Market Summary - July 08, 2025

Index Performance

Index	Up/Down	% Change	Last Value
DJ Industrials	-84.08	0.19%	44,321
S&P 500	-3.66	0.06%	6,226
Nasdaq	-1.55	0.01%	20,410
Russell 2000	12.22	0.55%	2,226

Market Overview

U.S. stocks are moving sideways following a decline on Monday, while global bonds have retreated. The 10-year U.S. Treasury yield has increased by three basis points to 4.41%, marking the fifth consecutive day of rising yields. Investors are awaiting key Treasury auctions, with the Treasury set to offer $58 billion in three-year notes later today.

Wall Street is still processing the recent tariff increases imposed by the U.S. on 13 global trading partners, which have been postponed to August 1 from the original July 9 date. In trade news, the EU is reportedly looking to finalize a preliminary trade deal with the U.S. this week, aiming to secure a 10% tariff rate beyond the August deadline. Additionally, Treasury Secretary Scott Bessent is expected to meet with his Chinese counterpart soon to discuss trade and other matters.

Goldman Sachs has raised its target for the S&P 500 by 11% to 6,900. As earnings season approaches, many Wall Street firms are providing previews and adjusting ratings, particularly in the banking sector. Solar stocks have declined due to regulatory changes, while semiconductor stocks have rebounded after leading the Nasdaq lower on Monday. Energy prices are among the early leaders, with healthcare also performing well, while utilities and consumer staples are lagging.

Economic Data

The National Federation of Independent Business (NFIB) reported a slight decline in its Small Business Optimism Index, which fell two-tenths of a point to 98.6. A significant increase in businesses reporting excess inventories contributed to this decline, with nearly one in eight businesses indicating that their inventories were "too high" in June, nearly double the figure from May. The survey also revealed a decrease in the percentage of respondents expecting improved sales in the next three months, dropping to a net 7% from 10% in May.

Sector Movers

Solar Stocks

Solar stocks have seen a decline following President Trump's directive to strengthen provisions in the One Big Beautiful Bill Act, which modifies tax credits for solar and wind energy projects. Key upgrades and downgrades in the sector include:

• SEDG upgraded to Sector Weight at Keybanc.
• ENPH remains underweight as clarity on company pivots is awaited.
• RUN upgraded to Sector Weight at Keybanc after modifications to ITC credits.

Defense Sector

In the defense sector, Deutsche Bank has upgraded GD to Buy from Hold, while downgrading BWXT and NOC to Hold from Buy. The outlook for U.S. defense earnings is mixed, with expectations of varying performance across companies.

Transportation Sector

Bernstein has raised price targets for rail operators CSX, NSC, and UNP due to better-than-expected carload volumes. JP Morgan has updated estimates for transportation and logistics companies, citing ongoing tariff and trade policy uncertainties.

Stock Highlights

Gainers

• APA +2%: Leading among energy stocks.
• CRGX +6%: Set to be acquired by Concentra Biosciences.
• INTC +4%: Strong performance in the semiconductor sector.
• MMSI +5%: Positive revenue guidance for Q2.
• VRT +1%: Upgraded due to AI spending momentum.

Laggards

• CIEN -1%: Downgraded due to limited EPS revision potential.
• CRCL -1%: Initiated underperform rating with bearish outlook.
• DDOG -3%: Downgraded amid concerns over customer shifts.
• ENPH -4%: Decline following regulatory changes.
• JPM -1%: Downgraded along with other major banks.