Daily News Round Up
Monday, 02 Jun 2025
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- Escalating Trade Tensions and Geopolitical Risks are Dominating Market Sentiment. President Trump’s announcement of doubled tariffs on steel and aluminum, coupled with accusations against China and potential retaliatory measures, is significantly impacting global markets. Asian markets declined, and U.S. futures wavered on the news, while the threat of a U.S.-China trade truce falling apart adds to uncertainty. (WSJ, FMP)
- Inflationary Pressures Remain a Concern Despite Recent Soft Data. While PCE inflation data came in softer than expected, factors like upcoming tariffs, sustained consumer spending (even amid trade concerns), and lingering price increases in sectors like food suggest that disinflation may not be sustained. Several economists are revising their outlooks to anticipate rising inflation, potentially delaying Fed rate cuts. (Seeking Alpha, Market Watch)
- The Federal Reserve’s Rate Path Remains Data Dependent, with a Bias Towards Potential Cuts. Despite economic resilience, indications suggest the Fed may still be able to cut rates later this year. Governor Waller signaled support for cuts contingent on economic conditions, and recent data hasn’t completely derailed expectations for easing, though the timing is now more uncertain. (Market Watch, WSJ)
- Sector Performance is Diverging, Driven by Macroeconomic and Company-Specific Factors. Tech stocks, particularly those involved in AI, have led the recent market rally, but face headwinds from rising interest rates and geopolitical risks. Conversely, companies benefiting from potential protectionist policies, like U.S. Steel, are seeing positive sentiment. Pharma and banking sectors also presented diverse stories: Sanofi is expanding via acquisition and HSBC is increasing credit investments, while others, like Regeneron, face delays and scrutiny. (Seeking Alpha, FMP)
- The U.S. Dollar is Facing Downward Pressure, Influenced by Trade Concerns and Potential Rate Cuts. Concerns surrounding the possibility of renewed trade tensions and expectations of Fed rate cuts are contributing to a weaker dollar, as investors explore alternative currencies like the Euro and the Japanese Yen. UBS recommends reassessing dollar exposure due to the shifting macroeconomic environment. (FMP, FMP)
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What happened over the weekend?
Macro
Commodity Prices: Gold prices rose on Monday, May 13, driven by U.S.-China trade tensions and expectations of potential Federal Reserve rate cuts. Spot gold increased by 0.8% to $3,315.68 per ounce, while August futures rose 0.7% to $3,338.52 per ounce. Silver futures advanced 0.6% to $33.22 per ounce, while platinum decreased 0.5% to $1,050.10 per ounce. Federal Reserve Governor Christopher Waller signaled support for rate cuts later in the year, causing the dollar to fall 0.1%. Earlier in May, a three-day dollar recovery had previously pressured gold. (FMP)
Economic Growth: This is assuming the government doesn’t find a way to make the situation worse, writes columnist James Mackintosh. (WSJ)
Economic Growth: The United States economy is facing a precarious period with no apparent lifeline, according to a warning from top Wall Street economist David Rosenberg. (Finbold)
Economic Growth: Stocks surged in May, led by tech and AI, with the S&P 500 and Nasdaq posting strong gains despite trade war uncertainty. Robust consumer spending, resilient labor data, and disinflation trends supported the rally, while recession odds dropped sharply. (Seeking Alpha)
Economic Growth: Americans say they have little confidence in the economy due to ongoing trade wars. But you’d never know it based on how much they’re spending — especially on food and drinks they didn’t make themselves. (Market Watch)
Economic Growth: JPMorgan Chase CEO Jamie Dimon has regularly warned that the U.S. economy faces perils, but even as he sounds the alarm, his bank is doing better than ever. A review of 20 years of Dimon’s annual investor letters and his public statements show a distinct evolution: His warnings about economic calamities became more frequent even as his bank’s performance began lapping rivals. (CNBC)
Economic Growth: I see mounting risks of a major market downturn, driven by high valuations, rising debt, and complacency among investors. Warning signs include surging gold and Bitcoin, weak transportation and oil stocks, rising delinquencies, and escalating trade tensions. (Seeking Alpha)
