Preview of US Stock Market | Three major stock index futures rise together, WTI crude oil falls more than 3%.

Pre-Market Market Trends 1. Before the US market opened on May 5th (Tuesday), the futures of the three major US stock indices rose together. As of the time of writing, the Dow Jones futures were up 0.48%, the S&P 500 index futures were up 0.52%, and the Nasdaq futures were up 0.80%. 2. As of the time of writing, the Germany DAX index increased by 1.13%, the UK FTSE 100 index decreased by 1.62%, the France CAC40 index increased by 0.81%, and the Euro Stoxx 50 index increased by 1.28%. 3. As of the time of writing, WTI crude oil fell by 3.05% to $103.17 per barrel, while Brent crude oil fell by 2.07% to $112.07 per barrel. Market News Goldman Sachs Group, Inc. Warns: Global oil inventories approaching an eight-year low, consumption rate worrisome. Ongoing Middle East conflicts and the continued closure of the Strait of Hormuz are accelerating the global consumption of oil and petroleum inventories. According to a recent report by Goldman Sachs Group, Inc., global oil inventories have dropped to near an eight-year low, with concerns rising about the rate of inventory depletion. Goldman Sachs Group, Inc. analysts estimate that current global oil inventories are equivalent to 101 days of global demand and are expected to further decrease to 98 days by the end of May. While it is unlikely that global oil inventories will reach the lowest operational caution line this summer, the speed of inventory depletion in certain regions and oil products, as well as supply disruptions, have caught the market's attention. Oaktree Capital co-CEO: Market pricing confusing, fundamental risks severely underestimated. Armen Panossian, co-CEO of Oaktree Capital Management, warns that the market is digesting a series of fundamental issues too quickly, leading his company to hold onto cash and wait for the right time to adjust. Panossian notes the "extremely abundant" liquidity post-pandemic, the market sentiment to stay invested, and strong historical corporate performance are collectively causing investors to selectively overlook potential economic data. He suggests that the market generally believes that U.S. President Trump will not take any actions that fundamentally harm the economy, further reinforcing market resilience. Panossian states, "When you add the impact of the Iran war, and the pain we anticipate in the software industry in the coming years, it is somewhat perplexing why the market is so strong." He warns that investors are underestimating the fundamental risks facing the credit markets. J.P. Morgan: Market poised for widespread rally with favorable news. Strategists at J.P. Morgan state that global stock markets have a narrow rebound since the low point of the Iran conflict and are poised for a widespread rally as long as there is some positive news. Led by Mislav Matejka, the team believes that the market may experience volatility in the short term but investors with longer investment horizons should continue to buy on market pullbacks. The strategist points out that the V-shaped rebound in the MSCI Inc. Class A Global Index appears disconnected from the surge in oil prices, with the current investor positions lower than before the outbreak of the conflict. As various factors that suppressed buying are gradually easing, the market rally is expected to further expand. European Union responds to Trump's threat of auto tariffs: Prepared for all scenarios. On May 5th, local time, European Commission President von der Leyen responded to U.S. President Trump's recent threat of car tariffs by stating that the U.S. cannot unilaterally raise tariffs and that the EU is prepared for "all scenarios." Trump had announced on social media on May 1st that due to the EU's failure to comply with its bilateral trade agreement with the U.S., the U.S. would increase import tariffs on EU cars to 25%. von der Leyen's spokesperson responded, stating that the EU will "keep all options open" and evaluate possible countermeasures. The spokesperson also mentioned that the EU is implementing relevant trade agreements following normal legislative procedures and continuously updating progress to the U.S. side. Stock News Eaton Corp. Plc (ETN.US) reports strong Q1 earnings but falls in pre-market trading: Annual profit guidance slightly below expectations, 40x P/E ratio under pressure. Eaton Corp. Plc reported a net profit of $866 million in the first quarter, or $2.22 per share. Adjusted for amortization and merger-related costs, earnings per share were $2.81, beating Wall Street expectations of $2.74. Revenue was $7.45 billion, a 17% increase year-over-year, also surpassing Wall Street's estimate of $7.09 billion. Organic sales increased by 10%, exceeding the company's previous 5%-7% forecast range. Looking ahead, while Eaton Corp. Plc has raised its full-year organic growth forecast from 8-10% to 9-11%, reflecting strong demand in its various markets, the company expects second-quarter earnings per share of $3.00 to $3.10 by the end of June, with a mid-point of $3.05 slightly below the market's general expectations. The company also expects full-year earnings per share to be between $13.05 and $13.50, lower than expected, with a mid-point of $13.28 below analysts' consensus of $13.30. The stock fell 4.2% in pre-market trading. Pfizer Inc. (PFE.US) surpasses Q1 earnings expectations, reaffirms full-year guidance. Pfizer Inc. reported revenues of $14.45 billion in the first quarter, exceeding expectations; adjusted earnings per share were $0.75, surpassing expectations. Pfizer Inc. reaffirmed its full-year guidance, still expecting adjusted earnings per share of $2.80 to $3.00 for the year, with market estimates of $2.96; Pfizer Inc. also expects full-year revenue to be between $59.5 billion and $62.5 billion, compared to an estimate of $61.37 billion. The stock rose 2% in pre-market trading. GF Core (GFS.US) reports Q1 earnings exceeding expectations. The company's Q1 revenue was $1.63 billion, in line with expectations; earnings per share were $0.40, exceeding