S&P 500 Index ($ SPX) (SPY) closed on Monday -0.64%, Dow Jones Industries Index ($ Dowi) (Dia) -0.24%closed down, and NASDAQ 100 Index ($ IUXX) (QQQ) -0.67%closed. The June e -Mini S&P Futures (ESM25) are below -0.66%, and June e -Mini Nasdaq Futures (NQM25) -0.71%below.
The stock index decreased on Monday due to American trade uncertainty. President Trump said on Sunday that he had no plans to talk to Chinese President Xi Jinping, although Mr. Trump said that this week may soon have trade deals with some American business partners. The stock index was recovered from its worst level on Monday after the US APR ISM Services Index was unexpectedly increased, which worrying that the economy could slip into the recession.
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After OPEC+ OPEC+ on Saturday -2% lower WTI crude was sold by energy producers on Monday, agreed to increase their raw production level by 411,000 BPD in June, threatening to add a global crude oil to glute. Saudi Arabia also indicated that the raw production can follow the same size growth, which is seen as a strategy to reduce oil prices and punishment for overoprosting OPEC+ members such as Kazakhstan and Iraq.
The US APR ISM Services Index unexpectedly increased from +0.8 to 51.6, stronger than expectations of decline of 50.2. In addition, the payment of sub-probability in the prices of APR ISM services increased +4.2 to 2–1/4 years high 65.1, which is more than the expectations of 61.4.
This week, the market will focus on any change in tariffs and American trade policy. On Tuesday, the march trade deficit -expected to widen up to $ 136.7 billion. On Wednesday, FOMC is expected to keep its Federal Fund Target range unchanged at 4.25%-4.50%. Post-FOMC comments from Fed Chair Powell will also be studied for any clue for the future of the Fed Policy. On Thursday, the weekly initial unemployment claims, Q1 Nonform Productivity (Expected 0.7%), and Q1 Units bring labor costs (expected +5.2%).
The markets are exempting the possibilities at 2% for cutting -25 BP rate cut after the 2 -day FOMC meeting ending on Wednesday.
Q1 Income Reporting season is in progress. According to data compiled by Bloomberg Intelligence, the market agreed to increase the income from the S&P500 shares below +11.1% expectations in early November. So far, out of 365 companies in S&P 500 companies, who have reported quarterly results, 78% have defeated estimates. Full year 2025 corporate profits for S&P 500 are seen growing +9.4% below the forecast of +12.5% in early January.
Foreign stock markets decreased on Monday. The Euro Stoxx closed down 50 -0.04%. China’s Shanghai overall shutdown was for the labor day holiday. Nikkei Stock 225 of Japan was closed for Children’s Day holiday.
Interest rates
June 10-Year T-Rots (Znm25) closed-3 ticks on Monday. The yield of 10-year T-Note +3.0 BP increased to 4.338%. The June T-notes fell to a low-lying level of 1-week on Monday, and a 10-year T-Rot yield increased to a high of 1-week to 4.369%. T-Note prices retreated on Monday after the APR ISM Services Index increased over the expectation of the ISM Services Index, and the APR ISM service prices rosely up-Index raised inflation concerns to jumping at an altitude of 2–1/4 years. Before Wednesday’s FOMC decision, T-notes were carefully pressurized, where FOMC is unlikely to exclude a tone. In addition, the demand for TEPID for the Treasury’s $ 58 billion 3-year-old T-nots auction was a slowdown for the price of T-notes as a bid of 2.56 in the auction was below the average 10 auction of 2.61.
T-Nots received some support from the Monday’s recession in the stock with safe-havan demand. T-Nots also supported the carriageover with strength in 10-year-old German bunds.
European government bond yields decreased on Monday. 10 -year -old German Bund yield -1.6 BP fell to 2.517%. The 10 -year -old UK Gilt Yield did not trade on Monday, in which the markets in the UK closed for May Day holiday.
Eurozone may be that the investor confidence increased from the index +11.4 to -8.1, stronger than the expectations of -11.5.
In the June 5 policy meeting, the ECB is exempting the possibility of 97% for the ECB -25 BP rate cut.
US Stock Movers
Energy stock and energy service providers were under pressure on Monday, the price of WTI was more than -2% at 3–1/2 weeks. As a result, the APA Corp (APA) closed over more than 5%, and oxidantal petroleum (oxy) -4%closed. In addition, conocophillips (COP) and Haliburton (HAL) -3%closed. In addition, Diamondback Energy (Fang), Axon Mobil (XOM), Chevron (CVX), Shalmangra (SLB), and Davon Energy (DVN) -closed more than 2%.
President Trump said he fell on Monday as he said that he plans to impose 100% tariffs on films produced abroad. As a result, Netflix (NFLX), Paramount Global (Para), and Warner Brothers Discovery (WBD) closed more than -1%.
Zimmer Biomate Holdings (ZBH) closed more than -11% to lead losing in S&P 500, after cutting its entire year EPS estimate of $ 7.90- $ 8.10 with a previous estimate of $ 7.15- $ 8.35 in $ 7.90- $ 8.10.
The semiconductor (ON) shut down more than -8% to lead the losers in the NasDAQ 100, which despite reporting a better-detected Q1 revenue after adjusting the gross margin of 36.5% to 38.5% below the consensus of 39%.
Tyson Foods (TSN) closed over -7% after reporting a $ 13.07 billion sale, below $ 13.12 billion below.
Apple (AAPL) shut down more than -3% to lead loser in Dow Jones Industrial as the company’s price is offered today 4 -portion loan.
Berkshire Hathaway (BRK.B) CEO Buffet announced that he closed over -5% after leaving the post at the end of the year.
Gold fields (GFI) +closed over 7% after jumping more than +2% in gold prices on Monday. In addition, Anglogold Ashanti PLC (AU) +closed over 4%, and pneumont (NEM) +exceeded 2%.
Howard Hughes Holdings (HHH) closed over 3% after entering an agreement, where the Persing Square Capital would invest $ 900 million to acquire 9 million shares of the company.
Freshpet (FRPT) closed more than +3% after reporting a net sales of $ 263.2 million above $ 259.9 million.
Excom theraputics (AXSM) closed more than +3% after reporting Q1 cash and cash counterparts above $ 255.5 million.
The EQT Corp (EQT) closed more than +2% +2% after upgrading the stock to buy from neutral with a price target of $ 64.
Henry Shehin (HSIC) closed more than +1% after reporting Q1 $ 1.15 adjusted EPS, better than $ 1.11 unanimous, and forecast a full-year adjusted EPS of $ 4.80- $ 4.94, above the consensus of $ 4.86.
Earning Report (5/6/2025)
Advanced Micro Devices Inc. (AMD), American Electric Power Company Inc. (AEP), Archer-Daniel-Midland CO (ADM), Arista Networks Inc. (ANET), Essuant Inc. (AIS), Ball Corp (Ball (Ball), Consultation Energy Carp (CEG), CAPE (CAPE), DVN Energy Corp (DVN (DVN) (DVN) (DVN) (DVN), DVN (DVN), DVN (DVN), DVN. (Jean), Global Payments Inc. (GPN), International Flavor and Fragrance (IFF), Iqvia Holdings Inc (IQV), Jack Henry and Associates Inc. (Jkhh) (Jkhh).
On the date of publication, Rich Escpland did not have the positions mentioned in any securities mentioned in this article (either direct or indirectly). All information and data in this article is only for informative purposes. For more information, please see the Barkart Disclosure Policy here.
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