Mid-Morning Look

Tuesday, June 10, 2025

U.S. stocks creep higher on light volume, as the US and China resumed their tariff talks for a second day in London, with financial markets on edge as the world’s two largest economies try to avoid escalating the ongoing trade war further. Focus also remains on the economy, with consumer price index (CPI) inflation data tomorrow morning. The standout sector so far this morning is Energy (XLE), rising 1.7% amid broad strength in oil prices and lifting individual stock prices. The Healthcare sector (XLV) also seeing early strength led by obesity drug names and some biotech names after data. Tech has been buoyed this month (and quarter) by a rebound in semiconductors as the SOX index rises for the 6^th time in 7-days around the 5,200 level (far cry from the April lows of 3,300), while Mag 7 names are mixed. Reminder the first of three Treasury auctions this week (totaling $119B) kicks off this afternoon at 1:00 where the U.S. Treasury will sell $58B in three-year notes, followed by $39B in 10-year debt on Wednesday, and $22B in 30-year bonds on Thursday. Not much else going on today, with Wall Street focused on the trade talks between China/U.S., economic data tomorrow, and the Treasury auctions this week.

• In Autos: Wells Fargo cautious on TSLA, reiterating their Underweight rating and $120 price tgt saying global deliveries are trending meaningfully weaker, with May trending 23% lower y/y and Q2 QTD trending 21% lower y/ y. All three key regions are double-digit % lower, with the EU the worst. TM and Daimler Truck (DTRUY) to merge their truck units, Mitsubishi Fuso and Hino, into a new holding company by 2026. Both companies will own 25% of the new entity, which will be listed on the Tokyo Stock Exchange. ORLY trades on a 15 for 1 stock split effective today.
• In Media: NFLX is set to invest over 1 billion euros ($1.14 billion) to produce content in Spain over the next four years, the streaming giant’s co-CEO, Ted Sarandos said; PARA told employees it would be reducing its workforce by 3.5% and that the majority of the impacted staff would be alerted on Tuesday. TME agreed to buy Chinese podcasting startup Ximalaya Inc. for $1.3 billion in cash plus an issuance of stock. DIS will pay an additional $438.7M to CNBC parent CMCSA to take full control of the streaming service Hulu.
• In Oil & Gas: Was among the strongest sectors in the S&P today given the extended rebound in oil prices, with shares of E&P and service names rising (EOG, SLB, HAL, APA); ADNOC Gas said it had taken a final investment decision on the first phase of its Rich Gas Development Project, awarding $5B in contracts to expand and improve efficiency at the project. The contracts were awarded to British oilfield services firms Wood Group (WDGJY) and Petrofac (POFCY).

• CASY +10%; reported strong Q4 results, which were above consensus, driven by strong fuel margins and market share gains, while inside sales comps were below consensus due to softer comp sales in prepared foods and dispensed beverage and grocery & general merchandise.
• GOOGL +1%; after Reuters reported OpenAI plans to add Alphabet’s (GOOGL) Google cloud service to meet its growing needs for computing capacity, marking a surprising collaboration between two prominent competitors in the artificial intelligence sector.
• INSM +25%; announces positive topline results from phase 2b study of Treprostinil Palmitil Inhalation Powder (TPIP) as once-daily therapy in patients with pulmonary arterial hypertension (PAH) saying the study met primary and all secondary efficacy endpoints.
• TME +2%; after agreeing to buy Chinese podcasting startup Ximalaya Inc. for $1.3 billion in cash plus an issuance of stock.
• TSM +2%; reported May revenue surged 40% y/y as demand remained elevated for its AI chips. January-to-May revenue of NT$1.51 trillion was up nearly 43% over the same period last year.

• CVGW -17%; reported Q2 adjusted earnings of $0.40 a share, well below analysts’ estimates of $0.53 and net sales of $190.5 million, up 3.3% from a year earlier, also was below consensus of $192.8 million.
• DBI -22%; after Q1 net sales decreased (-8%) to $686.9M on adj EPS loss of (-$0.26) while Q1 comparable sales fell (-7.8%) compared with a 2.5% drop a year ago and withdrew its full-year forecasts citing macroeconomic uncertainty stemming primarily from global-trade policies
• RBRK -5%; after $1 bln convertible debt deal announced
• SJM -12%; reported Q4 adj EPS $2.31 above the consensus $2.25 while revs miss at $2.1B vs. est. $2.19B, but weaker guidance weighs on shares as sees FY26 adj EPS $8.50-$9.50, below consensus $10.27 and guides FY26 revenue growth 2%-4% y/y vs. consensus $8.93B.
• TTGT -5%; was downgraded to Underweight from Neutral at JP Morgan noting shares have more than halved the first half of the year and after more than two months of delay, the company released its FY24 results this past Wednesday, which were worse than expected.
• UNCY -24%; said the FDA has identified manufacturing issues with third-party vendor of its kidney disease drug, oxylanthanum carbonate; the company says FDA cannot discuss drug labeling with UNCY until these issues are resolved; final FDA decision is expected by June 28.
• UNFI -3%; as Q4 results beat ($0.44/$8.06B vs. est. $0.21/$7.78B) but didn’t update its annual adj EPS and net sales forecasts due to the impact of unauthorized activity on its information technology systems on June 5.
• UTHR -15%; shares fall over 15% after rival Insmed’s drug for rare lung disease meets main goal in mid-stage trial

Secondary Deal Prices:

• LOARM share Block Trade, priced at $83.50
• AIRS 3.16M share Spot Secondary, priced at $3.80
• ONDS 22.4M share Spot Secondary, priced at $1.25
• Deals expected to be priced today
• VERXM share Block Trade, range $39 – $40.50
• ASIC (Ategrity Specialty) 6.667M share, range $14 – $16
• VOYG Voyager Technologies) 11M share IPO, range $26 – $29