Morning Dose: Geopolitical Angst Fuels Flight to Safety
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It’s Tuesday, June 17th, 2025, and equity futures are looking a bit weak this morning. S&P futures are trading about 29 points below fair value. Geopolitical concerns are weighing on sentiment, particularly regarding U.S. involvement in the Israel-Iran conflict.
Overnight Headlines
- In Asia, markets ended mixed with Japan’s Nikkei up, while Hong Kong’s Hang Seng and China’s Shanghai Composite were down.
- European markets are in the red despite strong ZEW Economic Sentiment figures, with Germany’s DAX, the U.K.’s FTSE, and France’s CAC all down.
Economic Announcements
Key economic data releases today include May Retail Sales, Import and Export Prices, Industrial Production, Capacity Utilization, Business Inventories, and the NAHB Housing Market Index.
Earnings Highlights
- LEN (Lennar) missed Q2 EPS but beat on revenue.
- JBL (Jabil) had a strong report, beating earnings and revenue, with positive guidance.
- In the renewable energy sector, FSLR (First Solar) is down significantly due to proposed tax credit phase-outs.
Top Movers
- VERV (Verve Therapeutics) surges on news of acquisition by LLY (Eli Lilly).
- MSFT (Microsoft) dips amid tensions with OpenAI.
Quick Trade Ideas
SPY and QQQ are cautiously optimistic according to WaveRider AI. Focus on tech and semiconductor stocks for potential continuation plays, but be wary of overbought market indicators.
Key Takeaway
Traders should be selective, focusing on tech and semiconductor stocks with strong momentum and volume. Use tight stops below key support levels to manage risk. Watchlist includes KLAC for continuation and CW for anticipation setups.
Stay nimble and watch for early strength to fade in the current market environment. Manage risk carefully. Have a great trading day!