Global Markets
U.S. Stock Index:
- Performance: U.S. stock indexes exhibited mixed performance, reflecting investor uncertainty about the Federal Reserve’s future interest rate decisions. The market sentiment remains cautious as traders speculate on how long the Fed might keep interest rates elevated.
Euro Zone:
- Inflation: Inflation in the euro zone rose more than expected in May. This unexpected increase in inflation adds pressure on the European Central Bank to consider further monetary policy tightening.
- STOXX 600: The STOXX 600 index remained steady but was on track for its second consecutive week of declines. Persistent inflation concerns and economic uncertainty have contributed to the subdued performance of European stocks.
Asian Equity Markets:
- China: Chinese stocks closed lower after an official factory survey indicated a surprising decline in manufacturing activity for May. This unexpected drop points to ongoing challenges in China’s economic recovery and dampens investor sentiment.
- Japan: In contrast, Japan’s Nikkei index ended the trading day over 1% higher. The rise was supported by a decrease in U.S. bond yields, which alleviated some investor concerns about global interest rate trends.
Canadian Stock Market:
- Performance: Canada’s main stock index fell by almost 0.5%. The decline was influenced by broader market trends and specific economic indicators affecting investor confidence.
Commodities:
- Oil Prices: Oil prices remained stable as investors awaited the U.S. inflation data for insights into future demand trends. Market participants were also focused on the upcoming OPEC+ meeting on Sunday, where key production decisions are expected.
- Gold Prices: Gold prices were nearly flat but remained on track for their fourth consecutive monthly gain. The sustained interest in gold reflects its appeal as a safe-haven asset amid economic uncertainties.
- U.S. Dollar: The U.S. dollar showed little change against major currencies, maintaining a steady position as traders assessed various economic indicators and market conditions.
Corporate Stock News
- KKR Acquisition: U.S. investment firm KKR received unconditional EU antitrust approval for its up to 22-billion-euro acquisition of Telecom Italia’s fixed-line network.
- Renault and Geely Joint Venture: Renault Group and Geely Holding Group formed a joint venture called HORSE Powertrain Limited, with each holding a 50% stake, to focus on hybrid and combustion powertrain components and systems.
- Birkenstock Revenue Forecast: Birkenstock raised its annual revenue and core profit forecasts, driven by strong demand for its cork-based sandals and newer closed-toe styles, boosting its shares.
- Trans Mountain Pipeline Loan Guarantees: The Canadian government increased loan guarantees for the Trans Mountain pipeline expansion by C$1 billion, bringing the total to C$19 billion.
- Laurentian Bank Impairment Charges: Canada’s Laurentian Bank recorded C$144 million in impairment and restructuring charges in the second quarter.
- Costco Revenue Beat: Costco beat third-quarter revenue expectations with total revenue of $58.52 billion and a profit of $3.78 per share, driven by consumers seeking low-priced items and groceries.
- Dell Technologies Profit Forecast: Dell forecasted a lower-than-expected current-quarter profit due to higher costs for building AI-capable servers, causing its shares to drop.
- Gap Inc. Sales Forecast: Gap Inc. raised its annual sales forecast and beat first-quarter expectations, with strong performance in its Old Navy and Gap brands, and increased online and in-store sales.
- Marvell Technology Revenue Miss: Marvell Technology missed first-quarter revenue expectations due to weak client spending in wireless carrier and enterprise markets.
- NetApp Revenue Beat: NetApp exceeded fourth-quarter revenue estimates, driven by strong demand for its cloud-based data management services, and announced a $1 billion share buyback plan.
- Nordstrom Economic Warning: Nordstrom warned of an uncertain economy and maintained its annual forecasts for sales and profit, with first-quarter revenue rising 4.8% but posting a quarterly loss.
- Ulta Beauty Profit Beat: Ulta Beauty exceeded first-quarter profit expectations due to steady demand for skincare and makeup, and revised its annual earnings and sales forecasts slightly downward.
- Zscaler Revenue Forecast: Zscaler forecasted fourth-quarter revenue and profit above estimates, driven by increased business spending on cybersecurity, boosting its shares.
- Amazon Twitch Advisory Council: Amazon’s Twitch is updating its safety advisory council by adding members from its “Twitch Ambassadors” community to offer fresh perspectives.
- Biogen ALS Drug Approval: Biogen received European Commission marketing authorization for its ALS drug Qalsody, based on trial results showing a reduction in a neurofilament protein linked to the disease’s progression.
- Boeing Firefighters Contract: Boeing’s firefighters approved a new four-year contract, ending a lockout and securing wage hikes and improved compensation.
- Chevron LNG Production: Chevron resumed full liquefied natural gas production at its Gorgon Gas facility in Australia after resolving a mechanical fault.
- ExxonMobil Nigeria Operations: ExxonMobil plans to scale down its operations in Nigeria by not renewing its office lease in Lagos and nearing completion of a deal to sell assets to Seplat Energy.
- Gilead Bladder Cancer Drug: Gilead’s drug Trodelvy did not meet the main goal of overall survival in a late-stage bladder cancer study, leading to a drop in its shares.
- Hertz Financing Options: Hertz is exploring financing options following a disappointing quarterly loss and new CEO pledging to revamp the company’s strategy.
- Mondelez Oreo Production: Mondelez resumed Oreo cookie production in Ukraine after rebuilding its plant damaged during Russia’s invasion.
- Tesla Seat Belt Recall: Tesla is recalling 125,227 vehicles in the U.S. due to a malfunction in the seat belt warning system.
- Trump Media Stock Drop: Shares of Trump Media & Technology Group dropped after a jury found former President Trump guilty of falsifying documents.
- Vistra Corp Power Capacity: Vistra plans to add up to 2,000 megawatts of natural-gas-fueled power capacity in Texas to improve grid reliability.
STA Research is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI.
