Mid-Morning Look: July 05, 2024

Mid-Morning Look

Friday, July 05, 2024





DJ Industrials




S&P 500








Russell 2000






U.S. stocks mixed on this quiet, low volume, last trading day of week, with investors returning from the 4th of July holiday/market closure on Thursday, digesting the June nonfarm payroll report. Shares of tech giants AMZN, AAPL, GOOGL, META, MSFT early leaders helping the Nasdaq ad S&P move higher (AAPL and GOOGL each hitting new record highs), while semis a quick reversal off early strength, rising +0.9% initially above 5,700 before quickly rolling back into negative territory. Large cap tech remains the place to hide for U.S. investors as market uncertainty arises following another weak job report, showing the economy losing its luster. June headline jobs data was reported above views but saw sharp downward revisions for May/April with in-line average hourly earnings both M/M and Y/Y at +0.3% and +3.9% respectively while the unemployment rate ticked higher to 4.1%. After the data, interest-rate futures prices reflected continued market confidence in a September rate cut, with the implied probability remaining at about 72%. Traders are also pricing in a rising chance of a second rate cut in December. Gold prices hit one-month highs (up about 2% for week) as the U.S. dollar slips to 3-week lows following mixed jobs data (better headline results, in-line wages, rise in unemployment, but sharp downward revision to overall jobs). The 10-year Treasury yield had quick spike to 4.4% after the data – then quick roll to lows below 4.29%. Bitcoin sank to more than four-month lows below 55K amid concerns that the repayment plan of bankrupt crypto exchange Mt. Gox’s repayment plan will lead to more selling. Bitcoin has now tumbled 25.2% since closing at a record $73,798 in mid-March. Energy, Industrials, Materials, and Financials early weakness.

Economic Data

  • June Nonfarm payrolls rose +206,000, above consensus +190,000 while May was downwardly revised to +218,000 from +272,000 and April revised down to +108,000 from +165,000). Private payrolls for June were +136,000 vs. consensus of +160,000) while manufacturing jobs fell -8,000 missing consensus of +6,000). The June unemployment rate ticked higher to 4.1% from 4.0% while average hourly earnings were +3.9% from a year earlier and +0.3% M/M (both in-line with ests.)






WTI Crude















10-Year Note




Sector Movers Today

  • In Autos: TSLA extended its 4-day rally in July to +24.5% after delivery data earlier in week. Ford (F) mentioned positively in Barron’s saying the auto maker is making a comeback noting shares are down over 5% this year so far, trailing GM +30% YTD though not much separates the two U.S. auto makers. Sales are growing at both. Ford is expected to generate some $22 billion in operating profit over 2024 and 2025, while GM is expected to generate $26 billion. Both are growing electric vehicle sales faster than the market. RIVN said its chief accounting officer resigned. NIO said Steven Wei Feng has resigned as CFO as the co promotes senior VP of finance, Mr. Stanley Yu Qu, as new chief financial officer.
  • Crypto stocks slump BITO, CLSK, COIN, HUT, IREN, MARA, MSTR, RIOT as Bitcoin prices fell over -6% to below $55,000, its lowest levels since February even as stocks hit record as Bloomberg notes risks include creditors selling tokens returned by Mt. Gox while noting short-term correlation between Bitcoin and stocks is fraying.



  • AAPL +1%; along with gains in AMZN, GOOGL all hitting record highs in large cap tech.
  • GLNG +4%; said it signed a deal with Pan American Energy for a 20-year deployment of a Floating Liquefied Natural Gas vessel in Argentina.
  • M +7%; Arkhouse Management, a real estate-focused investing firm, and Brigade Capital Management in recent days raised their bid by about $300 million, according to people familiar with the matter, offering to buy the department store shares for stock they don’t already own for $24.80 a share, or roughly $6.9B https://tinyurl.com/27fbkkw6  
  • MDWD +35%; amid a report that SOLV made a $34 a share offer for the company. MediWound mgmt is said to be evaluating the offer, according to a report from Israel’s The Marker. https://tinyurl.com/54pne3rz
  • SNN +7%; as Cevian Capital disclosed a 5% stake in the British medical equipment maker, a filing showed after the ortho company has lost 50% of its stock value from an all-time high hit in February 2020.
  • TSLA +1%; extending its 4-day rally in July to +24.5% after delivery data earlier in week.



  • COIN -4%; as Bitcoin prices fell over -5% to $55,000, its lowest levels since February and Ethereum prices -6.3% to $2,945 (hit lows of $2,824 earlier) – lowest levels since mid-May; shares of MARA, RIOT, MSTR, CLSK, HUT fall as well.
  • ITOS -8%; along with weakness in other anti-TIGIT drug makers CGEN, RCUS after Roche (RHHBY) drug tiragolumab, which is part of a new class of drugs known as anti-TIGIT, failed a lung cancer treatment trial on Thursday.
  • NIO -8%; said Steven Wei Feng has resigned as chief financial officer (CFO) as the company promotes senior vice president of finance, Mr. Stanley Yu Qu, as new chief financial officer.
  • ULCC, SAVE -3%; both downgraded to Underperform from Market Perform at Raymond James and lowering its earnings forecasts reflecting the revised industry revenue outlook.


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.