Stocks Post Modest Gains on Signs of Progress in US-China Trade Talks
The S&P 500 Index ($SPX) (SPY) Monday closed up +0.09%, the Dow Jones Industrials Index ($DOWI) (DIA) closed unchanged, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.17%. June E-mini S&P futures (ESM25) are up +0.03%, and June E-mini Nasdaq futures (NQM25) are up +0.07%.
Stock indexes on Monday settled slightly higher, with the S&P 500 posting a 3-1/2 month high. Signs of progress in the US-China trade talks pushed stock prices higher on Monday after trade negotiators for both countries agreed to meet again on Tuesday. Gains in stocks accelerated on Monday when Kevin Hassett, head of the National Economic Council, said the US is willing to remove restrictions on some tech exports to China for assurances that China will ease limits on rare earth shipments.
M&A activity is supportive of stocks after Qualcomm on Monday agreed to buy Alphawave IP Group Plc for about $2.4 billion. Also, IonQ agreed to buy Oxford Ionics in a deal valued at $1.075 billion. Lower bond yields also boosted stocks as the 10-year T-note yield on Monday fell -2 bp to 4.48%.
China's trade report was weaker than expectations and was bearish for global growth prospects. China's May exports rose +4.8% y/y, weaker than expectations of +6.0% y/y. Also, May imports fell -3.4% y/y, weaker than expectations of -0.8% y/y.
The markets this week will focus on any fresh tariff news and the US-China trade negotiations. On Wednesday, May CPI is expected to tick up to +2.5% y/y from +2.3% y/y in April, and May CPI ex-food and energy is expected to increase to +2.9% y/y from +2.8% y/y in April. On Thursday, weekly initial unemployment claims are expected to fall -6,000 to 241,000. Also, the May final-demand PPI is expected to increase to +2.6% y/y from +2.4% y/y in April, while May PPI ex-food and energy is expected to remain unchanged from April at +3.1% y/y. On Friday, the preliminary June University of Michigan US consumer sentiment index is expected to climb +1.3 to 53.5.
The markets are discounting the chances at 0% for a -25 bp rate cut at the next FOMC meeting on June 17-18.
Overseas stock markets on Monday settled mixed. The Euro Stoxx 50 closed down -0.16%. China's Shanghai Composite rose to a 3-week high and closed up +0.43%. Japan's Nikkei Stock 225 climbed to a 1-week high and closed up +0.92%.
Interest Rates
September 10-year T-notes (ZNU2 5) Monday closed up +8 ticks. The 10-year T-note yield rose +0.2 bp to 4.508%. Sep T-notes Monday recovered early losses and settled higher on optimism that progress was being made in US-China trade talks, which could lead to lower tariffs and reduced inflation concerns. T-note prices also saw some support from the weaker-than-expected Chinese trade report, which was negative for global economic growth.
T-notes on Monday initially moved lower, and the 10-year T-note yield rose to a 1-week high of 4.516%. T-notes were under early pressure on Monday after the price of WTI crude oil rallied to a 2-1/4 month high, boosting inflation expectations. Also, supply pressures weighed on T-notes as the Treasury will auction $58 billion of 3-year T-notes on Tuesday as part of this week's $119 billion auction schedule of T-notes and T-bonds.
European government bond yields today are moving higher. The 10-year German bund yield fell -0.9 bp to 2.567%. The 10-year UK gilt yield fell -1.2 bp to 4.632%.
ECB Governing Council member Kazimir said the ECB is nearly, if not already, at the end of its interest rate cut cycle.
Swaps are discounting the chances at 13% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
Strength in chip stocks on Monday supported the broader market. Advanced Micro Devices (AMD), ARM Holdings Plc (ARM), Qualcomm (QCOM), and ON Semiconductor (ON) closed up more than +4%. Also, Texas Instruments (TXN) closed up more than +3%. In addition, Intel (INTC), KLA Corp (KLAC), ASML Holding NV (ASML), Micron Technology (MU), and NXP Semiconductors NV (NXPI) closed up more than +2%.
Goodyear Tire & Rubber (GT) closed up more than +10% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $15.
Etoro Group Ltd (ETOR) closed up more than +10% after Mizuho Securities initiated coverage on the stock with a recommendation of outperform and a price target of $80.
