Stocks Erase Early Gains as Chipmakers Turn Lower

The S&P 500 Index ($SPX) (SPY) today is down -0.28%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.80%.  June E-mini S&P futures (ESM26) are down -0.25%, and June E-mini Nasdaq futures (NQM26) are down -0.74%.

Stock indexes gave up an early advance today and are trading mixed, with the S&P 500 falling to a 2.5-week low.  Chipmakers gave up an early advance today and turned lower, weighing on the broader market.  Also, weakness in software stocks is a drag on the overall market, and energy producers are sliding with today’s -3% plunge in WTI crude oil prices (CLN26) to a 1-week low.

Today’s US economic news was supportive for stocks, as the Apr trade deficit eased to -$55.9 billion from -$56.6 billion in Mar, narrower than the -$56.1 billion expected.   Also, May existing home sales rose +3.2% m/m to a 5-month high of 4.17 million, stronger than expectations of 4.07 million. 

Crude oil prices are sinking today and posted a 1-week low after Iran and Israel agreed to end hostilities toward each other.  President Trump today predicted a swift end to war with Iran and a subsequent fall in oil prices and said, “We’re in the final throes of what will be a very, very good deal, and that they could have at least an idea one or two days from now” about the deal.   

China trade news was better than expected, a positive factor for global economic growth.  May exports rose +19.4% y/y, stronger than expectations of +15.0% y/y.  Also, May imports rose +27.4% y/y, stronger than expectations of +26.0% y/y.

The markets are discounting a 3% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 climbed to a 1.5-week high and is up +0.52%. China's Shanghai Composite closed up +1.28%.  Japan's Nikkei Stock Average closed up +2.17%.

Interest Rates

September 10-year T-notes (ZNU6) today are up +3 ticks, and the 10-year T-note yield is down -2.2 bp to 4.540%.  Sep T-note prices are modestly higher today amid a -3% plunge in WTI crude oil prices, which eased inflation expectations.  The 10-year breakeven inflation rate fell to a 7-week low of 2.348% today. 

Today’s stronger-than-expected US May existing home sales report is limiting gains in T-notes.  Also, supply pressures are negative for T-notes, as the Treasury will auction $58 billion in 3-year T-notes later today. 

European government bond yields are moving lower today.  The 10-year German Bund yield is down -0.9 bp to 3.052%.  The 10-year UK gilt yield is down -3.0 bp to 4.9134%.

German Apr industrial production rose +0.4% m/m, right on expectations and the biggest increase in five months.

German trade news was better than expected as Apr exports unexpectedly rose +0.9% m/m, stronger than expectations of a-0.5% m/m decline. Also, Apr imports unexpectedly rose +1.2% m/m versus expectations of a -2.0% m/m decline.

Swaps are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.

US Stock Movers

Chipmakers gave up an early advance today and turned lower, weighing on the broader market.  Marvell Technology (MRVL) is down more than -7% to lead losers in the Nasdaq 100, and Qualcomm (QCOM) is down more than -6%.  Also, ARM Holdings Plc (ARM) is down more than -5%, and Advanced Micro Devices (AMD), Broadcom (AVGO), and Micron Technology (MU) are down more than -2%.   In addition, Nvidia (NVDA), Intel (INTC), and Texas Instruments (TXN) are down more than -1%.

Software stocks are retreating today, weighing on the overall market.  ServiceNow (NOW) is down more than -5%, and Workday (WDAY) is down more than -4%.  Also, Salesforce (CRM) is down more than -3% to lead losers in the Dow Jones Industrials, and Atlassian Corp (TEAM), Adobe Systems (ADBE), and Palantir Technologies (PLTR) are down more than -2%.  In addition,   Microsoft (MSFT), Intuit (INTU), Datadog (DDOG), and Oracle (ORCL) are down more than -1%.

Energy producers and service providers are sliding today with WTI crude oil down more than -3% at a 1-week low.  APA Corp (APA) is down more than -4%, and Valero Energy (VLO) is down more than -3%.  Also, Devon Energy (DVN), ConocoPhillips (COP), Halliburton (HAL), Baker Hughes (BKR), Occidental Petroleum (OXY), Phillips 66 (PSX), Exxon Mobil (XOM), Diamondback Energy (FANG), and Marathon Petroleum (MPC) are down more than -2%. 

Airline stocks and cruise line operators are moving higher today with WTI crude oil down more than -3% at a 1-week low, which lowers the companies’ fuel costs and boosts profitability prospects.  Alaska Air Group (ALK) is up more than +4%, and American Airlines Group (AAL) is up more than +3%.  Also, United Airlines Holdings (UAL), Delta Air Lines (DAL), Royal Caribbean Cruises (RCL), Southwest Airlines (LUV), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) are up more than +2%.

United Natural Foods (UNFI) is down more than -12% after reporting Q3 net sales of $7.72 billion, weaker than the consensus of $7.80 billion, and forecast full-year net sales of $31.10 billion to $31.30 billion, below the consensus of $31.32 billion. 

SailPoint (SAIL) is down more than -11% after forecasting Q2 adjusted EPS of 7 cents to 8 cents, the midpoint below the consensus of 7.9 cents. 

Novanta (NOVT) is down more than -5% after agreeing to acquire Riverpoint Medical from Arlington Capital for $1.2 billion in cash.

Vail Resorts (MTN) is down more than -4% after reporting Q3 EPS of $8.81, weaker than the consensus of $9.00. 

Nuvalent (NUVL) is up more than +38% after GSK Plc agreed to buy the company for $10.6 billion, or about $124 a share. 

J M Smucker (SJM) is up more than +11% to lead gainers in the S&P 500 after reporting Q4 adjusted EPS of $2.77, better than the consensus of $2.64, and forecasting 2027 adjusted EPS of $9.75 to $10.25, the midpoint above the consensus of $9.78. 

Applied Digital (APLD) is up more than +3% after signing a 15-year take-or-pay lease with a US-based artificial intelligence hyperscaler for 210 megawatts of IT load at its Delta Forge 2 campus. 

West Pharmaceutical Services (WST) is up more than +3% after Barclays upgraded the stock to overweight from equal weight with a price target of $400. 

Earnings Reports(6/9/2026)

Casey's General Stores Inc (CASY), J M Smucker Co/The (SJM), SailPoint Inc (SAIL).