June 13, 2025
S&P futures are down 1.2% in early Friday trading, following a mostly positive Thursday session where software, utilities, healthcare, and consumer staples led gains, while industrials, banks, and airlines lagged. Global markets sold off overnight, with sharp losses across Asia and Europe (Europe –1.5%). Treasuries are slightly firmer. The dollar is up 0.4%, gold +1.2%, Bitcoin futures –1.3%, and crude oil +6.7%.
The risk-off tone is driven by a major escalation in the Middle East. Israel launched airstrikes on Iranian military and nuclear sites, reportedly killing senior officials and scientists. PM Netanyahu vowed continued operations to neutralize threats. The U.S. emphasized Israel acted alone. The attack comes just before renewed U.S.-Iran nuclear talks. The oil spike has intensified concerns amid underweight positioning, though equities have historically looked through geopolitical events.
Markets are also digesting recent positive inflation data, which has strengthened expectations for Fed rate cuts. Today’s focus is on the preliminary University of Michigan consumer sentiment survey, with consensus expecting a modest rebound. Inflation expectations in the report are likely to draw close attention. Looking ahead, key catalysts include Tuesday’s retail sales data and Wednesday’s FOMC meeting with updated economic projections.
Company Headlines:
- Apple (AAPL): Targeting spring 2026 for Siri overhaul.
- Meta (META): Confirmed investment in Scale AI, will bring in its founder.
- Adobe (ADBE): Q2 results beat; FY revenue guidance raised, though Digital Media forecast unchanged.
- RH: Q1 EPS beat; FY guidance maintained despite tariff and discount pressures.
- Thermo Fisher (TMO): Exploring sale of diagnostics unit for ~$4B.
- Kenvue (KVUE): Reportedly considering divestitures of health and beauty brands.
U.S. equities ended mostly higher Thursday (Dow +0.24%, S&P 500 +0.38%, Nasdaq +0.24%, Russell 2000 –0.38%), with the S&P and Nasdaq modestly extending gains for the week. Bond markets strengthened following a well-received $22B 30-year auction, driving a bull-flattening move as long-end yields fell ~7 bp. The dollar weakened sharply (–0.7%), gold gained +1.7%, and crude oil settled down 0.2% after a volatile week. Bitcoin futures fell 1.4%.
Cooling inflation and soft labor market data continued to drive rate cut expectations. May PPI came in below consensus at +0.1% m/m for both headline and core, and initial jobless claims held at 248K with continuing claims rising to 1.956M, the highest since Nov 2021. Fed futures reflected growing confidence in near-term cuts.
Geopolitical and trade headlines shaped the broader tone. U.S.-Iran tensions eased slightly despite weekend strike fears. Meanwhile, Trump reiterated plans for unilateral tariff rates after the 9-Jul deadline and hinted at a potential 25% auto tariff hike. U.S.-China de-escalation talks offered little incremental upside. Fiscal negotiations remained stalled amid Senate changes likely to complicate reconciliation.
Sector-Level Performance (S&P 500):
Outperformers: Utilities (+1.26%), Tech (+1.01%), Healthcare (+0.81%), Real Estate (+0.53%), Materials (+0.52%), Consumer Staples (+0.47%), Energy (+0.41%)
Underperformers: Communication Services (–0.59%), Consumer Discretionary (–0.41%), Industrials (–0.24%), Financials (+0.06%)
Information Technology
- Oracle (ORCL) +13.3%: Strong Q4 earnings and FY26 guidance; expects Total and Cloud IaaS revenue growth of 40% and 70%, respectively, with RPO growth >100%. Secured OpenAI as a customer.
- Datadog (DDOG) +3.4%: Upgraded to outperform at Wolfe Research, citing AI tailwinds and a product suite supporting durable 20% growth.
Industrials
- Boeing (BA) –4.8%: Under pressure after Air India flight AI171, a Boeing 787-8 Dreamliner, crashed with all 247 aboard dead; cause under investigation.
- GE Aerospace (GE) –2.3%: Engines on the crashed aircraft were GE GEnx. Preliminary reports cited a possible engine failure.
Healthcare
- CureVac (CVAC) +37.6%: To be acquired by BioNTech (BNTX) in a $1.25B public exchange offer.
- Calavo Growers (CVGW) +17.4%: Received a $32/share unsolicited buyout proposal (~36% premium); board reviewing.
Materials
- MP Materials (MP) +13.9%: Rallied after Bloomberg reported the White House plans to invoke the Defense Production Act to support domestic rare-earth production.
Consumer Discretionary
- Oxford Industries (OXM) –13.9%: Q1 earnings in line but margins light; lowered FY guidance due to tariffs and warned of continued negative comps.
- GameStop (GME) –22.5%: Announced a $1.75B private offering of convertible senior notes, pressuring shares.
Industrials (continued)
- Joby Aviation (JOBY) –7.9%: Downgraded to neutral at Cantor Fitzgerald; cited valuation concerns and high cash burn.
Eco Data Releases | Thursday June 13th, 2025
S&P 500 Constituent Earnings Announcements | Thursday June 13th, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