Energy: Oil producers’ group OPEC+ decided to up its production levels despite weak crude prices in what is being seen as a bid to hold on to its market share in a tough economic environment. (Forbes)
Geopolitics: Oil prices increased more than 2% in Asian trading on Monday due to escalating Russia-Ukraine tensions and potential U.S. sanctions. Brent crude reached $64.23/bbl (+2.3%) and WTI reached $61.23/bbl (+2.4%) by 21:37 ET. A bipartisan bill proposes a 500% tariff on imports from countries continuing to buy discounted Russian crude, targeting primarily China and India. OPEC+ confirmed a 411,000 bpd production increase for July, the third consecutive month at that level. (FMP)
Inflation: Leading indicators now signal rising inflation after a period of disinflation, reversing my earlier soft landing outlook. Recent PCE and core inflation data are near Fed targets, but upcoming tariffs and tough year-over-year comparisons will push rates higher. (Seeking Alpha)
Inflation: Year-to-year inflation may look low, but prices continue to compound upwards. For example, “Food at home” pricing, accounting for 8% of the total CPI basket, was up 1.8% in 2024. (Forbes)
Inflation: PCE inflation comes in soft – will it prompt a rate cut? (InvestorPlace)
Inflation: “Float like a butterfly, sting like a bee,” Muhammad Ali used to say. “The hands can’t hit what the eyes can’t see. (Barrons)
Inflation: Tech stocks drag Nasdaq lower as soft PCE data boosts Fed rate cut hopes. Traders brace for June’s tariff rulings and policy signals. (FXEmpire)
Inflation: The Fed’s preferred measure of inflation, Personal Consumption Expenditures (PCE), are out for the month of April. Results were positive across the board — eyebrow-raisingly so, in some cases. In fact, these figures have been strong enough to cut in half the pre-market plummet on the major indexes once President Trump posted “No more Mr Nice Guy” in his trade negotiations with China. (Zacks Investment Research)
Inflation: Economists and some business executives have warned that prices will likely head higher as Trump’s widespread tariffs take effect, though the timing and impact of those duties are now in doubt after they were struck down in court. (New York Post)
Inflation: April’s data on inflation and consumer activity show slowing price increases, a boost to savings and a deceleration in spending, too. The Personal Income and Outlays data, released on Friday (May 30), indicates prices were up only slightly month on month and 2. (PYMNTS)
Interest Rates: Federated Hermes’s Steve Chiavarone crystalized the market’s view of where the Federal Reserve is heading on interest rates in one sentence. (Market Watch)
Interest Rates: The Federal Reserve will likely be able to lower interest rates this year, and recent data supports this outlook, Fed Governor Christopher Waller said. (Market Watch)
Interest Rates: A short-lived bump in tariff-driven inflation could pass quickly enough to allow U.S. interest-rate cuts later this year, especially if tariffs themselves ease, Fed governor Christopher Waller said. (WSJ)
Interest Rates: Fixed-income investors are steering clear of longer-term Treasuries amid volatility in bond yields and prices. Warren Buffett’s Berkshire Hathaway is reported to now own 5% of the short-term T-bill market. (CNBC)
Interest Rates: Economic data for May is expected to show resilience, with improvements in ISM and PMI readings and healthy job creation, despite global tariff uncertainties. The Fed is unlikely to cut rates soon, as strong growth and positive economic surprises push back market expectations for easing into September or later. (Seeking Alpha)
Interest Rates: Higher yields on long-term bonds have helped many pensions derisk. Now their appetite might be waning. (WSJ)
Interest Rates: The S&P 500 is currently overvalued with a 28 P/E ratio, making it vulnerable to a 7%-10% correction in the coming months. Market risks include a drop-off in consumer spending, sluggish economic growth, and delays in Federal Reserve rate cuts due to uncertainty. (Seeking Alpha)
