Daily Market Report June 11th, 2025
The market continued to move higher yesterday, continuing its recent bullish streak as investors continued to hear what will come of trade talks between the United States and China.
Stocks have roared higher since dropping roughly 20% below their record two months ago, when President Trump shocked financial markets with his announcement of tariffs that were so stiff that they raised worries about a possible recession. Much of the rally has been due to hopes that he would lower those tariffs after reaching trade deals with countries around the world.
It’s getting to be time to see whether such hopes were warranted. The talks with China were going “really, really well,” U.S. Secretary of Commerce Howard Lutnick said Tuesday evening in London, where the talks were being held. The two sides worked on “all sorts of trade issues,” he said, according to a video clip posted by the Chinese state broadcaster CGTN.
Both the United States and China have put many of their tariffs announced against each other on hold as talks continue.
Even though many tariffs are on hold for the moment, they are still affecting companies and their ability to make profits because of all the uncertainty that has been created.
The Dow rose by 105 to 42,866 led by AMGN, DIS and V at another all-time high. The S&P rose by 33 to 6039 led by most technology stocks and even AAPL finished higher and the index is now only 1.7% from its all-time high reached in February.
The Nasdaq was strong at 124 points to 19,716 helped by another large gain in TSLA while the Russell 2000 Index of small stocks gained 12 to 21,5xx. The VIX continued to decline, now down to 16.95 and the question is how much lower can it go from here?
DBI, the company behind the DSW shoe store chain, became the latest U.S. company to yank its financial forecasts for 2025 because of “uncertainty stemming primarily from global trade policies.”
The company, which also owns the Keds, Jessica Simpson and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short of forecasts. Its CEO pointed to ”persistent instability and pressure on consumer discretionary” spending, and the company’s stock tumbled 18.2%.
The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small U.S. businesses improved a bit in May.
“While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,” according to the chief economist at the National Federation of Independent Business.
JSM collapsed by 16% even though its results for the latest quarter topped analysts’ expectations. Its revenue fell short of expectations, as did its forecast for profit in the upcoming year.
TSLA rose again after its strange breakup with the President is now behind us, and the entire episode seems as contrived as ever.
Shares that trade in the United States of chipmaking giant TSMC . rose as it said that its revenue in May jumped nearly 40% from the year earlier.
CASY jumped after the chain of convenience stores based in Ankeny, Iowa, reported a stronger profit for the latest quarter than analysts expected. It credited strength in sales of hot sandwiches and other items.
In the bond market, the yield on the 10-year Treasury eased to 4.47% from 4.49% late Monday.
Earnings this week will see: yesterday: - SJM, DIA lower; today – GME, CHWY lower and tonight - ORCL; Thursday – ADBE.
Economic reports include: today - May C.P.I came in at a rise of only 0.1% and year over year it was 2.4% while the core rate excluding food and energy was also higher by 0.1% and 2.8% year over year. These numbers got the market to start higher after initially being indicated lower earlier in the morning; Thursday – May P.P.I., weekly jobless claims; Friday – May U. of Michigan Consumer Sentiment Survey.
By Don Selkin