Market Monitor News June 11 (Casey’s General Stores, Tesla UP - Calavo Growers, McDonald's DOWN)

Wall Street Ends Higher as US-China Trade Progress Boosts Investor Sentiment

US-China Trade Talks Fuel Cautious Optimism

Investors showed measured enthusiasm on Tuesday as the United States and China made progress in critical trade negotiations. Talks held in London between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng culminated in a preliminary framework aimed at reviving the fragile Geneva ceasefire agreement.

US Commerce Secretary Howard Lutnick confirmed that both parties had reached a general agreement and would move forward pending presidential approvals from both nations. The framework includes a 90-day truce on tariff escalations and calls for mutual easing of trade restrictions, particularly those involving rare earth elements from China and advanced semiconductors from the US.

Although full details remain pending, investors interpreted the developments as a step toward de-escalation. The Dow Jones gained 0.3%, the S&P 500 rose 0.6%, and the Nasdaq also closed 0.6% higher.

Markets Hold Steady Ahead of Inflation Data

Despite the upbeat trade sentiment, investors remained cautious ahead of key inflation data due Wednesday.

Analysts forecast that core inflation, which excludes food and energy, may tick up to 2.9% year-over-year, a potential first for 2025. Producer price data due Thursday is also expected to reflect higher input costs.

On the macroeconomic front, the US small business optimism index rose from 95.8 to 98.8, slightly above its long-term average. However, the World Bank issued a warning that prolonged trade tensions could cut US economic growth in half this year.

Company Highlights: Winners and Losers

Tesla (TSLA | +5.67%) rebounded for a second consecutive day, clawing back losses triggered by a very public fallout between CEO Elon Musk and President Donald Trump.

Musk's role in the administration's advisory board was recently revoked, but Trump has since softened his stance, expressing continued support for Tesla and Musk’s satellite service, Starlink.

McDonald’s (MCD | -1.43%) slid after Redburn Atlantic analyst Chris Luyckx issued a rare sell rating.

Luyckx cited the growing influence of appetite-suppressing medications like Ozempic as a long-term threat to the fast-food chain’s revenue. His $260 price target is about 15% below the current stock price of $300.60, making him the lone bear among 41 Bloomberg-tracked analysts.

GameStop (GME | -0.63%) made headlines by announcing it will allocate part of its $4.8 billion in cash reserves into bitcoin, framing it as a "strategic reserve" asset.

This comes amid continued operational struggles, including a 28% year-over-year revenue drop. The company appears to be taking a page from MicroStrategy’s playbook, aiming to benefit from crypto exposure.

Taiwan Semiconductor (TSM | +2.64%) advanced after reporting a 40% year-over-year jump in May revenue, even though month-over-month sales dipped slightly.

Casey’s General Stores (CASY | +11.59%) surged as the retailer delivered quarterly earnings that exceeded expectations, backed by a 1.7% increase in comparable sales and optimistic full-year guidance.

On the downside, Calavo Growers (CVGW | -16.26%) plunged after posting disappointing results late Monday, continuing its volatile earnings trend.

Oil and Currency Markets

• WTI crude oil slipped 0.5% to $64.98 per barrel after previous gains, while US Treasury yields inched lower.

• The euro/dollar exchange rate remained stable at 1.1427.

---

Next to read: ChartMill Market Monitor Trends & Breadth Analysis, June 11