Steven Madden Ltd (SHOO) closed up more than +4% after Williams Trading LLC upgraded the stock to buy from hold with a price target of $31.
ABM Industries (ABM) closed up more than +3% after Baird upgraded the stock to outperform from neutral with a price target of $56.
IonQ (IONQ) closed up more than +2% after agreeing to buy Oxford Ionics in a deal valued at $1.075 billion.
Synopsys (SNPS) and Cadence Design Systems (CDNS) closed up more than +1% after DigiTimes reported that access to technical support platforms from the companies had been restored in China in the wake of a phone call last week between US President Trump and Chinese President Xi Jinping.
AppLovin (APP) closed down by more than -8% to lead losers in the Nasdaq 100 after S&P Dow Jones Indices announced there are no changes to the S&P 500 Index, erasing speculation that the stock might be added to the index.
Intuitive Surgical (ISRG) closed down more than -5% after Deutsche Bank Downgraded the stock to sell from hold with a price target of $440.
Insurance stocks declined on Monday, putting pressure on the overall market. Aon Plc (AON) closed down more than -4%, and Allstate (ALL), Arthur J Gallagher (AJG), Marsh & McLennan (MMC) closed down more than -3%. Also, American International Group (AIG), Progressive Corp (PGR), Willis Towers Watson Plc (WTW), and Erie Indemnity (ERIE) closed down more than -2%. In addition, Travelers Cos (TRV) closed down more than -3% to lead losers in the Dow Jones Industrials.
EchoStar (SATS) closed down more than -8% after the Wall Street Journal reported the company is weighing a potential Chapter 11 bankruptcy filing amid an FCC review of certain of its wireless and satellite spectrum rights.
Cheniere Energy (LNG) closed down more than -6% on signs of insider selling after an SEC filing showed Director Shear sold $1.06 million of shares last Thursday.
Robinhood Markets (HOOD) closed down more than -2% after Reburn downgraded the stock to sell from neutral with a price target of $48.
Core & Main Inc (CNM), GameStop Corp (GME), Gitlab Inc (GTLB), J M Smucker Co/The (SJM).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
40 minutes ago
- Globe and Mail
Wednesday's Insider Report: Canada Pension Plan unloads $487-million as this industrial stock hits a record high
Featured below are companies that have experienced recent insider trading activity in the public market through their direct and indirect ownerships, including accounts they have control or direction over. The list features insider transaction activity; it does not convey total ownership information as an insider may hold numerous accounts. Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Selling activity may or may not be related to a stock's valuation; perhaps an insider needs to raise money for personal reasons. An insider's total holdings should be considered because a sale may, in context, be insignificant if this person has a large remaining position in the company. I tend to put great weight on insider transaction activity when I see multiple insiders trading a company's shares or units. Listed below are two stocks that have had recent buying activity in the public market reported by insiders. Morguard Corp. (MRC-T) On June 3, Bruce Robertson, who sits on the board of directors, bought 12,000 shares at a price per share of $112.91 for an account in which he has indirect ownership (5051326 Ontario Inc.), lifting the holdings in this specific account to 50,000 shares. The cost of this investment exceeded $1.3 million. Total Energy Services Inc. (TOT-T) On June 6, founder, president, chief executive officer and director Dan Halyk invested over $102,000 in shares of Total. He acquired 10,000 shares at a cost per share of $10.28 for an account in which he has indirect ownership (Myrdan Investments Inc.), increasing the holdings in this specific account to 840,000 shares. ** Listed below are two stocks that have had recent selling activity in the public market reported by insiders. Kinross Gold Corp. (K-T) On June 3, president Geoff Gold sold 28,251 shares at an average price per share of approximately $21.26, reducing the holdings in this particular account to 306,946 shares. Proceeds from the sale totaled more than $600,000, excluding trading fees. WSP Global Inc. (WSP-T) On June 2, Canada Pension Plan Investment Board, with an ownership position exceeding 10 per cent, sold 1.8 million shares at a price per share of $270.95, reducing the holdings in this particular account to 11,080,184 shares. Proceeds from the sale exceeded $487 million, excluding commission charges. Previously, we reported that chief operating officer Mark Naysmith exercised his options on May 27, receiving 10,424 shares at an average cost per share of approximately $64.90, and sold 10,424 shares at an average price per share of roughly $281.30, after which this particular account did not hold any shares. Net proceeds exceeded $2.2-million, excluding any associated transaction charges. On June 2, shares of WSP closed at a record high of $282.83. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Globe and Mail
