European stock market movements were mainly evaporated this morning, while the emphasis moves to a risk of key events later this week. The Apple's profits report that is due as well as the Friday for April job reports are both considered decisive tests for damage caused by American trade rates on the American economy and on American companies.
Us Equity Market Futures received a boost from Microsoft and Meta income which was published late Wednesday evening. The term contracts have increased throughout the morning, although they have slightly fell when GM, the American car manufacturer, reported Ugly Forward Ganes Guidance. GM has reduced its 5 billion dollar profits forecasts for this year, which is the direct result of its exposure to American automotive rates. Grute income should now fall into a range between $ 10 billion – $ 12.5 billion. This could be compensated if the United States reduces car rates and if the United States can negotiate trade agreements with key GM business partners. However, if this does not happen, then GM presented the impact on its results.
GM reports lower advice, but the stock continues to push
GM's actions fell sharply on Wednesday, however, the weakest profits of profits did not have an impact on Thursday, because optimism remains high, tariff transactions can be concluded and traders and investors reject the worst scenarios of companies. The president has already changed the 25% rate on imported automotive parts, which is why the market hopes for new positive changes. Added to this, the market is grateful to GM's advice, especially since many companies have avoided giving profits this season of profits, including Walmart, which is another reason why GM's action price has not reacted so far Wednesday and is 2.7% higher in pre-market.
A mixed image for technology
The profit season in the first quarter has highlighted companies that are more or less exposed to Donald Trump's economic policies and their resilience to economic uncertainty. Automobile companies are very exposed to economic risks, especially prices, while great technology, including Microsoft, Google and Meta, has shown that they can continue to grow as the demand for AI remains strong.
After reporting on the results better than expected Wednesday evening, the Meta's share price is 6% higher in pre-commercialization, and the price of Microsoft's action increases in pre-commercialization and is currently higher by more than 9%. If this is maintained on Thursday, this suggests that the report on the first quarter of Microsoft is the most important for the company for years. The average action decision during the day after a report on profits is 3.08% for the last 8 quarters, today's decision in pre-commercial is three times.
Nvidia obtains a boost from Microsoft and Meta
This income increases the overall technological sector, NVIDIA is more than 4.5% higher on Thursday because META increases its CAPEX expenses. Microsoft also maintains its CAPEX expenses for AI, but it does it at a slightly slower pace than the recent quarters, which are welcomed by the market. Meta is the second biggest client in Nvidia, and its orders represent more than 9% of Nvidia's income, it is therefore not surprising that the flea manufacturer also obtains a higher leg in pre-commercialization on Thursday.
The great technological recovery continues, but not everyone is treated equal
The emphasis is now put on the question of whether certain technological actions can erase the losses of 2025 and enter green for the year. Microsoft is down 7% YTD, which could be erased on Thursday if the action can maintain current gains. Meta could also erase her losses for the year, while Google, Nvidia, Amazon, Apple and Tesla are all strongly decreasing YTD, and can take more time to erase all their losses.
The profit season of the first quarter tells us who is more or less exposed to prices, and this has an impact on price action. For example, as Microsoft's action is on the way to getting to a positive territory, General Motors is down 15% YTD, while car manufacturers remain exposed to American trade barriers.
Overview of Apple gains
Apple income is essential on Thursday. The market expects Apple's revenues to increase by 4% to 94.1 billion dollars, which would follow a drop of 4% a year earlier. Action profit should be $ 1.62, the operating margin should be 31.3%, a gain of 55 SBPS. Product sales could also increase by 1%, after a 9.5% drop a year earlier.
The Apple supply chain is probably at the center of this winning report. The market wants to know how Apple reduces its exposure to China for assembly and components. Although smartphones have been exempt from most of the American prices on Chinese imports, Apple has promised to move production elsewhere, otherwise these penalties could return.
Apple could report stronger than expected sales, as the request was advanced in the last quarter to avoid the worst price. However, the risk is that demand can weaken in Apple’s budgetary Q3 and beyond, because consumption expenditure is weakening and demand for its emblematic iPhone is suffering. We expect Apple to avoid giving advice to the front, which could weigh on the course of its action later this week. The market could also be disappointed if the CEO is not referring to product upgrades. Apple’s action price is kissing the broader trend on Thursday, and its share price is down 1.16% in pre-commercialization. A report on weak benefits already weighs on the course of action. We will follow the report on Apple's earnings later tonight, to see if the company can give a glow of hope on the resilience of the company to American trade policy.