International relations: UBS recently advised investors to re-evaluate their U.S. dollar holdings due to shifting global dynamics potentially leading to a weaker dollar. The U.S. dollar’s recent climb was fueled by higher U.S. interest rates and stronger GDP growth compared to other major economies, but this advantage may narrow as Europe and parts of Asia recover. The Federal Reserve’s rate-hike cycle is nearing its end, while the European Central Bank (ECB) and Bank of Japan (BoJ) may implement future tightening. Investors are diversifying away from dollar-denominated assets due to stimulus measures and equity returns abroad. UBS recommends aligning currency holdings with anticipated expenses, considering currencies like the Euro (EUR), Swiss Franc (CHF), and Japanese Yen (JPY). Investors should inventory current holdings, project liabilities over the next 6-24 months, and set target currency weights to balance yield versus stability. Monitoring announcements from the Fed, ECB, and BoJ is advised to adjust positions accordingly. (FMP)
International relations: Most Asian markets fell on Monday due to resurfaced U.S.-China trade worries after President Trump accused China of breaching a recent deal and announced increased steel and aluminum tariffs. S&P 500 Futures dropped 0.4%. Hong Kong’s Hang Seng declined by 2.3%, Japan’s Nikkei 225 fell 1.5%, Japan’s TOPIX decreased 1.0%, Australia’s ASX 200 was down 0.2%, Singapore’s Straits Times fell 0.4%, and India’s Nifty 50 Futures decreased 0.3%. The USD/JPY pair fell 0.7%. (FMP)
International relations: Asian currencies largely traded in a narrow range on Monday, with the U.S. dollar slightly softer due to renewed U.S.-China trade uncertainty and signals from Fed Governor Christopher Waller that interest rates may be cut later in the year if economic conditions warrant. USD/JPY fell 0.1%, while the offshore yuan (USD/CNH) rose 0.2%, reflecting underlying weakness. Trump threatened to double steel and aluminum tariffs to 50%, driving flows into the Japanese yen as a safe haven. China rejected Trump’s claims of violating the Geneva trade deal, despite both sides agreeing to drastically cut tariffs in May. Weak Chinese PMI data was released over the weekend. (FMP)
International relations: European stocks have been the main beneficiary of President Trump’s economic agenda. Eurozone stocks are up 19.1% since election day and 20.4% since the inauguration. (Seeking Alpha)
International relations: Markets today face pressure as U.S.-China tensions escalate, with key PMI data and Fed commentary set to shape the session’s tone. (FXEmpire)
International relations: Polish equities slipped on Monday after nationalist opposition candidate Karol Nawrocki won the second round of the country’s presidential election. (Reuters)
International relations: DAX steadies as investors weigh ECB rate cut bets, PMI outlook, and renewed US-China trade tensions after Trump’s rare earth minerals accusation. (FXEmpire)
International relations: For May, the S&P 500 and the Nasdaq Composite had their best month since November 2023. Chinese President Xi Jinping and U.S. President Donald Trump could discuss trade negotiations “this week. (CNBC)
International relations: Component of cellphones and EVs is a thorn in negotiations. (Market Watch)
International relations: A spokesman for the Chinese embassy urged Washington to “jointly uphold the consensus reached at the high-level talks in Geneva.” (Barrons)
Labour: This week’s economic highlights includes the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey for April on Tuesday, and the May jobs report and unemployment rate on Friday. (Barrons)
Market Sentiment: This market is poised for a breakout that could swing either in favor of the bulls or the bears, says Bank of America’s Michael Hartnett. (Market Watch)
Policy: The president is set to raise tariffs on steel and aluminum this week, even as the courts are challenging the legitimacy of other levies. (NYTimes)
Policy: Updated employment data for May, comments from Federal Reserve Chair Jerome Powell, and several noteworthy tech and retail earnings reports highlight this week’s economic calendar. (Investopedia)
Policy: While there is still over a month to go before we reach the halfway mark, it has already been an eventful year for financial markets. President Trump can take credit/blame for a significantly large proportion of this eventfulness. (Invezz)
Policy: By Kevin Flanagan, Head of Fixed Income Strategy Key Takeaways Moody’s downgrade of U.S. Treasuries to Aa1 aligns with earlier moves by S&P and Fitch and had a relatively muted market impact, with 10-Year yields finishing little changed. (ETF Trends)
