TSMC profit rockets 58%, chipmakers in spotlight

🌅 Today's Morning Call

S&P Futures 7,068.50 ▼ -3.25 (-0.05%)	Nasdaq Futures 26,417.25 ▼ -28.25 (-0.11%)	Dow Futures 48,754.00 ▲ +41.00 (+0.08%)
10Y Treasury 4.28% ▲ +0.03%	US Dollar 98.16 ▲ +0.23 (+0.24%)	Bitcoin $74,696 ▼ -$131 (-0.18%)

Good morning! Markets are showing us a classic split personality this Thursday morning. Futures are wandering in different directions as traders digest a heavy dose of earnings news and regulatory developments. Tech chips are stealing the spotlight after TSMC posted a stunning 58% profit surge, while healthcare names are flexing their muscle with Abbott and Eli Lilly both delivering wins. Your morning lineup includes everything from Boeing's billion-dollar aircraft deal to Google squaring off with EU regulators.

👀 What to Watch Today

Healthcare earnings are commanding attention as Eli Lilly (LLY) steps into the spotlight with late-stage diabetes drug results that look promising. The pharmaceutical giant's continued expansion in metabolic disease treatment could set the tone for the sector, especially as investors hunt for the next blockbuster therapy. Abbott (ABT) already set a strong precedent by beating quarterly expectations on the strength of its newly acquired cancer diagnostics business.

Boeing (BA) is back in deal-making mode after El Al Israel Airlines committed to purchasing up to 12 additional 787 Dreamliners for a cool $1.5 billion. The aerospace giant needs these kinds of wins as it continues rebuilding its order book and reputation. This marks a vote of confidence in Boeing's flagship wide-body jet and could signal strengthening demand in international travel markets.

Regulatory pressure is heating up for Alphabet (GOOG, GOOGL) as the European Commission issued preliminary findings that could force Google to open its search data to third-party providers. The EU's Digital Markets Act is showing its teeth, and compliance costs or operational changes could weigh on the search giant's European business model. Investors will be parsing through what concessions Google might need to make.

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🌏 Overnight Recap

Asian markets wrapped a strong session with Taiwan Semiconductor Manufacturing (TSM) leading the charge after reporting first-quarter net profit jumped 58%, crushing analyst estimates and hitting a fresh record. The world's largest contract chipmaker is riding the global AI wave, and its performance is sending positive signals across the entire semiconductor supply chain. This bodes well for chip equipment makers and fabless designers when US markets open.

European markets are trading cautiously mixed as investors weigh corporate earnings against persistent inflation concerns. The energy sector got a jolt from reports that Spain's Repsol is regaining control of Venezuelan oil operations and planning to ramp up production following a new deal with the Venezuelan government. Oil prices are holding relatively steady, though the dollar's strength is applying some pressure.

Luxury goods are in focus after Kering (PPRUY), the parent company of Gucci, unveiled an ambitious turnaround plan aimed at doubling profits. CEO Luca de Meo acknowledged that the strategy that worked for the past decade has run its course, and the company needs a fresh approach to reignite growth. The luxury sector has been facing headwinds from softening Chinese demand, making execution on this plan critical.

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📊 Pre-Market Movers

Taiwan Semiconductor (TSM) is the undisputed champion this morning, riding high after that 58% profit surge demolished expectations. The chipmaker's record quarterly performance is validating the massive capital expenditures in advanced manufacturing capacity and proving that AI-driven chip demand remains robust. Expect this to lift sentiment across the entire semiconductor space, from equipment suppliers to chip designers.

Abbott Laboratories (ABT) is getting well-deserved attention after topping quarterly profit and revenue estimates, powered by strong performance in its recently acquired cancer diagnostics unit. The medical device and diagnostics giant continues demonstrating its ability to integrate acquisitions and drive organic growth. Meanwhile, Eli Lilly (LLY) is drawing focus with positive late-stage study results for a type 2 diabetes treatment, adding another potential weapon to its metabolic disease arsenal.

On the downside, Wipro (WIT) is facing pressure after the Indian IT services provider missed fourth-quarter revenue expectations. The culprit is familiar: clients are tightening technology spending budgets, and business with major customers is slowing. This weakness could cast a shadow over other IT services players and raises questions about whether the broader tech spending recovery is losing steam.

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🔍 Today's Watchlist

1. TSMC earnings ripple effect across semiconductor stocks (NVDA, AMD, AVGO)
2. Healthcare strength continuation with Eli Lilly diabetes drug data (LLY, ABT)
3. Google's EU compliance costs and regulatory overhang (GOOG, GOOGL)
4. Treasury yields creeping higher with 10-year at 4.28%
5. IT services weakness after Wipro revenue miss (WIT, INFY, ACN)

🎯 The Morning Playbook

The market is giving us a clear message this morning: quality earnings matter more than broad momentum. Focus on companies delivering actual results rather than chasing index moves. The semiconductor story remains intact with TSMC's blowout performance, while healthcare continues to show resilience even as other sectors wobble. Boeing's aircraft order provides a tangible reminder that industrial America is still doing deals.

Keep an eye on how tech handles the Google regulatory news and the Wipro disappointment. The spread between winners and losers is widening, which typically creates opportunity for selective investors. Treasury yields ticking higher deserve attention, especially if we see the 10-year push toward 4.30%, which could pressure growth stocks.

Mixed futures don't mean mixed opportunities. Thursday's shaping up as a stock-picker's market where fundamentals and catalysts drive individual names while the indexes meander. Stay focused on earnings quality, and remember that in a market like this, what you own matters more than how much you own.

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