With the earnings season wrapped up and Nvidia already reported, there doesn’t appear to be a lot of positive catalysts in the next week that could push stocks higher. The monthly employment report next Friday may also be negative.
Market and Economic Data Summary
• Despite tariff concerns, equity markets were nearly flat on Friday and closed the month of May with a gain.
• The S&P 500 logged its best May since 1990 and its best month since Nov. 2023, jumping over 6%.
• The Dow added 4% over the month and the Nasdaq gained nearly 10%.
• Bond yields fell, with the 10-year Treasury yield at 4.40%.
• The U.S. dollar advanced against major international currencies.
• WTI oil traded lower ahead of an OPEC+ decision this weekend on a potential July supply hike.
• The US economy contracted by 0.2% in the first quarter of 2025.
• Personal consumption expenditure (PCE) inflation declined to 2.1% annualized in April, below forecasts calling for 2.2%.
• According to the final May reading of the University of Michigan consumer sentiment survey released Friday, headline sentiment remained unchanged from the previous month, halting a four-month streak of sharp declines.
• Initial Jobless Claims increased 14K from the prior week to 240K, and above the 230K expected. Continuing Claims increased 26K from last week.to 1.919M.
• The U.S. Court of International Trade and a U.S. District Court ruled on Wednesday that President Trump does not have the authority to impose the 10% global baseline tariff and 20% fentanyl duty on China. On Thursday the U.S. Court of Appeals for the Federal Circuit granted a stay on the trade-court ruling, pending a hearing scheduled for June 9th. The District Court ruling is scheduled to go into effect on June 12, allowing time for appeals.
• The European Union criticized U.S. President Donald Trump’s move to hike tariffs on steel imports, saying it “adds further uncertainty to the global economy.” Trump announced Friday he was doubling tariffs on steel imports to 50% from 25%. An EU spokesperson said it is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”
Crypto News
• Earlier in the week U.S. President Donald Trump’s company which operates his Truth Social platform, Trump Media & Technology Group (DJT + $0.48 to $21.31), announced plans to raise about $2.5B from institutional investors to buy Bitcoin, according to The Wall Street Journal.
• GameStop revealed $513 million acquisition of 4,710 Bitcoin (BTC).
More Tariff Turmoil with Europe
President Trump announced Friday he was doubling tariffs on steel imports to 50% from 25%.
The European Union on Saturday criticized President Donald Trump’s move to double tariffs on steel imports, warning that it “undermines” efforts to reach a “negotiated solution” in the ongoing trade war.
“We strongly regret the announced increase of U.S. tariffs on steel imports from 25% to 50%,” an EU spokesperson said in a statement to NBC News.
“This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” the spokesperson continued.
Pentagon chief Says Ready to ‘fight and win’ Against China
Pentagon chief Pete Hegseth on Saturday warned that the U.S. was prepared to “fight and win” against China if deterrence efforts failed.
Speaking at the annual defense summit Shangri-La Dialogue in Singapore, U.S. Defense Secretary Hegseth stressed Washington’s resolve to bolster defense capabilities at a time when regional warfare has flared up around the world, including Russia’s war in Ukraine and the military conflict in Gaza.
“China has demonstrated that it wants to fundamentally alter the region’s status quo. We cannot look away and we cannot ignore it. China’s behavior toward its neighbors and the world is a wake up call and an urgent one,” said Hegseth.
“We ask, and indeed, we insist that our allies and partners do their part on defense,” said Hegseth, adding that “our defense spending must reflect the dangers and threats that we face today, because deterrence doesn’t come on the cheap.”
The Week Ahead:
Economic Data:
• Monday (6/2): Construction Spending, ISM Manufacturing Index
• Tuesday (6/3): Factory Orders
• Wednesday (6/4): ADP Employment Change, EIA Crude Oil Inventories, ISM Services, MBA Mortgage Applications Index
• Thursday (6/5): Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Productivity – Revised, Trade Balance, Unit Labor Costs
• Friday (6/6): Average Workweek, Average Hourly Earnings, Consumer Credit, Nonfarm Payrolls, Unemployment Rate
Earnings:
• Monday (6/2): Campbell’s Co (CPB), Science Applications International Corp. (SAIC), Credo Technology Group Holdings Ltd. (CRDO)
• Tuesday (6/3): Ferguson Enterprises Inc. (FERG), Dollar General Corp. (DG), NIO Inc. (NIO), Ollie’s Bargain Outlet Holdings Inc. (OLLI), Signet Jewelers (SIG), CrowdStrike Holdings Inc. (CRWD), Hewlett Packard Enterprise Co. (HPE), Guidewire Software (GWRE), Asana Inc. (ASAN)
• Wednesday (6/4): Dollar Tree Inc. (DLTR), Webster Financial Corp. (WBS), Thor Industries Inc. (THO), MongoDB Inc. (MDB), Five Below Inc. (FIVE), PVH Corp. (PVH), Argan Inc. (AGX), Verint Systems Inc. (VRNT)
• Thursday (6/5): Ciena Corp. (CIEN), Brown-Forman Corp. (BF/B), Victoria’s Secret &Co. (VSCO), Cracker Barrel Old Country Store Inc. (CBRL), Broadcom Inc. (AVGO), Lululemon Athletica Inc. (LULU), Samsara Inc. (IOT), Rubrik Inc. (RBRK)
• Friday (6/6): no reports
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