Closing Recap

Friday, June 06, 2025

U.S. stock market resiliency continues to astound, with major averages posting weekly wins to kick off the new month after massive surges in May as investors continue to chase markets, as the FOMO trade is back after fading in April on the tariff concerns. Speaking of tariff and trade, concerns have most definitely faded over the last 6 weeks as the S&P 500 (SPX) is back within 2.5% of its all-time highs, ending around the 6,000 level today. Helping sentiment early was a stronger nonfarm payroll report for May, surprising Wall Street that had braced for a potential let down following the weaker ADP private payroll report Wednesday. In fact, it was the first positive data point all week, but that didn’t stop major averages from rallying. Even a massive social media feud between President Trump and Tesla CEO Elon Musk failed to warrant any market concerns outside of a few hours late Thursday. Fear has once again disappeared and markets have rallied for a month and half straight, rising around 20% since then and the CBOE Volatility index (VIX) dropped over -9% below 17 to March lows.  In Washington DC, President Donald Trump has “no plans” to call Tesla CEO Elon Musk and has little interest in talking to his former adviser, The Wall Street Journal reported, citing comments from a senior White House official. Next week brings CPI inflation data. For the week, S&P 500 gains 1.5%, Nasdaq up 2.18%, and the Dow up 1.17%.

In the IPO market, Barron’s noted it’s starting to heat up given the latest CoreWeave (CRWV) and Circle Internet (CRCL) listings that have skyrocketed in recent days/weeks. The blockbuster stock market debut of stablecoin company Circle on Thursday, coupled with the recent surge in the shares of CoreWeave, an artificial-intelligence company, suggests that investor appetite for the initial public offerings of riskier emerging-growth companies is once again alive and well. Next up to test the market’s demand for IPOs? Fintech Chime and space and defense company Voyager Technologies. Both are on tap to go public the week of June 9. Chime (CHYM) is currently set to sell 32 million shares at a price range of $24-$26 each, which would raise $800 million at the midpoint, and value the company at more than $10 billion. Voyager (VOYG) is planning to sell 11 million shares at a range of $26-$29 each.

• The U.S. dollar index (DXY) rose against rival currencies after data showed better-than-expected U.S. jobs growth in May despite a slowdown from the previous month, suggesting the Federal Reserve might wait longer to cut interest rates. The dollar was up 0.95% to 144.90 against the Japanese yen while the euro slipped -0.45% back under $1.14 vs. the greenback. The euro still posted a weekly gain against the greenback, after having hit a six-week high of $1.14950 on Thursday following comments by ECB President.
• August gold prices declined -$28.50 or 0.84% to settle at $3,346.60 an ounce but finished above last Friday’s closing price of $3,315.40 an ounce, while silver soared to its highest level since 2012 this week (but was down today). Meanwhile oil prices finished higher as WTI crude gained $1.21 or 1.91% to settle at $64.58 per barrel while Brent gained $1.13 or 1.73% to settle at $66.47 per barrel.

• GIII shares dropped on results, said sales are expected to be negatively impacted by supply chain challenges and timing shifts in certain programs into the 2h of this year; said due to uncertainty around tariffs & related macroeconomic conditions, Co has withdrawn its net income for FY26.
• URBN was upgraded to Hold from Underperform at Jefferies and raised tgt to $70 from $50 following Urban’s Q1 results and ahead of an investor event next week as sees the combination of better numbers and the stock’s elevated valuation creating a more balanced risk/reward ahead.
• ZUMZ shares slip after the company forecast a loss in the current quarter, dragged down by higher costs from tariffs; sees Q2 EPS loss between (-24c)-(-9c), vs. consensus $0.06 and sees Q2 revenue $207M-$214M, vs. consensus $211.02M.

