Investors Gear Up for Earnings, Econ Data, Trade Updates: April 28, 2025

Market participants are hesitant today as they look forward to a busy week, which includes plenty of quarterly earnings calls and economic releases. But investors are also hoping for some progress in trade talks between Beijing and Washington as the White House announced nearing agreements with up to 17 other countries. And as those unknowns are worked out, traders are awaiting profitability results and outlooks from a large list of S&P 500 constituents, including the majority of the magnificent 7 members. Furthermore, incoming government reports will provide significant information about labor conditions, consumer spending momentum, the trajectory of inflation and the pace of economic growth. Ahead of the developments on this Monday, folks are selling stocks and reducing their exposures to the greenback and commodities while Treasuries, equity put options and forecast contracts catch bids.

Equities Experience Broad Decline

All major equity benchmarks are taking losses ahead of the incoming information on corporate earnings, economic data and trade developments. The Nasdaq 100, S&P 500, Russell 2000 and Dow Jones Industrial gauges are lower by 1%, 0.6%, 0.3% and 0.1%. Sectoral breadth is negative as technology, consumer discretionary and consumer staples serve as the greatest drags; they’re retreating by 1.2%, 0.9% and 0.4%. Just 3 of the 11 major segments are gaining on the session and comprise real estate, utilities and financials, which are advancing just 0.1% each. Treasuries are catching bids with the 2- and 10-year maturities changing hands at 3.71% and 4.23%, 4 and 2 basis points (bps) lighter. Softer borrowing costs are weighing on the greenback though, and its index is down 33 bps. The US dollar is losing ground relative to the euro, pound sterling, franc, yen and Aussie counterpart but is appreciating versus the loonie and yuan. Commodities are tilted bearishly as crude oil, copper, lumber and silver move south by 1.8%, 0.7%, 0.2% and 0.2%, but gold is hanging in there, climbing 0.1%.

Animal Spirits Could Awaken This Week

This week can end as a strong one for markets if corporate earnings results are well received and economic data point to slowing price pressures, a resilient labor market and decent growth. Add a trade deal or two to the list and animal spirits may surge, fueling a continued recovery in equities. Moreover, investors are hoping that the GOP can get a taxation bill passed in the next month or two, adding another tailwind to the landscape in addition to low energy prices and milder regulations. Implementing the reprieve will help continue offsetting some of the more challenging aspects of the Trump policy mix, namely fairer cross-border commerce and lighter government spending. Closing some international negotiations and getting some tax relief done are key to reducing uncertainty, boosting sentiment in markets and bolstering momentum in the economy.  

International Roundup

Singapore Labor Market Weakens

Singapore’s first-quarter unemployment rate of 2.1% climbed from 1.9% recorded for the final three months of last year, according to the Singapore Ministry of Manpower (MoM). Additionally, first-quarter employment additions of 2,300 weakened from both the preceding period and the year-ago timeframe, when payrolls added 7,700 and 3,200 workers, respectively. Among residents, job growth increased in the health and social services category and the financial services sector. Conversely, categories that are exposed to exporting, such as professional services, manufacturing, and the information and communications group, contracted. Employment for non-residents, or individuals with work permits, grew in the lower skilled areas of administrative and support services and the community, social and personal services group. Citing surveys that show a decline in the number of businesses with plans to hire workers, the MoM said the slower pace of payroll expansion is a reaction to the ongoing trade war.

Hong Kong’s Trade Deficit Expands

Hong Kong’s trade deficit grew from HK$36.3 billion in February to HK$45.4 billion last month despite exports growing 18.5% year over year (y/y) to HK$455.5 billion, accelerating from 15.4% in the preceding month. However, imports, after growing 11.8% y/y in February, climbed 16.6% to HK$500.9 billion in March.

Canadians Hit the Polls

Canadians today will elect a prime minister in an election that is expected to be heavily influenced by the country’s deteriorating relationship with the US. Prime Minister Mark Carney of the Liberal Party is facing off against Conservative Party member Pierre Poilievre and two other candidates, the New Democrats’ Jagmeet Singh, and the Bloc Québécois’ Yves-François Blanchet.  The election is essentially a runoff between Carney and Poilievre.

Purchases by Wholesalers Contract

Purchases from wholesalers declined 0.3% m/m in March after climbing 0.3% during the preceding month, according to Statistics Canada.