HAPPY THURSDAY TO THE STREET.
Elon and Don are beefing again. And this time, it’s costing shareholders. Musk fired back, claiming Trump would’ve lost the election without him. Somewhere between the insults, China got on the line and said Trump called Xi, but investors aren’t convinced it means much.
🟥 | US stocks fell as Tesla’s tumble dragged tech lower and investors digested weak labor data and shaky US-China vibes.
📈 | One Notable Gainer: Dollar Tree $DLTR ( ▼ 1.26% ) jumped to the top of the S&P 500 after a J.P. Morgan upgrade, rebounding from a post-earnings selloff.
📉 | One Notable Decliner: Tesla $TSLA ( ▲ 1.39% ) stock tanked after Trump called Musk “CRAZY” and hinted at yanking his companies’ federal contracts.
— Brooks & Cas
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STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz
Market Movers
MICROSOFT, SNYOPSYS, COSTCO
$MSFT ( ▼ 0.59% ) Microsoft stock just hit a record high as it cashes in on the AI boom (QZ)
$SNPS ( ▲ 1.2% ) Synopsys, Inc. is Attracting Investor Attention: Here is What You Should Know (Zacks)
$COST ( ▲ 0.75% ) Costco Stocks Drops After Company's May Sales Growth Trails April Numbers (Investopedia)
$MU ( ▲ 2.22% ) Why Micron is a Top Momentum Stock for the Long-Term (Zacks)
$PLTR ( ▼ 1.77% ) Palantir CEO Karp says AI is dangerous and ‘either we win or China will win’ (CNBC)
OVERHEARD ON THE STREET
CNBC: Procter & Gamble will cut 7,000 jobs and exit select brands and markets amid slowing U.S. growth and rising tariff costs.
Reuters: Lululemon cut its annual profit forecast as demand slows, tariffs weigh, and rivals like Alo Yoga and Vuori gain ground.
WSJ: Kimberly-Clark will sell a majority stake in its international tissue business to Brazil’s Suzano in a $3.4B deal to refocus on core areas.
AP: Gamers worldwide lined up for the Nintendo Switch 2 launch, as the company bets on the upgrade to revive flagging sales.
Reuters: Delta warned that new Trump-era tariffs on foreign planes could halt purchases and cut flights for 10M customers annually.
Tomorrow's Trade Idea, Today
INDEX SHAKE-UP

Making Moves
With summer vacations on the horizon, fund managers are bracing for one last portfolio reshuffle driven by the upcoming S&P 500 rebalancing, expected by week’s end.
Bank of America $BAC ( ▲ 2.09% ) analyst Craig Siegenthaler identified financial services companies likely to benefit, notably Robinhood $HOOD ( ▲ 0.75% ) as a potential addition to the S&P 500 and Interactive Brokers $IBKR ( ▲ 0.52% ) as a candidate to move up from the S&P 400.
Other possible entrants include Ares Management $ARES ( ▲ 0.79% ), Flutter Entertainment $FLUT ( ▲ 0.24% ), and Cheniere Energy $LNG ( ▼ 0.09% ), while Invesco $IVZ ( ▼ 0.57% ) risks demotion to the mid-cap index.
Billions Ride on Index Changes
Even minor S&P index adjustments can result in billions in trading volume, especially from passive funds attempting to track indexes. The rebalance usually occurs on the third Friday of the last month in a quarter.
With over $600 billion in assets, SPDR’s S&P 500 ETF $SPY ( ▼ 0.02% ) alone can trigger massive buying in newly added stocks. Siegenthaler projects that Robinhood and Ares could see buying activity equal to 12–17% of their publicly traded shares, underscoring the impact of inclusion.
Size Isn’t Everything
Eligibility for the S&P 500 isn’t just about size. Profitability, liquidity, and timing all factor in. Okta’s $OKTA ( ▼ 0.7% ) recent sell-off after earnings dropped its valuation from $22 billion to $18 billion, possibly sidelining it from consideration this cycle. It now trails several S&P 400 members, with US Foods $USFD ( ▲ 0.83% ) close behind.
The index committee’s decisions don’t simply mirror market caps but also reflect current market conditions and fundamentals, leaving room for surprises in this quarter’s reshuffling.
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ON OUR RADAR
CNBC: Walmart , Amazon , and Microsoft are cutting jobs amid economic uncertainty and rising AI adoption.
WSJ: Companies like American Airlines, Kroger, and American Eagle are scaling back climate language in investor reports amid policy rollbacks.
BBC: The ECB cut rates to 2% amid sluggish growth and rising uncertainty from Trump’s tariffs, marking its eighth cut in just over a year.
AP: U.S. auto suppliers urged swift action on China’s rare earth export curbs, warning of major parts disruptions amid ongoing trade tensions.
Axios: Senators warn a new bill could restrict access to the Earned Income Tax Credit by requiring low-income families to pre-certify.
WEDNESDAY’S POLL RESULTS
Are you bullish or bearish on Doximity $DOCS ( ▲ 1.23% ) the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
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