Market Update
Europe Movers Tuesday
Bridgette Randall
01 Jul, 2025
London
European markets edged down on the first day of the second half, and investors remained focused on the ongoing trade negotiations with the U.S.
The European Union's negotiators are looking to avert tariffs on pharmaceuticals and commercial aircrafts ahead of the U.S. deadline of July 9.
Moreover, EU negotiators are likely to uphold tough standards on U.S. food products amid worries of higher level of food chemicals and genetically modified varieties.
EU Consumer Price Inflation Edged Higher to 2%
On the economic front, consumer price inflation in the eurozone edged higher to 2% from an eight-month low of 1.9% in May, according to the latest data released by the Eurostat.
The slowdown in energy price inflation to 2.7% from 3.3% was overwhelmed by the slight acceleration in service inflation to 3.3% from 3.2% in May, respectively.
Core inflation, which excludes food and energy prices, was unchanged at 2.3%.
Germany's Job Seekers Approach Decade-High 3 Million
Germany's seasonally adjusted jobless rate held at 6.3% in June, according to the Federal Statistical Office or Destatis.
The jobless rate held for the fourth month in a row, and remained highest since September 2020.
The number of jobseekers increased by 11,000 to 2.97 million, the highest in a decade.
"The labour market continues to show signs of economic weakness. Unemployment continues to develop unfavorably.
And companies remain reluctant to hire," said labor office head Andrea Nahles.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 23,762.53, the CAC-40 index edged lower 0.4% to 7,631.11, and the FTSE 100 index declined 0.3% to 8,738.06.
The yield on 10-year German bonds inched lower to 2.55%, French bonds decreased to 3.24%, the UK gilts moved down to 4.43%, and Italian bonds edged lower to 3.46%.
The euro increased to $1.18; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 79.00 Swiss cents.
Brent crude increased $0.49 to $67.23 a barrel, and the Dutch TTF natural gas was higher by €0.57 to €33.63 per MWh.
Europe Movers
Defense stocks declined following a surge in June.
Safran SA decreased 2.4% to €269.20, Airbus SE dropped 2.4% to €173.04, Dassault Aviation SA fell 2.2% €293.40, BAE Systems edged up 0.1% to 1,888.76, Rolls-Royce PLC fell 0.8% to 959.80 pence.
Luxury and fashion stocks traded higher amid optimism about the possible trade deal with the U.S.
LVMH added 3.4% to €459.70, Kering SA gained 4.2% to €192.44, Hermes International SCA edged up 0.2% to €2,303.0, Moncler SpA advanced 1.5% to €49.18.
Europe Movers: J Sainsbury, Sodexo
Inga Muller
01 Jul, 2025
Frankfurt
Sodexo Group traded up 1.3% to €52.90 after the French catering services provider to airlines reported sales results for the fiscal third quarter of 2025.
Revenue climbed to €6.12 billion from €6.07 billion a year ago, as North America sales declined 1.1%, Europe sales edged up 3.8%, and the rest of the world segment dropped 0.2%.
For the nine-month period, sales jumped to €18.60 billion from €18.17 billion a year earlier, as North America sales rose 2.2%, Europe sales increased 2.5%, and the rest of the world segment rose 2.2%.
On April 30, the company completed the acquisition of Agap’pro, a purchasing organization in the French market.
The food services company guided full-year revenue growth between 3% and 4%, compared to €23.8 billion in 2024.
J Sainsbury Plc. gained 1.7% to 294.76 pence after the UK-based food retailer released its first-quarter trading update for the sixteen weeks to June 21.
Total Sainsbury’s sales climbed to £7.80 billion from £7.43 billion a year ago.
Same-store sales excluding fuel jumped 4.7% in the quarter, while including fuel, sales were up 2.2% from a year ago.
Retail sales excluding fuel increased to £8.92 billion from £8.51 billion, while retail sales including fuel rose to £10.04 billion from £9.80 billion a year earlier.
Argos sales were up 4.4% to £1.12 billion from £1.08 billion in the same quarter a year ago.
