Early Look

Tuesday, June 3, 2025

U.S. futures are giving back some of yesterday’s gains with modest declines overnight ahead of a few economic reports and as conference season gets underway with several Wall Street conferences taking place this week. Futures got a little bump after the bell last night on reports the U.S. extends tariff pause on many Chinese goods to August 31^st but has since pulled back. Overseas markets remain very strong and outperform US markets as the iShares MSCI Eurozone ETF (EZU), iShares MSCI United Kingdom ETF (EWU) and iShares MSCI Japan ETF (EWJ) all posted new 52-week highs yesterday. In Asian markets, The Nikkei Index fell -23 points to 37,446, the Shanghai Index rose 14 points to 3,361, and the Hang Seng Index jumped 354 points to 23,512. In Europe, the German DAX is up 14 points to 23,945, while the FTSE 100 is down -9 points to 8,764. Treasuries climb, with some relief seen after solid demand at a Japanese 10-year bond sale as the 10-year yield dips to 4.41%; the dollar index (DXY) edges back up to the 99-level; Bitcoin edges higher +0.4% at $105,350; gold prices slip -0.4% after surging on Monday. Note the U.S. Dollar Index (DXY) posted its 2nd-lowest close going back to April 2022. Markets remain on edge as investors awaited possible negotiations between the United States and its trading partners for more clarity on the tariff war. President Donald Trump and Chinese leader Xi Jinping is set to speak this week, White House press secretary Karoline Leavitt said.

• The Dow Jones Industrial Average rose 35.41 points, or 0.08%, to 42,305.48
• The Nasdaq Composite gained 128.85 points, or 0.67%, to 19,242.61
• The Russell 2000 Index advanced 3.88 points, or 0.19% to 2,070.17

• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 10:00 AM ET                JOLTs Job Openings for April…est. 7.1M (prior 7.192M)
• 10:00 AM ET                Factory Orders M/M for April…est. (-3.1%)
• 10:00 AM ET                Durable Goods Orders M/M for April…prior (-6.3%)
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: ASAN BASE CRWD GWRE HPE HQY MAMA SPWH YEXT

• Deutsche Bank 29th Annual European Leveraged Finance Conference, 6/3, in London
• JP Morgan European Automotive Conference, 6/2-6/2, in London
• RBC Capital Global Energy, Power & Infrastructure Conference, 6/3-6/4, in New York

• The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable. Álvaro Pereira, the OECD’s chief economist, said countries urgently needed to strike deals that would lower trade barriers. “Otherwise, the growth impact is going to be quite significant,” he said. The Organization for Economic Cooperation and Development revised its global growth forecast down to 2.9% for 2025, from 3.1% expected earlier.
• Deutsche Bank raised its year-end target for the S&P 500 to 6,550 from 6,150, citing lower tariff-related pressure on earnings and a resilient economy.

• UBER Technology (UBER) names Andrew Macdonald as COO, first since 2019; CEO affirms commitment in memo to staff last night.

• The Trump administration to eliminate Federal protections banning drilling and mining in Alaska wilderness, the New York Times reported last night.
• Constellation (CEG) and Meta (META) reach 20-year power purchase deal to keep Illinois nuclear plant open through 2047; the deal to expand Clinton’s clean energy output by 30 mw through plant uprates; also evaluating strategies to continue Clinton plant’s existing early site permit
• Donaldson (DCI) Q3 adj EPS $0.99 vs. est. $0.95; Q3 revs $940.1M vs. est. $933.45M; raises FY25 adjusted EPS view to $3.64-$3.70 from $3.60-$3.68 (vs. est. $3.60) while FY sales are forecast to increase 1%-3% y/y, consistent with previous expectations; pricing is expected to contribute one percentage point of the increase.
• Eos Energy Enterprises Inc (EOSE) to sell 18.8M shares at $4.00 per share per SEC filing.
• Eaton (ETN) and Siemens Energy (SMNEY) have announced a fast-track approach to building data centers with integrated onsite power. They will aim to address market needs by offering reliable grid-independent energy supplies and standardized modular systems to facilitate swift data center construction and deployment
• Oshkosh (OSK) upgraded to Buy from Hold at Truist and raised tgt to $127 from $93 calling it the cheapest name within its machinery coverage universe, trading at 8.3-times consensus forward earnings.
• Pentair (PNR) files an automatic mixed securities shelf.
• Viper Energy, Inc. (VNOM), a subsidiary of Diamondback Energy, Inc. (FANG) announced that they have entered into a definitive agreement under which Viper will acquire Sitio (STR) in an all-equity transaction valued at approximately $4.1B, including Sitio’s net debt of approximately $1.1 billion as of March 31, 2025.

• Cardiff Oncology (CRDF) announces positive data from investigator-initiated trial of onvansertib in combination with paclitaxel in metastatic triple-negative breast cancer presented at ASCO 2025.
• Jazz Pharmaceuticals (JAZZ) announces Zepzelca® (lurbinectedin) and atezolizumab (Tecentriq®) combination significantly improves survival as first-line maintenance therapy for extensive-stage small cell lung cancer; combination therapy reduces disease progression or death risk by 46%.
• MoonLake Immunotherapeutics (MLTX) shares rise after the Financial Times reported Merck (MRK) has held talks over an acquisition of more than $3 billion for the Swiss biotechnology company. Merck submitted a nonbinding offer for MoonLake earlier this year, the Financial Tines reported. https://tinyurl.com/57cyyvd8

• Credo Technology (CRDO) Q1 adj EPS $0.35 vs est. $0.28; Q1 revs $170.025M vs est. $159.59M; Q4 adj net income $65.3M vs. est. $51.6M; sees Q1 revenue $185M-$195M, vs. consensus $162.4M and sees Q1 non-GAAP gross margin between 64%-66%.
• EchoStar (SATS) said that in light of the uncertainty raised by the FCC review disclosed in filings filed on May 28, 2025 and May 30, 2025, EchoStar “has elected not to make approximately $183M in cash interest payments due on June 2, 2025 with respect to our DISH DBS Corporation 5.25% secured notes due 2026, 5.75% secured notes due 2028 and 5.125% unsecured notes due 2029 comprised of approximately $72.2M under the 2026 Notes, $71.9M under the 2028 Notes and $38.4M under the 2029 Notes.
• Pinterest (PINS) upgraded to Overweight from Neutral at JPMorgan and raised tgt to $40 from $35 noting shares remain down -18% from the February market highs.
• Taiwan Semiconductor Manufacturing (TSM) faces limited impact from tariffs, according to CEO (C). WEI, who reaffirmed that AI demand remained strong. At an annual shareholders’ meeting Tuesday, the chief executive said tariffs are typically borne by importers and won’t directly affect the company – WSJ.