Policy: Wall Street on Friday posted its best monthly advance since November 2023. The benchmark S&P 500 index (SP500) soared +6.2% for May, as markets recovered from U.S. President Donald Trump’s tariff shock delivered on “Liberation Day” in April. (Seeking Alpha)
Policy: JPMorgan Chase CEO Jamie Dimon reportedly said Friday (May 30) that after excessive spending by the U.S. government and quantitative easing by the Federal Reserve, a crack in the bond market is “going to happen. (PYMNTS)
Policy: Markets thrive on fiscal stimulus, and Trump’s initial belt-tightening stance triggered a stock market crash and credit market turmoil. After the crash, Trump and Bessent reversed course, shifting from deficit reduction to prioritizing economic growth over debt control. (Seeking Alpha)
Policy: U.S. monthly jobs data for May on Friday will be key for investors as they assess the impact of U.S. tariffs on the jobs market. (WSJ)
Trade: U.S. steel and aluminum tariffs will double to **50%**, effective **June 4**. The move, announced on Friday, aims to protect U.S. manufacturers and jobs by discouraging imports and encouraging domestic production. Japan accounts for approximately **4%** of steel exports to the U.S., with Nippon Steel and JFE Holdings each sending roughly **1%** of total shipments, and Kobe Steel exporting around **3%**. Rising global protectionism may trigger retaliatory measures from the EU, India, and South Korea. U.S. domestic mills like Nucor and US Steel may see margin relief, while industrial users could absorb higher costs, potentially contributing to inflation. The U.S. is currently engaged in stalled talks with China. (FMP)
Trade: Asian share markets wavered on Monday due to renewed U.S.-China trade frictions. President Trump announced plans to increase steel and aluminum tariffs to 50%, effective June 4, impacting steel exporters like South Korea and Vietnam. Shares of South Korean and Vietnamese steelmakers subsequently plunged. The U.S. dollar eased in anticipation of U.S. jobs data and a likely European Central Bank (ECB) rate cut. U.S. Nonfarm Payrolls data is scheduled for May 31 at 08:30 ET, with consensus estimates projecting +200,000 jobs added and an unemployment rate of 3.7%. The ECB Rate Decision is scheduled for June 4 at 07:45 ET, with economists anticipating a 25 basis-point cut to the Eurozone’s deposit rate. Treasury Secretary Scott Bessent indicated President Trump would soon speak with China’s President Xi Jinping regarding a dispute over critical minerals. A recent U.S. court ruling found Trump overstepped authority when imposing tariffs, but the administration aims to maintain a minimum U.S. tariff rate of at least 10%. (FMP)
Trade: President Trump said tariffs on imported steel would go to 50% from 25%. That has investors excited early Monday. (Barrons)
Trade: Global stocks and U.S. futures started the new month lower after Trump threatened to double tariffs on steel and aluminum, and trade tensions escalated between China and the U.S. (WSJ)
Trade: Factory activity slowed across much of Asia in May as uncertainty over U.S. tariffs continued to cause steep declines in new orders, purchasing managers surveys show. (WSJ)
Trade: Retailers are facing an increasingly difficult balancing act — protect profit margins or keep prices steady — as the Trump administration’s volatile tariff policy sends shockwaves through supply chains and earnings reports alike. (FXEmpire)
Trade: President Trump said Friday that tariffs on imported steel and aluminum would increase to 50% from 25%, effective Wednesday. (WSJ)
Trade: President Donald Trump’s top economic advisers insisted on Sunday that the tariffs are here to stay, despite the legal challenge. The fate of Trump’s tariff policy could ultimately wind up with the U.S. Supreme Court. (CNBC)
Trade: South Korea’s exports fell in May, with shipments to the U.S. shrinking for a second consecutive month as President Trump’s sweeping tariffs hurt global trade. (WSJ)
Trade: The European Union criticized 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%. (CNBC)
Trade: President Donald Trump has jolted retailers with his ever-changing tariff policies in recent months. Investors have raised one question again and again on quarterly earnings calls in recent weeks: Will consumers see price hikes this year in response to tariffs? (CNBC)
Trade: The president said U.S. Steel, which is in a deal to be taken over by Tokyo-based Nippon Steel, will remain U.S.-controlled. (WSJ)
