The S&P 500 Index ($SPX) (SPY) today is up +1.12%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.94%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.24%. June E-mini S&P futures (ESM25) are up +1.17%, and June E-mini Nasdaq futures (NQM25) are up +1.40%.
Stock indexes today are trading higher after President Trump over the weekend extended the deadline for the European Union to face 50% tariffs until July 9 after threatening to impose a 50% tariff on EU goods starting June 1. Stocks also garnered support from today's comments from National Economic Council Director Hasset, who said, "We'll probably see a few more trade deals, even this week," with India among the countries that are close to securing a deal.
Stocks also found support on a slide in bond yields spurred on by speculation that Japan could change its debt sales plans, which could lead to stronger demand for US debt securities if Japan cuts its debt issuance. The 10-year T-note yield is down -4.6 bp. Bloomberg News reported that Japan's finance ministry sent a questionnaire to market participants regarding appropriate issuance amounts for government bonds, a sign the finance ministry may seek to reduce debt issuance.
US Apr capital goods new orders nondefense ex-aircraft and parts fell -1.3% m/m, weaker than expectations of -0.2% m/m and the biggest decline in 6 months.
The US Mar S&P CoreLogic composite-20 home price index rose +4.07% y/y, weaker than expectations of 4.50% y/y and the smallest increase in 1-1/2 years.
Minneapolis Fed President Kashkari said he favors maintaining the fed funds rate at current levels until there is more clarity on the path of tariffs and their impact on prices.
The markets are discounting the chances at 6% for a -25 bp rate cut at the next FOMC meeting on June 17-18.
The markets this week will focus on any tariff news or signs of new trade deals. Later today, the Conference Board's May US consumer confidence index is expected to climb by +1.1 to 87.1. On Wednesday, the minutes of the May 6-7 FOMC meeting will be released. Also, after Wednesday's close, Nvidia will report its quarterly earnings. On Thursday, weekly initial unemployment claims are expected to climb +3,000 to 230,000. Also, Q1 GDP is expected unchanged at -0.3% (q/q annualized). In addition, Apr pending home sales on Thursday are expected to fall -1.0% m/m. On Friday, Apr personal spending is expected up +0.2% m/m, and Apr personal income is expected up +0.3% m/m. Also, the Apr core PCE price index, the Fed's preferred inflation gauge, is expected to rise +0.1% m/m and +2.5% y/y. Finally, on Friday, the University of Michigan May consumer sentiment index is expected to be revised upward by +0.2 points to 51.0 from the previously reported 50.8.
Q1 earnings reporting season is winding down. So far, more than 90% of companies in the S&P 500 have reported quarterly results, and 77% have beaten estimates, the highest percentage since Q2 of 2024. Earnings growth in Q1 is running at +13.1%, compared with just +6.6% expected before the start of the season. Full-year 2025 corporate profits for the S&P 500 are seen rising +9.4%, down from the forecast of +12.5% in early January.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up by +0.38%. China's Shanghai Composite fell to a 2-1/2 week low and closed down -0.18%. Japan's Nikkei Stock 225 closed up +0.51%.
Interest Rates
June 10-year T-notes (ZNM25) today are up by +7 ticks. The 10-year T-note yield is down -4.6 bp to 4.465%. June T-notes are climbing today on positive carryover from strength in European government bonds. T-notes also have support after Bloomberg News reported that Japan's finance ministry sent a questionnaire to market participants regarding appropriate issuance amounts for government bonds, which could lead to stronger demand for US debt securities if Japan cuts its debt issuance. Weaker-than-expected US economic news today, including April capital goods new orders nondefense ex-aircraft and parts, and the March S&P CoreLogic composite-20 home price index, also gave T-notes a boost.
Soaring stocks today are reducing safe-haven demand for government debt and are limiting gains in T-notes. Also, supply pressures are weighing on T-notes as the Treasury will auction $69 billion of 2-year T-notes later today as part of this week's slate of $211 billion of T-note and floating-rate note auctions.
European government bond yields today are moving lower. The 10-year German bund yield fell to a 2-1/2 week low of 2.513% and is down -2.0 bp at 2.540%. The 10-year UK gilt yield slid to a 2-week low of 4.602% and is down -0.4 bp to 4.677%.
The Eurozone May economic confidence indicator rose +1.0 to 94.8, stronger than expectations of 94.1.
Eurozone Apr new car registrations rose +1.3% y/y to 925,000 units, the first increase in four months.
ECB Governing Council member Holzmann said the ECB moving interest rates "further south would be more risky than staying where we are and waiting until September."
Swaps are discounting the chances at 98% for a -25 bp rate cut by the ECB at the June 5 policy meeting.
US Stock Movers
The Magnificent Seven stocks are rallying today and are lifting the overall market. Tesla (TSLA) is up more than +4%, and Nvidia (NVDA) and Alphabet (GOOGL) are up more than +2%. Also, Meta Platforms (META), Amazon.com (AMZN), Apple (AAPL), and Microsoft (MSFT) are up more than +1%.
Chip stocks are climbing today and supporting the broader market. Marvel Technology (MRVL) is up more than -3%, and Advanced Micro Devices (AMD) and ASML Holding NV (ASML) are up more than +2%. Also, KLA Corp (KLAC), Lam Research (LRCX), ON Semiconductor (ON), Microchip Technology (MCHP), Analog Devices (ADI), Applied Materials (AMAT), GlobalFoundries (GFS), NXP Semiconductors NV (NXPI), Broadcom (AVGO), and Qualcomm (QCOM) are up more than +1%.
Travel stocks and cruise line operators are moving higher today. United Airlines Holdings (UAL), Southwest Airlines (LUV), and Royal Caribbean Cruises Ltd (RCL) are up more than +3%. Also, Norwegian Cruise Line Holdings (NCLH), Expedia Group (EXPE), and Hilton Worldwide Holdings (HLT) are up more than +2%. In addition, Delta Air Lines (DAL), Marriott International (MAR), and Host Hotels and Resorts (HST) are up more than +1%.
Informatica (INFA) is up more than +5% after Salesforce Inc. agreed to buy the company for about $8 billion.
Block Inc. (XYZ) is up more than +5% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $72.
Vertiv Holdings (VRT) is up more than +3% after Evercore ISI raised its price target on the stock to $150 from $100.
Gold mining stocks are sliding today, with the price of gold down more than -2%. As a result, Gold Fields Ltd (GFI) is down more than -8%, Anglogold Ashanti Plc (AU) is down more than -3%, and Newmont (NEM) is down more than -2%.
PDD Holdings (PDD) is down more than -17% to lead losers in the Nasdaq 100 after reporting Q1 adjusted operating margin declined to -19.1%, the lowest since Q1 of 2022.
AutoZone (AZO) is down more than -1% to lead losers in the S&P 500 after reporting a Q3 gross margin of 52.7%, weaker than the consensus of 53.4%.
Leidos Holdings (LDOS) is down more than -1% after Baird downgraded the stock to neutral from outperform, citing concerns about the bookings environment.
National Storage Affiliates Trust (NSA) is down -0.26% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $30.
Earnings Reports (5/27/2025)
American Vanguard Corp (AVD), AutoZone Inc (AZO), Box Inc (BOX), Champion Homes Inc (SKY), Critical Metals Corp (CRML), Golar LNG Ltd (GLNG), Golden Matrix Group Inc (GMGI), HEICO Corp (HEI), Okta Inc (OKTA), Semtech Corp (SMTC).
On the date of publication, Rich Asplund 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. For more information please view the Barchart Disclosure Policy here.
