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Pre-markets are lower and sinking at this hour, not quite at levels seen earlier in the week but certainly below yesterday’s close, which was up +0.75% and higher across the board. Currently, the Dow is -460 points, -0.92%, and back below 50K again — and it's performing the best of all major indexes. The S&P 500 is -1.21%, the Nasdaq has shed -514 points, -1.73% — both off all-time closing highs Thursday. The small-cap Russell 2000 is -1.63% at this hour.
While President Trump (and a cabal of high-powered CEOs like Jensen Huang and Elon Musk) flies home from meetings with President Xi Jinping and the administration of the Chinese Communist Party in Beijing, spot oil prices are climbing above $100 per barrel (/bbl) again — $104/bbl on WTI and $108/bbl on Brent crude — as the market awaits confirmation that China intends to purchase more oil from the United States, Alaska in particular. We haven’t heard that yet.
The two sides had no doubt been bantering on many important issues, such as China’s claim on Taiwan (and U.S. weapons sales to the island), the purchase of Boeing planes and American farm products like soybeans, and generally attempting to de-escalate the “trade war” between the two nations that dates back to Trump’s first term in office, 2017-2020. China is perhaps the top buyer of oil from Iran, whose ships have reportedly been allowed to exit the Persian Gulf through the Strait of Hormuz. Despite a bevy of photo ops from Trump’s visit, we don’t see much progress regarding commitments.
Empire State Manufacturing Jumps in May
One of the earliest of monthly economic reports, the Empire State Manufacturing Index for May, jumped nearly 3x consensus estimates to 19.6 this morning. This follows an unrevised +11 for April, and the biggest single-month on this metric since April of 2022. In fact, we’d spent the greater part of the last four years with negative reads on manufacturing in the state of New York. The bottom was -29.7 in January of 2024.
New orders and shipments both improved for the second-consecutive month, although we also saw worsening delivery times and supply availability. The knee-jerk assumption here is that the closed Strait of Hormuz, impactful as it is on global oil and domestic gasoline prices, is also affecting delivery and supply of key elements in the manufacturing industry.
Industrial Production & Capacity Utilization Higher than Expected
Adding to the good news on manufacturing, Industrial Production for April came in stronger than anticipated: +0.7% versus +0.2% and an upwardly revised -0.3% for March. Capacity Utilization was 30 basis points higher than projections — +76.1% from +75.8% analysts had been looking for. This follows an unrevised +75.7% reported for the previous month. Questions or comments about this article and/or author" Click here>>
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Arista is well-poised for growth in data-driven cloud networking business with a leadership position in 100-gigabit Ethernet switches, industry-leading capacity, low latency, port density and power efficiency.
Strength across the segments and accretive acquisitions are aiding Zebra Technologies’ performance. Its measures to handsomely reward shareholders are encouraging.
Broad product portfolio, improving orders, AI and electrification content and capacity investments support sustained growth and margin leverage for Vishay Intertechnology.
Nucor should gain from efforts to expand its production capabilities, strategic acquisitions and higher steel prices. It is also seeing momentum in non-residential construction and energy markets.
AI demand, rising interconnect mix, raised outlook, POR pipeline, and disciplined transformation and reinvestment support steady multi-year share value creation.
Five Below’s strategic refocus on its core demographic pre-teens and teens form a strong foundation for growth. Its ambitious store expansion strategy stands out as a significant growth driver.
Large operating losses and higher investment spending, complex deals, roadmap deadlines, and acquisition execution can keep volatility elevated near-term valuation.
Higher tariffs remain a major profitability headwind for Under Armour. Fiscal fourth-quarter adjusted gross margin fell 360 bps to 43.1%, including roughly 260 basis points of tariff-related pressure.
Concentrated personal-loan exposure, below-peer liquidity metrics, and no dividend leave returns dependent on execution and market sentiment cycles credit shocks.
High labor costs, Boeing and Airbus-related delivery delays, apart from share price volatility and high fuel costs represent the main headwinds at UAL.
Organizations are pushing back their investments in big and expensive technology products due to global economic slowdown concerns, which can undermine HPE’s near-term growth prospects.
Labor and supply-chain issues are likely to hurt Apogee’s margins. Elevated interest and healthcare costs are also likley to impact the company's performance in the ongoing quarters.
Tyson Foods leverages a diversified protein portfolio, strong chicken performance and global expansion to deliver resilient growth and long-term shareholder value.
Strength in the Energy Generation/Storage business, balance sheet strength, and focus on autonomous driving, robotics and artificial intelligence are set to drive Tesla.
Strength across all product groups is a positive catalyst for Edwards Lifesciences. The company’s bullish long-term growth strategy buoys optimism on the stock.
Align Technology’s robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock.
AbbVie’s Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years.
Intel’s leading position in PC market, strength in servers, growing clout in software, IoT & ADAS domains and headway in process technology are positive indicators of future growth prospects.
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