Morning Note: Palantir's Report in Focus; Stable Swiss CPI; US Services Data Due

Investors Eye Palantir Earnings Report

Palantir (PLTR) is poised to exceed Q1 expectations, with analysts forecasting earnings per share of $0.13 (a 62.5% year-over-year increase) and revenue of $862.1 million (up 35.9% YoY). However, the real focus is on what management will say about the company’s outlook, especially if U.S. federal budgets face cuts.

The stock jumped 5.4% on May 2 as investors noted Palantir’s strong track record, which has beaten EPS and revenue estimates 88% of the time over the past two years. Moreover, in the last quarter, the company posted double-digit growth across its government, commercial, and AI segments. A new NATO deal deploying its Maven Smart System in Allied Command Operations further highlights how deeply embedded Palantir is in the defence sector.

(Palantir Share Daily Chart, Source: Trading View)

From a technical analysis perspective, Palantir’s share price has been moving in a bullish trend since rebounding from the support zone of 64 – 67 in early April 2025, as indicated by a pattern of higher highs and higher lows. Currently, the price is retesting the resistance zone of 123 – 126. If it breaks above this level, it could potentially continue its upward momentum and reach a new all-time high.

Muted Swiss Inflation Set to Hold in April

In March, Switzerland recorded a year-on-year (YoY) inflation rate of 0.3%, with the same rate expected to persist in April. On a month-on-month (MoM) basis, inflation was flat at 0.0% in March, while a slight increase of 0.1% is anticipated for April. The consistency in the YoY expectation suggests that underlying price pressures remain subdued and stable, likely reflecting a combination of weak domestic demand and easing import costs. Meanwhile, the modest uptick in the MoM forecast could be attributed to temporary factors such as seasonal price adjustments or minor energy cost fluctuations, rather than a shift in the broader inflation trend. This data is set to be released today at 06:30 GMT.

(USD/CHF Daily Chart, Source: Trading View)

From a technical analysis perspective, the USD/CHF currency pair has been moving in a bearish trend since mid-January 2025, as indicated by the lower highs and lower lows. Recently, the pair has been rejected from the resistance zone of 0.8300 - 0.8330 a few times and is approaching the order block of 0.8170 – 0.8200. If it can close above the order block in the near term, it may potentially move upwards to retest the resistance zone.

Will U.S. Services Growth Slow Again in April?

The U.S. ISM Services PMI came in at 50.8 in March, while the index is expected to edge down slightly to 50.3 in April. This modest decline suggests a continued but weakening expansion in the services sector, as a reading above 50 still indicates growth. The lower expectation likely reflects softening business activity, cooling demand, or caution among service providers amid ongoing macroeconomic uncertainty, tight financial conditions, and potentially slower consumer spending. This data is set to be released today at 14:00 GMT.

(U.S. Dollar Index Daily Chart, Source: Trading View)
From a technical analysis perspective, the U.S. Dollar Index has been in a bearish trend since mid-January 2025, as indicated by a series of lower highs and lower lows. Currently, the index is retesting the swap zone between 99.30 and 99.60. If it can close above this zone in the near term, it may potentially move upward to retest the resistance area.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.