Good morning!

Starting with this issue of Watchweek, I'm going to include a close-up look at some key bond rates shaping the market—a snapshot of trending yields—from steady performers to emerging shifts. If you're interested or have any questions about bonds, feel free to contact a Miramontes Capital advisor.

Can you believe that in just a couple weeks 2025 will be half over? It's been quite a ride in the markets so far, with Wall Street coming off its best monthly advance since November 2023. Here's what's happening this week ...

• While the biggest names have already issued Q1 earnings, there are still more than 300 companies reporting this week. This morning, numbers are due from CrowdStrike, Ferguson Enterprises, Hewlett Packard Enterprise, Dollar General, and NIO, followed Wednesday by Haleon, Dollar Tree, and Five Below. On Thursday, expect earnings from Broadcom, lululemon, and DocuSign, followed Friday by the always-interesting GameStop. *

• Since we're almost halfway through the year, let's take a look at market performance so far. The S&P 500 is up 0.51%—a solid bounce after being down 18% at one point. We’re now sitting 22% above the April 7 low, proving there’s been plenty of chances to win (and lose) money, whether you’re bullish or bearish. May was strong, with the S&P gaining 6% and closing 4% below the February high. Who’s leading the charge? The usual suspects—Big Tech—except for Apple, which is still struggling to trend higher. Even Tesla, which got slashed in half earlier this year, is finding some upward momentum. As Q1 earnings season wraps up, the numbers look solid: 78% of S&P 500 companies beat earnings expectations, while 64% topped revenue forecasts. Health care was the standout, boasting 43% earnings growth. It’s been a wild ride, but the market’s got momentum. Let’s see where June takes us. **

• The U.S. ramped up trade pressure on Monday, doubling tariffs on steel and aluminum while pushing for new deals ahead of key deadlines. China fired back, accusing the U.S. of breaking their agreement and calling out new restrictions on AI chip exports and student visas. The fragile trade truce between the two nations is looking shakier by the day. Meanwhile, the E.U. isn’t happy either. With Trump’s 50% tariffs on European imports set to kick in by July, Brussels is warning that trade talks could be in jeopardy. The U.S. is scrambling for last-minute trade deals, but so far, the only confirmed agreement is with the U.K. Stay tuned—this could get messy. ***

The financial advisors at Miramontes Capital diligently keep up with anything that can impact our clients' finances and tap into more than 175 years of combined investment experience. We do our all to keep your money protected and growing. If you think you might benefit from our financial experience and oversight, contact us today for a FREE, no-obligation consultation. Just call (800) 460-1595. Until next week...

Investment Advisory Services offered through Miramontes Capital, LLC. Securities offered through Balanced Security Planning, Inc. Member FINRA/SIPC. Miramontes Capital, LLC and Balanced Security Planning, Inc. are separate companies affiliated through common control. This newsletter is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Miramontes Capital, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital, LLC unless a client service agreement is in place.