Market Recap – Friday, June 20, 2025
Mixed Market Performance Amid Geopolitical Tensions and Economic Data Weakness
Stocks closed mostly lower today, ending a mixed week. The Dow edged up by 0.08%, while the S&P 500 dropped by 0.22%, and the Nasdaq declined by 0.51%. The Russell 2000, tracking smaller companies, was slightly up by 0.17%. Despite the losses, this week was narrow, with the S&P finishing lower and the Nasdaq modestly higher.
Key Market Sectors:
Winners: Banks, homebuilders, tech hardware companies, property and casualty insurers, grocers (like Kroger), cruise lines, auto parts, and credit card companies saw gains today.
Laggards: Big tech stocks struggled, especially Google (GOOGL-US), though Apple (AAPL-US) was solid. Other weak sectors included semiconductors (due to China headlines), chemicals, pharma (notably Eli Lilly), tobacco, and oil services.
Other Market Factors:
Treasuries: Bond prices were mostly firmer, with some mild curve flattening after a previous rise in yields.
Dollar and Gold: The dollar dipped by 0.2%, while gold fell by 0.7%. Bitcoin futures also saw a slight drop of 0.6%. Oil prices were up by 0.5%, though the market is still watching for any changes in the Middle East.
Geopolitical and Economic News:
Middle East tensions were still in focus, with limited updates today. President Trump mentioned that negotiations with Iran could still take place, but military action remains a possibility. On the economic front, the Federal Reserve left interest rates unchanged and continued to hint at potential future rate cuts. Economic data showed a drop in housing starts and retail sales for May, which signals some potential slowdowns in the economy.
Corporate News:
Accenture (ACN-US): Despite a solid earnings beat, analysts pointed to concerns about slowing bookings.
Kroger (KR-US): Rose after a strong earnings report, with a solid performance in pharmacy and online sales.
CarMax (KMX-US): Surged after reporting higher-than-expected profits and strong used-car sales growth.
Notable Stock Moves:
GMS Inc. (GMS-US): Gained 23.8% after Home Depot reportedly made a competing offer to acquire the building products distributor.
Circle Internet (CRCL-US): Jumped 20.4% after a positive outlook on stablecoin adoption and crypto regulation.
Kroger (KR-US): Rose 9.8% after its earnings beat expectations, driven by strong sales in its pharmacy and fresh food segments.
CarMax (KMX-US): Up 6.6% after reporting strong growth in used-car sales.
Decliners:
KBR (KBR-US): Fell 7.3% after a US contract cancellation.
Accenture (ACN-US): Dropped 6.9% due to concerns about lower bookings and reduced corporate spending.
Eli Lilly (LLY-US): Lost 2.8% after a negative ruling from the UK’s NHS about one of its drugs.
Looking Ahead:
Next week, we’ll get key economic data, including US flash PMIs, home sales, and a look at consumer confidence. The Federal Reserve's monetary policy testimony from Chairman Powell will also be in focus, as markets look for clues on future rate cuts.
Here's Our Take
Today’s market closed mostly lower, reflecting the ongoing uncertainty surrounding geopolitical tensions, particularly in the Middle East, and weaker-than-expected economic data. While certain sectors, such as banking, homebuilding, and tech hardware, showed strength, big tech struggled, and broader market sentiment remains cautious. The Fed's recent policy stance suggests potential rate cuts ahead, but mixed economic data and global trade concerns continue to keep investors on edge. As we head into next week, economic indicators like consumer confidence, housing data, and Fed commentary will likely drive further market direction. We encourage folks to stay vigilant as the market navigates through these complex factors, balancing growth prospects with geopolitical risks and economic challenges.
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