Short Report: Rocket Companies short interest at record high
Welcome to this week's installment of 'The Short Interest Report' – The Fly's weekly recap of short interest trends among some of the most widely followed high-short-float stocks. Using the data from our partner Ortex.com, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this report will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios while also considering the short interest data on some of the more volatile and heavier-traded names of the week. Based on the availability of data from Ortex, the report tracks the trading period that covers prior Friday through Thursday of this week, excluding holidays. As a basis of comparison for stocks discussed below, the S&P 500 index was up 2.7%, the Nasdaq Composite was up 3.2%, the Russell 2000 index was up 2.8%, the Russell 2000 Growth ETF (IWO) was up 2.9%, and the Russell 2000 Value ETF (IWN) was up 2.7% in the five-day trading session range through June 26.
Don't Miss TipRanks' Half Year Sale
Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
SHORT INTEREST GAINERS
Ortex-reported short interest in Rocket Companies (RKT) resumed its climb this week after taking a brief pause last week as shortsellers are becoming increasingly more emboldened by the cracks in the housing market amid steadily rising inventories. Shorts as a percentage of free float reached a record high of 55.3% in the first week of June, pulled back to 48%, but this week, the short interest hit new record highs of 55.8%. With rising volume, days to cover on the name was up by a much more modest increment – from 8.0 to 8.1. The stock has rebounded from its early-May lows by 30%, while year-to-date, Rocket is up 26%. In the five-day period covered, shares were up 5%.
Ortex-reported short interest on Dave & Busters (PLAY) bounced from 25.5% level on June 23rd just as it did before on June 9, though the extent of bearish appetite was notably greater. Shorts as a percentage of free float on the stock for the week rose from 28.7% all the way to 34.4% – a six-week high. Meanwhile, with strong volume responding to the company's impressive Q1 earnings beat on June 10th, days-to-cover on the name was down from 6.3 to 5.8. In the five-day period covered, Dave & Busters has come off about 5%, though shares have still doubled from early April lows.
Since September of last year, Ortex-reported short interest on Mara Holdings (MARA) has seen its peaks correlate with major upward inflections and its trough with downward inflections in the stock price, making this week's large jump in bearish expression somewhat suspicious. Shorts as a percentage of free float rose from 24.8% to 28.5%, though days to cover on the name was little changed at 4.4, which tracks with an increase in trading volume amid heightened volatility in the crypto-verse. In the five-day period covered, Mara shares are up 5.4%, though year-to-date, the stock is down 10.4%.
Ortex-reported short interest in Madrigal Pharmaceuticals had troughed at a 10-month of 31% on June 13th but saw a spike this week from 31.3% to 38.4% – a five-week high. Days to cover on the stock remained unchanged around 6.1 amid an increase in trading volume, especially over the past two days. With no news catalysts, the stock was up about 6% in the five-day period covered through Thursday, though year-to-date, shares are still down by 2.5%.
Souring sentiment on EVs has sent shares of charging infrastructure play EVgo (EVGO) to 9-month lows as recently as March, though the stock has been trading with more conviction over the past three months, sending some of the bears to the exits. This week, shorts as a percentage of free float on EVgo fell particularly steeply, slipping from 23.6% to 20.2%. The sharp decline also matches exchange-reported data, which saw a drop of over four percentage points to 20.5%. The stock was down 9% in the five-day period covered but remains higher by 72% from its March lows and now trades down just 8% year-to-date.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Stock market today: Dow, S&P 500 and Nasdaq futures rise as trade deal hopes lift stocks toward more records
US stock futures climbed on Monday amid signs of progress in trade talks, setting up the major indexes for more all-time highs to end one of the most volatile first halves of a year in recent memory. Dow Jones Industrial Average futures (YM=F) rose 0.5%. Contracts on the S&P 500 (ES=F) also gained roughly 0.5%, while those on the tech-heavy Nasdaq 100 (NQ=F) jumped 0.7%. Stocks are poised to start a holiday-shorted week on a high note, fueled in part by easing fears of a global trade war. On Friday, all three major indexes closed higher, with the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) reaching new record highs for the first time since February — the start of the year's tariff-fueled stock swings. Canada scrapped its digital services tax targeting US technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations. A late-Friday dip in stocks was triggered by