41 minutes ago
- Globe and Mail
Stock Market News for Jun 11, 2025
U.S. stock markets closed higher on Tuesday as market participants awaited U.S.-China trade deals. A couple of major AI related news also boosted investors sentiment in risky assets like equities. All three major stock indexes ended in positive territory. How Did The Benchmarks Perform? The Dow Jones Industrial Average (DJI) advanced 0.3% or 105.11 points to close at 42,866.87. Notably, 21 components of the 30-stock index ended in positive territory and 9 finished in negative zone. The tech-heavy Nasdaq Composite finished at 19,714.99, rising 0.6% or 123.75 points due to strong performance of technology bigwigs. The S&P 500 increased 0.6% to finish at 6,038.81. Wall Street's most observed benchmark is currently less than 2% away from its all-time high. 10 out of 11 broad sectors of the broad-market index ended in positive territory while one in negative zone. The Consumer Discretionary Select Sector SPDR (XLY), the Communication Services Select Sector SPDR (XLC), the Energy Select Sector SPDR (XLE) and the Health Care Select Sector SPDR (XLV) climbed 1.2%, 1.3%, 1.8% and 1.1%, respectively. The fear-gauge CBOE Volatility Index (VIX) was down 1.2% to 16.95. A total of 18.5 billion shares were traded on Tuesday, higher than the last 20-session average of 17.9 billion. The S&P 500 recorded 12 new 52-week highs and 2 new 52-week lows. The Nasdaq registered 75 new 52-week highs and 45 new 52-week lows. Investors Hope U.S-China Trade Deals The trade and tariff related negotiations between the United States and China reinitiated in London on last Monday. U.S. Treasury Secretary Scott Bessent and two other top level Trump administration officials has been negotiating with their Chinese counterparts in order to negotiate tariffs and trade related disputes between the two largest trading partners of the world. Aside from Bessent, other two U.S. delegators will be Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. Chinese Vice Premier He Lifeng will hold the first round of trade and economic talks with the U.S. Talks will continue on Tuesday. National Economic Council Director Kevin Hassett said Monday that the U.S. was seeking confirmation that China would restore critical mineral exports. Beijing protested against the U.S. Commerce Department's warnings to U.S. chipset manufacturers against using Chinese semiconductors. On Tuesday, Lutnick said, 'I think the talks are going really, really well. We're very much spending time and effort and energy - everybody's got their head down working closely.' Lutnick further said that talks may continue Wednesday morning if required. On May 12, the United States and China have decided to for a 90-day pause of tariff implementations. The two countries agreed in a discussion in Switzerland to reach a temporary agreement that 'reciprocal' tariffs between both countries will be cut from 125% to 10%. United States' 20% tariffs on Chinese imports relating to fentanyl will remain intact, meaning total tariffs on China will be 30%. Developments on AI Front Meta Platforms Inc. META is finalizing a deal to invest $14 billion to artificial intelligence (AI) startup Scale AI and will pursue its CEO Alexandr Wang to join META. Mark Zuckerberg is willing to utilize Wang's reputation to successfully build business based on AI's technical complexities. Open AI entered a deal with Google Cloud of Alphabet Inc. GOOGL in order to meet its growing needs for computing capacity. The deal between two AI ecosystem competitors has surprised many financial experts. Stock prices of Meta Platforms and Alphabet rose 1.4% and 1.2%, respectively. Both stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
Globe and Mail
an hour ago
- Globe and Mail
3 Growth Stocks That Could Skyrocket in 2025 and Beyond
After a choppy start to the year, the market appears to be finding its footing. With investor sentiment stabilizing, now looks like a good time to scoop up some high-quality growth names with strong upside potential in 2025 and beyond. Here are three growth stocks that could gain some serious momentum in the months and years ahead. 