NYSE Content Advisory: Pre-Market update + Small business optimism improves
NEW YORK, June 10, 2025 /CNW/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor. Access today's NYSE Pre-market update for market insights before trading begins.
delivers the pre-market update on June 10th
Stocks are little changed Tuesday morning as Wall Street watches U.S – China trade talks. Yesterday, the S&P 500 finished 2.3% from its record high.
Trade talks got underway yesterday between representatives from the world's first and second largest economies and are expected to resume today. Both nations agreed last month to temporarily cut levies on one another.
The National Federation of Independent Business released its monthly optimism index this morning. It showed small business sentiment improving in May on the back of better expectations for businesses and sales.
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Fortive (NYSE: FTV) celebrates its 10 iconic brands, 10,000 team members, and nearly 10 years of innovating essential technologies to keep our world safe and productive.
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The Jazz Foundation of America celebrates its commitment to preserving the legacy of jazz, blues and roots music.
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CTV News
44 minutes ago
- CTV News
Asian shares climb after China and the U.S. say they have a framework for seeking a trade deal
TOKYO — Asian shares mostly rose Wednesday after China and the U.S. said they had agreed on a framework for following up on the trade truce reached last month in Geneva. U.S. futures fell while oil prices edged higher. Japan's benchmark Nikkei 225 surged 0.6% in afternoon trading to 38,450.76. Data from the Bank of Japan data showed wholesale inflation slowed in May, meaning there might be less pressure for the central bank to raise interest rates in its next policy board meeting. Hong Kong's Hang Seng gained 0.9% to 24,381.39, while the Shanghai Composite rose 0.5% to 3,402.97. Australia's S&P/ASX 200 edged up 0.2% to 8,603.70. South Korea's Kospi added 1.0% to 2,900.05. Tuesday on Wall Street, the S&P 500 rose 0.5% to 6,038.81 as the trade talks between the world's two largest economies carried into a second day. The Dow Jones Industrial Average added 0.2% to 42,866.87, and the Nasdaq composite gained 0.6% to 19,714.99. Stocks have roared higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of tariffs that were so stiff that they raised worries about a possible recession. Much of the rally has been due to hopes that Trump would lower his tariffs after reaching trade deals with countries around the world, and the S&P 500 is back within 1.7% of its record set in February. Analysts said that after two days of discussion in London, the late-night agreement reached appeared to be a consensus on what was already agreed upon before. Even so, Trump's approval is still needed. 'So what did 48 hours of talks actually produce? Apparently, a reaffirmation to eventually do what they had already said they would do. If markets were expecting substance, they got process instead,' said Stephen Innes, managing partner at SPI Asset Management. U.S. Secretary of Commerce Howard Lutnick said Tuesday evening in London that talks with China were going 'really, really well.' Both the United States and China have put many of their tariffs on each other's exports on pause as talks continue. Still, uncertainty over what is to come is still affecting companies and their ability to make profits. Designer Brands, the company behind the DSW shoe store chain, became the latest U.S. company to yank its financial forecasts for 2025 because of 'uncertainty stemming primarily from global trade policies.' The company, which also owns the Keds, Jessica Simpson and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short of forecasts. CEO Doug Howe pointed to 'persistent instability and pressure on consumer discretionary' spending, and the company's stock tumbled 18.2%. The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small U.S. businesses improved a bit in May. 'While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,' according to Bill Dunkelberg, chief economist at the National Federation of Independent Business. Tesla helped to make up for such losses by rising 5.7%. The electric vehicle company has been recovering since tumbling last week as Elon Musk's relationship with Trump imploded. That raised fear about possible retaliation by the U.S. government against Tesla. Shares that trade in the United States of chipmaking giant Taiwan Semiconductor Manufacturing Co. rose 2.6% after the company known as TSMC said its revenue in May jumped nearly 40% from the year earlier. In other dealings early Wednesday, the yield on the 10-year Treasury eased to 4.48% from 4.47% late Tuesday. Benchmark U.S. crude oil gained 8 cents to US$65.06 a barrel. Brent crude, the international standard, edged up 2 cents to $66.89 a barrel. The U.S. dollar rose to 145.08 Japanese yen from 144.84 yen. The euro cost $1.1418, down from $1.1425. Yuri Kageyama, The Associated Press
Globe and Mail
an hour ago
- Globe and Mail
Why I Just Bought This Badly Beaten-Down, 6.6%-Yielding Dividend Stock and Plan to Buy Even More
