Hot News
Before the market on Thursday, the three major U.S. stock index futures rose collectively.
In May, the non-farm data exceeded expectations, with the U.S. May seasonally adjusted non-farm employment population recorded at 0.139 million, reaching a new low since February, higher than the market expectation of 0.13 million. U.S. short-term Interest Rates futures narrowed earlier losses, as traders reduced bets on an interest rate cut by the Federal Reserve after the employment data was released, with expectations that the Federal Reserve will cut rates twice this year in September and December.
The U.S. May unemployment rate remained at 4.2%, staying within a narrow Range of 4.0% to 4.2% since May 2024. The number of unemployed individuals stood at 7.2 million. Analysts evaluated the U.S. non-farm data: it appears to be a set of good numbers. Job growth is basically in line with expectations, and the unemployment rate remains at 4.2%.
The non-farm numbers for March and April were revised down by a total of 0.095 million. The U.S. Bureau of Labor Statistics reported that the total number of non-farm jobs in March was revised down from +0.185 million to +0.12 million, a decrease of 0.065 million; the total number of non-farm jobs in April was revised down from +0.177 million to +0.147 million, a decrease of 0.03 million. After these adjustments, the combined employment figures for March and April decreased by 0.095 million compared to previous reports.
Most popular Chinese concept stocks rose before the market. $Tesla (TSLA.US)$up over 4%, $Amazon(AMZN.US)$Increased by over 1%, $Meta Platforms(META.US)$、 $Alphabet-A (GOOGL.US)$、 $Alphabet-C(GOOG.US)$Up nearly 1%, $Broadcom(AVGO.US)$Down over 2%.
Most popular Chinese Concept stocks are down in Pre-Market Trading. $Trip.com(TCOM.US)$Fell by more than 3%, $Alibaba (BABA.US)$、 $XPeng Inc. (XPEV.US)$ A drop of nearly 1%, $Legend Biotech(LEGN.US)$Increased by over 4%.
Most space concept stocks are up in Pre-Market Trading, $Virgin Galactic(SPCE.US)$rising over 5%,$Tesla (TSLA.US)$、 $Destiny Tech100(DXYZ.US)$up over 4%, $Rocket Lab(RKLB.US)$Increased by more than 3%,.
Tesla increased by more than 4% in Pre-Market Trading, despite reports from White House insiders that Trump has no plans to speak with Musk.
Trump stated on Friday that he is "not particularly interested" in talking to Elon Musk, after the two had a dispute on Social Media the day before. Trump told the media that Musk has "lost his mind" since leaving the government last week. A reporter who interviewed Trump remarked that he "didn't seem angry, nor worried about the discord." (ABC News)
NVIDIA's major holdings$CoreWeave(CRWV.US)$In pre-market trading, it rose over 6%, with NVIDIA's shareholding proportion at 78.17%.
$Rocket Lab(RKLB.US)$In pre-market trading, it rose over 3%, Musk announced the immediate retirement of the 'Dragon' spacecraft.
The first stock of stablecoins.$Circle(CRCL.US)$Continuing to rise over 14% in pre-market trading! The previous day's increase was 168.48%, closing at $83.23 per share.
Despite Q1 performance exceeding expectations, Morgan Stanley analysts stated that the current stock price cannot withstand the impact of slowing growth and macroeconomic headwinds for IoT companies.$Samsara(IOT.US)$ Fell more than 11% in Pre-Market Trading.
Morgan Stanley Analyst Keith Weiss rated it as 'Hold', based on a comprehensive consideration of Samsara's recent performance and market conditions. Despite a strong increase in share price over the past month, the company's valuation is approximately 15 times the enterprise value/sales for the fiscal year 2026, indicating limited room for slowing growth.
However,$Samsara(IOT.US)$Reports indicate that revenue grew by 32% at fixed exchange rates, with net new annual recurring revenue (NNARR) increasing by 8%, but these figures still fell short of expectations, suggesting that the current share price cannot withstand the impact of slowing growth.
In addition, Samsara faces macroeconomic challenges, such as extended sales cycles, primarily influenced by consumers prioritizing the purchase of goods affected by tariffs. Although this has led to performance below historical levels, the company remains resilient with a strong platform narrative and robust demand trends. The increase in key clients and impressive margin performance (including a 79% gross margin) highlight the company's operational strength.
$DocuSign(DOCU.US)$Cutting the billing expectations for the fiscal year 2026, fell more than 19% in Pre-Market Trading.
Cloud software suite company.$DocuSign(DOCU.US)$Released the Q1 results for the fiscal year 2025, with Q1 revenue of 0.764 billion USD, an increase from 0.71 billion USD in the same period last year, while Analysts expected 0.748 billion USD. DocuSign raised its revenue guidance for fiscal year 2026 to 3.15-3.16 billion USD, up from the previous forecast of 3.13-3.14 billion USD, with analysts predicting 3.13 billion USD.
However, the company's full-year billings forecast is between 3.285-3.339 billion USD, lower than the previously announced 3.3-3.354 billion USD on March 13.
$Lululemon Athletica(LULU.US)$Pre-Market Trading plummeted over 20% due to tariffs eroding profits, with efforts to increase sales showing no effectiveness.
$Lululemon Athletica(LULU.US)$Lowered its full-year profit expectations as tariffs on imported goods continue to unsettle consumers. CEO Calvin McDonald stated: "The current tariff paradigm introduces uncertainty into the retail environment as consumers attempt to assess the impact of these tariffs on their daily lives."
Last year, 40% of Lululemon's products were made in Vietnam. The country faces a 46% reciprocal tariff from the United States, although these tariffs are currently suspended.
Lululemon stated that it expects full-year EPS to be between $14.58 and $14.78. This is a change from the March forecast of $14.95 to $15.15.
$Broadcom(AVGO.US)$Q2 revenue exceeded expectations with a strong increase of 20%, but the AI revenue guidance was not impressive, dropping over 2% in pre-market trading.
Broadcom's revenue in the second fiscal quarter hit a record high, with EPS continuing to grow over 40%, exceeding expectations. The AI revenue for the quarter increased by 46%, significantly slowing down compared to the previous quarter's growth rate of 77%. Broadcom expects AI chip revenue to increase for the tenth consecutive quarter in the third quarter, accelerating growth to $5.1 billion, but still 3.7% lower than the high levels anticipated by some analysts.
Broadcom stated that major customers are increasing spending on AI inference. Non-AI chip sales are close to the bottom but will slowly recover. Due to custom AI chips, profit margins are narrowing. The deployment of custom AI chips in fiscal year 2026, which is next fiscal year, will be higher than expected. Comments suggest that Broadcom's guidance for this quarter appears relatively bland, indicating that the surge in AI spending is not as strong as some investors expected.
$Snowflake(SNOW.US)$After the summit, Wall Street analysts had mixed attitudes.
$Snowflake(SNOW.US)$After the recent 2025 summit and Analyst Day, several major Wall Street firms are bullish on this cloud computing data platform company's potential in the field of artificial intelligence (AI), but some analysts remain cautious and question its financial outlook.
Goldman Sachs reiterated its 'Buy' rating on Snowflake in a Research Report, placing it on the 'Conviction Buy' list, with a 12-month Target Price maintained at $230. The bank stated that Snowflake is expected to achieve sustainable growth under its deepening layout in the AI and data ecosystem, moving towards a revenue scale of over $10 billion.
Guggenheim analysts stated in a report on Wednesday that while they are bullish on Snowflake's core data warehousing and analytics business, there are doubts about its AI monetization capabilities. "We still believe that Snowflake is a well-operated leader in cloud data warehousing," the report said, "but whether it can break through the existing business boundaries remains to be seen."
In the face of the shock waves from Trump's tariffs and the shadow of a trillion-dollar deficit,$Goldman Sachs (GS.US)$Initiating risk control mechanisms first
Faced with the unpredictable storm of tariff policies and rising concerns over deficits, Wall Street financial giant Goldman Sachs is unusually choosing to reduce risk exposure and stockpile cash in an effort to protect itself. According to the Financial Times in the United Kingdom on June 5, $Goldman Sachs (GS.US)$ President and Chief Operating Officer John Waldron revealed in a podcast released on Thursday that since President Trump announced broad tariffs on trade partners on April 2, the bank has 'moderately adjusted our risk positions.'
He indicated that this reduction in risk appetite would primarily manifest in Capital Markets operations and in providing Trading convenience for clients. He explained that Goldman Sachs will 'cherish liquidity more, retain more buffer funds,' and adopt a more balanced strategy rather than being overly aggressive.
