US PREMARKET ACTIONS: June 20, 2025
Futures Indices
Dow Futures: -0.2%
S&P 500 Futures: -0.3%
Nasdaq 100 Futures: -0.3%
US 10-year Yield: 4.39% (stable)
Markets are pulling back pre-market as Donald Trump may decide within two weeks on a potential US strike against Iran. Uncertainty remains, while investors digest the Fed’s wait-and-see stance.
Market Environment
Investor focus is on two key factors: geopolitical tensions in the Middle East and Fed monetary policy.
Iran - Israel - USA Tensions
Donald Trump may make a decision within two weeks about a possible US military intervention against Iran. This announcement is feeding market uncertainty, even if investors currently view the conflict as localized, according to UBS.
"I will make my decision within two weeks based on the chances of negotiating with Iran," Trump said through a White House spokesperson.
Fed: Monetary Stance Unchanged
The Federal Reserve held its benchmark rate steady between 4.25% and 4.50% for the fourth consecutive meeting. Jerome Powell underscored uncertainty linked to tariffs and advocates for a "wait-and-see" approach.
Geopolitics is creating a risk premium that could slow flows into risk assets. Meanwhile, a cautious Fed could keep rates high for longer, reducing hopes of a near-term cut.
Stocks to Watch
Biggest Gainers:
- GMS (GMS) +20%
The stock soared following rumors of interest from Home Depot, in addition to the existing QXO offer at $95.20 per share. GMS is becoming a key strategic target in the building materials sector.
- Circle Internet Group (CRCL) +12%
The stock jumped after the Senate passed the GENIUS Act, stablecoin legislation that strengthens the regulatory framework. The goal: consolidate the dollar’s dominance and capture crypto innovation.
- CarMax (KMX) +10.4%
Quarterly results beat expectations. The used-car chain pleasantly surprised with strong sales despite a challenging economic environment.
Biggest Losers:
- Smith & Wesson (SWBI) -12%
Disappointing Q4 results: 12% drop in revenue, net profit halved, gross margin under pressure. Inflation and high rates are weighing heavily on operations.
Watch Today:
- June Philly Fed Index expected at -1.7 (pre-market)
- May Leading Index forecast at -0.1% (during session)
Rating Changes
Upgrades
Apple Inc. ($AAPL) → Recommendation raised to buy (from hold) by First Shanghai Securities, target raised to $230.
Permian Resources Corp ($PR) → Recommendation raised to neutral (from underperform) by Zacks, target raised to $18 (from $11).
Marvell Technology Group Ltd ($MRVL) → Buy recommendation maintained by Huatai Research, target raised from $70.30 to $85.20.
Coinbase Global Inc. ($COIN) → Buy recommendation maintained by President Capital Management, target sharply raised from $246 to $353.
Neutral
Comcast Corp. ($CMCSA) → Neutral recommendation maintained by Rothschild & Co Redburn, target reduced from $44 to $35.
The Gap, Inc. ($GPS) → Neutral recommendation maintained by Zacks, target lowered from $28 to $22.
Downgrades
Dow Inc. ($DOW) → Recommendation downgraded to hold (from buy) by Fermium Research, target reduced from $35 to $30.
Sarepta Therapeutics Inc. ($SRPT) → Outperform recommendation maintained by Oppenheimer, but target drastically reduced from $123 to $45.
Have a great session everyone
Sylvain Mouilhaud: Stock Coach