Trade: Donald Trump said he plans to double tariffs on steel imports from next week, deepening his trade war which has hit global markets. (Skynews)
Trade: Despite everything, the U.S. continues to perk along, and stocks have rebounded. But the true state of the economy is more fodder for confusion. (Barrons)
Trade: President makes announcement that he is raising tariff from 25% at Pennsylvania rally celebrating US Steel and Nippon Steel ‘partnership’ (The Guardian)
Trade: President Donald Trump said on Friday that he planned to increase tariffs on steel from 25% to 50%. The increase will “even further secure the steel industry in the United States,” Trump said. (Business Insider)
Trade: The S&P 500 rose more than 6% in May, inching closer to record highs set before Trump unveiled plans for sweeping tariffs. (WSJ)
Trade: Wall Street seems to have breathed a sigh of relief and now expects the tariffs will be less draconian. But much remains in play. (Barrons)
Trade: Stocks came out of the holiday gate strong this week, bolstered by stabilizing consumer confidence and upbeat economic readings. (Schaeffers Research)
Trade: The U.S.-China trade truce in Geneva earlier this month hinged on Beijing agreeing to resume crucial mineral exports. Now China is slow-walking the concession, and the pact is in jeopardy. (WSJ)
Industry
Banking: HSBC, Europe’s largest bank, is injecting **$4 billion** into its private credit funds under HSBC Asset Management (HSBC AM). The global private credit market totals approximately **$2 trillion**. HSBC aims to grow its private credit platform to **$50 billion** within five years. This move, while representing a small allocation against HSBC’s **$3 trillion** balance sheet, reflects a strategic shift towards higher-yielding alternatives. The bank’s CEO, Georges Elhedery, is focusing on fee-driven and alternative-asset businesses. Private credit typically delivers yields above syndicated bank loans. Competitors include Blackstone and Ares Management, with other banks like Citi and UBS partnering with established private credit firms. (FMP)
Energy: Oil prices increased on Monday, with Brent Crude (August) rising by $1.46 (2.33%) to $64.24/bbl and WTI Crude (July) increasing by $1.66 (2.73%) to $62.45/bbl, following an OPEC+ decision to increase production by 411,000 barrels per day (bpd) in July. This marks a turnaround after both benchmarks fell over 1% last week. The increase of 411,000 bpd marks a third consecutive monthly increase of that amount. Traders had anticipated a potentially larger increase, which would have negatively impacted prices. OPEC+ aims to discipline over-producers, and members exceeding quotas face implicit penalties, contributing to the decision to limit the output increase. Prices could potentially remain above $60/bbl if global demand stabilizes. (FMP)
Pharmaceuticals: AstraZeneca’s camizestrant, an experimental oral SERD, demonstrated a 56% reduction in the risk of disease progression or death (HR=0.44) in women with advanced HR+/HER2- breast cancer, compared to standard care. The trial, presented at ASCO 2025, involved 3,256 patients who had received at least 6 months of aromatase inhibitors plus a CDK4/6 inhibitor. The early-switch arm, utilizing liquid biopsy to detect ESR1 mutations, initiated camizestrant treatment prior to radiographic progression, while the control arm continued standard endocrine therapy. Median PFS in the early-switch arm was not yet reached, while the control arm’s median PFS was approximately 8.3 months. Periodic liquid biopsies, potentially every 8-12 weeks, are suggested for patient monitoring post-CDK4/6 inhibitor treatment. (FMP)
Pharmaceuticals: Outlook for pharma sector as Trump pushes for regulatory changes. The impact of tariffs on drugmakers. (Seeking Alpha)
Retail: The five largest retailers in the U.S — Walmart, Amazon, Costco, Kroger, and Home Depot– have all reported their financial earnings for the first part of 2025. The combined force of these retailers equates to nearly 20% of total retail sales in the United States. (Forbes)
Semiconductors: Citi Research has unveiled inaugural edge AI architectures, marking the beginning of the “personal AI server” era, moving AI inference from data centers to consumer devices. Key developments include:
* **PCIe-Connected AI Modules:** Allow manufacturers to retrofit existing architectures, enabling modular upgrades.
