Stocks On Hold as China-U.S. Talks Stall, Small Businesses to Bear Brunt of Tariff-Driven Hikes

Barry Adams
10 Jun, 2025
New York City

Stock market indexes on Wall Street traded around the flatline as investors awaited the details of a possible trade agreement between the U.S. and China. 

The S&P 500 index edged up 0.09%, and the tech-heavy Nasdaq Composite inched higher 0.2% amid expectations that the world's two largest economies can avoid imposing sky-high tariffs. 

Investors remained skeptical because of the previous flip-flops, despite the Trump administration's signaling "progress" in trade talks. 

Moreover, investors are worried that the Trump administration will impose a minimum of 15% tariff on Chinese goods, stoking inflationary fears in the imminent future.

The sharp decline in crude oil of about 1% from the high of $78 a barrel has contributed to the decline in overall inflation over the four months, but the decrease in price is driven by the fears of a recession and fall in demand growth outlook. 

The NFIB Small Business Optimism Index increased to 98.8 in May, a three-month high, compared to 95.8 in April, the National Federation of Independent Business reported Tuesday. 

“Although optimism recovered slightly in May, uncertainty is still high among small business owners,” said NFIB Chief Economist Bill Dunkelberg.

Small businesses in logistics, traveling, entertainment, online retail, business marketing, independent restaurants, and home building continue to report sharp swings in revenue, according to an independent survey conducted by Ticker.com in May. 

 

U.S. Movers 

Cracker Barrel Old Country Store declined 2.9% to $59.0, and the restaurant chain operator filed to raise $275 million in a private offering of convertible senior notes. 

Calavo Growers plunged 14% to $23.80 after the avocado, tomato, and papaya grower reported sales and earnings below analysts' expectations. 

Net sales increased to $190.55 million from $184.38 million, net income jumped to $6.85 million from $6.06 million, and diluted earnings per share rose to 38 cents from 34 cents a year ago.

Fresh segment sales edged up 4.7%, and prepared segment sales climbed 9.9% from a year ago, respectively.

Over the last five years to date, Calavo stock has declined 51% because of falling sales and consistent but shrinking losses. 

Limoneira Co. declined 13% to $14.07 after the citrus grower announced weaker-than-expected sales and losses in the fiscal second quarter. 

Limoneira and Sunkist Growers also announced a "strategic merger" of Limoneira's sales and marketing operation with the farming cooperative group. 

Limoneira said the "merger" agreement is expected to save the company about $5 million in annual costs and operating earnings improvement.

J.M. Smucker dropped 7.9% to $103.0 after the food company reported weaker-than-expected fiscal fourth-quarter revenue of $2.14 billion. 

Taiwan Semiconductor Manufacturing added 2.2% to $211.49 after the advanced chip maker reported revenue in May increased 39% from a year ago. 

For the first five months to May, revenue advanced 42.6% from a year ago, according to the company's statement to investors.