June 25th, 2025
U.S. stocks are trading higher Wednesday, with the S&P 500 edging closer to its February 19 record and building on recent gains, fueled by easing tensions in the Middle East. With the Middle East ceasefire intact and markets hovering near record highs, investors are also turning their attention to Micron’s upcoming earnings and fresh commentary from Fed Chair Jerome Powell as he headed to the Senate today for more testimony, keeping rates, inflation, and economic trends in focus. New home sales data was the only main economic data for the day.
Economic Takeaways:
- The 10-year Treasury yield opened near 4.32%, while the 2-year is holding steady around 3.8%.
- New home sales tumbled nearly 14% in May to a seasonally adjusted annual rate of 623,000, down from April’s revised figure of 722,000, according to data released Wednesday by the U.S. Census Bureau and the Department of Housing and Urban Development.
- Spot gold last traded at $3,321.64 an ounce, holding steady with little change on the day.
Micron Earnings in the Spotlight
Micron is expected to deliver its earnings report after the close today.
“HBM demand trends remain robust with strong visibility and AI capital expenditure spending,” JPMorgan analyst Harlan Sur noted in a June 20 earnings preview, maintaining his Overweight rating on Micron stock.
Wall Street expects Micron to report third-quarter earnings per share of $1.60—a 158% increase year-over-year—and revenue of $8.85 billion, roughly 30% higher than the same period last year.
Two weeks ago, Micron joined numerous tech companies ramping up investment in U.S. manufacturing amid increased pressure from the Trump administration. The company announced plans to invest an additional $30 billion in the U.S., expanding its manufacturing and R&D facilities in Idaho and New York. This boosts its total U.S. manufacturing and R&D investment to about $200 billion.
A Buyout for BP?
BP (BP) shares jumped as much as 8% on Wednesday following a Wall Street Journal report that the British oil giant is in early-stage takeover talks with European rival Shell (SHEL).
The potential deal, valued at around $80 billion, would represent a blockbuster merger between two of the world’s largest energy companies.
BP shares trimmed earlier gains but were still up 1% after a Shell spokesperson reiterated the company’s strategy: “As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification.” BP declined to comment on the report.
Earlier this year, BP announced plans to ramp up oil and gas investments and pursue divestments to strengthen its balance sheet, marking a shift back toward its core fossil fuel operations while dialing back spending on renewables.
The move comes amid mounting pressure from activist investors over the past year, urging the company to prioritize profitability over climate-related initiatives.
On the Move
- BP (BP) stock soared as much as 8% on Wednesday after the Wall Street Journal reported the British oil giant is in early talks to be acquired by its European rival Shell (SHEL).
- FedEx (FDX) fell 5% in premarket trading after posting earnings late Tuesday that topped expectations for earnings per share but met revenue estimates. The weak spot appeared to be guidance: the company forecast fiscal Q1 EPS between $3.40 and $4.00, below the $4.05 consensus from FactSet. FedEx also cited tariff-related uncertainty affecting international demand and declined to issue full-year guidance.
- Tesla (TSLA) gained 1% premarket, recovering slightly from Tuesday’s 2.3% slide. Bloomberg reported that U.S. regulators are investigating Tesla’s self-driving robotaxis after alleged traffic violations on their first day of paid rides in Austin. Separately, new data showed weaker May sales in Europe. Investors are now eyeing Q2 delivery numbers expected in early July.
- Yum! Brands (YUM) rose 1.5% following an upgrade from Neutral to Overweight by JPMorgan Chase, which cited improving fundamentals.
- Uber (UBER) ticked slightly higher early Wednesday after gaining 7% on Tuesday. The move follows Bloomberg’s report that Uber and Alphabet’s Waymo plan to launch a self-driving ride-hailing service in Atlanta.
- QuantumScape (QS) surged 41% after the solid-state battery company announced a “major milestone” in scaling up production capabilities.
- Carnival (CCL) was flat in early trading, following a nearly 7% jump Tuesday after the cruise operator beat earnings estimates and raised its outlook, citing robust customer demand.
- General Mills (GIS) dropped nearly 2% despite beating EPS estimates and matching revenue expectations. Investors reacted negatively to the company’s cautious FY26 outlook and declining adjusted gross margins.
- Nvidia (NVDA) rose 1% ahead of today’s shareholder meeting. Shares hit a five-month high Tuesday and are approaching their all-time closing high above $149.
- Stellantis (STLA) climbed 4% premarket after Jefferies upgraded the stock to Buy from Hold, saying the company’s earnings downturn may be nearing an end.
- Circle Internet Group (CRCL) bounced 2.7% in early trading, rebounding from Tuesday’s 15% drop—likely a round of profit-taking after a sharp post-IPO rally.
- Coinbase (COIN) extended its recent rally with a 3% gain in early trading, after leading the S&P 500 on Tuesday with a 12% surge. The move continues momentum from last week’s Senate passage of the Genius Act, which outlines a regulatory framework for stablecoins.
What’s Ahead
Chip giant Micron (MU) is set to report earnings after the bell, as the semiconductor sector continues to show strength after a prolonged slump.
Inflation will take center stage for investors this week as the Federal Reserve’s preferred inflation measure—the Personal Consumption Expenditures (PCE) index—for May is set to be released on Friday. Economists expect headline PCE to rise 0.1% month-over-month and 2.3% year-over-year, while core PCE, which strips out food and energy, is also forecast to climb 0.1% on the month and 2.6% annually.
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