What happened last week…
On Friday, the S&P 500 achieved anew all-time highof 6,187.68. The index had its best week out of the previous six weeks and is on pace for back-to-back months in the green, currently up 4.42% in June. Furthermore, the tech-heavy NASDAQ also achieved a new record high of 20,311.43 and has gained 6.07% in June, which would mark three straight months in the green and would build upon the 9.56% gain last month. Year-to-date performances for the three major indices are as follows: DJIA (3.00%), S&P 500 (4.96%), NASDAQ (4.99%).
On thetrade front, both the United States and China confirmed their trade deal with each other. China will allow exports of its rare earth minerals and magnets while the United States will ease its technology restrictions. Additionally, regarding the 90-day pause in reciprocal tariffs that is set to end in the beginning of July, White House Press Secretary Karoline Leavitt said the looming deadline is “not critical” and could be extended.
TheGDP growth rate(final estimate) for Q1 2025 landed at -0.5%.
Existing home salesfor May beat expectations (3.96 million) as it increased to 4.03 million from 4.00 million. Meanwhile,new home salesfor May landed at 623,000.
According to FactSet, as of June 27, for Q2 2025, the estimated year-over-yearearnings growthrate for the S&P 500 is 5.0%, while the estimatedrevenue growthrate is 4.2%, which would be the 19th consecutive quarter of revenue growth for the index. For Q3 2025 and Q4 2025, earnings growth is projected to be 7.3% and 6.4%, respectively. Revenue growth for each respective quarter is projected to be 4.7% and 5.2%. For CY 2025, the earnings growth is expected to be 9.1% with revenue growth of 4.9%.
This week…
On Tuesday, themanufacturing PMIfor June is expected to increase to 48.8 from 48.5. On Thursday, thenon-manufacturing PMIfor June is expected to increase to 50.3 from 49.9.
On Wednesday, theADP employment changemay increase to 80,000 from 37,000. On Friday, theunemployment rateis expected to remain at 4.2%,nonfarm payrollsare forecasted to be 129,000, andaverage hourly earningsmonth-over-month are expected to be 0.3%.
On Thursday, the stock market willclose earlyand on Friday the stock market will beclosedin observation of Independence Day.
Thanks for reading!
- The Rockline Team
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