Trump's abrupt halt to talks with Canada, citing its digital tax policy. A July 9 deadline looms before the possible resumption of Trump's unilateral tariffs, which Trump on Sunday said he didn't think he'd "need to" extend. India has extended its Washington visit to finalize a deal, and Trump administration officials last week confirmed a trade framework with China was in place, bolstering investor sentiment. Meanwhile, market watchers are closely following Senate negotiations over Trump's proposed $4.5 trillion tax cut bill, as Republican leaders race to persuade party holdouts to back the legislation. The Congressional Budget Office estimates it would add $3.3 trillion to the deficit over a decade, as it stands. The Senate is set to vote on dozens of amendments in a marathon session on Monday. Markets will close at 1 p.m. on Thursday and remain shut on Friday for the Fourth of July. Yahoo Finance's Allie Canal reports: Read more here. Earnings: No notable earnings releases. Economic data: MNI Chicago PMI (June); Dallas Fed manufacturing activity Here are some of the biggest stories you may have missed overnight and early this morning: Warring GOP puts Trump tax bill to marathon Senate vote today Canada scraps digital services tax that Trump slammed Disney's stock has bagged a Jeffries upgrade — here's why Week ahead: Crucial jobs report looms with stocks at records Trump: TikTok buyer group found, needs China's OK Bitcoin soars, altcoins fade in $300 billion crypto shakeout China's economy shows surprising signs of strength Yahoo Finance's Josh Schafer lays out what investors should know about the week ahead: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Hewlett Packard Enterprise Company (HPE) stock rose 6% in premarket trading on Monday following the news that HPE and Juniper Networks have reached an agreement with the US Department of Justice that it will not challenge HPE's acquisition of Juniper. Palantir (PLTR) stock rose 5% before the bell and are trading at an all-time high, up 90% this year. Yahoo Finance Anchor Julie Hyman recently broke down the stock's history on a episode of Market Domination Overtime: Juniper Networks, Inc. (JNPR) stock rose 8% premarket after the DOJ said it would not pursue an investigation into HPE's acquisition of Juniper. As earning season approaches, Goldman Sachs (GS) said on Monday that US profit margins will be tested as investors await to see how President Trump's war has hurt companies. Goldman's David Kostin said Q2 earnings will show the immediate impact of tariffs, which have risen about 10% this year. Most costs will be passed on to consumers, but margins will suffer if firms absorb more than expected. Early results are mixed: General Mills (GIS) stock fell 5% last week due to a weak forecast and tariff warning, while Nike (NKE) rose 15% after announcing it will offset higher duties. Bloomberg News reports: Read more here. European stocks outperformed their US peers by the biggest margin on record in dollar terms during the first half. It's a dramatic sign of how the region's markets are staging a comeback after more than a decade in the doldrums. Bloomberg reports: Read more here. Canada has scrapped its planned digital services tax on US tech firms late on Sunday, just hours before it was due to come into effect. The move aims to revive stalled trade talks with the US, which President Trump suddenly halted on Friday over the tax, calling it a "blatant attack" on American tech companies. US stock futures rose as investors welcomed the news. Benchmark stock indexes in Tokyo and Shanghai also moved higher amid optimism that the US and its top trading partners can hammer out trade deals. Prime Minister Mark Carney and Trump now plan to reach a deal by July 21, Canada's finance ministry said. Trump warned on Friday that he would set new tariffs on Canadian goods within a week, risking fresh tension between the two countries. The White House has set a July 9 deadline for trading partners to broker deals with the US over the sweeping 'reciprocal' tariff rates announced in early April. The 3% tech tax would have hit firms like Apple (AAPL), Google (GOOG), and Amazon (AMZN) starting on Monday. Canada will now bring forward legislation to cancel the tax. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," a statement from the Canadian finance ministry said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Oil prices fell overnight Sunday as global markets adjusted to the easing of tensions in the Middle East, in combination with a commitment from OPEC+ to increase supply in August. Reuters reports: Read more here. Yahoo Finance's Allie Canal reports: Read more here. Earnings: No notable earnings releases. Economic data: MNI Chicago PMI (June); Dallas Fed manufacturing activity Here are some of the biggest stories you may have missed overnight and early this morning: Warring GOP puts Trump tax bill to marathon Senate vote today Canada scraps digital services tax that Trump slammed Disney's stock has bagged a Jeffries upgrade — here's why Week ahead: Crucial jobs report looms with stocks at records Trump: TikTok buyer group found, needs China's OK Bitcoin soars, altcoins fade in $300 billion crypto shakeout China's economy shows surprising signs of strength Yahoo Finance's Josh Schafer lays out what investors should know about the week ahead: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Hewlett Packard Enterprise Company (HPE) stock rose 6% in premarket trading on Monday following the news that HPE and Juniper Networks have reached an agreement with the US Department of Justice that it will not challenge HPE's acquisition of Juniper. Palantir (PLTR) stock rose 5% before the bell and are trading at an all-time high, up 90% this year. Yahoo Finance Anchor Julie Hyman recently broke down the stock's history on a episode of Market Domination Overtime: Juniper Networks, Inc. (JNPR) stock rose 8% premarket after the DOJ said it would not pursue an investigation into HPE's acquisition of Juniper. As earning season approaches, Goldman Sachs (GS) said on Monday that US profit margins will be tested as investors await to see how President Trump's war has hurt companies. Goldman's David Kostin said Q2 earnings will show the immediate impact of tariffs, which have risen about 10% this year. Most costs will be passed on to consumers, but margins will suffer if firms absorb more than expected. Early results are mixed: General Mills (GIS) stock fell 5% last week due to a weak forecast and tariff warning, while Nike (NKE) rose 15% after announcing it will offset higher duties. Bloomberg News reports: Read more here. European stocks outperformed their US peers by the biggest margin on record in dollar terms during the first half. It's a dramatic sign of how the region's markets are staging a comeback after more than a decade in the doldrums. Bloomberg reports: Read more here. Canada has scrapped its planned digital services tax on US tech firms late on Sunday, just hours before it was due to come into effect. The move aims to revive stalled trade talks with the US, which President Trump suddenly halted on Friday over the tax, calling it a "blatant attack" on American tech companies. US stock futures rose as investors welcomed the news. Benchmark stock indexes in Tokyo and Shanghai also moved higher amid optimism that the US and its top trading partners can hammer out trade deals. Prime Minister Mark Carney and Trump now plan to reach a deal by July 21, Canada's finance ministry said. Trump warned on Friday that he would set new tariffs on Canadian goods within a week, risking fresh tension between the two countries. The White House has set a July 9 deadline for trading partners to broker deals with the US over the sweeping 'reciprocal' tariff rates announced in early April. The 3% tech tax would have hit firms like Apple (AAPL), Google (GOOG), and Amazon (AMZN) starting on Monday. Canada will now bring forward legislation to cancel the tax. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," a statement from the Canadian finance ministry said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Oil prices fell overnight Sunday as global markets adjusted to the easing of tensions in the Middle East, in combination with a commitment from OPEC+ to increase supply in August. Reuters reports: Read more here.
Miami Herald
25 minutes ago
- Miami Herald
Cathie Wood buys $20.7 million of surging tech stock
Cathie Wood, head of Ark Investment Management, is doubling down on tech momentum. She often targets companies she believes have "disruptive" impacts on the future, and she's been especially vocal about artificial intelligence being a key force in markets today. This week, she poured more money into a tech stock that's been surging, partly driven by its growing use of AI tools to boost efficiency and growth. Wood's funds have experienced a volatile ride this year, swinging from sharp losses to strong gains. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter In January and February, the Ark funds rallied as investors bet on the Trump administration's potential deregulation that could benefit Wood's tech bets. But the momentum faded in March and April, with the funds trailing the market as top holdings - especially Tesla, her biggest position - struggled amid growing concerns over the macroeconomy and trade policies. Now, the fund is regaining momentum. As of June 20, the flagship Ark Innovation ETF (ARKK) is up more than 21% year-to-date, far outpacing the S&P 500's 5% gain. Wood's remarkable return of 153% in 2020 helped build her reputation and attract loyal investors. Her strategy can lead to sharp gains during bull markets but also painful losses, like in 2022, when ARKK dropped more than 60%. As of June 27, Ark Innovation ETF, with $5.5 billion under management, has delivered a five-year annualized return of 0.75%. The S&P 500 has an annualized return of 17.22% over the same period. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. According to Wood, these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values. Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood recently said the U.S. is coming out of a three-year "rolling recession" and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech stocks. "During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. But not all investors echo this optimism. Over the past 12 months through June 26, the Ark Innovation ETF saw $2.1 billion in net outflows, with $231.4 million exiting the fund in the past month, according to ETF research firm VettaFi. From June 23 to 25, Wood's Ark funds bought 182,545 shares of Shopify Inc. (SHOP) . That chunk of stocks is worth $20.7 million as of June 27's close. Shopify is an Ottawa e-commerce platform provider that enables businesses to set up online stores. The stock peaked at $169 in November 2021, a surge during the Covid era when demand for e-commerce soared because of lockdowns. But it tumbled hard in 2022 as pandemic-fueled online shopping growth slowed and macroeconomic pressures increased. At one point in 2022, it traded for less than $30. Related: Cathie Wood buys $31.8 million of surging AI stock Earlier this year, Shopify had tumbled in a broad-based market sell-off associated with uncertainty and fear around Trump's trade tariffs. Now the stock is regaining traction, up 48% from its April low. In the past five trading days, the stock surged 6.8%. Wall Street analysts expect the company to maintain strong growth. In May, Shopify reported first-quarter revenue of $2.4 billion, up 27% from a year earlier. It was the eighth quarter in a row with revenue growth above 25%. Meanwhile, gross merchandise value (GMV) for the quarter rose 23%, slower than revenue. That suggests Shopify's services segment is expanding faster than its core business, potentially boosting profit margins, Chris MacDonald wrote on The Motley Fool. DA Davidson analyst Gil Luria recently raised Shopify's stock price target to $125 from $115 and kept a buy rating, reported on June 16. The firm looked into Shopify's merchant base and found that year-over-year growth has picked up. It also believes the business is proving more resilient than investors had expected. Shopify joined Nasdaq-100 Index starting May 19, replacing MongoDB (MDB) . In the same month, Shopify unveiled new AI tools that can help businesses to start and grow. "The Shopify Catalog lets select partners build AI shopping agents that can discover and showcase your products to millions of potential customers who are using conversational AI to shop," the company wrote. Fund manager buys and sells TheStreet Stocks & Markets Podcast #8: Common Sense Investing With David MillerVeteran fund manager reboots Palantir stock price targetCathie Wood sells $9.5 million of popular AI stocks after big rally Wells Fargo also raised its price target on Shopify to $125 from $107 and maintained its overweight rating after the AI announcement. The firm sees Shopify's AI tools as differentiated and believes they could become a key driver of growth and efficiency in the coming years. Shopify makes up about 4.59% of the ARK Innovation ETF, making it the fund's ninth-largest holding. The stock closed at $113.65 on June 27, up 6.5% year-to-date. Related: Top analyst sends bold message on S&P 500 The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28 minutes ago
- Yahoo
Stocks Set to Open Higher Amid Trade Progress, U.S. Jobs Data and Powell's Remarks Awaited
September S&P 500 E-Mini futures (ESU25) are up +0.47%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.70% this morning, pointing to a higher open on Wall Street amid optimism over progress in trade negotiations between the U.S. and key partners. Japan's top trade negotiator, Ryosei Akazawa, extended his stay in the U.S. for further talks, stating that negotiations have reached 'a critical juncture.' Also, Bloomberg reported that India's trade delegation prolonged its stay in Washington to iron out differences as both sides aim to finalize a deal ahead of the July 9th deadline. In addition, Canada withdrew its digital services tax on tech firms in an effort to restart trade negotiations with the U.S. Taiwan also said it has made 'constructive progress' during a second round of trade negotiations with the U.S. Finally, French Finance Minister Eric Lombard stated that the European Union could reach some type of trade deal with the U.S. ahead of the July 9th deadline. This week, investors look ahead to remarks from Federal Reserve Chair Jerome Powell and a raft of U.S. economic data, with a particular focus on the nonfarm payrolls report. In Friday's trading session, Wall Street's major equity averages ended in the green, with the S&P 500 and Nasdaq 100 notching new all-time highs. Nike (NKE) surged over +15% and was the top percentage gainer on the S&P 500 and Dow after the sportswear company posted better-than-expected FQ4 results and said it expects the decline in sales and margins to ease in the current quarter. Also, Boeing (BA) climbed more than +5% after Redburn upgraded the stock to Buy from