US OPEN: Markets React to Strong Durable Goods Orders and Mixed Earnings

• PepsiCo reported first-quarter results that missed analysts' estimates

• P&G shares fell on Thursday following reduced full-year sales and profit guidance

• Hasbro reported strong first-quarter results with adjusted EPS of $1.04, significantly beating the $0.65 estimate.

• Chipotle shares declined after the restaurant chain reported disappointing comparable sales and reduced its annual growth forecast.

US indices are showing mixed performance today. The Dow Jones (US30) is down 0.54% to 39,561, while the S&P 500 (US500) has declined 0.19% to 5,402.2 and the Nasdaq (US2000) is off 0.30% to 1,925.7. The tech-heavy US100 index is bucking the trend with a gain of 0.10% to 18,867.47. The VIX "fear index" is up 0.32% to 25.23, indicating slightly elevated market anxiety.

European indices are broadly negative today, with Spain's SPA35 leading declines at -0.83% to 13,068. The UK's UK100 is down 0.43% to 8,370.5, while France's FRA40 has slipped 0.21% to 7,390.4.

Other European markets showing losses include the Eurozone's EU50 (-0.15%), Austria's AUT20 (-0.13%), Germany's DE40 (-0.13%), and the Netherlands' NED25 (-0.11%).

A few bright spots in Europe include Switzerland's SUI20 gaining 0.19% to 11,836, Italy's ITA40 advancing 0.82% to 36,202, while Poland's W20 remains flat at 2,767.6.

S&P 500 Sectors Show Mixed Performance. Source: Bloomberg Financial LP

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by US100, is trading around 19,195 — a level that previously triggered an uptrend. Bulls will aim to reclaim the 50% Fibonacci retracement level, which has long served as a key support. Bears, meanwhile, will look to push below the 61.8% retracement level, targeting the September low at 18,379. The RSI is approaching the 48.5 mark, a level that has historically signaled a return to bullish momentum when breached. Meanwhile, the MACD is widening following a recent tightening. Source: xStation 

Market News 

• PepsiCo reported first-quarter results that missed analysts' estimates, with basic EPS falling to $1.48 from $1.61 a year ago. The company has lowered its full-year guidance, now expecting constant currency earnings to be roughly flat year-over-year, with only mid-single-digit growth. This reduction comes as unpredictable U.S. trade policy and declining consumer sentiment increase costs and reduce demand. Despite these challenges, PepsiCo still expects to deliver approximately $8.6 billion in total shareholder returns this year. Q1 revenue declined 1.8% to $17.92 billion, though this slightly exceeded the $17.77 billion estimate, while organic revenue grew 1.2%, outpacing the expected 0.53%.

• P&G shares fell 2% on Thursday following reduced full-year sales and profit guidance. The consumer products giant reported third-quarter earnings of $1.54 per share, narrowly beating the $1.53 estimate, but sales declined 2% to $19.78 billion, missing expectations. Organic sales grew just 1%, significantly below the projected 2.53%, with flat volume and 1% pricing increases. CEO Jon Moeller noted, "We delivered modest growth this quarter in a challenging and volatile consumer and geopolitical environment." The company now forecasts core EPS growth of only 2% to 4%, down from 5% to 7%, and organic revenue growth of 2%, reduced from 3% to 5%.

• ServiceNow shares jumped 13% following impressive first-quarter results that exceeded expectations across all key metrics. The AI-powered workflow solutions provider reported total revenue of $3.09 billion, up 19% year-over-year, with subscription revenue climbing 19% to $3.005 billion. Net income rose to $460 million from $347 million a year earlier, with diluted EPS increasing to $2.20 from $1.67. The company now serves 508 customers with annual contract value over $5 million, up from 425 last year, and secured 72 transactions exceeding $1 million in new ACV during Q1.

• Texas Instruments shares climbed 5.3% after the chipmaker's Q1 results beat expectations and provided a strong outlook. The company reported EPS of $1.28, surpassing the $1.07 estimate, while revenue grew 11% year-over-year to $4.07 billion, exceeding the $3.91 billion forecast. Analog revenue increased 13% to $3.21 billion. For Q2, TI expects revenue between $4.17 billion and $4.53 billion, above the $4.12 billion consensus estimate. The positive results boosted shares of peers including Analog Devices (+5.6%), ON Semiconductor (+5.3%), and Microchip Technology (+6.6%).

• Hasbro reported strong first-quarter results with adjusted EPS of $1.04, significantly beating the $0.65 estimate. Net revenue reached $887.1 million, well above the expected $769.2 million, driven by robust performance in Wizards of the Coast and Digital Gaming, which generated $462.1 million in revenue. Magic: The Gathering contributed $346.3 million to the total gaming revenue of $550.1 million. Despite these impressive results, the company maintained its full-year guidance "given the uncertainty of the current tariff environment." CFO Gina Goetter highlighted that "the strength of Wizards, licensing, and our asset-light model continues to offset tariff pressures and support margins."

• Chipotle shares declined up to 2.6% after the restaurant chain reported disappointing comparable sales and reduced its annual growth forecast. First-quarter comparable sales fell 0.4%, missing the expected 1.74% increase, while revenue of $2.88 billion fell short of the $2.94 billion estimate. CEO Scott Boatwright acknowledged that results were "impacted by several headwinds including weather and a slowdown in consumer spending." The company now expects only low-single-digit comparable restaurant sales growth for the year, down from previous guidance of low to mid-single digits. However, management expressed confidence in returning to positive transaction growth by the second half of 2025, and the board authorized an additional $400 million share repurchase.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP