Financial stocks outperform
Financial stocks pulled the S&P 500 into positive territory.
The sector gained 1.1%, while the broad index added just 0.1%. Zions Bancorporation and Comerica led the sector up, with each gaining more than 6%.
In all, eight of the 11 S&P 500 sectors traded up in Tuesday’s session. Health care, consumer staples and information technology were the three down in the session.
— Alex Harring
VIX hits lowest level since July 2021
The Cboe Volatility Index, known as the VIX and the Wall Street’s fear gauge, hit a low of 14.32 Tuesday, reaching its lowest level since July 2021 on an intraday basis. The VIX closed below 15 on Friday, the first close below that threshold since February 2020.
The VIX, which tracks the 30-day implied volatility of the S&P 500, has dipped nearly 4 points in June after gaining over 13 points in May. The index looks at prices of options on the S&P 500 to track the level of fear on Wall Street.
— Yun Li
Intel shares rise following Monday’s selloff
Regional bank ETF on pace for third positive day in four
The SPDR S&P Regional Banking ETF gained more than 4% during morning trading, putting it on pace for its third positive day in four.
The fund is also on track to close well above its 50-day moving average for the third consecutive day.
Some of the biggest gainers include PacWest, Independent Bank, BankUnited and Western Alliance, all up at least 6% or more.
— Gina Francolla, Samantha Subin
Regional bank ETF gains for the third day in four
Construction materials stocks show under-the-radar strength, Strategas says
Daily notices from Wall Street note the narrowness of this year’s stock market rally, but Strategas Research says there are pockets of strength beyond the usual suspects, if you use a strong enough magnifying glass.
“In a market where it’s been very difficult to find any sustained leadership outside of the
Technology/Semi/AI category, the Construction Materials group remains a continued source of strength,” wrote Chris Verrone, head of technical and macro research.
Although the four biggest stocks — Vulcan Materials, Martin Marietta Materials, Eagle Materials and Summit Materials — only have a combined market value of some $65 billion, “all remain in clear absolute + relative uptrends.”
The strength in construction materials is part of what Strategas sees as industrial stocks’ “steady source of leadership in our work all year domestically, in Europe, and most potently in Japan.” Eagle Materials has climbed 25% so far this year, Martin Marietta is ahead 24% in 2023, Summit has risen 18% and Vulcan by 16%. Pretty good for crushing rocks.
— Scott Schnipper, Michael Bloom
Stocks fall in early trading
The Dow slid about 50 points, or 0.2%. The S&P 500 pulled back 0.2% and the Nasdaq fell 0.4%.
— Fred Imbert
Stocks making premarket moves
Here are some of the names making the biggest moves in the premarket:
- Mobileye — The stock tumbled 3.8% following a Securities and Exchange Commission filing Monday showed an Intel subsidiary will sell 35 million Class A shares in a secondary offering. Mobileye will not receive any proceeds from the sale.
- Thor Industries — The RV manufacturer soared nearly 10% after the company reported an earnings and revenue beat. Thor also upped its full-year earnings guidance.
- Epam Systems — Shares dropped about 2%, a day after the software firm posted second-quarter earnings and revenue guidance that was below analysts expectations. Epam Systems also lowered its full-year earnings and revenue guidance to below analysts’ expectations.
To see more stocks making premarket moves, read the full story here.
— Michelle Fox
Coinbase shares tumble more than 15% as fallout from lawsuit continues
Shares of Coinbase sank more than 15% in premarket trading after the Securities and Exchange Commission sued the crypto company, alleging that Coinbase was acting as an unregistered broker and exchange.
The move comes shortly after the SEC filed suit against Binance on similar grounds. SEC Chair Gary Gensler taken an increasingly aggressive stance toward cryptocurrency in recent months, arguing that most of them qualify as securities and fall under his purview.
— Jesse Pound
Bud Light selloff was ‘over-done’ but volumes could still decline, Bernstein says
The massive selloff on Bud Light parent Anheuser-Busch stock could be an overreaction, according to Bernstein.
The firm added that volumes for the beer could still head lower, though, stemming from customer backlash over the company’s social media partnership with a transgender influencer.
Anheuser-Busch stock.
“We also assume that Bud Light volumes will take a permanent -15% haircut with an associated drag on operating leverage,” analyst Trevor Stirling said.
CNBC Pro subscribers can read the full story here.
— Brian Evans
Analysts update investors on Apple outlook after Vision Pro unveil
Major analysts on Wall Street have updated their outlook on Apple stock after the company’s Worldwide Developers Conference.
Firms including Wells Fargo, Goldman Sachs and JPMorgan all remained optimistic on the stock after Apple’s rollout of its first mixed reality headset.
“While Vision Pro might not drive significant volumes given its premium price point, it could be the potential catalyst for the the AR/VR market as Apple has proven in the past that consumer engagement can deliver willingness to pay premium pricing…” JPMorgan analyst Samik Chatterjee said.
Read the full story here.
— Brian Evans
Treasury yields dip as investors weigh economic outlook
U.S. Treasury yields fell slightly on Tuesday as investors reflected on recent economic developments, including the debt ceiling crisis, and considered what could be next for the economy. That includes whether there will be an economic downturn and if the Federal Reserve will pause its interest rate-hiking campaign when it next meets on June 13-14.