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 » Amazon Despite being a $2 trillion-plus market-cap stock, Amazon (NASDAQ: AMZN) is still a compelling growth stock. While best known for its e-commerce business, Amazon is also a leader in cloud computing, digital advertising, and, increasingly, artificial intelligence (AI). Despite a recent rally off its lows, the stock still trades at one of the most attractive valuations in its history. Amazon's biggest growth driver today is AI, which it is using across its businesses to improve efficiency and help drive growth. In its e-commerce segment, it is using AI to help optimize delivery routes, automate warehouse operations, and even reduce returns by identifying damaged items before they ship. This is driving strong operating leverage, with North America operating income climbing 16% in Q1 on just 8% revenue growth. Meanwhile, it is also using AI to improve how third-party sellers create product listings. It is also helping these merchants to better target consumers through its fast-growing sponsored ads platform. Meanwhile, its cloud computing business, Amazon Web Services (AWS), remains its most profitable and fastest-growing segment. Customers are building AI models using AWS tools like Bedrock and SageMaker, which are then run on its infrastructure. Amazon has also built its own custom AI chips to make its infrastructure more cost-efficient and give it a competitive edge. Risks remain, including tariff headwinds and the chance that Amazon could overbuild its AI infrastructure. That said, the company has a long track record of investing aggressively in major growth trends and coming out the other side a stronger company. As such, Amazon still looks like a great growth stock to own. Toast If you've recently visited a local restaurant, there is a good chance you've come across Toast's (NYSE: TOST) point-of-sale systems. However, the company has expanded well beyond payment processing, and today, it offers an all-in-one platform that helps restaurants run their businesses more efficiently. What sets Toast apart is its consistent product innovation. The company has rolled out features like delivery integration, mobile ordering, and digital invoicing. It's also started to integrate AI into its platform, piloting tools like "sous chef" and "ToastIQ" to help restaurants improve operations, gain business insights, and improve the customer experience. These innovations are all meant to help drive restaurant sales, which in turn benefits Toast since it gets a cut of customer sales through its payment processing offering. Toast is seeing strong traction, adding new customers. In Q1 2025, the company added over 6,000 net new restaurant locations, bringing its total to 140,000, up 25% year over year. Importantly, the company is starting to make inroads both in the enterprise space and internationally. It also landed large enterprise deals with Applebee's and Topgolf, and it is showing solid progress in its early international expansion efforts. As a result, Toast raised its full-year guidance and now expects fintech and subscription gross profit to increase by about 26%. While the economy and competition are risks, with a long growth runway ahead, Toast looks like a stock with strong upside still ahead. E.l.f. Beauty After hitting a rough patch earlier this year, e.l.f. Beauty's (NYSE: ELF) fortunes are looking up after it recently announced a $1 billion acquisition of Hailey Bieber's skincare and cosmetics brand Rhode. The deal should set the company up for its next stage of strong growth. Under the leadership of Bieber, Rhode became a breakout beauty brand, generating over $200 million in sales in just two years. Impressively, this was done with little paid advertising and a small product lineup. The brand is particularly popular among Gen Z consumers. With Bieber staying on as chief creative officer and the likelihood of an expanded product lineup, Rhode should be a strong growth engine for e.l.f. Beauty in the coming years. What makes this deal even more compelling, though, are the potential market synergies. While e.l.f. Beauty has been taking market share in the mass-market cosmetics space, Rhode is a more premium brand that is strong in both cosmetics and skincare. After primarily being an online-only brand, Rhode was already set to roll out to Sephora later this year. However, with a strong presence at major retailers like Target and Ulta Beauty, e.l.f. Beauty should be able to accelerate Rhode's retail expansion even more, given its strong distribution network. Even before the deal, e.l.f. Beauty was expanding globally and gaining share in both skincare and cosmetics. While there are tariff and acquisition-integration risks, Rhode should be a strong growth driver that can help power e.l.f. Beauty's stock this year and beyond. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, 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 Amazon 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Toast and e.l.f. Beauty. The Motley Fool has positions in and recommends Amazon, Target, Toast, Ulta Beauty, and e.l.f. Beauty. The Motley Fool recommends Topgolf Callaway Brands. The Motley Fool has a disclosure policy.