UPS (NYSE: UPS) has struggled in recent quarters due to a challenging market environment and other issues. Tariffs, slowing economic growth, and low margins on volumes from its largest customer, Amazon (NASDAQ: AMZN), have impacted the leading global logistics company's revenue and cash flow, which has, in turn, weighed on its share price. Shares are down more than 50% from their peak a few years ago. That slump has driven its dividend yield up to 6.6%. For an income-focused investor like myself, UPS' big-time dividend yield is very appealing. However, that's not the main reason I'm buying shares of the beaten-down logistics giant. I think this leader can turn things around, which should boost its financial results and share price. That would also hopefully put its high-yielding payout on a more sustainable level. I think the company's combination of income and upside potential could add up to a robust total return in the coming years as UPS executes its turnaround plan. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Concerning numbers UPS is facing a barrage of headwinds. Tariffs have created a lot of uncertainty, which has impacted shipping volumes. The company's revenue declined by 0.7% in the first quarter to $21.5 billion. While its earnings increased by 4.2% per share, free cash flow was only $1.5 billion. That was barely enough to cover its dividend payment of $1.3 billion in the quarter. The company also had a fairly tight dividend payout ratio last year ($6.2 billion in free cash flow after capital expenses versus $5.4 billion in dividend payments). A big issue is a decline in the company's profit margin. Its non-GAAP operating margin slumped from 10.9% in 2023 to 9.8% last year. It was down to just 8.2% in 2025's Q1, though that was a slight improvement from 8.2% in Q1 2024. The company experienced a decline in shipping volumes in its U.S. domestic business and weakness in its supply chain-solutions operations, with the latter due partially to the sale of Coyote Logistics last year. Shrinking to grow One issue plaguing UPS is its relationship with Amazon. CEO Carol Tome commented on the company's relationship with the e-commerce giant earlier this year: "Amazon is our largest customer, but it's not our most profitable customer. Its margin is very dilutive to the U.S. domestic business." That's leading the company to significantly reduce its relationship with the e-commerce giant. It plans to cut its shipping volume by over 50% by next June. It's cutting back on its least profitable business with Amazon, which is lighter deliveries that travel short distances. It plans to keep its more profitable volumes, which include returns and heavier packages shipped longer distances. The company is undertaking a large-scale, cost-reduction initiative as part of that volume reduction. It aims to cut $3.5 billion in costs this year by reducing operational hours, headcount, and facilities. Meanwhile, the company plans to focus on growing other, more profitable business lines that are unrelated to Amazon. These volumes include healthcare logistics and those from small and mid-sized businesses. It has been beefing up its healthcare logistics platform via acquisitions. Last year, it bought Frigo-Trans and BPL to bolster its healthcare logistics capabilities in Europe. Meanwhile, it recently agreed to buy Andlauer Healthcare Group for $1.6 billion to strengthen its ability to offer complex healthcare logistics solutions to customers. The company expects a combination of lower overall volumes related to Amazon, increased revenue per piece elsewhere, lower costs, and lower capital expenses to yield increased returns, higher margins, and more free cash flow. The company's capital-spending plan is around $3.5 billion this year, down from $3.9 billion last year. That $400 million in savings will give it more financial flexibility as it engineers its turnaround plan. Meanwhile, the company entered this year with a strong financial position. Last year, it paid off $3.8 billion of debt, lowering its leverage ratio to 2.25 times. The company's strong financial position gave it the confidence to buy back $1 billion of its stock in the first quarter of this year as it capitalized on the decline in its share price to complete its entire 2025 buyback plan. UPS also raised its dividend earlier this year. It has either maintained or increased its payout every year since going public in 1999. Income plus significant upside potential UPS looks like a unique investment opportunity these days. It pays a high-yielding dividend that the global logistics giant should be able to maintain during its turnaround phase. On top of that, it has significant upside potential as it executes its strategy to reduce lower-margin volumes while growing its more profitable volumes. That has me excited to add the stock to my portfolio. While it's a higher-risk, high-yielding dividend stock, its total return potential is too compelling to pass up. I'm starting with a small position, and I plan to add to it over time. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
2 hours ago
- Globe and Mail
This Artificial Intelligence (AI) Stock Is Up 53% in 2025. Here's How It Could Keep Soaring.
