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US stock futures wavered on Wednesday as Wall Street digested a sharp slowdown in private-sector hiring growth, with one eye on prospects for a US-China trade talks as a steel tariff hike kicked in.
S&P 500 futures (ES=F) added roughly 0.1%, while those on the Dow Jones Industrial Average (YM=F) were little changed. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also meandered around the flatline.
Stocks are trying for a third day in the green as investors have welcomed unexpected signs that the labor market is holding up in the face of President Trump’s tariff escalation.
CME – Delayed Quote USD
As of 9:13:30 AM EDT. Market Open.
ES=F NQ=F YM=F
Those hopes got a reality check on Wednesday, however, with the ADP National Employment Report showing private-sector hiring growth fell sharply last month. Private payrolls increased by just 37,000, the lowest in over two years and well below expectations.
Trump lashed out at Fed Chair Jerome Powell after seeing the report early Wednesday, urging him to lower interest rates.
“He is unbelievable!!!” Trump posted.
Read more: The latest on Trump’s tariffs
Overnight, Trump’s Tuesday order doubling tariffs on steel and aluminum import to 50% came into effect, with only the UK spared the jump in duties on Wednesday. Meanwhile, Wednesday is deadline day for trading partners to make “best offers” for a deal to fend off “reciprocal” tariff hikes scheduled for July.
Hopes for a US-China trade pact dimmed after Trump called President Xi “extremely hard to make a deal with” in a post to social media on Wednesday. The Geneva tariff truce between the two has appeared increasingly fragile amid clashes over issues such as chip exports, rare earth supplies, Taiwan, and visas.
LIVE 10 updates
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Private sector adds lowest monthly payrolls since March 2023
On Wednesday, data from ADP showed private payrolls grew by just 37,000 in May, far fewer than the 114,000 expected by economists and below the 60,000 new jobs added in April. This marked the smallest increase in private payrolls since March 2023.
“The weak numbers we’re seeing now does not point to a labor market that’s collapsing, but there is hiring hesitancy,” ADP chief economist Nela Richardson said on a call with reporters.
President Trump posted about the numbers on Truth Social shortly after the release.
“ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE,” Trump posted. “He is unbelievable!!! Europe has lowered NINE TIMES!”
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Nvidia stock adds to gains after the company overtook Microsoft as most valuable company
Nvidia (NVDA) stock advanced 0.5% in premarket trading, adding to its $1 trillion rally that saw it surpass Microsoft (MSFT) as the world’s most valuable company by market capitalization.
Nvidia’s market cap stands at $3.444 trillion following a more than 50% rally in May, compared to Microsoft’s valuation of $3.441 trillion.
The stock has gained more than 4% since reporting first quarter earnings last week. Nvidia is scheduled to present at the BofA Securities Global Technology Conference on Wednesday, which could prompt additional moves.
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Dollar Tree warns of tariff impact in second quarter
Dollar Tree (DLTR) reported first quarter revenue and earnings today that beat analysts’ expectations but said it sees a big hit to second quarter results due to tariffs.
The company forecast adjusted profit to be down 45% to 50% from a year ago in the second quarter due to tariff volatility and price hikes. However, it expects profits to pick back up in the second part of the year.
Dollar Tree’s earnings report follows results from Dollar General (DG) yesterday that beat estimates and included an annual sales forecast raise. Dollar Tree maintained its annual sales outlook and raised its earnings per share outlook to a range of $5.15 to $5.65.
Dollar Tree stock fell 0.5% in premarket trading on Wednesday after bouncing back and forth between positive and negative territory.
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Good morning. Here’s what’s happening today.
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Bull and bear cases don’t see tariffs changing the Apple stock story
When it comes to Apple stock both the bull and the bear cases are unfazed by tariffs, despite the fact these levies and presidential threats could deflate the company, bull and bear arguments tend to focus on the tech company’s well established products and competitor advantage.