* **Near-Processor LPDDR6 Integration:** Offers bandwidth up to 12-16 Gbps per pin (double LPDDR5), improving data throughput for transformer models.
* **Integrated LPW/LLW DRAM (SoIC Style):** Can achieve peak memory bandwidth exceeding 1 TB/s per chip cluster, with TSMC’s SoIC technology enabling sub-10 µm interconnects. LPW DRAM modules are expected in flagship smartphones by 2026 and mainstream devices by 2028.
* **Model Compression:** Techniques like knowledge distillation (reducing parameters by 10x), reinforcement learning, and Mixture-of-Experts (MoE – reducing compute by ~30-40%) are enabling edge AI feasibility.
* **Roadmap:**
* **2025-2026:** Flagship smartphones will feature LPDDR6-adjacent NPUs, and early adopters will showcase integrated LPW DRAM modules for 8-16 GB of on-chip memory. 1.5-3 billion-parameter edge-optimized language models are expected.
* **2027-2028:** LPDDR6 adoption will expand to mid-range devices running 500M-1B parameter models. SoIC packaging will become cost-effective for tablets and laptops, enabling 7 TB/s memory bandwidth. (FMP)
Telecommunications: Vodafone and Three UK’s merger, finalized on Monday, created VodafoneThree, the UK’s largest mobile operator. Vodafone holds 51% ownership, while CK Hutchison owns 49%. Max Taylor, current Head of Vodafone UK, will lead the combined business. VodafoneThree has committed to a £11 billion investment plan over the next ten years, with £1.3 billion allocated in Year 1 for network roll-out and upgrades, including 5G densification and rural coverage. Investors can monitor Vodafone PLC’s credit rating and key ratios via the Company Rating API to assess the group’s ability to sustain capital spending. Relative valuations in the UK telecom sector can be assessed using the Sector P/E Ratio API. (FMP)
Corporate
Apple Inc: Loop Capital maintains a Hold rating on Apple Inc. (NASDAQ: AAPL) with a $215 price target, anticipating that production shifts and pricing adjustments will positively impact iPhone demand ahead of the iPhone 17 rollout. Apple is expected to front-load iPhone production into the March and June quarters to avoid tariffs, and has increased average selling prices (ASPs) for the iPhone 17 Pro/Pro Max by $100-$200. Shipment forecasts for September and December were revised upwards to 100 million units, including 31 million units of the iPhone 17 Air—15 million more than previous estimates. Apple has placed $1 billion in orders for GB300 NVL72 infrastructure from Supermicro and Dell to build internal AI compute, signaling a strategic focus on generative AI. (FMP)
Berkshire Hathaway / Coca-Cola / Mastercard / Marsh & McLennan: Shares of companies like Berkshire Hathaway, Coca-Cola, Mastercard, and Marsh & McLennan are outperforming in a year of uncertainty and turmoil. (Barrons)
Cisco / Nvidia / Marvell / Dell / Oracle / Coherent: Cisco, Nvidia, Marvell, Dell, Oracle, and Coherent are tech stocks favored by Mizuho Securities’ Jordan Klein. He’s not thrilled by other big names. (Barrons)
Civitas Resources, Inc.: Civitas Resources, Inc. (NYSE:CIVI), an energy sector company, has seen a recent price decline of approximately 2.68% over the past month and 8.56% in the last 10 days. Projections indicate a potential target price of $45.60, suggesting a potential return of 65.52%. The company exhibits strong financial health, holding a Piotroski Score of 9. (FMP)
Dollar General / Dollar Tree / Victoria’s Secret: Earnings Watch: Dollar General, Dollar Tree, Victoria’s secret and other retailers report during the week (Market Watch)
