Pre-opening Comments for Monday June 2^nd

U.S. equity index futures were lower this morning. S&P 500 futures were down 24 points at 8:30 AM EDT.

WTI Crude Oil advanced $2.55 to $63.34 per barrel despite OPEC+ reached an agreement to increase crude oil production by 411,000 barrels per day in July.

Actuate Therapeutics added $1.73 to $13.63 after reporting positive results for a phase 2 pancreatic cancer treatment

Cleveland-Cliffs advanced $1.47 to $7.30 after President Trump announced plans to increase the tariff on steel from 25% to 50%.

Blueprint Medicines advanced$15.15 to $116.50 after Sanofi offered to buy the company for $9.5 billion.

EquityClock’s Market Outlook for June 2^nd

Over the past five decades, the S&P 500 Index has averaged a return of 0.6% June with a gain frequency of 64%. See:

https://equityclock.com/2025/05/31/stock-market-outlook-for-june-2-2025/

Technical Scoop from David Chapman and www.EnrichedInvesting.com for June 2^nd

https://enrichedinvesting.com/library/

The Bottom Line

Technical momentum by broadly based U.S. equity indices weakened last week below high levels reached on or near May 16^th: S&P 500 at 5,968.61, Dow Jones Industrial Average at 42,892.04, NASDAQ Composite Index at 19,389.39 and Russell 2000 ETF at 210.13. Major U.S. equity indices have entered into a brief period of shallow seasonal weakness that normally lasts until the end of June.

Economic focus this week in on the May employment report released on Friday

Earnings news by S&P 500 companies is quiet this week. Focus is on Broadcom’s report on Thursday.

Outside the U.S., the focus is on central bank announcements. The European Central Bank and the Bank of Canada are expected to lower their interest rate offered to major banks by 0.25%.

Consensus for Earnings and Revenues for S&P 500 companies

Source: www.factset.com

Analyst estimates for earnings gains for the first quarter of 2025 increased slightly last week: 98% of S&P 500 companies have reported to date, up from 96% last week. Consensus for first quarter earnings gains calls for a 13.3% increase on a year-over-year basis, up from a 12.9% increase last week. Consensus for first quarter revenues growth remained at 4.9%.

Analyst estimates for 2025 beyond the first quarter generally remained unchanged last week. Consensus for second quarter earnings gains slipped to 5.0% from 5.1% last week. Consensus for second quarter revenue gains remained at 4.0%. Consensus for third quarter earnings gains remained at 7.2% last week. Consensus for third quarter revenue growth was unchanged at 4.6%. Consensus for fourth quarter earnings gains increased last week to 6.2% from 6.1%. Consensus for fourth quarter revenue gains slipped to 4.9% from 5.1%.

For all of 2025, earnings are expected to increase 9.1%, unchanged last week. Consensus for revenue gains also was unchanged at 4.9%.

For all of 2026, earnings are expected to increase 13.5%, up from 13.4%last week. Consensus for revenue gains remained unchanged at 6.2%.

Economic News This Week

April U.S. Construction Spending released at 10:00 AM EDT on Monday is expected to increase 0.4% versus a 0.5% drop in March.

May ISM Manufacturing PMI released at 10:00 AM EDT on Monday is expected to remain unchanged from April at 48.7

April Factory Orders released at 10:00 AM EDT on Tuesday is expected to drop 3.1% versus a 3.4% gain in March.

Bank of Canada interest rate decision is released at 9:45 AM EDT on Wednesday. Consensus calls for a drop in the lending rate to major banks to 2.50% from 2.75%. Press conference is offered at 10:30 AM EDT.

May ISM Non-manufacturing PMI released at 10:00 AM EDT on Wednesday is expected to improve to 52.0 from 51.6 in April.

Beige Book is released at 2:00 PM EDT on Wednesday

Europe Central Bank’s released at 8:15 AM EDT on Thursday is expected to lower its lending rate for major banks from 2.40% to 2.15%.

Updated first quarter Non-farm Productivity released at 8:30 AM EDT on Thursday is expected to drop 0.8% versus a 1.5% gain in the fourth quarter.

April U.S. Trade deficit released at 8:30 AM EDT on Thursday is expected to drop to $117.20 billion from $140.50 billion in March.

April Canadian Trade released at 8:30 AM EDT on Thursday is expected to increase 20,000 versus a 51,000 drop in March.

May Non-farm Payrolls released at 8:30 AM EDT on Friday are expected to drop to 130,000 from 177,000 in April. May Unemployment Rate is expected to remain unchanged from April at 4.2%. May Average Hourly Earnings are expected to increase 0.3% versus a 0.2% gain in April.

May Canadian Employment is released at 8:30 AM EDT on Friday.

Selected Earnings News This Week

Eight S&P 500 companies are scheduled to release quarterly results this week. No TSX 60 companies are scheduled to report.

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for May 30^th 2025

Green: Increase from previous day

Red: Decrease from previous day

Source for all positive seasonality ratings: www.EquityClock.com

Commodities

Daily Seasonal/Technical Commodities Trends for May 30^th 2025

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 30^th 2025

Green: Increase from previous day

Red: Decrease from previous day

Changes last week

Links offered by valued providers

Michael Campbell’s Money Talks for May 31^st

May 31 Episode – Michael Campbell’s Money Talks – Omny.fm

Bitcoin Still Has Room to Grow: Mark Leibovit

Bitcoin Still Has Room to Grow – HoweStreet

Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

https://www.youtube.com/watch?v=MVQt4r8_kKU

Uncertainty & Volatility: Crucial Info Investors Need To Know | Michael Contopoulos

https://www.youtube.com/watch?v=e6i-QqJk6zg

Tom Bowley’s TOP Secret to Navigating Leadership Trends in 2025

https://www.youtube.com/watch?v=mImJ_J7jG2Y

Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now – YouTube

Trump Tariffs Blamed for US Plant Closures: Bob Hoye

https://www.howestreet.com/2025/05/trump-tariffs-blamed-for-us-plant-closures-bob-hoye/

Technical Notes

Turkey iShares $TUR moved below $30.31 extending an intermediate downtrend.

Zscaler $ZS a NASDAQ 100 stock moved above $259.61 to a three year high extending an intermediate uptrend.

S&P 500 Momentum Barometers

The intermediate term Barometer added 1.40 on Friday and 8.80 last week to 70.40. It remains Overbought and showing early signs of rolling over.

The long term Barometer added 1.00 on Friday and gained 4.20 last week to 51.00. It remains Neutral and showing early signs of rolling over.

TSX Momentum Barometers

The intermediate term Barometer dropped 0.92 on Friday, but gained 18.43 last week to 85.71. It remains Overbought.

The long term Barometer dropped 1.84 on Friday, but gained 4.15 last week to 71.43. It remains Overbought.

Disclaimer: Seasonality ratings and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.

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