The stock market rose slightly in a holiday-shortened week while crude oil jumped, with the Israel-Iran conflict and the Fed meeting in focus. President Donald Trump said he'll decide within "two weeks" whether to attack Iran, after publicly musing about it. The Fed still sees two rate cuts in 2025, but Jerome Powell is in no rush. Tesla confirmed that its Austin robotaxi service was set to launch Sunday, June 22, but said they vehicles will have a "safety monitor" in the passenger seat.
Stock Market Rallies
The stock market rose slightly for the week as of midday Friday, with the major indexes all in narrow recent ranges. The Nasdaq composite and S&P 500 are near record highs while the Dow Jones and Russell 2000 are below the 200-day line. Crude oil futures jumped amid the Israel-Iran fighting. The 10-year Treasury yield fell slightly.
Fed Outlook Steady As Data Weakens
When all was said and done after Wednesday's Fed meeting, not much had changed. Policymakers still see 50 basis points in rate cuts this year, while Fed Chief Jerome Powell signaled he's in no rush to act. The central bank is weighing a likely tariff-fueled pickup in inflation against emerging signs the job market is turning cool. Higher oil prices and coming tax cuts makes the inflation outlook even more uncertain. The latest data showed a clear softening trend. Retail sales fell a sharper-than-expected 0.9%. The four-week average of jobless claims hit 245,500, the highest since August 2023. Housing starts dived 9.8% to a five-year low. Fed Gov. Christopher Waller, a Trump appointee who is a possible Fed chief contender as Powell's term ends next year, said Friday that he thinks a cut will be in order at the July 30 meeting.
Tesla Robotaxi: It's A Date.
Tesla confirmed that its Austin robotaxi service was set to launch Sunday, June 22, but said they vehicles will have a "safety monitor" in the passenger seat. Meanwhile, Tesla vehicle registrations in China in the second quarter continue to track slightly below the seasonally weak Q1. Tesla Austin will shut down Model Y and Cybertruck production for the July 4 week, Business Insider reported, following a similar Memorial Day week shutdown. The Senate GOP's version of the Trump tax bill follows the House's lead and would eliminate the $7,500 EV tax credit, along with other moves that could affect Tesla's businesses.
Boeing Rivals Are Air Show Winners
Airbus and Embraer were two big winners for the Paris Air Show. Europe's Airbus hit $21 billion in deals, according to a Reuters analysis. That included an order from VietJet for up to 150 A321neo planes. Brazil-based Embraer landed a firm order from SkyWest for 60 planes valued around $3.6 billion, with rights to purchase 50 additional aircraft. Boeing and GE Aerospace opted not to attend the Air Show this year following the Air India crash earlier this month. Airbus stock cleared a 46.49 buy point on Wednesday. Embraer surged out of a buy zone amid its deals.
Stock Market News In Brief
Lennar reported a 45% EPS decline, worse than fiscal Q2 views. Revenue fell 4.4% but topped views. Home deliveries increased about 2% to 20,131 with an average sales price of $389,000, down from $426,000 a year ago. For fiscal Q3, Lennar expects 22,000-23,000 home deliveries with an average price of $380,000-$385,000. Shares fell modestly, near recent three-year lows.
Eli Lilly agreed to buy Verve Therapeutics for up to $1.3 billion on Tuesday, sending Verve stock soaring. Verve is working on gene-editing treatments for cardiovascular disease. Its leading asset is a treatment for an inherited form of high cholesterol. The deal includes $1 billion up front and a contingent value right tied to dosing the first U.S. patient in a Phase 3 study of the same drug for atherosclerotic cardiovascular disease.
Sage Therapeutics rocketed Monday after Supernus Pharmaceuticals agreed to buy the biotech company for $561 million. The deal includes a contingent value right tied to certain milestones that, if paid, would bring the total value up to $795 million. Analysts praised the deal as a best-case scenario for Sage, which sells a postpartum depression drug.
Sarepta Therapeutics crashed Monday after a second patient treated with the its approved gene therapy, Elevidys, died of acute liver failure. Elevidys is meant to be a one-time treatment for patients with a muscle-wasting disease known as Duchenne muscular dystrophy.
CarMax reported a 42% EPS gain, easily beating fiscal Q1 views. Revenue rose to $7.55 billion, slightly beating. Shares of the used-car retail giant jumped Friday but are in a four-month downtrend.
Darden Restaurants just beat Q4 views with EPS up 12% and revenue climbing nearly 11% to $3.3 billion. Same-store sales were up 4.6%, while the Chuy's Tex-Mex acquisition also bolstered revenue. The Olive Garden guided low on fiscal 2026.
Accenture topped fiscal Q3 views with earnings up 11.5% and revenue climbing 7.5% to $17.7 billion. The global tech consultancy gave upbeat Q4 guidance and raised its dividend by 15%, but Q3 bookings fell 6%. Accenture stock fell sharply.
Kroger reported a 4% EPS gain, slightly topping Q1 consensus. The grocery giant's 0.4% sales drop to $45.12 billion slightly missed. Kroger raised same-store sales guidance but sees an uncertain economic environment.
Jabil beat fiscal Q3 estimates and raised its outlook, buoyed by cloud and AI data center gear. The contract electronics manufacturer said Q3 EPS rose 23% while sales grew 16% to $7.83 billion. Jabil stock jumped on the news.
Roku surged after the streaming video platform announced an ad partnership with Amazon.com. The deal will give advertisers access to the largest authenticated connected TV footprint in the U.S. via Amazon DSP, a demand-side platform for buying online ads.