ExxonMobil / EOG Resources: German asset manager Union Investment divested from ExxonMobil (NYSE:XOM) and EOG Resources (NYSE:EOG) due to “insufficient commitment to necessary climate targets.” The divestment occurred after an annual review of the portfolio’s largest carbon emitters, where both companies failed to meet Union Investment’s climate benchmarks. Both ExxonMobil and EOG Resources rank among the top emitters in the global oil & gas sector. ExxonMobil maintains an A-grade credit standing. Union Investment plans to reinvest proceeds into clean-energy infrastructure, electrification plays, and carbon capture technology firms, and will intensify engagement with remaining oil & gas holdings, focusing on near-term methane-reduction and Scope 3 emissions targets. This move is part of a broader trend among European institutions, with other asset managers like DWS and Amundi also divesting from high-emission companies. (FMP)
Lantern Pharma Inc: Lantern Pharma (LTRN) is a biotechnology company developing precision oncology therapies, including LP-184 for Atypical Teratoid Rhabdoid Tumors (ATRT), a rare pediatric cancer, which showed promising results at the SNO Pediatric Conference. The stock has decreased by 4.27%, currently priced at $3.00, fluctuating between $2.97 and $3.07 during the day, with a 52-week range of $2.55 to $6.40. On May 29, 2025, Kreis Leslie W., a 10% owner, sold 3,639 shares at $3.03 each, retaining 207,422 shares. The company’s market capitalization is approximately $32.3 million, and the daily trading volume is 26,554 shares. (FMP)
MSM / CLF / FICO / EXPI: Several brokerages adjusted their outlooks this week for MSM, CLF, FICO, and EXPI. JPMorgan upgraded MSC Industrial (MSM) from Neutral to Overweight, citing a 4%+ dividend yield and potential from tariff-driven pricing. The consensus price target for MSM is $40. GLJ Research downgraded Cleveland‑Cliffs (CLF) to Sell, slashing its price target to $3.91, implying a 39% downside, citing market-share losses, weak auto demand, and an 8.5x 2029E EV/EBITDA valuation. Baird upgraded Fair Isaac (FICO) to Outperform with a $1,900 price target, anticipating benefits from mortgage normalization over the next 12-18 months. DA Davidson upgraded eXp World Holdings (EXPI) to Buy, with a $10.75 target, citing a 0.5% Q/Q increase in agent registrations and Q1 2025 international revenues jumping 103% YoY with gross margins in the high teens, compared to the U.S. segment’s 7-8%. (FMP)
Nu Holdings Ltd. / StoneCo Ltd. / SoFi Technologies, Inc. / Grab Holdings Limited / Affirm Holdings, Inc. / Toast, Inc.: Nu Holdings Ltd. (NYSE:NU) has a Return on Invested Capital (ROIC) of 17.44% and a Weighted Average Cost of Capital (WACC) of 13.20%, resulting in a ROIC to WACC ratio of 1.32. StoneCo Ltd. (STNE) leads in capital efficiency with a ROIC of 38.28% and a WACC of 11.30%, for a ROIC to WACC ratio of 3.39. SoFi Technologies, Inc. (SOFI) has a ROIC of 1.81% and a WACC of 16.35%, yielding a ratio of 0.11. Grab Holdings Limited (GRAB) displays a ROIC of 1.02% against a WACC of 8.12%, producing a ratio of 0.13. Affirm Holdings, Inc. (AFRM) has a negative ROIC of -0.85% and a WACC of 16.57%, for a ratio of -0.05. Toast, Inc. (TOST) achieves a ROIC of 6.69% and a WACC of 13.37%, with a ratio of 0.50. (FMP)
PagerDuty: PagerDuty (NYSE:PD) shares fell nearly 11% intra-day after releasing its first-quarter results. The company reported adjusted earnings of $0.24 per share, exceeding the $0.19 forecast, and revenue of $119.8 million, a 7.8% year-over-year increase, narrowly beating consensus estimates. For the second quarter, PagerDuty projected adjusted earnings of $0.19 to $0.20 per share, below the anticipated $0.23, and revenue between $122.5 million and $124.5 million, lower than the $123.8 million consensus. The company raised its full-year earnings outlook to $0.95–$1.00 per share, up from its prior forecast, but reduced its full-year revenue expectation to $493 million and $499 million, down from $500–$507 million. (FMP)