Despite the political landscape changing for Apple CEO Tim Cook, for Wall Street the story remains the same.
The bull case is focused on strong earnings, a legacy built on underpromising and overdelivering. Delivering stable results and always managing expectations. But this may be hard to see now.
My colleague, Yahoo Finance’s senior reporter Hamza Shaban looks at why Apple bull and bear cases don’t see tariffs changing the story.
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China weighs massive Airbus deal, seen as message to Trump
Jets are taking center stage as countries vie for President Trump’s attention — and China could be the latest, with a potential Airbus (AIR.PA, EADSY) deal.
Chinese airlines are considering placing an order for as many as 500 Airbus planes to coincide with a visit by European leaders to Beijing in July, sources told Bloomberg.
Deals for US rival Boeing’s (BA) planes have emerged as the US’s favored bargaining chip in trade discussions. The spotlight fell on the gambit after Trump’s acceptance of a $400 million luxury Boeing jet from the Qatari royal family in May, for use in the Air Force One fleet.
Though China’s Airbus negotiations are said to be fluid and could fall through, the European jet maker’s stock rose as much as 4% in Paris. Meanwhile, shares of Boeing hovered below the flat line.
Bloomberg reports:
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Michael Saylor’s bitcoin imitators are multiplying fast
Dozens of publicly traded companies, a media firm controlled by President Trump’s family, and meme stock poster child GameStop (GME) are all piling into a bet that Michael Saylor used to turn a business intelligence software firm into a bitcoin juggernaut called Strategy (MSTR).
Yahoo Finance’s David Hollerith and Laura Bratton report:
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Trending tickers: CrowdStrike, HPE, Robinhood and Wells Fargo
Here are some top stocks trending on Yahoo Finance in premarket trading:
CrowdStrike (CRWD) stock fell over 6% before the bell on Wednesday after the technology company forecast Q2 earnings below estimates, indicating weaker government spending on cybersecurity products.
HPE (HPE) beat Wall Street estimates for second-quarter revenue and profit on Tuesday, due to strong demand for its artificial-intelligence servers and hybrid products. The groups stock price was up 5% before the bell on Wednesday.
Robinhood (HOOD) stock rose over 1% in premarket trading on Wednesday. Nearly four years after its much-hyped debut, Robinhood Markets Inc. has finally seen its shares hit a fresh record as cryptocurrency markets rally. Robinhood’s stock rose over 5% on Tuesday and closed at $71.72, beating its previous high of $70.39, which was set days after the online brokerage’s IPO.
Wells Fargo (WFC) shares were up 3% before the bell today after the Federal Reserve a major restriction on the investment bank, meaning it will no longer have to operate under a $1.95T asset cap.
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Action in Hong Kong equity markets stirs most excitement in years
Despite global unrest, trade war threats and persistently sluggish demand in China, investors are clamoring for a piece of the stock action in Hong Kong as valuations are still attractive.
Bloomberg reports:
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Toyota Industries offer to pivot to private tanks share value
Stock in Toyota Industries (6201.T) sank over 12% late Tuesday after an attempt to take the company private failed to meet investor expectations. A ¥4.7 trillion ($33 billion) deal offered ¥16,300 yen per share, well below Tuesday’s close of ¥18,400.
Parent company Toyota Motor Corporation (TM) has been trying to take the forklifts, engines, and auto parts manufacturer Toyota Industries off the stock market under pressure from government regulators and investors to pull apart entwined company structures.
Toyota’s tender offer drew criticism as it “undermines” minority shareholders. According to Reuters, the offer values the buyout at $26 billion, with the remaining financing structured through loans and preferred share investments.
If the deal goes through a new company will be established. Toyota Motor will invest around ¥700 billion in non-voting shares, while its real estate arm, Toyota Fudosan, will contribute ¥180 billion. Chairman Akio Toyoda plans a ¥1 billion personal investment.
