June 6, 2025
U.S. equity futures were higher Friday morning, with S&P 500 futures up 0.4%, recovering some ground after Thursday’s decline, which ended a three-day winning streak. Tesla was responsible for roughly 40% of the index’s pullback, weighed down by the intensifying public feud between Elon Musk and Donald Trump. Broader weakness also came from household product names and staples retailers. Asian markets were narrowly mixed overnight, with Japan outperforming and Hong Kong lagging. European markets opened little changed.
Sentiment improved amid reports that Musk may speak with White House aides today in an effort to de-escalate tensions with Trump. Investors are also positioning ahead of the May employment report, due later this morning. Consensus expects nonfarm payrolls to increase by 125K, unemployment to remain at 4.2%, and average hourly earnings to rise 0.3% m/m. Labor market signals have been mixed, with some signs of cooling offset by longer-term structural tailwinds.
Looking ahead, next week brings key macro catalysts including CPI (Wednesday), PPI (Thursday), and preliminary University of Michigan consumer sentiment and inflation expectations (Friday). The Treasury will also auction nearly $120B in 3-, 10-, and 30-year bonds, which could influence rates.
In early trading, Treasuries are slightly firmer with long-end yields down ~2 bp. The dollar index is up 0.2%, gold is higher by 0.2%, Bitcoin futures are up 3.3%, and WTI crude is down 0.6%.
Company Highlights
- Tesla (TSLA): Shares rebounding on reports of a potential call between Elon Musk and the White House to cool tensions with Trump.
- Broadcom (AVGO): Fiscal Q2 slightly beat; Q3 guide mixed. AI segment remains strong, but non-AI recovery still sluggish amid high investor expectations.
- Lululemon (LULU): Lowered full-year EPS guidance, citing tariff-related headwinds and more cautious consumer spending.
- DocuSign (DOCU): Disappointed with soft billings and weak forward billings guidance; earlier renewals were a drag.
- Samsara (IOT): Declined after weaker net new ARR growth tied to extended sales cycles in April.
- Rubrik (RBRK): Beat and raised, though upside partly driven by non-recurring revenue tied to material rights.
- Titan Machinery (TTAN): Beat and raised guidance, though revenue upside was softer relative to prior quarter.
- Vail Resorts (MTN): Guided full-year EBITDA lower, largely in line with expectations.
- Petco (WOOF): Q1 results in line, but management commentary on recovery trajectory underwhelmed.
U.S. equities finished lower Thursday in volatile trading but closed well off their worst levels. The pullback followed three straight days of gains, and major indices remain on track for modest weekly advances. Treasury yields rose 5–7 bp at the short end, reversing Wednesday’s rally. The dollar index was flat: the greenback weakened versus the euro and sterling but strengthened against the yen. Gold declined 0.7%, Bitcoin futures dropped 3.0%, and WTI crude gained 0.8%.
A growing rift between Elon Musk and Donald Trump weighed on investor sentiment. Musk’s public criticism of the GOP’s reconciliation bill and his jabs at Trump prompted the former president to threaten Musk’s government subsidies. Earlier optimism following a Trump-Xi call faded due to a lack of tangible progress on trade. The ECB, meanwhile, cut interest rates by 25 bp—its eighth reduction this cycle, totaling 200 bp—while signaling potential pause ahead.
Economic data painted a mixed picture. April’s trade deficit narrowed more than expected to $61.6B. Initial jobless claims climbed to 247K, the highest in eight months. Q1 labor productivity was revised down to -1.5%, while unit labor costs were revised up to 6.6%. Fed commentary reflected caution: policymakers flagged softening economic data and uncertainty from tariffs and fiscal policy. Focus now turns to Friday’s May employment report, with payrolls expected to rise 130K and the unemployment rate holding steady at 4.2%.
Sector Performance & Key Company Highlights
Technology (Best-performing sector, +0.40%)
- MongoDB (MDB) +12.8%: Strong Q1 beat, record customer adds, raised FY guidance, $800M buyback.
- Planet Labs (PL) +49.4%: Beat across the board, achieved first positive FCF, guided to sustainable FCF, tailwinds from geopolitical demand.
- Verint Systems (VRNT) +2.4%: Strong Q1 beat; highlighted AI-driven ARR growth.
- Ciena (CIEN) -12.9%: Revenue beat but EPS and margins missed; flagged tariff headwinds.
- Descartes Systems (DSGX) -12.1%: Missed on EPS and revenue; weak organic growth tied to trade volume softness.
Financials (+0.26%)
- No major stock-specific headlines, though Interactive Brokers’ founder emphasized the permanence of 24-hour trading.
Utilities (+0.16%)
- No notable corporate developments reported.
Energy (+0.16%)
- No standout earnings; WTI crude gained amid continued focus on Chinese rare-earth leverage and U.S. oil export trends.
- China reported zero U.S. oil imports for the second consecutive month.
Industrials (+0.09%)
- Winnebago (WGO) -6.0%: Guided Q3 below consensus on declining consumer sentiment and cautious dealer orders.
Health Care (+0.08%)
- Managed care names came under pressure amid hints of potential Medicare cuts tied to GOP budget planning.
Real Estate (+0.07%)
- No meaningful news items in the sector.
Communication Services (+0.06%)
- Sector edged higher; no major earnings updates reported.
Materials (-0.57%)
- Kimberly-Clark (KMB) -2.3%: Announced JV with Suzano (SUZ) +7.4% to create a global tissue products business (SUZ 51%, KMB 49%).
- Copper and aluminum names outperformed as rare-earth tensions with China intensified.
Consumer Staples (-1.19%)
- Procter & Gamble (PG) fell on plans to cut 15% of non-manufacturing workforce over two years.
- Brown-Forman (BF.B) -17.9%: Missed on revenue, margins, and EPS; guided for declines amid reduced consumer spending.
- Costco (COST) -3.9%: May comps rose 4.3% y/y, but fell short of expectations; underlying demand still strong.
Consumer Discretionary (-2.47%)
- Tesla (TSLA) -14.3%: Tumbled as public Musk-Trump feud escalated; fears over contracts and subsidies pressured shares.
- Five Below (FIVE) +5.6%: Beat on earnings and revenue; raised FY guidance, strong comps and inventory execution.
- PVH Corp (PVH) -18.0%: EPS beat, but lowered FY guidance on tariff headwinds and margin pressure.
- Lands’ End (LE) +13.0%: GM improvement, reiterated guidance, upbeat on transformation plan.
- Dollar Tree (DLTR) +9.1%: Upgraded to Overweight by JPMorgan post-Q1 pullback.
- Winnebago (WGO) -6.0%: Soft guidance linked to demand deterioration in RVs and motorhomes.
Eco Data Releases | Friday June 6th, 2025
S&P 500 Constituent Earnings Announcements | Friday June 6th, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
