Hello readers,
As we head into the Independence Day holiday, the stock market is showing interesting movements. Government bond yields are near their highest levels in weeks, and S&P 500 futures are holding steady.
Today, U.S. markets will have a shortened pre-July 4 trading session. The big setpiece left for investors this week is Friday’s nonfarm payrolls. On Tuesday, Tesla drove the Nasdaq and S&P 500 to fresh record highs.
Stocks to Watch:
- Paramount Global: Skydance Media reached a preliminary agreement to buy National Amusements and merge with Paramount, rekindling deal talks that fizzled last month. Paramount stock jumped about 7% in premarket trading.
- SoftBank: Shares in the tech conglomerate closed in Japan at a record high. SoftBank said last month its net asset value had surged due to its U.K. chip-design unit, Arm.
- Tesla: The stock continued to rally premarket, after jumping 10% in the previous session. The car maker said Tuesday that its sales slid for a second straight quarter, but the decline wasn't as big as expected.
Constellation Brands is due to report earnings ahead of the market open. Stay tuned for the latest updates throughout the day.
Market Outlook:
The increasing likelihood of a second Trump administration has helped spark a steep selloff in U.S. government bonds, with investors betting policies including tax cuts could drive up deficits and inflation. Treasury yields, which rise when bond prices fall, started surging June 28, a day after a debate between President Biden and former President Donald Trump that Wall Street viewed as delivering a major blow to Biden’s re-election chances. A poor showing from Biden could also help tip control of Congress to Republicans, creating more space for their budget priorities.
Charting the Markets:
- After the Fourth of July holiday, investors will scrutinize the monthly jobs report. Economists forecast that the unemployment rate held at 4%, extending the streak of months at or below 4% to more than 30 months, the longest stretch since 1965-1970.
- In the first four months of this year, just two companies from China—Contemporary Amperex Technology, or CATL, and BYD—already have more than half of the global EV battery market between them.
- Tesla’s vehicle sales slid year-over-year for a second straight quarter but not as much as expected, lifting the company’s stock price and keeping Tesla ahead of rival BYD as the world’s largest seller of electric vehicles.
Stay informed and make the most of these market movements as we head into the holiday. Wishing you a successful trading day!
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