US PREMARKET ACTIONS: Monday, June 2, 2025
Futures Indices
Dow Futures: -0.5%
S&P 500 Futures: -0.6%
Nasdaq 100 Futures: -0.6%
US 10-Year Yield: 4.45% (+4bps)
Markets are falling in pre-market trading as US-China trade tensions flare up once again, set against a backdrop of a week packed with key macroeconomic data.
Market Environment
US markets are starting the week in the red, weighed down by a resurgence of trade tensions. Donald Trump has accused China of "totally violating" the trade agreement and promptly announced a doubling of tariffs on steel and aluminum to 50%. Beijing quickly responded, firmly rejecting these accusations.
"It is really hard to keep up with or predict what's going to happen next on the trade front right now," comments Jim Reid (Deutsche Bank), adding that uncertainty may persist for a long time, despite a relative pause in the aggressiveness of US policies.
Investors are also turning their attention to this week's major economic releases:
- ISM Manufacturing PMI expected at 49.3 (today at 4pm)
- Jerome Powell's speech at 7pm
- JOLTS Report (Tuesday)
- May Employment Report (Friday)
Why is this important?
These indicators will help gauge the health of the US economy and anticipate the Fed's monetary policy path. The market is looking for clear signals of a potential rate cut, but any hawkish comments from Powell could reignite volatility.
Stocks to Watch
Strong Gainers:
Cleveland-Cliffs (CLF) +26%: Benefiting from the doubling of steel tariffs announced by Trump.
Moderna (MRNA) +7%: Receives FDA approval for its mNEXSPIKE vaccine, stable in refrigeration and effective against COVID.
Other Winners:
- Nucor (NUE) & Steel Dynamics (STLD): +10% following CLF's surge after the tariff announcement.
Rating Changes
Upgraded
- Church & Dwight (CHD) → RBC upgraded to Outperform, target raised to $114.
- Knight-Swift (KNX) → Goldman Sachs upgraded to Buy, target $65.
- Old Dominion Freight Line (ODFL) → Goldman Sachs upgraded to Buy, target $200.
- Rollins (ROL) → Jefferies upgraded to Buy, target $65.
- Nucor (NUE) → BMO upgraded to Outperform, target raised to $145.
Neutral
- Charter Communications (CHTR) → Bernstein downgraded to Market Perform, target raised to $410.
- CSX (CSX) → Goldman Sachs downgraded to Neutral, target $35.
- Five Below (FIVE) → Truist maintains Hold, target raised to $112.
- General Motors (GM) → HSBC maintains Hold, target raised to $48.
- Tesla (TSLA) → DBS Bank maintains Hold, target $350.
- U.S. Steel (X) → BMO maintains Market Perform, target $55.
Downgraded
- Nike (NKE) → Baptista Research downgraded to Hold, target lowered to $69.30.
- Elastic (ESTC) → Citi maintains Buy but lowers target to $125.
- Marvell Tech (MRVL) → Fubon maintains Buy but lowers target to $80.
- Regeneron (REGN) → Morgan Stanley maintains Overweight but lowers target to $755.
- Snowflake (SNOW) → Redburn maintains Sell, target raised to $150.
Conclusion & Key Events
Watch Today:
- 4pm: ISM Manufacturing PMI (expected at 49.3)
- 7pm: Jerome Powell's speech
Expected volatility in:
- Cyclical, industrial, and tech sectors due to trade tensions and economic data.
Have a great session, everyone
Sylvain Mouilhaud: Stock Coach