Archives June 2025

Pinterest (PINS) shares rose in premarket trading Tuesday after JPMorgan analysts upgraded their rating and lifted their price target on the social media stock.

The analysts lifted the stock to “Overweight” from “Neutral,” and bumped their price target to $40 from $35. That brings JPMorgan in line with most other analysts covering the stock who are tracked by Visible Alpha, as 16 call it a “Buy” and just four a “Hold,” with an average price target of $39.75.

They noted that while Pinterest shares are up since the start of the year, they are still about 18% below their February highs while the S&P 500 has recovered to just about 3% below its February record level that month.

Analysts See Pinterest Improving User Growth, Ad Platform

Pinterest is “leveraging its full funnel ad approach and automation/AI capabilities—including Performance+—to capture a greater share of ad spending” from advertisers with $1 billion to $30 billion in annual revenue, the analysts wrote. Some larger advertisers are already spending 5% to 10% of their advertising budget on the platform, they added.

The social media platform is growing its monthly active users (MAU) base, with 85% coming directly to Pinterest through its mobile app, the analysts said. They cited that number as a key reason for their upgrade, as Pinterest generates roughly 90% of its revenue through its app, “which limits PINS’ exposure to Google & broader overall search disruption,” they wrote.

Pinterest shares, which entered the day up 10% this year, rose 4% less than an hour before the opening bell.

Signet Jewelers (SIG) shares are jumping in premarket trading Tuesday after the jewelry retailer posted better-than-anticipated quarterly results and issued a rosy full-year outlook.

The owner of Zales, Jared, and Kay Jewelers reported first-quarter 2026 adjusted earnings per share (EPS) of $1.18 on revenue of $1.54 billion. Analysts polled by Visible Alpha expected $1.03 and $1.52 billion, respectively.

Signet forecast full-year sales in the range of $6.57 billion to $6.80 billion, versus $6.53 billion to $6.80 billion previously. The midpoint of $6.69 billion exceeds estimates of $6.68 billion, as per Visible Alpha. The company also projected adjusted EPS in the range of $7.70 to $9.38 versus $7.31 to $9.10 previously, with the midpoint of $8.54 exceeding the $8.23 forecast.

“Given our positive performance, we are increasing the low end and maintaining the high end of our Fiscal 2026 operating guidance,” Chief Operating and Financial Officer Joan Hilson said. “This outlook reflects the current macro environment and current tariffs as well as on track cost savings initiatives.”

Hilson added that the company was lifting its adjusted EPS outlook “to reflect the repurchase of more than 5% of outstanding shares year to date.” The company forecast second-quarter sales in the range of $1.47 billion to $1.51 billion, with the midpoint of $1.49 billion exceeding analysts’ estimates of $1.48 billion.

Signet shares are soaring 13% in premarket trading but are down 17% for the year entering Tuesday.

Written by the Market Insights Team

Key shifts in the dollar’s path

Kevin Ford – FX & Macro Strategist

Where’s the US dollar headed next? To put it simply, for decades, its movement has largely hinged on two forces, global growth cycles and Federal Reserve (Fed) tightening. Before the financial crisis, strong global expansion fueled risk-taking, drawing capital away from the U.S. The BRICS era amplified this trend as investors sought international assets. Meanwhile, Fed rate hikes have consistently shaped dollar dynamics. But today, shifting portfolio flows and unexpected asset allocation patterns suggest it’s time to rethink this traditional framework.

Lately, worries about US asset safety, especially long-term bonds, have gained traction. Over the past decade or so, the “U.S. exceptionalism” era saw heavy global investment in American equities, fixed income, and ETFs. Now, international players are pulling back. While this isn’t a full retreat from the dollar, it hints at a strategic shift in portfolio management as exposure to US assets is intentionally trimmed, a cautious recalibration by major institutions.

Several forces are reshaping investor sentiment. Tariffs have unsettled confidence, while speculation swirls about China offloading treasuries. In reality, China has simply reduced its purchases over the years, diversifying its holdings. The bigger moves, however, are coming from traditional allies, Canada and Europe, whose treasury investments eclipse China’s. Their retreat from US assets isn’t abrupt but rather a measured shift driven by multiple factors, including hedging strategies. This transition isn’t easily seen in the data, as institutional investors are hedging US exposure rather than dumping portfolios outright. Instead of bulk selling, they sell USD forward while buying CAD or EUR forward. Then, they gradually fine-tune their positions to trim underlying dollar-denominated asset exposure. Is this trend coming to an end? Tough to say, but the relentless slide in the US dollar over the past four months largely traces back to heavy futures market selling by key US trading partners. Their positioning suggests a deeper recalibration rather than just short-term fluctuations, hinting at broader shifts in global portfolio strategies.

