US EQUITY OPEN: Tech outperforms as memory and semiconductors rally together

OPEN: Stocks open mixed, with memory and semiconductors both trading firmer, allowing NDX outperformance. Meanwhile, sector performance shows divergence. Tech and Industrials outperform, while Real Estate, Utilities, and Consumer Staples see losses. US data releases saw JOLTs fall to 7.594mln in May, above the expected 7.30mln (prev. 7.585mln), while Consumer Confidence printed 91.2, shy of the expected 94.4; little reaction was seen on the data.

Geopolitical developments have seen delegations from the US and Iran now expected to participate separately in technical talks with mediators from Qatar and Pakistan. As of now, the two sides are not expected to hold direct talks; Al Hadath reports via sources that "Iran will receive USD 3bln of its frozen funds by the end of the week". Oil prices are modestly higher by ~USD 0.60/bbl amid the lack of progress in recent days. Stock-specific highlights include AeroVironment (AVAV +22.8%) beating on earnings, Concentrix (CNXC -19.3%) missing earnings expectations, and Circle Internet Group (CRCL) falling 8% on reports that dozens of financial firms including; Visa, stripe, Mastercard, Blackrock, and Coinbase to launch new stablecoin called OUSD.    

In FX, the dollar is generally seeing a bid as risk-taking sees a pause; USD/JPY has set new yearly highs, trading above 162 with markets jittery over intervention. Meanwhile, US yields are higher across the curve, tracking modest gains in crude prices.  Despite the move higher in USD and yields, precious metals are seeing slight gains, similar to the higher-beta FX AUD and NZD.

STOCK SPECIFICS:

• Concentrix (CNXC): EPS & rev. marginally missed w/ dismal next quarter & FY outlook
• Digital Realty Trust (DLR): Agreed to buy Blackstone's (BX) blended 64% equity interest in three fully leased Northern Virginia data centres for $3.5bln
• AeroVironment (AVAV): Top & bottom line surpassed Wall St. consensus
• AbbVie (ABBV) & Genmab (GMAB) reported positive Phase 3 EPCORE DLBCL-4 results.
• AbbVie (ABBV), Merck (MRK): US House committee opens investigation into Cos. China drug trials.
• Abivax (ABVX): Reported positive topline Phase 3 ABTECT Maintenance Part 2 results
• Joby Aviation (JOBY): Partners with Toyota Motor, focusing on commercial production of Joby's eVTOL aircraft.
• Sable Offshore (SOC): Announced USD 100mln common stock offering and USD 300mln convertible senior note offering.
• LCI Industries (LCII): Patrick Industries (PATK) & Co. to combine in an all-stock merger.