OP Wire 5/6 (OP – Lite)

By Steve

MARKETS EDGE LOWER AS TARIFFS, EARNINGS & UNCERTAINTY COLLIDE

U.S. stock futures pointed lower early Tuesday as investors digested a wave of corporate earnings while bracing for the fallout from President Trump’s latest trade moves.

The S&P 500 snapped its nine-day winning streak Monday—its longest run in 20 years—after Trump announced new 100% tariffs on foreign-made movies, hammering media giants like Netflix (NFLX) and Disney (DIS). Although there’s hope the final policy won’t be as aggressive as feared, traders are understandably cautious.

Economic data offered mixed signals:

The U.S. services sector—which makes up more than two-thirds of GDP—came in stronger than expected.
However, the “prices paid” metric rose, suggesting the new tariffs could add inflation pressure.

Treasury Secretary Scott Bessent pushed back on fears, claiming tariffs, deregulation, and tax cuts would more than offset short-term volatility. But markets are watching closely.

STOCK SPOTLIGHTS

Ford (F) – Shares dipped in extended hours after the automaker slashed full-year guidance, citing uncertainty from the new tariffs.

Q1 net income fell to $471M from $1.3B YoY
Revenue came in at $40.7B, beating estimates
CEO Jim Farley said companies with a large U.S. footprint would benefit, but it’s still “too early” to gauge competitive responses.
Ford joins GM and Stellantis (STLA) as the Big 3 Detroit automakers adjusting forecasts due to the shifting trade landscape.

Palantir (PLTR) – Despite raising full-year guidance, shares sank in after-hours trading after quarterly results fell short of sky-high expectations.

EPS: $0.13 (in line with estimates)
Revenue: $883.9M (slightly above estimates)
New FY guidance: $3.89B–$3.90B vs. $3.74B–$3.76B previously
PLTR is up 60% YTD, fueled by AI hype and government contract speculation—but this report served as a reality check.

DoorDash (DASH) – The delivery platform announced it will acquire Deliveroo (ROO) for £2.9B ($3.86B) in a major global expansion move.

Deal offers Deliveroo shareholders a 44% premium
DoorDash CEO Tony Xu: “We’ll now serve over 40 countries and 1 billion people.”
This strengthens DoorDash’s footprint in Europe, where it battles Uber Eats and Just Eat Takeaway.

ENERGY UPDATE

Oil bounced after OPEC+’s surprise production hike over the weekend triggered Monday’s selloff.

Brent: $61.58, +2.2%
WTI: $58.44, +2.3%
Saudi Arabia and allies are rapidly unwinding two years of cuts—raising questions about oversupply, even as demand cools.

TECHNICAL SPOTLIGHT – QQQ ACTION

Monday saw more volatility as the $QQQ tech index hit an intraday high of 490.03 (failed breakout over the 200-day MA) before selling off hard into the close at 485.93.

Key support levels: 485 & 480
If broken, risk of a gap-fill down to 477 from May 1st
Resistance: 490 remains the ceiling before we talk about 500 again
Stay alert for market-moving tariff headlines, FOMC comments, or rate decision surprises.

TODAY’S ECONOMIC DATA (ET):

8:30AM – Trade Balance, Exports & Imports (Mar)
12PM – EIA Short-Term Energy Outlook
1PM – 10Y Note Auction & Atlanta Fed GDPNow (Q2)
4:30PM – API Weekly Crude Oil Stock

REMINDER – LIVE MARKET SESSION WEDNESDAY @ 7PM ET

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OP Wire 5/6 (OP – Lite)

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