Europe Movers: J Sainsbury, Sodexo
Inga Muller
01 Jul, 2025
Frankfurt
Sodexo Group traded up 1.3% to €52.90 after the French catering services provider to airlines reported sales results for the fiscal third quarter of 2025.
Revenue climbed to €6.12 billion from €6.07 billion a year ago, as North America sales declined 1.1%, Europe sales edged up 3.8%, and the rest of the world segment dropped 0.2%.
For the nine-month period, sales jumped to €18.60 billion from €18.17 billion a year earlier, as North America sales rose 2.2%, Europe sales increased 2.5%, and the rest of the world segment rose 2.2%.
On April 30, the company completed the acquisition of Agap’pro, a purchasing organization in the French market.
The food services company guided full-year revenue growth between 3% and 4%, compared to €23.8 billion in 2024.
J Sainsbury Plc. gained 1.7% to 294.76 pence after the UK-based food retailer released its first-quarter trading update for the sixteen weeks to June 21.
Total sales climbed to £7.80 billion from £7.43 billion a year ago.
Same-store sales excluding fuel jumped 4.7% in the quarter, while including fuel, sales were up 2.2% from a year ago.
Retail sales excluding fuel increased to £8.92 billion from £8.51 billion, while retail sales including fuel rose to £10.04 billion from £9.80 billion a year earlier.
Argos sales were up 4.4% to £1.12 billion from £1.08 billion in the same quarter a year ago.
U.S. Movers: MSC Industrial Direct, Progress Software
Scott Peters
01 Jul, 2025
New York City
Progress Software Corp. eased 3.7% to $61.48 after the business applications software provider reported results for the fiscal second quarter ending on May 31.
Revenue increased to $237.35 million from $175.08 million, net income climbed to $17.03 million from $16.19 million, and diluted earnings per share rose to 39 cents from 37 cents a year ago.
The company guided third-quarter revenue to be between $237 million and $243 million, compared to $179 million, and diluted earnings per share between 29 cents and 35 cents, compared to 65 cents a year earlier, respectively.
For the full year, the software company revised higher its revenue outlook range between $962 million and $974 million, compared to $753.41 million, and diluted earnings per share between $1.27 and $1.43, compared to $1.54 a year ago, respectively.
The company’s previous full-year guidance was for revenue between $958 million and $970 million and GAAP diluted earnings per share between $1.19 and $1.35.
MSC Industrial Direct Co. Inc. gained 3.5% to $87.99 despite the provider of metalworking and maintenance products and services reporting weak results for the fiscal third quarter of 2025 ending on May 31.
Net sales declined to $971.1 million from $979.4 million, net income edged down to $56.8 million from $71.7 million, and diluted earnings per share fell to $1.02 from $1.27 a year ago.
Operating income decreased to $82.7 million from $106.8 million, as operating margin declined to 8.5% from 10.9% a year earlier, respectively.
U.S. Movers: MSC Industrial Direct, Progress Software
Scott Peters
01 Jul, 2025
New York City
Progress Software Corp. eased 3.7% to $61.48 after the business applications software provider reported results for the fiscal second quarter ending on May 31.
Revenue increased to $237.35 million from $175.08 million, net income climbed to $17.03 million from $16.19 million, and diluted earnings per share rose to 39 cents from 37 cents a year ago.
The company guided third-quarter revenue to be between $237 million and $243 million, compared to $179 million, and diluted earnings per share between 29 cents and 35 cents, compared to 65 cents a year earlier, respectively.
For the full year, the software company revised higher its revenue outlook range between $962 million and $974 million, compared to $753.41 million, and diluted earnings per share between $1.27 and $1.43, compared to $1.54 a year ago, respectively.
The company’s previous full-year guidance was for revenue between $958 million and $970 million and GAAP diluted earnings per share between $1.19 and $1.35.
MSC Industrial Direct Co. Inc. gained 3.5% to $87.99 despite the provider of metalworking and maintenance products and services reporting weak results for the fiscal third quarter of 2025 ending on May 31.
Net sales declined to $971.1 million from $979.4 million, net income edged down to $56.8 million from $71.7 million, and diluted earnings per share fell to $1.02 from $1.27 a year ago.