Neutral with a price target of $275. In addition, Alphabet (GOOGL) rose over +2% after Citizens JMP upgraded the stock to Outperform from Market Perform with a price target of $220. On the bearish side, Palantir Technologies (PLTR) slumped more than -9% and was the top percentage loser on the S&P 500 and Nasdaq 100 after Canada announced a tax on digital business from the U.S. Data from the U.S. Department of Commerce released on Friday showed that the core PCE price index, a key inflation gauge monitored by the Fed, came in at +0.2% m/m and +2.7% y/y in May, stronger than expectations of +0.1% m/m and +2.6% y/y. Also, U.S. May personal spending unexpectedly fell -0.1% m/m, weaker than expectations of +0.1% m/m, and personal income unexpectedly fell -0.4% m/m, weaker than expectations of +0.3% m/m. At the same time, the University of Michigan's U.S. June consumer sentiment index was unexpectedly revised higher to 60.7, stronger than expectations of 60.4. Minneapolis Fed President Neel Kashkari said on Friday that he expects two 25-basis-point rate cuts to be likely this year, with the first possibly coming in September, but cautioned that tariffs could have a lagging effect on inflation and that officials should remain flexible. U.S. rate futures have priced in a 78.8% probability of no rate change and a 21.2% chance of a 25 basis point rate cut at the next FOMC meeting in July. In this holiday-shortened week, the U.S. June Nonfarm Payrolls report will be the main highlight, as signs of a weak labor market could bolster expectations that the Federal Reserve could lower interest rates sooner. The report is released on Thursday this month due to the U.S. Independence Day holiday falling on Friday. Ahead of the key jobs report, investors will monitor JOLTs job openings data for May on Tuesday and ADP private payrolls figures for June on Wednesday for further insights into the health of the U.S. job market. Other noteworthy data releases include the U.S. ISM Manufacturing PMI, the S&P Global Manufacturing PMI, Construction Spending, Average Hourly Earnings, Initial Jobless Claims, Trade Balance, the Unemployment Rate, the S&P Global Composite PMI, the S&P Global Services PMI, Factory Orders, and the ISM Non-Manufacturing PMI. 'The Fed would likely need to see clearer evidence of softness in the form of subdued payrolls growth and a rising unemployment rate to trigger an early move,' ING chief international economist James Knightley said in a note. Market watchers will also be focused on remarks from Fed Chair Jerome Powell, who is set to participate in the European Central Bank's annual forum in Sintra, Portugal, this week. Mr. Powell will speak on a panel alongside his counterparts from the Eurozone, Japan, South Korea, and the U.K. In addition, President Trump's 'One Big Beautiful Bill' will be in the spotlight. Negotiations over Trump's tax-cut bill are ongoing as Republicans work to persuade remaining holdouts to back it for final passage. The president has demanded that Congress send him the bill by July 4th. The House also needs to vote on the latest version of the legislation before it can be sent to the White House for Trump's signature. Meanwhile, the U.S. stock markets will close early at 1 p.m. Eastern Time on Thursday and remain closed on Friday for the Independence Day holiday. Today, investors will focus on the U.S. Chicago PMI, which is set to be released in a couple of hours. Economists, on average, forecast that the Chicago PMI will stand at 42.7 in June, compared to the previous value of 40.5. Also, market participants will be anticipating speeches from Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.254%, down -0.09%. The Euro Stoxx 50 Index is down -0.24% this morning, giving up earlier gains and halting a tentative rally that had been driven by trade optimism. Bank stocks lost ground on Monday, while defense stocks outperformed. Data from the Office for National Statistics released on Monday showed that Britain's economy expanded 0.7% in the first quarter, confirming a preliminary estimate. Separately, data from the Federal Statistical Office showed that Germany's monthly retail sales unexpectedly fell in May, dampening expectations for solid growth in the second quarter for Europe's largest economy. In addition, preliminary data showed that Italy's annual inflation rate rose to 1.7% in June from 1.6% in the previous month. Investors now await preliminary inflation data from Germany due later in the session. Meanwhile, the U.K. government announced on Monday that the trade agreement lowering U.S. tariffs on British cars and aircraft parts has officially taken effect. Also, French Finance Minister Eric Lombard stated that the European Union could reach some type of trade deal with the U.S. ahead of the July 9th deadline. In other news, data from the European Central Bank showed that lending growth across the Eurozone was largely unchanged in May, suggesting that the support from the central bank's series of rate cuts was offset by deteriorating economic