Bulls charge ahead as stocks extend gains 06/02/2025

HOT stories for today

Fed officials wary of tariffs’ inflationary impact
 

• Central bank policymakers have voiced growing concerns over the uncertainty surrounding tariffs and their potential to drive inflation. Chicago Fed President Austan Goolsbee warned of supply chain disruptions and an escalating trade war. Economists typically view tariffs as causing short-term price spikes rather than sustained inflation. However, former President Donald Trump's broad trade policies could create deeper inflationary pressures, forcing the Fed to keep interest rates higher for longer.
• Boston Fed President Susan Collins acknowledged the challenge of predicting the full impact, given the scale of proposed tariffs. Other officials, including Philadelphia’s Patrick Harker and Atlanta’s Raphael Bostic, echoed concerns over long-term effects. Fed Chair Jerome Powell remained cautious, stating it’s too early to assess fiscal policy shifts, including tariffs, immigration, and regulatory changes.

 
Stocks on the move:       

• Qualcomm (QCOM) – Shares of the chipmaker dropped nearly 5% despite delivering better-than-expected fiscal Q1 earnings and revenue. The company reported adjusted earnings of $3.41 per share on revenue of $11.67 billion, surpassing forecasts.
• Arm Holdings (ARM) – The stock declined almost 5% despite beating fiscal Q3 earnings and revenue estimates. Arm also provided Q4 and full-year guidance that aligned with analysts' projections, according to FactSet.
• Skyworks Solutions (SWKS) – Shares plummeted 23% after announcing CEO Liam Griffin’s departure. Philip Brace, former executive chairman at Inseego, will take over on Feb. 17. The company exceeded fiscal Q1 earnings expectations, with revenue of $1.07 billion matching estimates, per LSEG.
• Ford Motor (F) – The automaker’s stock fell 5% after issuing cautious 2025 guidance, which was either in line with or below many analysts’ projections. Ford cited potential market-related challenges contributing to a more difficult year ahead.

 
Today’s action

• Markets across the Asia-Pacific region mostly advanced Thursday, following Wall Street’s gains as investors brushed off trade uncertainties and weaker-than-expected U.S. tech earnings. Australia’s S&P/ASX 200 surged 1.14%, while Japan’s Nikkei 225 gained 0.46% and the Topix added 0.3%. South Korea’s Kospi climbed 0.93%, with the small-cap Kosdaq rising 1.09%. Hong Kong’s Hang Seng Index edged up 0.31%, while mainland China’s CSI 300 posted a modest 0.14% gain.
• Meanwhile, U.S. stock futures pointed higher after two consecutive winning sessions. Dow Jones Industrial Average futures rose 102 points, or 0.23%. S&P 500 and Nasdaq 100 futures increased by 0.25% and 0.28%, respectively. Traders are keeping an eye on earnings reports from major companies, including Eli Lilly, Yum Brands, and Amazon, as well as the latest weekly jobless claims data.

Wahtclist: ARM, QCOM, SWKS, F, SMCI, LLY, HON, PM, NVDA

Bitcoin

• Bitcoin Surges Past $98K After Eric Trump’s Crypto Endorsement Bitcoin (BTC) soared above $98,000 during Thursday’s Asian trading session after Eric Trump, son of former U.S. President Donald Trump, urged a family-backed crypto platform to invest in BTC.
• "Feels like a great time to enter BTC, @worldlibertyfi," Trump posted on X at 1:41 UTC, triggering a price jump from $96,900 to $97,830. Meanwhile, micro CME futures briefly surpassed the $98,000 threshold, according to TradingView data. Earlier this week, Trump’s AI and crypto advisor David Sacks revealed that the administration is assessing the feasibility of a strategic bitcoin reserve, a move that left some investors disappointed over the lack of immediate action.
  Watchlist: Bitcoin: 89 000-108 000, Ethereum: 2200-3000, Solana: 180-276

Forex

• The Japanese Yen (JPY) extends its gains against the US dollar (USD) for the third consecutive day on Thursday, supported by growing expectations that the Bank of Japan (BoJ) will continue raising interest rates. In contrast, the Federal Reserve (Fed) is widely expected to ease monetary policy later this year, leading to a narrowing US-Japan rate differential that favors the lower-yielding JPY. However, a positive risk sentiment in the broader market limits further appreciation, allowing USD/JPY to rebound over 50 pips from its lowest level since December 12.
• Meanwhile, the euro (EUR) remains subdued against the US dollar (USD), with traders exercising caution ahead of Eurozone retail sales data due later Thursday. The EUR/USD pair, which pulled back after two days of gains, hovers around 1.0390 in the Asian session. Market expectations indicate Pan-European retail sales will rise 1.9% year-over-year in December, up from 1.2% in the prior month, while the month-over-month figure is forecast to decline by 0.1%. 
  Watchlist: EUR/USD: 1.0200-1.0550, USD/JPY: 153.6-158.80

Basic Materials

• Gold (XAU/USD) remains steady just below its all-time high, consolidating gains in early European trading Thursday. Safe-haven demand continues to support the metal as concerns over a US-China trade war and President Donald Trump’s tariffs fuel market uncertainty. Additionally, expectations of further Federal Reserve rate cuts in 2025 and declining US Treasury yields provide further strength to the non-yielding asset.
• Meanwhile, West Texas Intermediate (WTI) crude hovers around $71.00 in early Asian trading, edging lower as US crude inventories surged. The Energy Information Administration (EIA) reported an 8.664 million-barrel increase in stockpiles for the week ending January 31, far exceeding the expected 3.2 million-barrel rise and signaling weaker demand. Renewed trade tensions between the US and China add to bearish sentiment in the oil market.
  Watchlist: GOLD 2600-2822, US Oil: 70.00-79.00

Key Economic Events Today:

EST time:
05:00 am: EUR Retails sales
08:30 am: USD Unemployment Claims
02:30 pm: USD FOMC Memeber Waller Speaks
03:30 pm: USD FOMC Memeber Daly Speaks

Earnings

BMO (Before the US Market opens)
LLY           Ely Lilly and Company
AZN           Astrazeneca Plc 
LIN            Linde plc
PM            Phillip Morris 
HON          Honeywell Int.
BMY          Bristol-Myers

AMC (After the US Market closes): AMZN, FTNT, NET

The TEFS Analyst team wishes you a successful day!