Market Indices Surge
The S&P 500 and Nasdaq Composite reached new highs, continuing their upward trajectory. Apple (AAPL, Financial) saw significant gains after reports that it might enhance Siri with external AI assistance, propelling its stock past $207 and aiding the S&P 500's climb to over 6,200 at quarter's end.
- S&P 500 advanced by 10.6% for the quarter.
- Nasdaq Composite saw a 17.8% rise in the same period.
- From their April lows, the S&P 500 and Nasdaq are up 28% and 38%, respectively.
Legislative Developments
Political events also influenced the market positively. The Senate moved forward on the "One Big, Beautiful Bill," which proposes extending tax cuts and raising the SALT deduction cap. Despite a projected $3.3 trillion addition to the deficit, the Treasury market reacted calmly, with longer-dated bonds rallying slightly.
- 2-yr note yield at 3.72%.
- 10-yr note yield at 4.23%.
Banking Sector News
Major banks passed the Federal Reserve's stress test, clearing the way for potential capital returns. Goldman Sachs (GS) led gains, reaching a record high and boosting the financial sector by 0.9%, second only to the information technology sector, which grew 1.0%.
- Information Technology sector increased by 23.5% for the quarter.
Sector Performance
Most sectors performed well, with the consumer discretionary and energy sectors as the only underperformers, down by 0.9% and 0.7%, respectively.
- Overall, the S&P 500 is up 5.5% Year to Date (YTD).
- Nasdaq is also up 5.5% YTD.
- DJIA increased by 3.6% YTD.
Economic Indicators and International Markets
The June Chicago PMI was slightly lower than expected. In overseas markets, European indices like the DAX and FTSE fell, while in Asia, the Nikkei saw gains.
- June Chicago PMI at 40.4.
- European markets: DAX -0.4%, FTSE -0.4%, CAC -0.3%.
- Asian markets: Nikkei +0.8%, Hang Seng -0.9%, Shanghai +0.6%.
Commodity Prices
Commodities market showed mixed results with crude oil and natural gas prices dropping, while gold prices rose significantly.
Guru Stock Picks
Invesco EQV European Equity Fund has made the following transactions:
Stock News
- Synopsys (SNPS, Financial) and Ansys (ANSS, Financial) announced that their $35 billion merger is at an advanced stage of approval with Chinese regulators. The merger has already received clearance in other jurisdictions, and both companies are optimistic about finalizing the deal soon. This news led to a slight increase in their stock prices, with Synopsys rising 0.7% and Ansys 1.1% in premarket trading.
- AbbVie (ABBV, Financial) has agreed to acquire Capstan Therapeutics for up to $2.1 billion in cash. This acquisition aims to enhance AbbVie's portfolio in autoimmune disease treatments, particularly through Capstan's innovative CAR-T therapies. The deal is subject to regulatory approvals, and AbbVie expects it to significantly bolster its R&D capabilities.
- Zijin Mining (OTCPK:ZIJMF, Financial) has purchased the Raygorodok Gold Mine in Kazakhstan for $1.2 billion. This acquisition is part of Zijin's strategy to increase its gold reserves and output, positioning itself among the top three global producers by 2028. The deal precedes the planned Hong Kong listing of Zijin's international unit.
- Hyatt Hotels (H, Financial) has entered into an agreement to sell Playa’s real estate portfolio for $2 billion to Tortuga Resorts. The sale includes 15 all-inclusive resorts across Mexico, the Dominican Republic, and Jamaica. Hyatt will retain management agreements for most properties and expects the transaction to close by year-end.
- Novo Nordisk (NVO, Financial) and Eli Lilly (LLY, Financial) face new competition in China as Innovent Biologics (OTCPK:IVBIY, Financial) gains approval for its obesity drug, mazdutide. This development marks a significant step in China's healthcare innovation, challenging the dominance of Novo Nordisk and Eli Lilly in the obesity treatment market.
- Hikma Pharmaceuticals (OTCPK:HKMPF, Financial) plans to invest $1 billion by 2030 to expand its U.S. manufacturing and R&D capabilities. This initiative aims to enhance Hikma's capacity to supply a wide range of medicines to the U.S. healthcare system, focusing on its Ohio and New Jersey facilities.
- Parker Hannifin (PH, Financial) announced the acquisition of Curtis Instruments for approximately $1 billion. Curtis, known for its motor speed controllers and power conversion products, is expected to generate $320 million in sales in 2025. The acquisition aligns with Parker Hannifin's strategy to expand its technological capabilities.
- Boeing (BA, Financial) faces a regulatory hurdle as the U.K.'s competition watchdog investigates its planned acquisition of Spirit AeroSystems (SPR, Financial). The $4.7 billion deal aims to improve Boeing's manufacturing quality and safety, but the U.K. inquiry could delay its completion.
- Vallourec (OTCPK:VLOUF, Financial) secured a significant order from ADNOC for over 30,000 tons of carbon steel tubulars. This order is part of a long-term agreement, enhancing Vallourec's position in the oil and gas sector with integrated services and digital solutions.
- Apple (AAPL, Financial) supplier Lens Technology is seeking to raise up to $606 million through a Hong Kong listing. The Shenzhen-listed company aims to expand its financial base by offering shares at a discount, with trading expected to begin on July 9.
- Tesla (TSLA, Financial) has launched its V4 superchargers in several Chinese provinces, including Shanghai and Chongqing. These superchargers, capable of delivering up to 500 kW, represent Tesla's fastest charging technology and are part of its strategy to expand its EV infrastructure in China.
- TransDigm (TDG, Financial) announced the acquisition of Simmonds Precision Products from RTX Corp. (RTX, Financial) for $765 million. Simmonds, a leader in aerospace sensing solutions, is expected to generate $350 million in revenue for 2025, aligning with TransDigm's growth strategy.
- Apollo Global Management (APO, Financial) is set to finalize its acquisition of Everi Holdings (EVRI, Financial) and IGT's gaming business this week. The $6.3 billion deal will create a new entity focused on gaming technology and digital platforms, with significant operations in Nevada.
- L’Oréal (OTCPK:LRLCF, Financial) (OTCPK:LRLCY, Financial) has signed an agreement to acquire Color Wow, a fast-growing haircare brand. This acquisition is expected to strengthen L’Oréal's position in the haircare market, with plans to expand Color Wow's global reach.
- Stanley Black & Decker (SWK, Financial) has appointed Christopher Nelson as its new CEO, effective October 1, 2025. Nelson, currently the COO, will succeed Donald Allan, Jr., who will become the executive chair of the board. The company anticipates strong Q2 earnings performance.
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