Regeneron Pharmaceuticals, Inc.: Guggenheim reaffirmed a “Buy” rating for Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) on May 30, 2025, with a stock price of approximately $490.24. The stock currently trades at $492.99, after a recent decrease of 18.57% (or $112.40) due to delayed regulatory submissions of Itepekimab, anticipated to postpone submissions by 3 to 4 years. Regeneron’s market capitalization is approximately $52.33 billion, with a trading volume of 4,779,116 shares. The stock’s 52-week high reached $1,211.20, with today’s trading range between $485.04 and $519.78. (FMP)
Sanofi: Sanofi will acquire Blueprint Medicines for $129 per share in cash, valuing Blueprint’s equity at approximately $9.1 billion. The total deal consideration is $9.5 billion, including $2 and $4 contingent value right (CVR) payments tied to the regulatory progress of BLU-808. This represents a 27.3% premium over Blueprint’s May 17 closing price. The anticipated close is late Q3 2025. Sanofi expects revenue contribution of single-digit millions in 2025, ramping to $500 million+ by 2028, with $200 million in annual cost and selling expense synergies by 2027 and $100 million in R&D savings over two years. Analysts project the acquisition will add 5-7% to Sanofi’s immunology revenues by 2030 within the $100 billion global immunology market. Sanofi maintains an A- credit rating and over €15 billion in cash equivalents. The deal is expected to be modestly accretive to 2026 adjusted EPS after synergies. (FMP)
Soul Patts / Brickworks: A new company listed in Sydney will acquire all outstanding shares of Soul Patts and Brickworks. The merged entity is projected to be worth around A$14 billion ($9 billion). (CNBC)
Tesla Inc: Tesla’s new-vehicle registrations in Sweden decreased by **53.7% year-over-year** in May, reaching only **503 units**. This decline is attributed to increased competition from European brands like Volvo, Polestar, and Volkswagen, as well as heightened price sensitivity among Swedish consumers due to inflation and financing costs. Tesla’s prioritization of newer models like the Model Y and Cybertruck may have also impacted Model 3 inventory. While Tesla’s sales are down in Sweden, the broader European EV segment continues to expand, and Tesla maintains significant market share in countries like Germany and Norway, though this dominance is eroding. (FMP)
Uber Technologies: On May 30, 2025, Morgan Stanley upgraded Uber (NYSE:UBER) to “Outperform” with a stock price target of $83.61. Uber’s stock price subsequently declined to $82.93, its lowest point since May 12, due to concerns about Tesla’s robotaxi advancements, including successful tests of self-driving Model Y cars and a planned launch in Austin on June 12. Following the Bloomberg report, the stock fell over 4% to $84.05, dropping below its 21-day moving average. Throughout the day, the stock fluctuated between $82.52 and $84.65, with Uber maintaining a market capitalization of approximately $174.84 billion. (FMP)
UiPath Inc: Wells Fargo maintains an Equal-Weight rating for UiPath Inc. (NYSE:PATH) with a stock price of $13.31, which is a 2.86% increase of $0.37, fluctuating between $12.91 and $14.98 on May 30, 2025. The stock’s 52-week high is $15.93 and its low is $9.38, with a market capitalization of $7.12 billion and trading volume of 47.3 million shares. UiPath reported first-quarter earnings of 11 cents per share, surpassing the estimated 10 cents, and quarterly sales of $356.62 million, exceeding the $332.87 million estimate. The company projects Q2 revenue between $345 million and $350 million, above the $333.12 million estimate, and revised its fiscal 2026 forecast to $1.549 billion to $1.554 billion, exceeding the previous $1.53 billion estimate. (FMP)
