Early Look

Wednesday, June 25, 2025

U.S. futures are down slightly following another massive surge on Tuesday, where stocks rose again as the Nasdaq 100 advanced 1.5% to a record while the S&P 500 climbed to within 1% of its all-time high after Fed Chairman Jerome Powell said during his congressional testimony that the Fed could ease policy sooner than expected if upcoming inflation reads were weaker than forecast or the labor market deteriorates. Meanwhile, bond yields and the dollar fell after Israel and Iran appeared to be honoring a ceasefire agreement unexpectedly announced by US President Donald Trump overnight. In Asian markets, The Nikkei Index rose 151 points to 38,942, the Shanghai Index gained 35 points to 3,455, and the Hang Seng Index jumped nearly 300 points to 24,474. In Europe, the German DAX is down -94 points to 23,545, while the FTSE 100 is little changed at 8,757. In earnings overnight, shares of Fed-Ex (FDX) slip after results and Blackberry (BB) shares rise after results. Today we see earnings from food company General Mills (GIS) and Micron (MU) in semiconductors. Investors await Friday’s release of the Fed’s preferred inflation gauge, the May Personal Consumption Expenditures (PCE) report, for more clues as to the central bank’s next move. So far the path of least resistance remains firmly to the upside despite Fed uncertainty and geopolitical concerns.

• The Dow Jones Industrial Average rose 507.24 points, or 1.19%, to 43,089.02
• The Nasdaq Composite gained 281.56 points, or 1.43%, to 19,912.53
• The Russell 2000 Index advanced 28.53 points, or 1.34% to 2,161.21

·      10:00 AM ET                New Home Sales M/M for May

·      10:30 AM ET                Weekly DOE Inventory Data

·      1:00 PM ET                   U.S. Treasury to sell $70B in 5-year notes

Earnings Calendar:

·      Earnings Before the Open: DAKT GIS LOT PAYX WGO

·      Earnings After the Close: FUL JEF KEQU MLKN MU SCS WS

Other Key Events:

·      Goldman Sachs Business Services, Transport, Leisure and Infra & Building Materials Conference, 6/23-6/25, in London

·      Northland 2025 Growth Virtual Conference, 6/25 (virtual)

·      Roth 15th Annual London Conference Preview – Digital Assets, Infrastructure, and Blockchain, 6/24-6/26, in London

·      Truist Healthcare Disruptors & Digital Health Summit, 6/24-6/25, in New York

·      Truist Government Services Bus Trip, 6/24-6/25, in Washington, DC

• Weekly API crude oil stock change a-4.277M drawdown of inventories vs. prior week -10.133M, while Cushing Stock Change Actual -0.075M and gasoline stock change actual 0.764M barrels.

• Kraft Heinz (KHC) was upgraded to Neutral from Sell at Goldman Sachs.
• QuantumScape (QS) shares jump 30% overnight after saying said it achieves major milestone: Cobra separator process enters baseline production.
• Stellantis (STLA) was upgraded to Buy from Hold at Jefferies and raised tgt to $13.20 saying data suggests the company’s earnings slide is about to turn.
• Tesla’s (TSLA) new car sales in Europe fell -27.9% in May from a year earlier even as fully-electric vehicle sales in the region jumped 27.2%. Overall car sales in Europe rose 1.9%, with the strongest growth coming from plug-in hybrids and cars powered by alternative fuels.
• Torrid (CURV) announced the launch of an underwritten public offering of 10M shares of common stock to be sold by certain stockholders.
• Walmart Inc. (WMT) is testing dark stores, which resemble retail stores but are closed to the public, as a way to speed up deliveries per Bloomberg.

• AeroVironment (AVAV) Q4 adj EPS $1.61 vs est. $1.39 on revs $275.1Mm vs est. $241.59Mm, gross margin 36%; guides FY revs $1.9-2.0B vs est. $1.977B and adj EPS $2.80-3.00 vs est. $3.49.
• AST SpaceMobile (ASTS) to sell 9.45M shares at $53.22 in registered direct offering.
• NEXTracker (NXT) announced that its NX Horizon solar trackers will power one of Europe’s largest solar projects, the 550 MW “Oricheio PPC Ptolemaida” solar PV park in Western Macedonia
• NuScale Power (SMR) was downgraded to Neutral from Buy at BTIG noting the shares have more than doubled since Q1 earnings in mid-May
• QXO (QXO) 89.888M share Spot Secondary priced at $22.25.
• Rocket Lab (RKLB) executes responsive reschedule of electron manifest to launch next mission in two days’ time.
• Worthington Industries (WOR) Q4 adj EPS $1.06 vs est. $0.84 on sales $317.9Mm vs est. $301.44Mm, says confident in ability to continue to drive sustainable growth and long-term value.

• Eli Lilly (LLY) and Novo Nordisk (NVO): Early two-thirds of US patients taking Wegovy or Zepbound stayed on the drug in past year, new data show; only 1 in 7 Wegovy patients stayed on weight-loss drug over 3 years, data show.
• Inspiremd (NSPR) announces FDA approval for CGuard® prime carotid stent system for the prevention of stroke; FDA approval triggers second warrant tranche in $113.6M financing.
• Novartis (NVS) announced that its previously announced tender offer by Redwood Merger Sub Inc., a Delaware corporation and an indirect wholly owned subsidiary of Novartis, to acquire all of the outstanding shares of common stock of Regulus Therapeutics (RGLS), in exchange for $7.00 in cash per share.
• Since approval of Sarepta’s (SRPT) Elevidys, the FDA has received two reports of fatal acute liver failure following treatment of non-ambulatory pediatric male patients with Duchenne muscular dystrophy (DMD), the agency said in a statement

• Omnicom (OMC) and Interpublic (IPG) both downgraded to Equal Weight from Overweight at Barclays and WPP Group (WPP) downgraded to Underweight saying the firm came away from the Cannes ad festival last week more bearish than before on the advertising agencies; said Artificial intelligence should result in operating performance remaining contrasted and in the current low organic growth continuing.
• Outfront Media Inc (OUT) announces restructuring and reduction in force plan; said plan to reduce workforce by about 120 employees; estimates $18.6M in restructuring charges.
• SiTime Corp (SITM) files for $350M follow-on public offering