Deep Dive
Shownotes Transcript
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. It's good to have you here on this marvelous Monday, June 2nd. I'm Julie Morgan. Steel stocks jump, the dollar faces pressure, and London loses another listing.
Cleveland Cliffs is up 30% in pre-market action. Shares of the steel producer surged after President Trump, during a visit to a plant owned by U.S. Steel in Pennsylvania, announced plans to double the U.S. Steel tariff to 50%, set to take effect on Wednesday, June 4th, just two days away.
Trump said the move is aimed at protecting American steel jobs and pledged no layoffs or outsourcing, with blast furnaces expected to operate at full capacity for at least a decade. The visit was also meant to rally support for U.S. Steel's proposed $14 billion deal with Japan's Nippon Steel. Trump emphasized the tariff would make it harder for foreign competitors to undercut U.S. producers.
Other steelmakers, including Nucor and Steel Dynamics, also jumped more than 10 percent on the news.
The U.S. dollar is expected to weaken significantly. Morgan Stanley strategist issued a warning that the greenback could potentially reach levels last seen during the COVID-19 pandemic by mid-2026. They wrote in a recent note that rates and currency markets have embarked on sizable trends that will be sustained, taking the U.S. dollar much lower and yield curves much steeper.
after two years of swing trading within wide ranges. The strategist forecast that the U.S. dollar index would fall around 9% from current levels by the middle of next year. The index is already down about 9% year-to-date.
Morgan Stanley added that currencies that will benefit the most from the dollar's weakness are the euro, yen, and Swiss franc. Others on Wall Street have also struck a bearish tone on the greenback, including J.P. Morgan. J.P. Morgan's strategist last week said the U.S. dollar will likely remain soft this year, adding that emerging market currencies could potentially outperform the greenback.
Indivior on Monday said that it will cancel its secondary listing on the London Stock Exchange, effective July 25, while it maintains its primary listing on the Nasdaq to reduce costs. The company said the decision to delist is intended to streamline operations and align with its strategic focus on the U.S. market.
Indivior, known for its opioid addiction treatment, joins a growing number of companies delisting from London. Shares which floated in London in late 2014 have dropped more than 60% from record highs in June 2018. The pharmaceutical company stated that over 80% of its revenue now originates from the U.S., with approximately 75% of recent trading volume occurring on the Nasdaq.
Now for a look at a few other articles that are trending on Seeking Alpha. Samsung is said to be close to a wide-ranging deal with perplexity for AI features. And China firmly rejects Trump's accusation on the Geneva trade deal breach.
On our Catalyst Watch for the Day, the four-day Snowflake Summit will begin in San Francisco. The event is Snowflake's flagship conference, serving as a central gathering for data, AI, and application professionals from across the globe. A high-profile fireside chat between the CEO of Snowflake and the CEO of OpenAI will happen at 2 o'clock and it will be closely watched.
And Rapport Therapeutics will host its first-ever Analyst Day in New York City. Rapport's senior management will review the company's clinical programs with a focus on the RAP219 Phase 2A trial in refractory focal epilepsy.
Now for a look at the markets today ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red. Crude oil is up 3.4% at $62 a barrel. Bitcoin is down 1% at $104,000. Gold is up 1.7% at $3,347. The FTSE 100 is flat and the DAX is down 0.4%.
Moderna is on our list of the biggest movers of the day pre-market. mRNA is up 7% after receiving FDA approval for its next-generation COVID-19 vaccine, marking its third FDA-approved product.
On today's economic calendar, at 10 a.m., construction spending. At 10.15 a.m., the Fed's Lori Logan participates in a moderated conversation before the 11th District Banking Conference hosted by the Federal Reserve Bank of Dallas. And at 12.45 p.m., the Fed's Austin Goolsbee participates in a moderated Q&A session before the 2025 Quad Cities Business Journal Mid-Year Economic Review.
That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.