At 4:07 a.m. ET the yield on the 10-year Treasury was down by over three basis points to 3.6621%. The 2-year Treasury yield was trading by more than three basis points lower at 4.4432%.
European equity markets open mixed
European stocks opened mixed Tuesday, echoing downbeat sentiment in other global markets.
The pan-European Stoxx 600 index was 0.1% higher around market open. Major bourses and sectors traded across positive and negative territory, with minor gains led by a 0.7% uptick in mining stocks. Tech stocks made the biggest losses with a 0.7% drop.
— Hannah Ward-Glenton
Australia’s central bank hikes rates by 25 basis points, defies expectations
The Reserve Bank of Australia again defied market expectations and raised its benchmark rate to 4.1%.
Economists polled by Reuters were widely expecting the central bank to hold its rates steady.
The Australian dollar rose by 0.73% to 0.6667 against the U.S. dollar shortly after the decision as the central bank grapples with the latest inflation rate of 7% for March quarter.
Australian stocks fell further, and the S&P/ASX 200 last traded 1.14% lower.
TSMC shares rise as Apple moves to its own silicon on all its computers
Shares of Taiwan Semiconductor Manufacturing Co climbed slightly after U.S. tech giant Apple announced its new Mac Pro will use Apple silicon. This means that the entire Apple computer lineup will now use the company’s own processors.
While Apple does not reveal its suppliers, the new Apple M2 Ultra chip in the new Mac Pro is reportedly manufactured using TSMC’s process, which has also reportedly been used to manufacture Apple’s M1 and M2 series of chips.
The Apple announcement sent shares of Intel down, as this would mean that no Apple computers released after 2020 use Intel chips.
Apple first released its homemade M1 chip in November 2020, after only using Intel chips on its computers since 2006.
Philippines inflation rate slows for fourth month in a row
The inflation rate in the Philippines slowed for the fourth month in a row to 6.1% in May, down from the 6.8% recorded in April and slightly lower than the 6.2% expected from economists polled by Reuters.
Core inflation, which excludes some selected food and energy items, eased to 7.7% in May from 7.9% in April.
The country’s statistics authority explained that the downtrend was due to transport prices coming in at -0.5% compared with last year, versus the 2.6% increase in April
Prices of food and non-alcoholic beverages also registered a lower inflation rate of 7.4% in May, compared with 7.9% the month before.
Restaurants and accommodation services also saw a slower inflation rate of 8.3%, down from 8.6% the month before.
— Lim Hui Jie
Japan’s household spending falls more than expected in April
Japanese household spending fell 4.4% in April from a year earlier, a larger drop than the 2.3% expected by economists polled by Reuters.
This is its sharpest drop since July 2021 and the fifth time in six months that household spending has dropped since November 2022.
On a seasonally adjusted month-on-month basis, household spending dropped by 1.3% compared with March, versus an expected gain of 0.6%.
— Lim Hui Jie
D.A. Davidson downgrades Apple to neutral
Wall Street is reacting to Apple’s launch of its Vision Pro mixed-reality headset – and D.A. Davidson is downgrading shares of the tech giant to neutral from buy.
The headset’s price tag – $3,499 — is one of the structural challenges facing Apple, even as it has unveiled a highly anticipated piece of hardware, according to analyst Tom Forte.
CNBC Pro subscribers can read more about D.A. Davidson’s call on Apple here.
–Darla Mercado
Mobileye shares fall 4% after SEC filing shows Intel subsidiary will sell 35 million shares
Mobileye shares dropped 4% in after-hours trading.
The action came after a regulatory filing with the Securities and Exchange Commission showed that an Intel subsidiary will sell 35 million Class A shares of Mobileye in a secondary offering – valued at about $1.5 billion. The autonomous driving tech company will not receive any proceeds from the deal.
Intel will hold 98.7% of the voting power of Mobileye’s common stock after the offering.
Goldman Sachs and Morgan Stanley will be the joint lead book-running managers.
Intel acquired Mobileye in 2017 and spun it off in an initial public offering in 2022.
–Darla Mercado
Healthequity shares jump following strong earnings
Healthequity rallied nearly 5% in extended trading on the back of better-than-expected first-quarter earnings and positive guidance for full-year performance.
The medical-technology company reported 50 cents in earnings per share ex-items on $239.4 million in revenue in the quarter. Both were better than the consensus estimates of analysts polled by FactSet, who forecasted 41 cents earned per share and $239.4 million in revenue.
Healthequity also raised guidance on both markers for the full-year, with the new estimates above respective Wall Street forecasts.
— Alex Harring
GitLab soars after hours on earnings beat, strong outlook
GitLab shares shot up nearly 24% in Monday’s postmarket as investors cheered a better-than-expected earnings report and upbeat guidance.
The software stock posted smaller-than-expected losses in earnings per share in the first quarter, coming at a loss of 6 cents compared with the 14-cent consensus estimate of analysts polled by FactSet. Operating income also fell smaller than expected, while revenue came in higher than anticipated at $126.9 million versus a $117.8 million forecast.
GitLab also guided for second quarter and full-year earnings per share and operating income losses to come in smaller than estimated, while revenue for both the current quarter and full year should exceed Wall Street expectations.
— Alex Harring
Stock futures are down slightly
Stock futures are modestly lower shortly after 6 p.m. ET.
Futures tied to the Dow, S&P 500 and Nasdaq-100 each slipped around 0.1%.
— Alex Harring