Operating income decreased to $82.7 million from $106.8 million, as operating margin declined to 8.5% from 10.9% a year earlier, respectively.
U.S. Indexes Hover at Record Highs Amid Earnings and Rate-Cut Optimism
Barry Adams
01 Jul, 2025
New York City
Wall Street indexes hovered at record highs amid trade talk optimism and rising expectations of a rate cut as early as September.
The S&P 500 index edged down 0.1%, the Nasdaq Composite decreased 0.2%, and the U.S. dollar continued to drift lower against the euro and the pound.
The S&P 500 index and the tech-heavy Nasdaq Composite advanced in Monday's trading after the Trump administration signaled progress in trade talks with Canada and China.
Despite the market sentiment's reversal over the last seven weeks, value investors remain on the sidelines amid a weakening economic backdrop, persistent prices, falling consumer sentiment, and a lack of details on trade talks.
Moreover, investors are concerned that economic growth may decline in the second half of the year due to prolonged inflation as businesses transfer higher costs associated with tariffs to consumers.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.2% to 6,193.10, the Nasdaq Composite edged down 0.4% to 20,289.69, and the Russell 2000 index declined 0.5% to 2,160.95.
The yield on 2-year Treasury notes edged higher to 3.73%, 10-year Treasury notes increased to 4.24%, and 30-year Treasury bonds declined to 4.76%.
WTI crude oil increased $0.38 to $65.49 a barrel, and natural gas prices edged lower by $0.11 to $3.35 a thermal unit.
Gold increased by $45.25 to $3,348.54 an ounce, and silver edged up by $0.18 to $36.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.20 to 96.68 and traded at the lowest level since April 2022.
U.S. Movers
Tesla Inc. dropped 5.7% to $299.57 after the U.S. president urged the Department of Government Efficiency to review government subsidies received by the electric vehicle maker.
Donald Trump urged the DOGE to review the subsidies after Tesla's CEO Elon Musk criticized the latest federal government budget that is expected to increase the current federal deficit of $36 trillion.
Progress Software Corp. declined 3.6% to $61.50 after the business application software developer reported weaker-than-expected second-quarter sales of $237.4 million.
AeroVironment, Inc., plunged 8% to $261.70 after the drone maker said it plans to raise $750 million through the sale of common stock and $600 million in convertible senior notes due in 2030.
U.S. Indexes Hover at Record Highs Amid Earnings and Rate-Cut Optimism
Barry Adams
01 Jul, 2025
New York City
Wall Street indexes hovered at record highs amid trade talk optimism and rising expectations of a rate cut as early as September.
The S&P 500 index edged down 0.1%, the Nasdaq Composite decreased 0.2%, and the U.S. dollar continued to drift lower against the euro and the pound.
The S&P 500 index and the tech-heavy Nasdaq Composite advanced in Monday's trading after the Trump administration signaled progress in trade talks with Canada and China.
Despite the market sentiment's reversal over the last seven weeks, value investors remain on the sidelines amid a weakening economic backdrop, persistent prices, falling consumer sentiment, and a lack of details on trade talks.
Moreover, investors are concerned that economic growth may decline in the second half of the year due to prolonged inflation as businesses transfer higher costs associated with tariffs to consumers.
U.S. Movers
Tesla Inc. dropped 5.7% to $299.57 after the U.S. president urged the Department of Government Efficiency to review government subsidies received by the electric vehicle maker.
Donald Trump urged the DOGE to review the subsidies after Tesla's CEO Elon Musk criticized the latest federal government budget that is expected to increase the current federal deficit of $36 trillion.
Progress Software Corp. declined 3.6% to $61.50 after the business application software developer reported weaker-than-expected second-quarter sales of $237.4 million.
AeroVironment, Inc., plunged 8% to $261.70 after the drone maker said it plans to raise $750 million through the sale of common stock and $600 million in convertible senior notes due in 2030.
Trade Talk Optimism Power 7-Week Market Rally On Monday
Barry Adams
30 Jun, 2025
New York City
The seven-week stock market rally on Monday extended gains as investors estimated an improving outlook for trade discussions.
The S&P 500 index edged up 0.4%, and the tech-heavy Nasdaq Composite inched up 0.6%, and the U.S. dollar index hovered near its multi-year low.