sentiment. In corporate news, STMicroelectronics ( rose over +2% after JPMorgan added the chipmaker to its positive catalyst watch. U.K. GDP, Germany's Retail Sales, and Italy's CPI (preliminary) data were released today. U.K. GDP has been reported at +0.7% q/q and +1.3% y/y in the first quarter, in line with expectations. The German May Retail Sales arrived at -1.6% m/m and +1.6% y/y, weaker than expectations of +0.5% m/m and +3.3% y/y. The Italian June CPI came in at +0.2% m/m and +1.7% y/y, compared to expectations of +0.1% m/m and +1.7% y/y. Asian stock markets today settled in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.59%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.84%. China's Shanghai Composite Index closed higher today, boosted by defense and chip stocks, while investors digested the latest PMI data from the country. Data from the National Bureau of Statistics released on Monday showed that China's manufacturing activity contracted for the third consecutive month in June, albeit at a slower rate, as trade tensions with the U.S. continued to pressure the world's second-largest economy. The reading came on the heels of a series of data indicating that China's economy lost some momentum in May, weighed down by the remaining U.S. tariffs on Chinese goods despite the trade truce. At the same time, an official survey revealed that China's non-manufacturing PMI, covering both service and construction activity, grew to a 3-month high in June. Meanwhile, economists say Chinese policymakers appear content with the economy's performance so far this year. Chinese Premier Li Qiang said last week that economic indicators continued to improve in the second quarter despite external challenges. Also, the People's Bank of China issued a more upbeat assessment of the economy following its latest policy meeting, stating that it is displaying positive momentum and that confidence is improving. However, with deflationary pressures persisting and the labor market under stress, analysts are debating whether officials will introduce new measures to support growth over the next three months. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said, 'The Politburo meeting later this month will shed light on how the policymakers think about these macro issues.' The Chinese June Manufacturing PMI came in at 49.7, stronger than expectations of 49.6. The Chinese June Non-Manufacturing PMI stood at 50.5, stronger than expectations of 50.3. Japan's Nikkei 225 Stock Index closed higher and hit a more than 11-month high today, tracking Friday's gains on Wall Street. Technology and internet-related stocks outperformed on Monday. At the same time, automobile stocks slumped after U.S. President Donald Trump stated in a Sunday interview that Japan engages in 'unfair' automobile trade with the U.S. Trump said that Japan should boost its imports of U.S. energy resources and other products to help narrow the U.S. trade deficit. Meanwhile, government data released on Monday showed that Japanese factory output rebounded much less than expected in May, as sweeping U.S. tariffs threatened to undermine the country's already fragile economic recovery. Output is expected to weaken in the months ahead as Trump's tariffs weigh on exports and Japanese companies grow more cautious about their capital spending. Japan's top trade negotiator, Ryosei Akazawa, said in a social media post on Monday that both countries have agreed to continue trade talks and that negotiations have reached 'a critical juncture.' Still, many analysts believe it will be difficult for Japan to secure a full exemption from U.S. tariffs. In other news, a private think tank survey revealed on Monday that Japanese households will see no relief from rising living costs, with the number of food items expected to see price hikes in July projected to surge fivefold. Despite persistent inflationary pressures, many analysts anticipate that the Bank of Japan will keep monetary policy steady for the remainder of the year amid tariff concerns. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +5.58% to 24.59. The Japanese May Industrial Production (preliminary) arrived at +0.5% m/m, weaker than expectations of +3.4% m/m. The Japanese May Housing Starts tumbled -34.4% y/y, weaker than expectations of -15.0% y/y. Pre-Market U.S. Stock Movers Juniper Networks (JNPR) climbed over +8% in pre-market trading after the Justice Department settled a lawsuit opposing Hewlett Packard Enterprise's $14 billion acquisition of the company. Oracle (ORCL) rose more than +1% in pre-market trading after Stifel upgraded the stock to Buy from Hold with a price target of $250. Enphase Energy (ENPH) fell over -3% in pre-market trading after the Senate's latest version of the tax-and-spending bill included a provision to phase out tax credits for large-scale wind and solar projects by the end of 2027. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Monday - June 30th Progress (PRGS), IGC Pharma (IGC). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