The first half of 2025 has been a topsy-turvy period for the overall stock market. Rising profits driven by the artificial intelligence (AI) revolution have pushed the market up, while fear of an escalating trade war keeps pulling it back down. When the market opened on June 9, the benchmark S&P 500 index was up by just 2% from where it started the year. As an education platform that lives on our smartphones, Duolingo (NASDAQ: DUOL) doesn't have to pay taxes on imported goods. Knowing this, markets have pushed the stock up by a whopping 53% in 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Savvy investors know that high-flying stocks have a dangerous tendency to come crashing back down. To see why Duolingo stock could keep soaring, let's look at what's been driving it higher. Accelerating profits Duolingo's free-to-use education app grew daily active users by 49% year over year to reach 46.6 million during the first three months of 2025. That is a lot of daily users for a company that employed just 830 people at the end of 2024. Duolingo isn't the first language education application to gain lots of popularity, but it's the first I've seen that consistently grows sales faster than marketing expenses. First-quarter revenue grew 38% year over year to $231 million. Over the same time frame, sales and marketing expenses rose just 34% to a reasonable $26.7 million. In the first quarter, total operating expenses rose just 33% year over year to $140 million. With its top line growing faster than expenses, first-quarter operating income surged 44% year over year to $23.6 million. DUOL Revenue (Quarterly) data by YCharts Duolingo's operating profit margin rose to 10.2% in the first quarter and could expand much further. It isn't unusual to see software subscription businesses with few employees and asset-light business models boast of operating margins above 20%, such as Veeva Systems. Some software businesses, like Adobe, regularly report operating margins above 30%. Now that Duolingo has an enormous base of more than 10 million paying subscribers, it's not unreasonable to expect rapidly expanding profits over the next few years. The AI tools driving growth Duolingo's most expensive subscription tier, called Max, offers some unique AI driven features that could keep its growing subscriber base locked in for the long run. The flagship video call feature allows learners to chat out loud with a bot named Lily. Soon, subscribers to the top tier will be able to review past conversations and receive voice messages from Lily. Video calls could do a lot to expand Duolingo's user base to folks who are not attracted to its gamified learning approach. It's anecdotal, but I would like to practice the foreign language I already speak fluently when I'm not in the target language country. Duolingo's gamified lessons make me nauseous, but I'd still consider a Max subscription if my target language, Thai, were available. In addition to video calls with Lily, Duolingo Max subscribers also have access to the company's Explain My Answer feature, which provides personalized feedback to answers they provide during lessons, whether the answers were right or wrong. Max subscribers also get to roleplay real-world conversations, such as ordering coffee in Paris. Why it's not too late At a glance, Duolingo shares appear wildly overvalued at a recent price of 249 times trailing 12-month earnings. I'm going to go out on a limb and suggest the stock is still at a reasonable valuation once you consider the potential pace of earnings growth over the next few years. DUOL PEG Ratio (Forward) data by YCharts Duolingo stock appears undervalued if we look at its forward price-to-earnings-growth or PEG ratio. This metric divides the trailing PE ratio by the rate of earnings-per-share growth expected by Wall Street in the year ahead. With a recent forward PEG ratio of 0.38, this stock's seemingly high valuation is more than justified by projected earnings growth. Before plowing more of your available cash into Duolingo stock, it's important to remember that expectations are sky high. If management puts out a quarterly earnings report that mildly suggests earnings growth could decelerate, investors who buy at recent prices could suffer swift and heavy losses. If you can't handle this high degree of risk, it's best to wait for a more attractive entry point. Should you invest $1,000 in Duolingo right now? Before you buy stock in Duolingo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Duolingo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
