Good morning investors! The market took a break yesterday with some big names losing gains.
Today we cover:
Job opening rise
What Fed thinks of rate cuts
Ford impresses
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📊 Economy and News
U.S. Job Openings Rise Unexpectedly in May Amid Hiring Decline and Tariff Uncertainty
U.S. job openings unexpectedly rose to 7.769 million in May, up 374,000 from the previous month. However, hiring fell by 112,000 to 5.503 million, signaling a cooling labor market amid uncertainty over the expiring 90-day pause on higher reciprocal tariffs, set to end July 9.
Layoffs also decreased by 188,000 to 1.601 million.
Economists note that businesses are hesitant to make long-term plans due to potential tariff hikes, with U.S. Treasury Secretary Scott Bessent indicating trade partners could face sharper duties soon.
Recent data shows unemployment claims at a 3-1/2-year high in mid-June, and consumer confidence in job availability dropped to a four-year low, with the jobless rate expected to rise to 4.3% in June from 4.2% in May.
Global hits:
India approves $11.7 billion employment scheme to create 35 million jobs.
Trump says not extending July 9th trade deadline, doubts deal with Japan.
Russia’s central bank expected to cut key rate in July to 19%.
Something about Europe: Euro zone inflation edges higher, hitting ECB’s 2% target in June. On the other hand, Belgium to tax capital gains in major fiscal reform. Also, UK to impose new import duties on Russian, Belarusian fertilizers. Lastly, German home prices rise for second consecutive quarter after deep slump.
Changed bill: Trump’s ‘big beautiful’ bill eliminates taxes on tips and axes $7,500 EV tax credit after September that is going to make EVs more expensive. Plus, tax on solar and wind projects is also removed from Trump’s big bill.
But, let’s not forget that House can still reject revised version of Trump’s megabill despite it squeaking through Senate.
Fed and rate cuts: Federal Reserve Chair Jerome Powell indicated that the Fed would have cut interest rates by now if not for the tariff plans, which have raised inflation forecasts. Speaking at a European Central Bank forum in Sintra, Portugal, Powell said the Fed is in a "wait-and-see" mode, keeping rates at 4.25%-4.5% since December.
Despite pressure from the White House, Powell emphasized a data-dependent approach, with markets pricing a 76% chance of no cut in July. Goldman Sachs revised its 2025 forecast to three 25-basis-point cuts, citing weaker tariff effects and labor market signals. Trump’s tariffs, announced in April and later paused, continue to create uncertainty for global markets and monetary policy.
Just in: Construction spending dropped 0.3% after an upwardly revised 0.2% decline in April, slightly higher than the expected 0.2%.
Elon Musk’s xAI raises $10 billion in debt and equity as it steps up challenge to OpenAI.
Figma files for IPO on NYSE, plans to ‘take big swings’ with acquisitions.
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📈 Stocks
S&P 500 6,198.01 (-0.11%)
DJIA 44,494.94 (+0.91%)
NASDAQ 20,202.89 (-0.82%)
BRENT CRUDE 67.21 (+0.79%)
* Prices as of Jul 2nd, 12:20 AM UTC
Car Sales: Ford Q2 Sales Surge 14%, and Others Report
Ford's U.S. sales jumped 14.2% in Q2, far exceeding the industry's 1.4% growth forecast. Total sales reached 612,095 vehicles, driven by an 11.5% increase in F-Series trucks (222,459 units) and a 6.6% rise in electrified vehicles (82,886 units).
Hybrids grew 23.5%, while EVs dropped 31.4%. For the first half of 2025, Ford sold a record 156,509 EVs and hybrids, up 14.7%.
GM reported a 7.3% Q2 increase, while Kia and Hyundai posted record first-half gains of 8% and 10%, respectively.
On the other hand, Chinese brand Xpeng reported an eighth-straight month of more than 30,000 monthly vehicle deliveries amid a fierce price war in China.
Xpeng’s U.S.-listed rivals, which target a more premium segment of China’s car market, saw more modest sales momentum.
BYD remained the market giant, with its passenger car sales edging higher in June to 377,628 vehicles.
Tesla fell about 7% ahead of the report. Wall Street analysts are expecting Tesla to report deliveries of around 387,000 — a 13% decline compared to deliveries of nearly 444,000 a year ago.
Surprising: Public companies bought more bitcoin than ETFs did for the third quarter in a row. Elsewhere, Chinese battery giant and Tesla supplier CATL is expanding globally.
Amazon lost U.S. Nintendo Switch 2 deal due to a dispute over unauthorized third-party game sales undercutting Nintendo’s prices.
Goldman Sachs stock rose after passing the Fed’s stress test with the largest capital buffer reduction among major banks. Plus, the bank has pushed dividends.
AMC secured a $223M deal to refinance debt and convert notes to equity, causing a stock price drop but improving its balance sheet.
Must check: Tesla shares tumble after Trump says DOGE should look at Elon Musk’s subsidies. China’s Huawei open-sources AI models as it seeks adoption across the global AI market.
💵 Personal Finance
Minimum Wage Increases Effective July 1, 2025
Several states and localities across the U.S. implemented minimum wage increases on July 1, 2025, reflecting adjustments to keep pace with rising costs of living. Below is a reordered summary of these changes, organized alphabetically by state and locality, detailing the new wage rates and their previous values.
Alaska
Statewide: Increased to $13 (from $11.91)
California
Alameda (city): Increased to $17.46 (from $17)
Berkeley: Increased to $19.18 (from $18.67)
Emeryville: Increased to $19.90 (from $19.36)
Fremont: Increased to $17.75 (from $17.30)
Los Angeles (city): Increased to $17.87 (from $17.28)
Los Angeles (county): Increased to $17.81 (from $17.27)
Milpitas: Increased to $18.20 (from $17.70)
Pasadena: Increased to $18.04 (from $17.50)
San Francisco: Increased to $19.18 (from $18.67)
Santa Monica: Increased to $17.81 (from $17.27)
District of Columbia
Standard minimum wage: Increased to $17.95 (from $17.50)
Tipped minimum wage: Increased to $12 (from $10)
Illinois
Chicago (for employers with four or more employees): Increased to $16.60 (from $16.20)
Chicago (tipped minimum wage): Increased to $12.62 (from $11.20)
Maryland
Montgomery County:
Employers with 10 or fewer employees: Increased to $15.50 (from $15)
Employers with 11 to 50 employees: Increased to $16 (from $15.50)
Employers with 51 or more employees: Increased to $17.65 (from $17.15)
Minnesota
Saint Paul:
Employers with six to 100 employees: Increased to $15 (from $14)
Employers with five or fewer employees: Increased to $13.25 (from $12.25)
Oregon
Standard: Increased to $15.05 (from $14.70)
Portland metro area: Increased to $16.30 (from $15.95)
Nonurban counties: Increased to $14.05 (from $13.70)
Washington
Everett:
Employers with 15 to 500 employees: Increased to $18.24 (from $16.66)
Employers with more than 500 employees: Increased to $20.24 (from $16.66)
Renton:
Employers with more than 500 employees: Increased to $19.90 (from $18.90)
Tukwila:
Employers with 15 to 500 employees: Increased to $21.10 (from $20.10)
Here’s an old but interesting video on the topic:
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.