expectations. GF Core expects adjusted earnings per share of $0.38 to $0.48 in the second quarter, with market expectations at $0.40; the company expects second-quarter revenue to be between $1.735 billion and $1.785 billion, with market expectations at $1.743 billion. The stock rose over 5% in pre-market trading. Bearish on eBay acquisition, "Big Short" investor Burry quickly divests GameStop Corp. Class A (GME.US). Michael Burry, the prototype of "The Big Short" and a legendary investor, sold all his GameStop Corp. Class A (GME.US) shares after GameStop Corp. Class A proposed a cash and stock acquisition of the e-commerce platform eBay (EBAY.US) worth around $56 billion. Burry had been optimistic about GameStop Corp. Class A around 2019, which drove the company's stock price up. However, the investor informed subscribers in his Substack newsletter on Monday that he had exited, citing concerns that GameStop Corp. Class A might incur massive debt from the acquisition. Burry stated, "I have sold all my GameStop Corp. Class A shares. No matter how you look at it, the investment philosophy of 'Speed Emmott Berkshire' is at odds with reality." Burry also indicated that he had nearly doubled his holdings in Lululemon Athletica (LULU.US). Alphabet (GOOGL.US) returns to European bond market: Rumored to raise 3 billion, expanding global financing under $100 billion AI expenditure. According to sources, Alphabet has initiated a six-tranche debt sale plan denominated in euros, issuing at least 3 billion (approximately $3.5 billion) in bonds with maturities ranging from 4 to 37 years. Barclays PLC Sponsored ADR, BNP Paribas, Deutsche Bank Aktiengesellschaft, and HSBC HOLDINGS Limited are arranged for this issuance. This news comes just months after Alphabet raised a record 67.5 billion in the Eurobond market for the first time. Just days ago on April 29th, Alphabet had raised its full-year capital expenditure guidance to a high of $190 billion for 2026, setting a record and surpassing even the most bullish expectations of Wall Street analysts. Apple Inc. (AAPL.US) considers partnering with Intel Corporation (INTC.US) and Samsung to produce major device chips. Reports indicate that Apple Inc. has had preliminary discussions with Intel Corporation and Samsung to produce its major device chips. Additionally, Apple Inc. executives have visited a state-of-the-art chip factory being built by Samsung in Texas. Sources reveal that negotiations between the parties are still in a very early stage, and no orders have been placed yet. Apple Inc. has concerns about using technology other than Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and may ultimately not collaborate with other partners. OpenAI co-founder reveals holding nearly $30 billion in shares, deep financial ties with Altman. OpenAI co-founder and president Greg Brockman revealed in court on Monday that his financial relationship with CEO Sam Altman is closer than previously known, and his stake in the ChatGPT developer is worth nearly $30 billion. These details were disclosed during questioning by Elon Musk's lawyers. Musk, a co-founder of OpenAI, is currently suing the company, alleging that it improperly transitioned to a for-profit company, abandoned its charitable goals, and should revert to a non-profit organization. Musk's team believes that Brockman's independence may be compromised by financial incentives, making him inclined to support Altman's push to transform OpenAI into a for-profit company. Brockman also disclosed in court that he holds shares in two startups supported by Altman and owns a stake in Altman's family fund. Musk is seeking to oust Altman and Brockman from the company management and claim $150 billion. Net income soars nearly fourfold, full-year guidance raised again! Palantir (PLTR.US) experiences "surge" in U.S. business in Q1, but commercial sales leave regrets. Palantir delivered a first-quarter performance in 2025 that far exceeded Wall Street expectations. Operating revenue reached $16.3 billion, exceeding the market's average forecast of $15.4 billion, with an 85% year-over-year growth; adjusted earnings per share were $0.33, 18% higher than the market's expected $0.28; net profit surged nearly fourfold from $214 million in the same period last year to $870.5 million. Full-year guidance has been significantly raised. Meanwhile, U.S. commercial sales income slightly fell below expectations, becoming the "shadow" in this financial report. The stock fell nearly 3% in pre-market trading. ON Semiconductor Corporation (ON.US) beats Q1 earnings expectations, data center revenue jumps 30% quarter-over-quarter. Analog chip manufacturer ON Semiconductor Corporation reported first-quarter revenue growth of 5% to $1.51 billion, surpassing market expectations of $1.49 billion; adjusted earnings per share were $0.64, exceeding the market's consensus of $0.62 per share. On a GAAP basis, the loss per share was $0.08, compared to $1.15 per share in the same period in 2025. The revenue growth was mainly driven by the Power Solutions segment, with a 14% revenue increase to $736.6 million. The Analog and Mixed Signal Division decreased by 4.6%, and the Intelligent Sensing Division saw a slight 0.9% increase. ON Semiconductor CEO Hassane El-Khoury stated, "Our AI data center business is accelerating, with a quarter-over-quarter growth rate of over 30%. Looking ahead, we are encouraged by the fundamental health of our business and the long-term opportunities provided by the increasing semiconductor content in automotive, industrial, and AI data center applications." The stock fell 4.6% in pre-market trading. Important Economic Data and Events Preview At 22:00 Beijing time: U.S. April ISM Non-Manufacturing PMI, U.S. March Seasonally Adjusted New Home Sales Annual Total, U.S. March JOLTs Job Vacancies Earnings Forecast Wednesday Morning: AMD (AMD.US), Arista Networks (ANET.US), Lumentum (LITE.US), Occidental Petroleum Corporation (OXY.US) Wednesday Pre-market: Novo Nordisk A/S Sponsored ADR Class B (NVO.US), Walt Disney Company (DIS.US), Uber Technologies, Inc. (UBER.US)