US Market Closes
US market closes with oil prices bouncing after Hormuz incident and big tech having another weak day
Summary Micron attempted revitalized the tech trade with another blow out earnings report last night, but the Nasdaq still lagged other indices amid an ongoing rotation.
As Micron verified the unprecedented strength of demand for its memory products, Apple confirmed it will “begin” concomitant price increases with its MacBook and iPad lines going up by as much as 20%.
Big banks traded modestly higher after once again passing annual Fed stress tests, unlocking a number of dividend increases and share buybacks.
US data revealed better than expected GDP growth along with strong capital goods orders among businesses, though PCE price indices remained elevated.
Oil opened trading at pre-war levels, but prices drifted higher following a report the IRGC fired at a tanker today that was't sticking to pre-authorized routes in the Strait of Hormuz.
The White House had little comment on the incident.
Treasury yields continued to adjust lower after a big ‘catch up’ move yesterday.
Gold rebounded back above $4,000 while Bitcoin remained under pressure.
US - (BR) Brazil Jun FGV Construction Costs M/M: 0.9% v 0.8% prior - (US) Sec of State Rubio: Zero support from Gulf countries for tolls and fees on the Starit of Hormuz - (BR) Brazil mid-Jun IBGE Inflation IPCA-15 M/M: 0.4% v 0.5%e; Y/Y: 4.8% v 4.8%e - (US) MAY PRELIMINARY DURABLE GOODS ORDERS: -4.5% V -5.0%E; DURABLES (EX-TRANSPORTATION): 1.3% V 0.6%E - (US) MAY PCE PRICE INDEX M/M: 0.4% V 0.5%E; Y/Y: 4.1% V 4.1%E; Core PCE Price Index M/M: 0.3% v 0.3%e; Y/Y: 3.4% v 3.4%e - (US) Q1 FINAL GDP ANNUALIZED Q/Q: 2.1% V 1.6% PRELIM; PERSONAL CONSUMPTION: 0.5% V 1.4%E PRELIM - (US) MAY PERSONAL INCOME: 0.7% V 0.4%E; PERSONAL SPENDING: 0.7% V 0.6%E - (US) Q1 FINAL GDP PRICE INDEX: 3.6% V 3.5% PRELIM; CORE PCE PRICE INDEX: 4.4% V 4.4% PRELIM - (US) INITIAL JOBLESS CLAIMS: 215K V 225KE; CONTINUING CLAIMS: 1.821M V 1.802ME -(US) WEEKLY EIA NATURAL GAS INVENTORIES: +76 BCF VS. +72 BCF TO +74 BCF INDICATED RANGE -(US) Treasury Sec Bessent: The underlying economy is very strong - Fox News interview - (US) Dallas May Trimmed Mean PCE (m/m) +2.8% v +2.4% prior -(MX) MEXICO CENTRAL BANK (BANXICO) LEAVES OVERNIGHT RATE UNCHANGED AT 6.50%; AS EXPECTED; ANTICIPATES HEADLINE INFLATION TO CONVERGE AT 3% TARGET IN Q2 OF 2027 Europe and Asia - (UK) Jun CBI Retailing Reported Sales: -54 v -40e - (JP) Japan PM Takaichi: Will move away from relying on extra budgets; Will mull annual bond issuance while assessing markets - (UK) Reportedly Ed Miliband emerges as one of three potential candidates for the role of UK Chancellor and the two men are close allies; His critics, including some cabinet ministers, argue he is not pro-business enough and risks undermining market confidence - press - (IR) Iranian Revolutionary Guards Quds Force: If Israel does not withdraw from Southern Lebanon immediately; it will be force to - (EU) ECB's Moulin (France): Recent developments have been good for French economy; ECB’s rate hike in June was ‘moderate’ - (QA) QatarEnergy issuing its first crude tender since the Iran war - press - (IR) Iranian Parliamentary Speaker Qalibaf: US falsely claims our unfrozen assets will buy their agriculture -(IR) Iran reportedly proposes charging "service fees" in the Strait of Hormuz with Gulf neighbors, which would net $40B a year for the states involved; Iran is looking at models in waterways around the world, including in the Dardanelles - WSJ -(IR) Israel Defense Min Katz: Repeats Israel military will remain in Lebanon, Gaza and Syria security zones as long as needed and will not withdraw due to pressure -(US) TREASURY $44B 7-YEAR NOTE AUCTION DRAWS 4.260% V 4.290% PRIOR, BID-TO-COVER RATIO: 2.50 V 2.52 PRIOR AND 2.60 OVER THE LAST 12 -(IR) Islamic Revolutionary Guard Corps attacked a Singapore-flagged cargo ship off Oman today - WSJ citing US senior officials -(US) Fed's Goolsbee (non-voter): Hard to get a throughline on inflation, how persistent or temporary it is; Reiterates inflation is going the wrong way, inflation side of the mandate is clearly the problem - CNBC interview Corporate Headlines -MU Q3 $25.11 v $20.98e, Rev $41.5B v $36.5Be; Margins more than double y/y; FCF up 9x y/y; Guides Q4 well above expectations, raises capex outlook -QCOM targets FY29 non-handset Rev $40B, data center Rev $15B+ -JEF Q2 GAAP $1.02 v $0.40 y/y, Total Net Rev $2.21B v $1.63B y/y; Raises buyback to $250M -TECH Merck KGaA offered to acquire Bio-Techne at $73/shr or $11.3B cash -IBM unveils sub-1 nm chip technology with 0.7 nm node and new nanostack architecture to deliver dramatically more power and energy efficiency; Sees path to production in as early as the next 5 years (worlds first sub 1nm) -MKC Q2 $0.80 v $0.69e, Rev $1.94B v $1.90Be; Advancing integration planning for the proposed combination with Unilever Foods -CMC Q3 $1.73 adj v $1.60e, Rev $2.48B v $2.38Be -WGO Q3 $0.66 v $0.82e, Rev $699M v $777Me; Cuts outlook citing mixed demand - AAPL RAISES PRICES OF IPADS, MACS IN RESPONSE TO INCREASES IN MEMORY CHIP COSTS; “Reached a point where we need to begin raising prices on a number of products” [*Note: iPhones were not mentioned in the press release] -AYI Q3 $5.31 adj v $5.20e, Rev $1.20B v $1.18Be -DRI Q4 $3.66* v $3.63e, Rev $3.72B v $3.73Be; Authorizes new $1.5B share repurchase program; Raises quarterly dividend 8% -BMBL reportedly considering a sale and has hired Morgan Stanley as an adviser - press After Hours Movers - RKLB +4%; Awarded 3 NASA launch contracts - FDXF +1%; first earnings report as a separate company - ON -6%; Acquiring SYNA in a $7B all stock deal