Futures Struggle Mid-Week as U.S. Slaps Nvidia with $5.5 Billion Charge; Patterns Continue Bearish; Retail Sales Up 1.4% in March

Major indices in the U.S. displayed a classic bear market pattern on Tuesday, ramping higher from the open only to lose momentum as the day progressed, ending with small losses on each. That specific, repeating pattern has reaffirmed the bear market condition repeatedly over the past months, especially mid-February forward.

Stock futures are looking a bit sheepish heading into Wednesday's session. The majors were down sharply overnight, but were suddenly boosted around 4:30 am ET. This is one of the reasons Money Daily remains skeptical about stocks in the current environment and has been suggesting that passive investors take some profits at this juncture. Entire markets can turn on a dime, overnight or even during cash sessions, and having a custodial account with limited availability to trade or direct investments can cause substantial under-performance.

After Tuesday's close, United Airlines (UAL) stunned the after-market, disclosing adjusted earnings per share of $0.91 in the March quarter, compared to a loss of $0.15 per share in Q1 2024. On a reported basis, the company posted a net income of $387 million, compared to a loss of $124 million in the year-ago quarter. The company roundly beat street estimates, sending shares of the airline soaring, up as much as eight percent.

Early Wednesday morning, Dutch chip machinery manufacturer, ASML, missed Q1 order expectations, citing tariff uncertainty. Company CEO Christophe Fouquet said, "...the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while." Investors concurred, sending shares down four percent.

Abbott Laboratories (ABT) slipped as 1Q sales missed expectations. Dow component Travelers (TRV) reported net income of $395 million in the first quarter despite heavy losses due to wildfires in California earlier this year. Despite blowout EPS of $1.91, investors are taking profits, sending shares down two percent in pre-market trading.

The big story overnight, however, involved Nvidia (NVDA). The chip-maker was hit with a $5.5 billion charge over sales to China. The stock was down five percent as the tariff tiff between the U.S. and China continues to escalate.

U.S. retail sales soared in March, up 1.4 percent from February, and up 4.6 percent from March 2024.

March Industrial Production (+0.7%, February) and Capacity Utilization (78.2%, February) are out at 9:15 am ET., but are not expected to move markets much.

Futures are down, with the Dow off 100; S&P, -50; NASDAQ, -315 at 9:00 am

Gold is again ripping higher ($3,328) along with silver ($33.12). WTI crude oil is above $62/barrel.

At the Close, Tuesday, April 15, 2025:
Dow: 40,368.96, -155.83 (-0.38%)
NASDAQ: 16,823.17, -8.32 (-0.05%)
S&P 500: 5,396.63, -9.34 (-0.17%)
NYSE Composite: 18,430.04, -2.21 (-0.01%)