Equities opened July (and the second half of the year) on a positive note and with a familiar profile. The Nasdaq Composite paced gains for large cap. equities adding 0.83% while the S&P 500 was up 0.27% and the Dow Industrials gained 0.13%. ISM Manufacturing data came in at a 48.5 reading (below 50 is contractionary) signaling another weakening data point for the economy, sparking a sell-off in the Industrials and Materials Sectors (XLI, XLB).
In the fixed income market Treasury Yields rose across the curve with the 10yr settling at 4.48% and the 2yr Yield adding 5bps to end at 4.77%. The rise was attributed to a focus on continued federal deficits as both presidential candidates outlined policies that are likely to expand the deficit. With Trump ahead in the polls in the near-term, his proposed tariffs on China and other global trading partners have him seen as the more inflationary choice of the two. Yields have responded accordingly making us wonder why we don’t let the stock market moderate the presidential debates instead of useless news anchors whom no one seems to respect.
TSLA led the S&P 500 while the Hotel Restaurant & Leisure Industry produced several of the days biggest laggards NCLH, CCL and CZR all down >5%.
Futures for Tuesday July 2 have opened on the positive side to start the session. JOLTs data will be released at 10AM with a weaker number expected to bolster the case for easing later on in the year. Nonetheless, the print will be important either way.
It’s a light economic calendar for Tuesday and a shortened week for financial markets as the bond market closes early on Wednesday in advance of the 4th or July holiday. We will be returning to our daily trade note features on Monday July 8th given the holiday-shortened week. Please enjoy our 12 monthly insights on the 11 GICS Sectors and the S&P 500 in the meantime!
Eco Data Releases | Tuesday July 2nd, 2024
| Date Time | Event | Survey | Actual | Prior | Revised | |
| 07/02/2024 10:00 | JOLTS Job Openings | May | 7950k | — | 8059k | — |
| 07/02/2024 | Wards Total Vehicle Sales | Jun | 15.80m | — | 15.90m | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Tuesday July 2nd, 2024
No S&P 500 Constituents Reporting Today
Sources: Bloomberg