What could influence the dollar’s trajectory in the coming weeks?

• Section 899 tax provision. Investor focus is locked on the House tax bill, which appears to raise rates on US assets linked to nations imposing ‘unfair foreign taxes.’ This could translate into higher withholding taxes on US-sourced interest, dividends, and FDAP income, potentially climbing to 20%, adding another layer of pressure to the already bearish sentiment surrounding the dollar.
• The evolving fiscal backdrop remains a key factor, amplifying doubts about the dollar’s stability. While historically stimulus efforts fueled risk asset rallies and supported the USD, sentiment is shifting. Investors are growing increasingly wary of persistent deficits, which now inject an added dose of unpredictability into market dynamics.
• Front-loading effect. Recent import payments have fueled capital outflows, straining the U.S. current account and weighing on the dollar. This intensified selling pressure has contributed to its recent weakness. However, as payment cycles normalize, this trend is expected to reverse in Q2, potentially easing downward pressure on the currency.

Euro bulls charge amid U.S. woes

Antonio Ruggiero – FX & Macro Strategist

With renewed trade tensions weighing on U.S. sentiment, the euro surged to its highest level since late April, when EUR/USD briefly broke above $1.15. Yesterday, the pair reached an intraday high of $1.1450, driven by disappointing U.S. PMI data—where the manufacturing index contracted further, slipping from 48.7 to 48.5 in May.

The resurgence in bullish momentum saw hedge funds reinstating aggressive bets on euro strength, reversing last week’s trimming of topside bullish bets as optimism had faded. However, on a one-month horizon, sentiment remains subdued, with today’s risk reversal levels still below the one-month average. Trump’s latest tariff threat—doubling levies on steel and aluminum to 50%—has drawn swift criticism from the European Commission, which warned that it undermines efforts to resolve the dispute. With a July 9 deadline looming, the EU has signaled it is prepared to retaliate if an agreement is not reached.

EU trade chief Maros Sefcovic will meet U.S. Trade Representative Jamieson Greer in Paris on Wednesday, while a separate Commission delegation heads to Washington for continued discussions.

Looking ahead, market participants are closely watching JOLTS data tomorrow and Friday’s NFP release, as these could further reinforce the string of weak U.S. economic prints from the past week. Given that U.S. news flow remains the key driver of euro strength, EUR/USD could end the week above $1.14, as bearish euro-specific drivers—such as the ECB rate cut and soft Eurozone CPI—appear to be largely priced in.

Banxico remains dovish

Kevin Ford – FX & Macro Strategist

Banco de México (Banxico) last week released the minutes of its May 15 monetary policy meeting, where the board unanimously decided to cut the reference rate by 50 basis points for the third consecutive time, bringing it to 8.50%. The board’s stance remains dovish, anticipating that economic slack will ease inflationary pressures.

The minutes reinforce signals that further cuts could follow despite rising inflation, with policymakers citing expectations of weaker economic growth. The board’s forward guidance suggests continued monetary policy adjustments at a similar pace. Officials appear confident that disinflation will resume amid slowing economic activity, while Q2 growth is expected to soften as temporary Q1 drivers fade.

Reflecting Mexico’s broader economic challenges, its manufacturing PMI painted a similarly bleak picture yesterday. The index edged up from 44.8 in April to 46.7 in May, according to S&P Global, but remained in contraction for the 11th consecutive month.

Manufacturers continued to struggle with pressure on both supply and demand, with new orders declining for the 11th straight month, partly due to U.S. tariffs. Export activity saw its sharpest drop since early 2021, while purchasing slowed at the fastest rate since late 2020, underscoring lingering concerns over weak demand.

Eying fresh 2025 highs

George Vessey – Lead FX & Macro Strategist

Sterling’s price action at the start of the week has been reminiscent of April in that it is being driven mostly by external pressures and FX flows and hence EUR/USD’s surge higher has dragged GBP/EUR towards €1.18 but pushed GBP/USD back above $1.35. The dollar continues to struggle when trade tensions escalate, and early signs point to renewed pressure as geopolitical uncertainties resurface at the start of the week.