Benchmark indexes have rebounded more than 23% from the lows reached on April 8, and investors remain optimistic about the earnings outlook for the second quarter.
Over the last seven weeks, benchmark indexes rebounded after the Trump administration repeatedly backed down from the aggressive tariff stance, and the steady rise in consumer spending, driven in part by the sustained rise in wages, also supported the advance.
Retailers and manufacturing companies reliant on imported finished and intermediate goods have so far withstood the tariff-driven chaos, but small companies have suffered the worst impact of disruptions in international trade.
For now, investors are ignoring the Trump administration’s erratic trade policy, its unpredictable slide into a combative stance, and the weakening economic data while focusing on the upcoming earnings season.
This week investors are looking forward to the release of the manufacturing survey and construction spending data, non-farm payrolls, balance of trade, and factory orders.
On the earnings front, investors are anticipating results from Quantum Corp., Progress Software, Franklin Covey, Goodfellows Inc., PetMed Express, MSC Direct, Constellation Brands, Barnes & Noble Education, Greenbrier, and UniFirst Corp.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.2% to 6,187.79, the Nasdaq Composite edged up 0.1% to 20,296.68, and the Russell 2000 index advanced 0.3% to 2,179.09.
The yield on 2-year Treasury notes edged lower to 3.74%, 10-year Treasury notes decreased to 4.26%, and 30-year Treasury bonds declined to 4.83%.
WTI crude oil decreased $0.29 to $65.23 a barrel, and natural gas prices edged lower by $0.21 to $3.53 a thermal unit.
Gold increased by $15.74 to $3,284.04 an ounce, and silver edged up by $0.03 to $36.01.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.14 to 97.26 and traded at the lowest level since April 2022.
U.S. Stock Movers
Canada agreed to halt the start of the Digital Service Tax from Monday and resumed trade negotiations, driving leading tech companies higher in Monday's trading.
Amazon.com Inc. edged up 0.1% to $223.55, Meta Platforms Inc. advanced 0.2% to $746.15, Alphabet Inc. gained 1.9% to $181.85, Microsoft Corp. increased 0.9% to $497.84, and Apple Inc. inched higher 0.2% to $497.84.
Trade Talk Optimism Power 7-Week Market Rally On Monday
Barry Adams
30 Jun, 2025
New York City
The seven-week stock market rally on Monday extended gains as investors estimated an improving outlook for trade discussions.
The S&P 500 index edged up 0.4%, and the tech-heavy Nasdaq Composite inched up 0.6%, and the U.S. dollar index hovered near its multi-year low.
Benchmark indexes have rebounded more than 23% from the lows reached on April 8, and investors remain optimistic about the earnings outlook for the second quarter.
Over the last seven weeks, benchmark indexes rebounded after the Trump administration repeatedly backed down from the aggressive tariff stance, and the steady rise in consumer spending, driven in part by the sustained rise in wages, also supported the advance.
Retailers and manufacturing companies reliant on imported finished and intermediate goods have so far withstood the tariff-driven chaos, but small companies have suffered the worst impact of disruptions in international trade.
For now, investors are ignoring the Trump administration’s erratic trade policy, its unpredictable slide into a combative stance, and the weakening economic data while focusing on the upcoming earnings season.
This week investors are looking forward to the release of the manufacturing survey and construction spending data, non-farm payrolls, balance of trade, and factory orders.
On the earnings front, investors are anticipating results from Quantum Corp., Progress Software, Franklin Covey, Goodfellows Inc., PetMed Express, MSC Direct, Constellation Brands, Barnes & Noble Education, Greenbrier, and UniFirst Corp.
U.S. Stock Movers
Canada agreed to halt the start of the Digital Service Tax from Monday and resumed trade negotiations, driving leading tech companies higher in Monday's trading.
Amazon.com Inc. edged up 0.1% to $223.55, Meta Platforms Inc. advanced 0.2% to $746.15, Alphabet Inc. gained 1.9% to $181.85, Microsoft Corp. increased 0.9% to $497.84, and Apple Inc. inched higher 0.2% to $497.84.