Under the heavy pressure of Trump's tariffs, $Procter & Gamble (PG.US)$plans to lay off 7,000 employees and divest certain brands.
$Procter & Gamble (PG.US)$It announced that as part of its two-year restructuring plan, it will lay off 7,000 employees over the next two years. The uncertainty exacerbated by U.S. tariffs is part of the reason for this layoff. The world's largest consumer goods company also plans to exit certain product categories and brands in some markets, which may involve asset divestiture. This number of layoffs accounts for about 6% of the company's total workforce, and Procter & Gamble stated that this is part of its ongoing strategy.
Global Macro
Call between the Chinese and US leaders: Correcting the Course of China-US Relations.
On the evening of June 5th, **** had a phone call with President Trump at the request of the latter. The last conversation between the two was on January 17th. Xi emphasized that correcting the course of China-US relations requires us to steer properly and determine the direction, especially by eliminating various distractions and even disruptions, which is particularly important. According to the US proposal, the heads of economic and trade departments of the two countries held talks in Geneva, marking an important step towards solving economic and trade issues through dialogue and consultation, which is widely welcomed by both countries and the international community, also proving that dialogue and cooperation is the only correct choice.
Trump expressed great respect for ****, stating that China-U.S. relations are very important. The U.S. welcomes China's strong economic growth. The U.S.-China cooperation can accomplish many good things. The U.S. will continue to adhere to the one-China policy. The economic and trade talks between the two countries in Geneva were very successful and resulted in a good agreement. The U.S. is willing to work with China to implement the agreement. The U.S. welcomes Chinese students to come to the U.S. to study.
**** welcomed Trump to visit China again, and Trump expressed sincere gratitude. The two heads of state agreed that both teams should continue to implement the Geneva consensus and hold a new round of talks as soon as possible.
Former US Treasury Secretary Summers warned that Trump's tax reform plan will lead to an increase in US debt far exceeding 4 trillion dollars, and the fiscal deficit rate may be much higher than 7%.
Former U.S. Treasury Secretary Summers pointed out that Trump's signature tax and spending plan will increase the U.S. debt burden in a way that ultimately undermines American global leadership.
Despite the nonpartisan Congressional Budget Office (CBO) assessing on Wednesday that the House-passed Trump "One Big Beautiful Bill" will add 2.4 trillion dollars to the budget deficit over ten years, Summers believes the actual figure "far exceeds 4 trillion dollars." He pointed out that the temporary tax cuts in the bill may be extended, and the increased interest costs due to expanded borrowing by the Treasury have not been fully accounted for.
Summers pointed out that the rising U.S. debt burden stems from three main reasons: firstly, the increase in the population aged 65 and older raises welfare spending; secondly, rising costs for healthcare and other payments made by the government; and thirdly, the inflation of interest payments by the Treasury. He emphasized: "The issue is not that we have initiated various large-scale new expenditure plans."
Summers predicts that this tax bill will raise the annual fiscal deficit as a percentage of GDP to a level "far higher than" 7%, while over the past two years this ratio has exceeded 6%—a level that is rare unless during crises such as economic recessions or wars. He warned that this means the space for government funding of innovation and research will shrink, and household costs from mortgages to Autos loans will also rise.
The Federal Reserve Governor stated that there are upward risks to current inflation and that the current interest rates should remain unchanged.
Local time Thursday (June 5), Federal Reserve Governor Cook said that tariffs could create higher inflation risks, thus she supports maintaining the interest rates at the current level. "At this stage, I see increasing upward risks to inflation while employment and output growth face downward risks. Therefore, if the upward risks to inflation persist, I will continue to supportFederal Open Market Committee(FOMC) keeping the current policy interest rate unchanged," Cook stated during a speech at the Economic Club of New York on Thursday.
The next interest rate decision meeting of the Federal Reserve will be held from June 17 to 18. Currently, investors broadly expect the Federal Reserve to maintain interest rates in June and July, and then restart the rate cut cycle later this year.
Top 20 transactions in Pre-Market Trading.
Macro calendar reminders for the USA stock market.
Not available.
The next day.
01:00 Total number of oil rigs in the United States for the week ending June 6 (units).
03:00: U.S. April consumer credit (in hundred million dollars).
03:30: CFTC releases weekly positions report.
Editor/melody