The pound has logged four consecutive monthly gains against the dollar, fueling prospects for further upside – especially if investors persist in scaling back dollar exposure amid US policy uncertainty. A move toward $1.40 in the second half of this year remains on the radar, provided macroeconomic conditions align favorably. Key drivers will likely include shifts in rate expectations, geopolitical developments, and broader risk sentiment.

On Monday, UK manufacturing PMI for May was revised up to 46.4 from an initial estimate of 45.1, slightly improving on April’s 45.4 reading. Despite this adjustment, however, the sector continued to struggle with challenging operating conditions. Weak global demand, volatile trading environments, and rising costs weighed on production, new orders, export business, and employment. Final services and composite PMI numbers are due tomorrow.

In terms of positioning – CFTC data indicate hedge funds remain long on the pound, edging closer to year-to-date highs. Meanwhile, real-money investors, though still net short, have eased their bearish stance to the most balanced level since November. Overall, there appears to be room for building pound long positions, with no signs of immediate exit pressure across the board.

US Dollar DXY hovers around 99

Table: 7-day currency trends and trading ranges

Key global risk events

Calendar: June 2-6

All times are in ET

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Shares of Dollar General (DG) jumped in premarket trading Tuesday after the discount retailer posted better-than-expected first-quarter results and lifted its full-year outlook.

Dollar General reported earnings per share (EPS) of $1.78 on net sales that increased 5% year-over-year to $10.44 billion. Analysts surveyed by Visible Alpha had projected $1.47 and $10.26 billion, respectively. Same store sales rose by 2.4%, roughly double the 1.22% bump analysts had forecast.

Dollar General CEO Todd Vasos said the company is “uniquely well-positioned to serve our customer in a variety of economic environments,” noting that it gained market share growth across merchandise categories and both its core customer base as well as “trade-in customers.”

The retailer lifted its outlook from what it laid out last quarter. The company raised the floor of its full-year EPS forecast by 10 cents to a range of $5.20 to $5.80; increased its net sales growth projection to 3.7% to 4.7% from 3.4% to 4.4%; and sees same-store sales growth of 1.5% to 2.5% compared with the prior 1.2% to 2.2%.

Dollar General ‘Has Plans in Place’ to Mitigate Higher Tariffs

The company said that “uncertainty exists for the remainder of the year regarding the potential impact of tariffs on the business, and particularly on consumer behavior,” and added that it “has plans in place” if tariffs on China and other countries return to their April 2 levels. Dollar General expects it will be able to mitigate most of the cost increases brought on by tariffs, but said “consumer spending could be pressured by tariff-related price increases.”

Dollar General shares were up 8% immediately following the report’s release. They entered the day up about 28% since the start of the year.

Discount store rival Dollar Tree (DLTR) is scheduled to report its own first-quarter earnings Wednesday morning. UBS analysts said in a recent note that they believe there are “more tailwinds than risks and uncertainties” for dollar stores in the current environment, citing consumers looking to trade down as a key benefit.

The Organisation for Economic Co-operation and Development (OECD) on Tuesday sharply lowered its growth forecasts for the U.S., citing an increasingly challenging world outlook due to the fallout from tariffs and policy uncertainty.

The Paris-based organization also trimmed its global growth projections.

The OECD said it expects the U.S.’s annual real gross domestic product (GDP) growth rate to fall to 1.6% in 2025 and 1.5% in 2026 from 2.8% in 2024. In March, the OECD had forecast U.S. growth at 2.2% this year and 1.6% next year.

The OECD also cut its forecasts for global GDP growth to 2.9% this year and next from 3.3% in 2024, assuming tariff rates as of mid-May are left unchanged. In March, it had forecast global GDP growth of 3.1% for 2025 and 3.0% for 2026. “The slowdown is concentrated in the United States, Canada, Mexico and China, with other economies expected to see smaller downward adjustments,” it said.

“Substantial increases in trade barriers, tighter financial conditions, weakened business and consumer confidence, and elevated policy uncertainty all pose significant risks to growth,” the OECD added. “If these trends continue, they could substantially dampen economic prospects.”

Annuities offer another income stream to help fund your golden years and may reduce the risk of running out of retirement savings. However, it’s important to recognize that purchasing an annuity may be more expensive than other forms of retirement income.

