The economy contracted in the first quarter
The market turned abruptly lower after this morning's gross domestic product (GDP) reading showed the economy contracted 0.3% in the first quarter. Futures on the Dow Jones Industrial Average (DJI) and Nasdaq-100 Index (NDX) are both down more than 300 points, while S&P 500 Index (SPX) futures are firmly lower as well.
Investors are also unpacking a flood of corporate earnings and the ADP employment report, which showed private sector payrolls rose by just 62,000 in April -- missing estimates of 120,000 and falling sharply from previous month's 147,000. This marks the smallest gain since July 2024.
Continue reading for more on today's market, including:
- The best stocks to own in May -- a historically weak month -- per Schaeffer's Senior Quantitative Analyst Rocky White.
- Roku stock has been rallying ahead of this week's earnings.
- Plus, 2 stocks plummeting ahead of the open; STX jumps after earnings.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts and 784,086 put contracts exchanged on Tuesday. The single-session equity put/call ratio came in at 0.55, while the 21-day moving average stayed at 0.60.
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Snapchat parent Snap Inc (NYSE:SNAP) is down 14.4% in premarket trading, despite the social media name's revenue beat and narrower-than-expected losses of 8 cents per share, after the company failed to provide a forecast. A flood of analysts slashed their price targets after the event. Looking to snap a six-day win streak, the equity is down 15.6% year-to-date.
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Super Micro Computer Inc (NASDAQ:SMCI) is down 19.2% before the bell, after the company's disappointing preliminary financial results for the fiscal third quarter. Should these losses hold, SMCI will erase its 18.1% year-to-date gain.
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Seagate Technology Holdings PLC (NASDAQ:STX) is up 5.9% in electronic trading, after fiscal third-quarter earnings results and current-quarter guidance. Heading into today, STX is down 5.4% in 2025.
- There's plenty more earnings and economic data due out this week.
Economic Data out of Japan, Europe
Markets in Asia finished mixed as economic data and earnings took focus. Eyes are also on the Bank of Japan (BoJ), which is expected to hold rates steady at 0.5%. Manufacturing activity in China dropped more than expected, to an almost two-year bottom of 49.0 for April. Factory output in Japan also dropped more than anticipated, by 1.1%. For the session, Japan’s Nikkei added 0.6% and Hong Kong’s Hang Seng tacked on 0.5%. China’s Shanghai Composite and South Korea’s Kospi fell 0.2% and 0.3%, respectively.
A surge in healthcare stocks and a brushing off of tariff worries is pushing stocks in Europe higher today. Euro zone economic growth data also came in, showing a better-than-expected rise of 0.4% for Q1. In Germany, the economy posted 0.2% first-quarter growth, matching expectations. At last check, London’s FTSE 100 is up 0.2%, while both Germany’s DAX and France’s CAC 40 are 0.7% higher.