US EQUITY OPEN: Stocks pull back at the open after recent strength

OPEN: Stocks are pulling back at the open as a likely combination of a slight rebound in oil and profit-taking after a strong 11-day streak for indices is at play. Sectors are mixed, led by energy stocks, followed by materials and real estate. Consumer discretionary, communication services and technology lag, but are little changed. Energy stocks are tracking gains in crude as investors await any updates on possible US/Iran talks and an extension of the ceasefire, while Israel is preparing for a ceasefire in Lebanon from Thursday evening. There were earlier fears of escalation after the Iranian press reported that a military adviser to the IRGC said launchers were ready to hit US warships and sink all of them. Elsewhere, US data showed initial jobless claims fell to 207k from 219k, below the 215k forecast, while continuing claims rose, but not as much as forecast. The Philadelphia Fed manufacturing index improved, although prices rose and employment fell. Industrial production slightly beat forecasts on an M/M basis. Fed comments saw Williams say monetary policy was well-positioned. In FX, the NZD lagged while the CAD outperformed, with the dollar posting only marginal gains. Yields were marginally lower across the curve, while gold was firmer and bitcoin slightly lower. Note, overnight China activity data saw GDP beat Y/Y but miss Q/Q, while Industrial production beat expectations and retail sales missed.   

STOCK SPECIFICS

• Taiwan Semiconductor Manufacturing Company (TSM): Earnings beat; raised FY26 capex view weighs
• Charles Schwab Corporation (SCHW): Revenue and NIM fell short; EPS and total net new assets beat
• Abbott Laboratories (ABT): Profit guidance disappointed
• PepsiCo (PEP): EPS and revenue beat
• PPG Industries (PPG): Q1 EPS view beat; announced global price increases of up to 20% across its products
• QuidelOrtho Corporation (QDEL): Q1 revenue view missed
• Flutter Entertainment (FLUT): Double downgraded at Citi to 'Sell' from 'Buy'
• Corning Incorporated (GLW) / Fabrinet (FN): Both downgraded at JPMorgan amid a more cautious view on optical names
• Okta (OKTA): Upgraded at Raymond James to 'Outperform' from 'Market Perform'