U.S. stock futures are pointing higher as investors digest China’s announcement that it was looking to negotiate with Washington on tariffs; Apple (AAPL) shares are dipping in premarket trading after CEO Tim Cook laid out the costs the iPhone maker would face under President Donald Trump’s tariff policies; Amazon (AMZN) shares are edging lower after the online retailer issued a weak profit outlook in the face of tariff costs; and shares of Reddit (RDDT) are jumping after the social media company reported strong results and a bullish outlook. Here’s what investors need to know today.
1. US Stock Futures Point Higher as Investors Digest China Trade News
U.S. stock futures are pointing higher as investors react to China’s announcement it was prepared to negotiate with the U.S. on tariffs. S&P 500 and Dow Jones Industrial Average futures are rising by about 0.4% after the indexes notched their eighth straight positive sessions yesterday. Nasdaq futures were higher by 0.2% after the tech-heavy index added 1.5% in the prior session. Bitcoin (BTCUSD) is gaining to trade at around $97,000. Yields on the 10-year Treasury note are little changed. Gold futures are moving higher while oil futures are dipping.
2. China ‘Evaluating’ Proposals to Start Trade Talks With US
China said it is “currently evaluating” U.S. proposals to start trade talks, opening the door to negotiations between Beijing and Washington for the first time since tariffs between the two began escalating. China imposed 125% in tariffs on U.S. goods in retaliation for President Donald Trump’s 145% import duties on Chinese products. The U.S. president recently said that tariffs on China “will come down substantially, but it won’t be zero.” Trump has repeatedly said that Beijing has approached the U.S. to begin talks, which China has denied.
3. Apple Stock Dips After CEO Cook Warns on Tariffs Costs
Apple (AAPL) shares are more than 3% lower in premarket trading after CEO Tim Cook said that Trump’s tariff policies could cost the company $900 million in the current quarter. Cook made the comments after the iPhone maker reported a 5% year-over-year revenue rise to $95.4 billion and profit of $1.65 per share, both topping Visible Alpha estimates. Apple makes approximately 90% of its products in China, and while most Apple products are exempt from President Trump’s 125% “reciprocal” tariffs on Chinese goods, Cook said the iPhone maker was still affected by the 20% import tax the White House put in place earlier in the year to combat fentanyl trafficking.
4. Amazon Stock Slips on Weak Profit Outlook
Amazon (AMZN) shares are edging lower in premarket trading, paring overnight declines, after the e-commerce giant delivered profit projections for the current quarter that came in below estimates. Amazon reported first-quarter results that topped Visible Alpha expectations, with revenue jumping 9% year-over-year to $155.7 billion and net income of $1.59 per share. However, Amazon’s projected Q2 operating income of $13 billion to $17.5 billion was largely below the analyst consensus.
5. Reddit Stock Surges on Strong Sales, Bullish Outlook
Shares of Reddit (RDDT) are jumping nearly 7% in premarket trading after the social media company reported a big jump in first-quarter revenue. Reddit posted sales that rose by more than 60% to above $392 million and easily outstripped the Visible Alpha consensus estimate, while net income also came in ahead of expectations. The company also issued second-quarter revenue guidance that, at its $420 million midpoint, was well above the $394 million consensus.