Here’s a look at the different types of annuities, who should and should not consider buying one, and common annuity pitfalls so you can decide if buying an annuity is right for you.

Understanding Annuities

An annuity is a lifetime income plan. In exchange for paying premiums, individuals are guaranteed a fixed or variable income stream either immediately or in the future.

Generally, there are two different ways to purchase annuities. One option is an immediate payment annuity, which is purchased with a lump-sum payment. As the name explains, purchasing this type of annuity means that the payments to you start immediately. Another option is a deferred payment annuity, which is funded through deposits over time and begins paying out at a specified future date.

Both immediate payment and deferred payment annuities come in three different varieties: fixed, variable, and equity-indexed. Each kind comes with its own risks, fees, and level of certainty.

Types of Annuities

Fixed annuities come with a guaranteed rate of return that is fixed at the time of purchase. Upon purchase, you’ll be informed of the guaranteed income stream. This may be for a fixed period, such as 20 years, or an indefinite period, such as your lifetime. However, the risk involved is that the income you receive may become insufficient over time due to the effects of inflation.

Variable annuities provide investment accounts called “sub-accounts,” which function similarly to mutual funds and allow you to take advantage of market growth. This type of annuity is popular since there’s a lower risk of your income stream being eroded by inflation compared with fixed-rate annuities. 

Your income stream may fluctuate depending on the market performance of the investments of your sub-accounts. It’s worth mentioning that variable annuities typically carry commission fees, sometimes more than 5%.

Equity-indexed annuities are a form of fixed annuities with a portion tied to the stock market, which may help offset the risk of inflation. Insurance companies may credit you based on changes in a particular index, such as the S&P 500 Composite Stock Price Index. 

The insurer may use something called a “participation rate” to determine how much of your stock market gains they will keep to ultimately offset their risk. This is because they’re required to keep paying you even if the market tanks. The one key benefit of an equity-indexed annuity compared with a variable annuity is that there’s less downside risk to you.

Qualified vs. Non-Qualified Annuities

Further, annuities can be funded either with pre-tax or after-tax money. You can purchase a qualified annuity with pre-tax money. In this case, you will pay taxes on both the principal and earnings upon withdrawal.

Alternatively, you can purchase a non-qualified annuity with after-tax money. Here, you will pay taxes only upon earnings when you withdraw from the annuity. 

Who Should Consider Buying an Annuity?

Retirees Seeking Income Security

One of the primary reasons retirement planners may consider an annuity is for guaranteed monthly income. Especially with a fixed annuity, you’ll know exactly what your monthly income will be, so you can carefully plan your budget. This is a great option for anyone who feels they may not be able to manage their retirement portfolio effectively.

Risk-Averse Investors

If you’re looking to protect your principal from inevitable market volatility over time and mitigate financial risk, purchasing an annuity is a smart idea. While some annuities may not keep up with inflation or may be subject to market swings, they don’t come with financial risk since you’re guaranteed an income stream for a determined period. 

Individuals With Longevity Concerns

If you’re relatively healthy and have a family history of good longevity, purchasing an annuity might be a wise decision. Locking in an annuity early in retirement can provide a guaranteed income stream for life, even if you end up outliving your retirement savings.

Who Should Avoid Buying an Annuity?

Investors Seeking High Growth

If you’re looking for high-growth investments, an annuity may not be your best option since it may limit your long-term financial growth. For example, a fixed annuity may lose real value due to inflation’s effects on the buying power of your money, and a variable annuity may carry high commissions, which could eat into your potential gains.

Additionally, some annuities offer a higher guaranteed interest rate that only lasts for the first year, otherwise known as a “teaser rate.” After that, the interest rate may drop significantly. 

Those With Shorter Investment Horizons

If you’re looking to invest your money to achieve a specific financial goal, such as retiring in a few years or making a big purchase like a new car, an annuity is probably not the right option. Annuities are designed to provide consistent income during retirement, not significant financial gains in the near term.

Individuals Unwilling To Pay High Fees and Taxes

You need to be aware that annuities typically carry fees. A “mortality and expense” fee, for example, is typically 1.25% per year. Additionally, some annuities have rider fees depending on which options you choose. 

On top of that, if your heirs inherit your annuity, their tax liability will be based on the terms of the contract. How much of the distributions are taxable depends on how the annuity was funded. 

