Sector Snapshot
Sector Synopsis: Markets leaned risk-on ahead of the holiday, with Financials, Tech, and Solar leading. Financials surged on widespread 52-week highs and renewed confidence in regional bank capital strength, while Solar stocks rallied on Chinese policy shifts that could curb oversupply. The AI theme remained in focus as chip infrastructure investments and software names like DDOG and CRWD hit new highs. Retail was active on M&A headlines and macro trade signals, while Energy and Industrials reflected divergence—with construction names surging but truck orders sliding. Bitcoin topped $110K, supported by AI-linked GPU deals. Economic attention shifts to jobs data and the impact of President Trump’s evolving trade policy stance.
Retail, Consumer Staples & Restaurants:
OLO to be acquired by Thoma Bravo for $2B in cash at $10.25/share.
TRIP surged after Starboard Value revealed a >9% stake.
XPOF jumped after SEC closed its investigation without action.
Autos, Leisure, Gaming & Lodging:
Casino names (DKNG, CZR, PENN) slipped on Senate proposal to cap gambling loss deductions at 90%, creating tax liability even on break-even years.
Energy, Industrials & Materials:
Engineering & construction names (DY, MTZ, PWR) hit new highs.
Ethane exports to China cleared for takeoff after U.S. license restrictions lifted.
Homebuilders cooled slightly as yields rose.
Solar stocks outperformed as Beijing moved to reduce “disorderly” competition, easing Western pricing pressure (FSLR rose, RUN/SEDG seen benefiting).
Packaging (BALL, OI) lifted as Citi raised Q2 EBITDA estimates.
Heavy-duty truck orders fell 36% YoY in June, signaling freight softness.
Financials:
XLF rose 1% with many major banks (JPM, MS, GS, BAC) setting 52-week highs.
Wolfe downgraded PNC, upgraded HBAN citing NIM tailwinds; MS upgraded VLY.
Crypto miners surged (CLSK, WULF, RIOT) as Bitcoin crossed $110K.
REITs:
Prison REITs (GEO, CXW) gained as Senate aligned with House on immigration-related spending in major budget bill.
Agency mREITs saw mixed analyst revisions amid rate recalibrations.
Healthcare:
Novartis’ Cosentyx failed in GCA trial.
SMMT active on Bloomberg report of potential $15B licensing deal with AZN for lung cancer drug.
Technology:
EDA software stocks (SNPS, CDNS) rallied after U.S. lifted export restrictions to China.
DDOG jumped after S&P 500 inclusion.
CRWD hit record highs after Wedbush price target raise.
AI/Data center infrastructure accelerated with CRWV launching NVDA GB300 NVL72 deployment.
Media & Internet:
ROKU and TKO target prices raised at BofA on macro resilience.
META upgraded at Needham on better channel checks but remains a Hold.
Featured Articles
A Wall Street Classic Returns — The Economist
Structured investment vehicles are quietly returning as banks seek yield and balance sheet flexibility. The comeback of these pre-2008 tools is raising eyebrows about systemic risk, even as regulators remain hands-off for now.Tesla’s Robotaxi Moment Nears — WSJ
Elon Musk teased a “fully autonomous” robotaxi launch for August, promising to change urban transport. But experts and regulators remain skeptical about timeline credibility and safety readiness.AI Spooks White-Collar Workers — WSJ
As AI adoption deepens, mid-career professionals in law, finance, and marketing are expressing rising anxiety over job displacement. Surveys show a majority fear being “replaced” rather than “augmented.”UPS Buyouts Reflect Automation Tension — WSJ
UPS offered buyouts to some delivery drivers for the first time in its 117-year history, as automation and delivery optimization reshape the workforce. Labor groups are wary of broader restructuring.Retailers Respond to Vietnam Trade Deal — CNBC
U.S. retailers welcomed Trump’s Vietnam trade deal as a supply chain reprieve amid tariff threats elsewhere. Apparel and electronics brands are reshuffling sourcing away from China to capitalize.