Mid-Morning Look: July 01, 2025

Market Overview

U.S. stocks exhibited mixed performance early on July 1, 2025, following a record-setting run on Wall Street. The S&P 500 and Nasdaq reached new highs on the previous day, but investors were cautious as they monitored ongoing U.S. trade negotiations and a Senate voting marathon regarding President Donald Trump’s tax and spending bill. The Senate was deliberating on amendments to a bill projected to increase the national debt by $3.3 trillion, contributing to investor uncertainty and pushing the U.S. dollar to four-year lows against the euro, which in turn boosted gold prices.

Key Indices Performance

• DJ Industrials: +207.91 (0.47%) - 44,303
• S&P 500: -7.49 (0.12%) - 6,197
• Nasdaq: -55.19 (0.27%) - 20,315
• Russell 2000: -3.70 (0.17%) - 2,171

Economic Data Highlights

• May JOLTS report job openings: 7.769M (consensus: 7.300M)
• S&P Manufacturing PMI Final: 52.9 (best of the year, above forecast of 52.0)
• Construction spending for May: -0.3% (consensus: -0.2%)
• ISM U.S. manufacturing activity index: 49.0 (above consensus of 48.8)

Sector Movers

Casinos & Gaming

Shares of WYNN, MLCO, and LVS rose following positive Macau gaming revenue data, with June's Gross Gaming Revenue showing a 19% year-on-year increase.

Oil & Gas

CTRA was downgraded to Neutral by Goldman Sachs, while OVV was upgraded to Buy, reflecting changes in market expectations regarding free cash flow generation.

Healthcare

Home health and hospice providers faced pressure after proposed Medicare payment cuts, potentially reducing sector revenue by $1.1 billion.

Stock Highlights

Gainers

• ATAI: +25% after positive Phase 2B study results for BPL-003.
• HAS: +3% following an upgrade to Buy by Goldman Sachs.
• HOOD: +5% reaching new all-time highs.
• LVS: +7% alongside gains in other casino stocks.

Laggards

• AMC: -6% due to debt conversion plans.
• AVAV: -5% after announcing a public offering.
• DXCM: -3% amid sector weakness in diabetes device makers.
• EHAB: -19% following proposed Medicare payment cuts.

Market Commentary

Fed Chairman Powell indicated a cautious approach regarding interest rate cuts, emphasizing the need to assess the impact of tariffs on inflation. Despite this, a majority of Fed officials still anticipate a rate cut later in the year. The market remains sensitive to economic data and policy changes as investors navigate through a complex landscape of trade negotiations and fiscal policy adjustments.