• In Aerospace & Defense: shares of ACHR, JOBY among others advanced late day after President Trump signed executive orders to bolster U.S. defenses against threatening drones and to boost electric air taxis and supersonic commercial aircraft. In the three executive orders, Trump sought to enable routine use of drones beyond the visual sight of operators, a key step to enabling commercial drone deliveries, and take steps to reduce the U.S. reliance on Chinese drone co’s and begin testing electric vertical takeoff and landing (eVTOL) aircraft.
• In the Engineering & Construction (E&C) sector: Goldman Sachs upgraded MTZ to Buy from Neutral for pipeline driven estimate revisions and downgrade MYRG to Neutral from Outperform on valuation in E&C. While Goldman continues to believe that both stocks will benefit from strong utility spending, the potential for estimate revisions is stronger at MTZ given the significant new pipeline construction opportunities ahead. With 7 new pipelines having received final investment decisions FID) recently, GSCO sees room for a strong backlog increase for MasTec as the leading pipeline contractor in the US.
• In Chemical: MOS shares slide after cutting its Q2 phosphate sales volumes to be between 1.5M-1.6M tonnes vs prior forecast of 1.7M-1.9M tonnes; now sees 2025 phosphate production volume to be between 7.0M-7.3M tonnes, down from prior 7.2M-7.6M tonnes while reaffirms its Q2 and 2025 potash sales volumes (shares of CF, NTR were also active on the guidance).
• In Forest, Wood Products: Citigroup opened positive catalyst watches on PCH, WY ahead of the raising of import duties on Canadian Lumber, which it expects by August. WY & PCH sharply outperformed in Q1 in expectation of tariffs on Canadian Lumber that ultimately didn’t materialize on Liberation Day. Since the beginning of April, the stocks have meaningfully underperformed as Lumber has drifted lower. A 20% increase in the duty translates to a ~$90/kbft move in Lumber, assuming current prices.
• In Shipping: The Baltic Dry Index, which tracks rates for ships carrying dry bulk commodities, rose on Friday to log its best weekly gain since early March, buoyed by stronger panamax vessel rates. The index rose 7 points or 0.4% to 1,633, but logged a weekly gain of about 15%, its best week in 13. The Capesize index lost 3 points, but snapped a seven-session winning streak, ending the week nearly 25% higher. The Panamax index gained 35 points, or 2.9%, to 1,246 rising 8.2% this week.

• PHAT shares jumped following the company’s announcement that the FDA has approved the company’s Citizen’s Petition regarding Voquezna tablets. FDA has also communicated its intention to correct the Orange Book listing to reflect the full 10-year NCE exclusivity.
• SRPT was upgraded to Outperform from Sector Perform at Scotia with an unchanged price target of $80 saying now that negative news, including an Elevidys patient death and downward revision of 2025 sales guidance, is more than reflected in the share price, the firm thinks the risk reward is favorable and it sees several important catalysts coming up that could drive the stock higher.
• VERA shares tumbled after rival Otsuka’s experimental drug for a type of kidney disease showed over 50% reduction in protein in patient’s urine in a late-stage trial. Vera’s drug atacicept reduced protein levels in patients’ urine by 46%, compared with a 7% reduction with a placebo.
• WOOF shares fell after reporting a wider EPS loss for Q1, as revs fell -2.3% to $1.5B, in-line with consensus $1.5B on weaker comp sales (-1.3%) y/y vs. est. (-0.6%); said sees Q2 and FY 25 revenue down low single digits y/y, which assumes tariffs stay at current levels for the full year.
• In Obesity sector (NVO, LLY), GLP-1s linked to low but higher risk of eye disease according to research, published yesterday in JAMA Ophthalmology showing that after one year, more than twice as many people on GLP-1 drugs developed neovascular age-related macular degeneration compared to similar people who were not taking the drugs. The risk was 0.2% in people taking GLP-1s and 0.1% in those who didn’t.
• Digital health company Omada Health (OMDA) shares jumped in its stock market debut, opening at $23.00, compared with its offer price of $19 per share after the co raised $150M by selling 7.9M shares in the IPO.

• DOCU shares fell after lowering their FY26 billings forecast to $3.29B-$3.34B from prior $3.30B-$3.35B view and after its Q1 billings of $739.6M also misses estimates of $746M and guidance of $741M-$751M; guidance was mixed and now reflects more conservatism around the timing of early renewals.
• IOT shares slid as outperformed Consensus on Q1 revenue (+4%), Operating margins (+680bps), and FCFM (+550bps), but likely weighing on shares was sequential NNARR growth decelerating to +5% YoY (vs. +21% in F1Q25), alongside worse-than-expected tariff implications.
• RBRK delivered strong Q1 results that were ahead of the high end of guidance for all metrics (revenue, ARR contribution margin and EPS) and also raised FY26 guidance for growth and profitability for all metrics. Reported Q1 ARR that beat by $33M, similar to the $32M TTM average beat.
• TTAN Q1 subscription revenue growth came in at 29%, total revenue growth at 27%, and the firm delivered 560 bps of annual operating margin expansion as results topped expectations; Canaccord positive on shares, Buy and $130 tgt but noted is an expensive stock and lock-up pending weighs on shares.

• AVGO reported better Q2 results but provided mixed Q3 guidance which sunk shares (higher revs, lower EBITDA/EPS) as Q2 upside was driven by Infra SW due to VMW, while Semi and AI Semi rev of $4.4B (+46% y/y) was in line, with AI Networking +170% y/y and AI ASICs +DD% y/y.
• AMAT was upgraded to Equal Weight from Underweight saying the stock’s valuation drives the upgrade as its estimates are below consensus. Morgan Stanley’s fiscal 2026 revenue and earnings estimates are 8% and 10% below the Street, respectively, due to a more negative leading logic and DRAM view.
• SNDK 18.5M share secondary offering priced at $38.50