Stocks Uncertain as Tariffs and Earnings Weigh

Amidst concerns over the economic impact of tariffs, stocks struggled for momentum as traders analyzed a mixed bag of earnings reports. The dollar weakened while bond yields rose.

Key Market Developments:

* S&P 500 futures and European equities remained largely unchanged following a measured response from China to US tariffs and a last-minute reprieve for Canada and Mexico.
* The dollar index declined by 0.2% as some traders found relief in the avoidance of worst-case scenarios.
* Corporate earnings results presented a mixed picture, with Palantir Technologies soaring due to strong demand for AI products, while Merck, PepsiCo, and Estée Lauder declined.
* "The tariff issue is not resolving as quickly as hoped," said Andrea Tueni, head of sales trading at Saxo Banque France SAS. "Earnings may provide temporary respite, but there's a larger game at play. We are in the initial stages of a lengthy process, so caution is advised."
* Traders eagerly await earnings results from Google parent Alphabet Inc. and data on US factory and durable goods orders.
* In European markets, the Stoxx 600 benchmark fluctuated. UBS Group AG shares fell due to concerns about potential capital requirement increases, while Vodafone Group Plc declined after reporting challenging conditions in Germany. BNP Paribas rose on increased trading revenue, and Infineon Technologies AG surged on a revenue forecast exceeding analyst estimates.
* Crude oil prices declined as demand prospects deteriorated. Gold held near record highs.

Upcoming Economic Events:

* Tuesday: US factory orders, US durable goods, Alphabet earnings
* Wednesday: China Caixin services PMI, Eurozone HCOB Services PMI, US trade
* Thursday: Eurozone retail sales, UK rate decision, US initial jobless claims
* Friday: US nonfarm payrolls, unemployment, University of Michigan consumer sentiment

Main Market Moves:

Stocks
* S&P 500 futures: Little change
* Nasdaq 100 futures: Little change
* Dow Jones Industrial Average futures: -0.2%
* Stoxx Europe 600: Unchanged
* MSCI World Index: Little change

Currencies
* Bloomberg Dollar Spot Index: -0.2%
* Euro: -$0.0022 (-0.2%) to $1.0322
* British pound: -$0.0053 (-0.4%) to $1.2398
* Japanese yen: -0.61 to 155.34 per dollar

Cryptocurrencies
* Bitcoin: -$2,603.61 (-2.6%) to $99,272.53
* Ether: -$50.21 (-1.8%) to $2,769.1

Bonds
* 10-year Treasuries yield: +2 basis points to 4.58%
* Germany's 10-year yield: +3 basis points to 2.42%
* Britain's 10-year yield: +5 basis points to 4.54%

Commodities
* West Texas Intermediate crude: -$1.46 (-2%) to $71.73 a barrel
* Spot gold: Little change