Morning in New York: news contributes to moderate positivity

Daily review and forecast of events on the U.S. stock market from Mikhail Denislamov, Deputy Director of Capital Markets Research, Freedom Broker.

The dynamics on the world stock exchanges is determined by the decline in tension in the Middle East. Iran and Israel announced the suspension of mutual strikes after US President Donald Trump called for an immediate ceasefire. The head of the White House also reported the continuation of efforts to achieve a long-term settlement and warned Israeli Prime Minister Benjamin Netanyahu about the reduction of support in case of renewed conflict. Against this background, oil quotes are consolidating around $90 per barrel. At the same time, the media report on the acceleration of the projects of Iraq and the UAE to develop alternative export routes bypassing the Strait of Hormuz.

Investors will be keeping an eye on several macroeconomic releases today. Among them are the May data of NFIB Small Business Optimism Index (consensus: 96 points, April: 95.8 points) and home sales on the secondary market (consensus: 4.07 million, April: 4.02 million), as well as statistics of trade balance for April (consensus: deficit of $56.1 billion, March: $60.3 billion) and wholesale inventories (+0.6% mom). All these data will help to refine the assessment of business activity and prospects for economic growth in the second quarter.

The focus of attention remains on news related to the AI agenda. OpenAI has confidentially filed for an IPO for which it has been valued at over $850 billion. The news comes shortly after the announcement of Anthropic's IPO filing and ahead of SpaceX going public. This indicates continued strong investor interest in high-growth technology companies and artificial intelligence.

Quarterly results were presented by Uranium Energy Corp. (UEC) and EHang Holdings (EH). The J. M. Smucker Company (SJM) will also publish its report before the opening of trading. Casey's General Stores (CASY), BARK (BARK) and Cracker Barrel Old Country Store (CBRL) will release results after the end of the main session.

Futures on American stock indices demonstrate moderately positive dynamics. We assess the balance of risks for the upcoming session as neutral with an average level of volatility.

- Applied Digital (APLD) is up nearly 12% after announcing a long-term agreement to lease capacity at the Delta Forge 2 site. The contract is for 15 years and provides for approximately $5.2 billion in guaranteed revenue with an option for future expansion. The agreement was another confirmation of the high demand for AI infrastructure and strengthened the company's position among the beneficiaries of data center market growth.

- Quotes of avocado grower Mission Produce (AVO) are losing about 4% after the release of its fiscal second quarter results. The company's revenue declined 24% year-over-year due to a 36% drop in average selling prices, which was only partially offset by higher sales. Despite the completion of the acquisition of Calavo Growers and the launch of a $100 mln share buyback program, investors focused on the deterioration of the issuer's financials.

- Shares of Vail Resorts (MTN) are down about 3% amid the release of its quarterly results and revised outlook for the current fiscal year. The company's revenue fell 7.5% to $1.2 billion, impacted by unfavorable weather conditions at key ski resorts. Management lowered EBITDA guidance for the resort business to $735-755 mln.

- IDEAYA Biosciences (IDYA) shares are falling more than 9% after the company announced an offering of shares and pre-paid warrants worth up to $300 mln at a price of $27 per unit. The organizers of the deal also received a 30-day option to purchase additional securities worth up to $45 million. The company plans to use the raised funds to finance clinical trials. In turn, investors negatively assess potential dilution of shares of existing shareholders.

June 8 trading on the U.S. stock exchanges ended mostly in the plus after a sharp decline at the end of last week. The S&P 500 added 0.3%, the Nasdaq 100 rose by 1.58%, the Russell 2000 rose by 0.77%, and only the Dow Jones fell by 0.16%.

The technology sector (XLK: +2.15%) was the main driver of recovery for the market due to positive news related to the development of AI infrastructure, as well as active purchases in shares of chipmakers. It was additionally supported by reports about the expansion of investments by the largest representatives of high-tech. Utility providers with protective status (XLU: -1.87%) were the outsiders due to increased interest in riskier assets.

Negative dynamics prevailed among the representatives of the "Magnificent Seven". The exceptions were Tesla (TSLA: +4.59% at the close of trading on June 8), which compensated for last week's sharp correction, as well as Nvidia (NVDA: +1.73%), which continued to receive support from high investor interest in AI themes.

Buying was also helped by the lack of new signs of escalation in the conflict between Israel and Iran.

The macroeconomic background remained relatively calm. According to the survey of the Federal Reserve Bank of New York, inflation expectations of consumers for the year ahead in May decreased from 3.6% to 3.5%. At the same time, benchmarks for the future financial situation of households reached their lowest level since October 2022. The most important for the market will be this week's inflation data for May, which will shape expectations for the future course of the Fed's monetary policy.

- Intel (INTC: +11.1% at the close of trading on June 8) has been in the spotlight following media reports that Alphabet (GOOGL) is considering the company as a manufacturer of more than 3 million TPU AI chips with delivery in 2028. According to The Information, a number of chipmakers, including Nvidia (NVDA), are evaluating Intel as a potential alternative to TSMC (TSM) for advanced semiconductors. The news reinforced expectations of a recovery in Intel's contract manufacturing business.

- Amazon (AMZN) announced a multi-billion dollar agreement with Corning (GLW: +5.6%) to supply fiber optics, cable products and data center connectivity solutions.

- Eli Lilly (LLY: +1.6%) presented additional positive data from Phase III studies of retatrutide. Significant reduction in body weight of the trial participants was recorded, as well as improvement in patients with osteoarthritis, sleep apnea and type II diabetes.

- Inflection Point Acquisition Corp. VI (IPFX: +6.3%) announced its merger with Quantum Space, which is expected to be completed in the fourth quarter. The combined company will then go public with an equity valuation of approximately $1.2 billion.

- From June 1 to June 7, Strategy (MSTR: +5.6%) bought 1,550 bitcoins worth about $101 million. The decision came days after the company reported selling some of its cryptocurrency assets for the first time since 2022. Additional support for its shares was provided by the growth of BTC quotations after a sharp decline last week.

- Wix.com (WIX: -8%) has worsened its own guidance for 2026. The company forecasts a decline in orders of about $50 million and warned of a negative revenue impact of about $25 million due to organizational realignment and weaker partner business.

- Apple's (AAPL: -1.9%) WWDC presentation was received with restraint by the market as the AI features presented failed to meet investors' high expectations.

This article was AI-translated and verified by a human editor