US equity futures are lower, reversing earlier gains and trading near session lows in a narrow, jitter overnight session as traders prepare for a heavy slate of earnings and readings of consumer sales and small-business due later. As of 8:15am ET, stock futures were muted, down 0.1% after earlier rising 0.2% and approaching last month’s record levels after an artificial-intelligence-driven selloff and subsequent rebound over the past week. Nasdaq futures drop -0.2% with small caps outperforming as bond yields drops by 1-3bps and the USD is flat. The downbeat mood doesn’t match the bullish tone in Asia, where stocks hit fresh records while European bourses are green across the board. Pre-market, Mag 7 are mixed, Semis are bid with SMH leading IGV as TSMC sees revenue +37% YoY in Jan. Financials and Industrials are leading Cyclical outperformance with healthcare the best performing sector within Defensives. Commodities are weaker but with vol lower, it appears to be profit-taking than what we have seen YTD. Today’s macro data focus is on Retail Sales, weekly ADP, Small Biz Survey, and Import / Export prices.

In premarket trading, Mag 7 stocks are mixed (Amazon +0.7%, Nvidia +1%, Microsoft +0.6%, Tesla +0.8%, Meta +0.1%, Alphabet -0.2%, Apple -0.4%)

In corporate news, BP halted share buybacks as pressure on the energy major mounts. Tesla’s head of sales for North America is leaving, exiting a position that’s seen substantial turnover in the past year. The Teamsters Union sued UPS, demanding the company shut down its planned buyout program targeting UPS Teamsters drivers.

Markets are experiencing a moment of calm after an artificial-intelligence-driven selloff and subsequent rebound over the past week. Traders are now waiting to see how this week’s data may shape expectations for the Federal Reserve’s interest-rate path.

“What’s at stake with this week’s US data is to know whether we can move from a K- to a V-shaped rebound,” said Kevin Thozet, an investment committee member at Carmignac. “There are signs that the US consumer’s morale is improving, but we’re not there yet. It’s clearly the objective of the Trump administration ahead of the midterms.”

In political news, President Macron of France said the EU needs to get tougher with Trump, who he said is pushing for the “dismemberment” of the bloc. Trump has also threatened to prevent the opening of a new bridge connecting Michigan and Ontario until the US is given compensation and ownership of half of it. The EPA plans to repeal a policy that provides the legal foundation for rules regulating greenhouse gas emissions. China’s BYD, the world’s biggest manufacturer of EVs, has joined hundreds of companies in pushing to be refunded for duties paid under Trump’s import tariffs.

On the macro front, economists and analysts expect another solid month of retail sales in December, supported by household spending that has remained resilient despite the high cost of living and a fragile employment backdrop.

Looking at earnings, out of the 302 S&P 500 companies that have reported so far,79% have beat analyst estimates, while 17% have missed.More US companies are posting quarterly earnings growth, suggesting a sustained broadening beyond technology heavyweights, strategists at Deutsche Bank write. S&P 500 firms are on track to register a 14.5% increase in 4Q earnings, notching a four-year high.

In Europe, the Stoxx 600 is up 0.1% and switching between small rises and falls. CAC 40 higher after results from Kering boosted luxury stocks.Here are some of the biggest movers on Tuesday:

Earlier in the session, Asian stocks rose, as technology shares tracked their US peers higher on a revival of artificial intelligence enthusiasm, and Japan’s market extended gains following Prime Minister Sanae Takaichi’s election victory.The MSCI Asia Pacific Index climbed as much as much as 1.4%, set for a fresh record high and third day of gains.TSMC was among the biggest boosts to the region, with January sales surging 37% from last year. Other winners include fellow AI beneficiaries Softbank Group and Alibaba.Stock benchmarks also rose in Hong Kong, India and Philippines while shares in South Korea closed little changed. Risk sentiment has been on the mend in Asia, as global tech shares rebound from last week’s selloff on concerns over high spending levels and business obsolescence due to AI. Investors continue to assess the unfolding earnings season and indications on the path for global monetary policy. Japanese stocks got a fresh jolt on expectations that the greater parliamentary majority for Takaichi’s party will give her a mandate to increase fiscal spending and cut the sales tax on food. Among fresh tailwinds for the AI trade, the Financial Times reported that US tech giants are set to get a reprieve from forthcoming US tariffs on imported semiconductors. Indonesian equities edged higher even as index compiler FTSE Russell said it will join MSCI in pausing its index review for the country due to the risk of adverse turnover and uncertainty in determining public float.

Source: ZeroHedge News