If you purchase a qualified annuity, you’re using pre-tax dollars. When your beneficiaries receive distributions, the entirety of each payment will be taxed at ordinary income rates. Non-qualified annuities, on the other hand, are after-tax, and so your heirs will only be on the hook for taxes on earnings.

Making the Decision: Is an Annuity Right for You?

Evaluate your needs when deciding whether an annuity is right for you. For example, if you don’t feel well-equipped to manage your retirement portfolio and you expect to live a long and healthy life, an annuity might be right for you. You’ll lock in a guaranteed monthly payment for a fixed period, or for the rest of your life, depending on the specific terms of your annuity.

However, if you feel confident in managing your retirement portfolio, you have an adept financial advisor, and you prefer to take on more risk, there may be better options to grow your wealth in perpetuity.

The Bottom Line

Annuities are a great option if you don’t feel well-equipped to manage your retirement portfolio and you want to ensure you’ll never run out of money in your golden years. Whether it’s a fixed annuity, variable annuity, or an equity-indexed annuity, do your homework to understand the fees you’ll owe and potential tax liability you and your heirs may incur. 

It’s important to recognize your long-term financial goals when considering whether or not to purchase an annuity. Consider seeking help from a financial advisor who can explain your annuity options and help guide your financial decisions.

Home-cooked meals are in, according to Campbell’s, and snacks are out.

Executives at Campbell’s Co. (CPB), which sells its namesake soups, Prego and Rao’s sauces, and a variety of snacks, told analysts Monday that it hasn’t seen this much at-home meal prep since the pandemic hit. 

Softer consumer sentiment has “consumers making more deliberate choices with their spending on food” this year, CEO Mick Beekhuizen said on Campbell’s third-quarter earnings conference call.

“The key outcome is a growing preference for home-cooked meals, leading to the highest levels of meals prepared at home since early 2020,” he said on the call, according to a transcript made available by AlphaSense.

Americans’ interest in saving is helping the company’s meal and beverage business but hurting snack sales, executives said. The snack segment’s sluggishness prompted CFO Carrie Anderson to say adjusted earnings for the year are expected to come in at the “low end” of guidance, which stands at $2.95 to $3.05 per share. This outlook, which excludes the impact of tariffs, assumes organic sales will be down 2% to flat.

Other Food Makers Note Declines in Snack Buying

Campbell’s organic sales—results adjusted for the recent sale of Pop Secret and Noosa Yoghurt, and the purchase of Sovos Brands—grew 1% year-over-year for the third quarter, the company said, reflecting a 6% increase in meal and beverage sales and a 5% decline in snacks. Goldfish and Snyder’s of Hanover pretzels, in particular, struggled, executives said, while Pepperidge Farm cookies fared better.

Other companies, including Hain Celestial Group (HAIN), General Mills (GIS) and Mondelēz International (MDLZ), have said recently that consumers are cutting back on snacks.

“We see consumers switching to more essentials in grocery, and snacking categories are suffering,” Mondelēz CEO Dirk Van de Put said on an earnings conference call in late April. “You can see the consumer, not only in food, but across the board really being very, very frugal and very careful,” he said.

Still, some companies say sales of protein and health-focused snacks have taken off. 

“Between meat snacks and popcorn, you’ve got two very on-trend businesses, not to mention our seeds business, which is sometimes overlooked but is a phenomenal, very profitable business,” Conagra (CAG) CEO Sean Connolly said in early April when the company reported third-quarter earnings.

Shares of Applied Digital (APLD) rose nearly 50% Monday after announcing a deal to lease data center space to AI darling CoreWeave (CRWV).

Applied Digital inked a pair of 15-year deals to host CoreWeave AI infrastructure at its Ellendale, N.D., campus. The deal is expected to generate $7 billion in total revenue over the decade-and-a-half span; the company reported about $53 million in revenue in its most recently completed quarter.

Both Applied Digital and CoreWeave are backed by Nvidia (NVDA), the second-most valuable company in the world and the chipmaking giant most associated with the rise of artificial intelligence. Nvidia held roughly 7.7 million shares of Applied Digital and 24.2 million shares of CoreWeave as of March 31, according to a regulatory filing.

CoreWeave provides its clients with access to data centers, which are used to develop artificial intelligence models. The company’s data centers are equipped with Nvidia chips.

Shares of CoreWeave rose about 8% on Monday.