The JPY is higher vs the USD by 0.54% as Pres. Trump and new PM Takaichi announced a number of trade measures to promote cooperation. The EUR is also higher (+0.11%) vs the USD but the GBP is weaker (by -0.22%) to start the US session. I will take a look at each from a technical perspective in the video above outlining the bias, the risk and that the targets as US traders enter for the day.
Regarding the US/Japan news, the United States and Japan strengthened their economic and strategic partnership across multiple fronts. Senior officials confirmed that both governments are preparing to release a fact sheet on potential investment projects in the US, focusing on power generation and automobile-related sectors, with companies such as Mitsubishi Heavy Industries expected to feature prominently. The White House emphasized that the two nations plan to use economic policy tools and coordinated investment to accelerate the development of critical minerals and rare earths, ensuring diversified and fair markets while countering non-market policies and unfair trade practices.
In a significant move, President Trump and Japanese Prime Minister Sanae Takaichi signed an agreement on the US–Japan alliance and framework for securing critical minerals and rare earth supplies, underscoring joint efforts to stabilize supply chains and reduce dependence on China. President Trump hailed the deal as “very fair”, describing US-Japan trade relations as the strongest ever, and reiterated his admiration for late Prime Minister Shinzo Abe, calling him a “great friend” and noting Japan’s continued military equipment orders from the US.
Prime Minister Takaichi, in turn, thanked President Trump for his enduring friendship and contributions to Asia’s peace—particularly highlighting his role in the Thai-Cambodia agreement. She praised Trump’s commitment to world peace and stability, reaffirmed Japan’s aim to deepen collaboration with Washington to promote a free and open Indo-Pacific, and expressed a vision for a “new golden age” of US–Japan relations.
The earnings season will be kickstarted this week with Amazon, Apple, Alphabet, Microsoft and Meta all scheduled to release after the close on Wednesday and Thursday. In the meantime, the following companies reported earnings this morning with most beating expectations:
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PayPal Holdings (PYPL): EPS $1.34 (beat exp. $1.20), Revenue $8.42 B (beat exp. $8.21 B); FY EPS guidance $5.35–5.39 (vs exp. $5.23); initiates quarterly dividend of $0.14/shr.
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American Tower (AMT): Adj. EBITDA $1.82 B (beat exp. $1.78 B), Revenue $2.72 B (beat exp. $2.66 B).
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Corning (GLW): Adj. EPS $0.67 (beat exp. $0.66), Revenue $4.1 B (miss exp. $4.22 B).
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Sherwin-Williams (SHW): EPS $3.59 (beat exp. $3.45), Revenue $6.36 B (beat exp. $6.20 B); FY EPS guidance $11.25–11.45 (vs exp. $11.30).
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SoFi Technologies (SOFI): EPS $0.11 (beat exp. $0.08), Revenue $961.6 M (beat exp. $878.7 M); FY 25 adj. EPS $0.37 (vs exp. $0.32).
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Regeneron Pharmaceuticals (REGN): EPS $11.83 (beat exp. $9.62), Revenue $3.75 B (beat exp. $3.58 B).
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Royal Caribbean Cruises (RCL): EPS $5.75 (beat exp. $5.64), Revenue $5.14 B (miss exp. $5.16 B); FY EPS $15.58–15.63 (vs exp. $15.64).
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United Parcel Service (UPS): EPS $1.74 (beat exp. $1.73), Revenue $21.40 B (beat exp. $20.79 B); guides Q4 revenue around $24 B.
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Nokian Tyres (TYRES FH): Revenue €344 M (beat exp. €339 M), EBIT €22 M (beat exp. €22 M).
US stocks are marginally higher after record closes for the 3 major indices yesterday.:
- Dow industrial average up 230 point
- S&P index up 9.09 points
- NASDAQ index up 49.45 points
In the US debt market, yields are marginally lower
- 2 year yield 3.495%, unchanged
- 5 year yield 3.612%, -0.5 basis points
- 10 year yield 3.95%, -1.2 basis points
- 30 year yield 4.555%, -1.4 basis points
Looking at other markets:
- Crude oil
This article was written by Greg Michalowski at investinglive.com.