Morning Preview: July 02, 2025
Early Look
U.S. stock futures are showing slight gains following a mixed performance in the previous session. Investors are awaiting the release of private payroll data (ADP) and the final approval of the Trump tax/spending bill by the House after its narrow passage in the Senate, where Vice President Vance cast the deciding vote. Concerns over upcoming tariff deadlines are also prevalent, as President Trump indicated he is not considering extending the July 9 deadline for imposing tariffs and expressed skepticism about reaching an agreement with Japan, although he remains optimistic about a deal with India.
Market Performance
On Tuesday, the S&P 500 and Nasdaq experienced slight declines, pulling back from all-time highs reached on Monday, while the Dow Jones Industrial Average rose nearly 1%, nearing its record closing high from December 4. Smallcaps led the market with the Russell 2000 rising nearly 1%, and sectors such as Industrials and Financials reached record closing highs. Notably, big banks announced stock buybacks and dividend increases following recent stress tests, while managed care stocks, particularly Centene Corp (CNC), saw significant declines after withdrawing their earnings forecast.
Global Market Overview
In Asian markets, the Nikkei Index fell by 223 points, the Shanghai Index dipped slightly, and the Hang Seng Index rose. In Europe, the German DAX and FTSE 100 both posted gains.
Market Closing Prices Yesterday
- S&P 500 Index: -6.94 points, or 0.11%, to 6,198.01
- Dow Jones Industrial Average: +400.29 points, or 0.91%, to 44,495.06
- Nasdaq Composite: -166.85 points, or 0.82%, to 20,202.89
- Russell 2000 Index: +20.43 points, or 0.94%, to 2,195.47
Economic Calendar for Today
- 7:00 AM ET: MBA Mortgage Applications Data
- 7:30 AM ET: Challenger Job Layoffs for June
- 8:15 AM ET: ADP Private payrolls for June (est. 95K)
- 10:30 AM ET: Weekly DOE Inventory Data
Sector News Breakdown
Consumer
Altria Group (MO) was upgraded to Neutral from Sell at UBS. Constellation Brands (STZ) reported Q1 adjusted EPS below estimates, while Ross Stores (ROST) was upgraded to Buy at Jefferies.
Energy, Industrials, and Materials
AeroVironment (AVAV) announced a secondary offering, and BrightView Holdings (BV) cut its FY25 revenue outlook due to macroeconomic factors.
Financials
Several banks, including American Express (AXP) and JPMorgan Chase (JPM), announced dividend increases following stress tests.
Healthcare
Centene Corp (CNC) shares fell sharply after withdrawing its 2025 guidance due to expected revenue reductions.
Technology, Media & Telecom
Apple (AAPL) was upgraded at Jefferies, while Netflix (NFLX) is exploring partnerships with Spotify (SPOT) for various projects.
World News
The Eurozone's unemployment rate rose to 6.3%, contrary to expectations of stability. Additionally, the American Petroleum Institute reported a crude oil inventory build.