Major indices trade near their best level of the session driven by rebound action in semiconductor and industrial names.

Eight sectors are in the green this afternoon led by Industrials (XLI). Gains in military contractors and transport stocks are giving an oomph to the sector with General Dynamics (GD) rising to its best level since March after receiving an upgrade this morning. Technology (XLK) is also one of the best performing sectors with gains in chip-related stocks offsetting the losses in software stocks.

Stocks reversed some losses after Trump said the US would be striking Iran again tonight, seizing control of Kharg Island.

The news didn’t cause much hype in oil, which remains at the $90 level.

The SpaceX IPO is drawing eye-popping orders ahead of tomorrow’s planned IPO, now more than $70 billion worth of retail orders, including $5 billion coming from BlackRock. The previous record IPO was Saudi Aramco in 2019 at $29.4 billion, making tomorrow’s IPO historic. 

With all the excitement, space and satellite stocks are posting strong gains today.

Economic Data

May PPI rose the most since 2022 on a broad-based advance led by energy, softened by trade margins. Core prices also went up the most since 2022.

Initial claims rose 4% to 224k in the week through June 6^th, the highest since early February.

Continuing claims similarly rose +24k to 1.795MM, the highest in a month but remains toward the bottom.