Key Takeaways
- Major U.S. indices opened higher, with the S&P 500 (SPY) up 0.35%, Nasdaq (QQQ) gaining 0.31%, and the Dow Jones (DIA) rising 0.55% after market open.
- President Trump reiterated his stance on tariffs, indicating a willingness to remove them if major countries, including Japan and Indonesia, fully open their markets to U.S. goods and services.
- RTX Corp (RTX) was named a top defense pick by 17 analysts, including Morgan Stanley, which cited compelling valuations and improved program economics.
- The UK's Competition and Markets Authority (CMA) is considering designating Apple (AAPL) and Google (GOOGL) with "strategic market status", potentially leading to new regulations to foster competition in mobile platforms.
- MicroStrategy (MSTR) faces a class action lawsuit alleging breach of fiduciary duty regarding changes to its preferred stock terms.
Market Performance and Economic Policy
U.S. stock markets commenced the trading day with gains, as the S&P 500 advanced by 21.95 points (0.35%) to 6,331.57, the Nasdaq climbed 64.07 points (0.31%) to 20,956.76, and the Dow Jones rose 244.40 points (0.55%) to 44,746.84 shortly after the opening bell.
In economic policy news, U.S. President Trump stated he would "always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA." He further noted that Indonesia has "agreed, for the first time ever, to COMPLETELY OPEN ITS MARKET TO THE USA," and Japan is "for the first time ever, OPENING ITS MARKET TO THE USA, even to cars, SUV’s, Trucks, -and everything else, even agriculture and RICE." He also confirmed Japan's agreement to buy billions worth of military equipment. Additionally, President Trump criticized Federal Reserve Chairman Jerome Powell, asserting that "Housing in our Country is lagging because Jerome “Too Late” Powell refuses to lower Interest Rates," and that the U.S. rate "should be three points lower than they are."
Corporate and Regulatory Developments
RTX Corp (RTX) has been highlighted as a top defense sector pick by numerous analysts, including Morgan Stanley, which upgraded Northrop Grumman (NOC) to its "Top Pick in Defense" and named RTX its "Top Pick in Aerospace." Morgan Stanley cited compelling valuations for RTX, trading at a significant discount to peers despite beating second-quarter expectations.
In the technology sector, Britain’s Competition and Markets Authority (CMA) is considering designating Apple (AAPL) and Google (GOOGL)'s mobile platforms as having “strategic market status.” This move could pave the way for new regulations aimed at promoting competition within their mobile ecosystems, which the CMA describes as an effective duopoly in the UK.
MicroStrategy (MSTR) and its board are facing a class action lawsuit filed in the Delaware Court of Chancery. The lawsuit alleges a breach of fiduciary duty concerning changes to the terms of their preferred stock.
In the automotive industry, Toyota confirmed plans to begin manufacturing electric vehicles (EVs) in Indonesia this year.
Geopolitical and Other News
Geopolitical tensions were noted with Russian military planes detected flying near the coast of Alaska on Tuesday, marking the latest in a series of sightings in recent months. Separately, Tasnim News Agency reported that an Iranian helicopter warned the USS DDG Fitzgerald warship after it approached Iranian waters in the Sea of Oman.
An earthquake of magnitude 5.8 struck the Greek island of Crete. Additionally, a U.S. antidumping probe into some steel imports found industry harm. Russian media also reported that a Russian delegation arrived in Istanbul for talks on Ukraine.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.