ABT), Alcoa Corp (AA), Bank of New York Mellon Corp (BK), Charles Schwab Corp/The (SCHW), Citizens Financial Group Inc (CFG), FNB Corp/PA (FNB), KeyCorp (KEY), Kinder Morgan Inc (KMI), ManpowerGroup Inc (MAN), Marsh & McLennan Cos Inc (MRSH), Netflix Inc (NFLX), PepsiCo Inc (PEP), Prologis Inc (PLD), Travelers Cos Inc/The (TRV), US Bancorp (USB).