Opening Comment — Tuesday, June 10, 2025
DJIA: 42,761.76, down 1.11
S&P 500: 6,005.88, up 5.52
NASDAQ: 19,591.24, up 61.29
Stocks mostly unchanged as trade talks go on
Stock futures are mostly unchanged Tuesday morning as trade talks between the U.S. and China continue and investors evaluate a stronger-than-expected reading on small business optimism. As of 7:15 AM ET, the Dow is decreasing 0.1%, while the S&P 500 is flat. The Nasdaq 100 is also little changed relative to fair value on the GLOBEX.
U.S. equities were mostly higher on Monday as the finalized April reading of wholesale inventories unexpectedly rose, though wholesale trade sales registered a greater-than-expected deceleration. The Federal Reserve Bank of New York’s measures of inflation expectations fell, with one-year ahead inflation expectations declining the most, down to 3.20% for May. The Dow was little changed, while the tech-heavy Nasdaq Composite rose 0.3%. The S&P 500 increased 0.1% with five of 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 1.1%, while the Utilities sector was the bottom performer, falling 0.7%.
On the data front, the National Federation of Independent Business’s gauge of small business optimism increased to 98.8 in May from the prior month’s 95.8.
Across the pond, European stocks are mostly lower in mid-day trading as the U.K.’s April unemployment rate rose to 4.6% and average weekly earnings growth decelerated more than projected. Meanwhile, the country’s jobless claims rose in May.
Overnight in Asia, stocks were mixed as Westpac’s Consumer Confidence Index for Australia rose by 0.5% month-over-month in June, while National Australia Bank’s Business Confidence Index rose in May. Meanwhile, South Korea’s current account balance narrowed in April. Japan’s M2 money supply (a measure of the total amount of money in circulation) increased by 0.6% year-over-year (YOY) in May, while M3 (a broad measure of the money supply) grew by 0.2%. Meanwhile, Japanese preliminary May machine tool orders rose by 3.4% YOY.
In FOREX trading, the dollar is slightly higher ahead of the continuation of U.S.-China trade talks.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.3% higher at $65.50/barrel.
In the metals complex, gold is 0.2% lower at $3,325.90/ounce following a strengthening dollar.