Wall St set for muted start after ADP shock; focus on trade, payrolls data
The ADP National Employment Report showed U.S. private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought.
Investors quickly increased their bets of a rate cut by the U.S. Federal Reserve in July to 27.4%, from about 20% prior to the report, according to LSEG data.
"I take it as a mixed bag. On one hand, the wage is still strong, which is terribly important to the U.S. economy. On the downside, if this isn't seasonality, this is the beginning of a long-term trend in white collar jobs that'll spill over into the total labor market," said Ross Mayfield, investment strategist at Baird.
"It would be very damaging for the overall economy and obviously make the Federal Reserve react despite their concerns about tariffs causing inflation."
The Nasdaq (.IXIC), opens new tab and the S&P 500 (.SPX), opens new tab closed lower in the previous session, retreating from record highs as tech stocks were pressured and Treasury yields climbed after data showed stronger-than-expected job openings in May.
Focus now turns to the more comprehensive non-farm payrolls report, scheduled for release on Thursday - a day earlier than usual, as markets are closed on Friday for Independence Day. The reading is expected to show U.S. job growth cooled in June and the unemployment rate ticked up to 4.3%, according to a Reuters poll of economists.
On trade, Trump said on Tuesday he was not thinking of extending the July 9 deadline for imposing tariffs and expressed doubts that an agreement could be reached with Japan, although he said he expected a deal with India. The European Union's trade chief is expected to hold talks this week with peers in Washington.
By 8:52 a.m. ET (1252 GMT), S&P 500 e-minis were down 10.75 points, or 0.17%, Nasdaq 100 e-minis dropped 91.75 points, or 0.4%, and Dow e-minis slipped 28 points, or 0.06%.
The blue-chip Dow (.DJI), opens new tab closed 1.3% below its record high touched in December.
U.S. Senate Republicans passed Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending, while adding $3.3 trillion to the national debt.
The legislation now heads to the House of Representatives for possible final approval, although a handful of Republicans have already opposed some of the Senate provisions.
Among single stocks, Centene (CNC.N), opens new tab tumbled 31.2% premarket after the health insurer said it had withdrawn its 2025 earnings forecast after data showed a significant drop in expected revenue from its marketplace health insurance plans.
Shares of peers including Elevance Health (ELV.N), opens new tab, Molina Healthcare (MOH.N), opens new tab and UnitedHealth (UNH.N), opens new tab dipped in the range of 2.4% and 12.8%.
U.S. banking giants including JPMorgan Chase (JPM.N), opens new tab, Bank of America (BAC.N), opens new tab and Wells Fargo (WFC.N), opens new tab edged higher following announcements that they planned to raise third-quarter dividends after clearing the Fed's annual health check last week.
Verint Systems (VRNT.O), opens new tab soared 9.4% after Bloomberg News reported buyout firm Thoma Bravo was in talks to buy the call-center software maker.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
32 minutes ago
- Daily Mail
NBA free agent Malik Beasley faced lawsuits over alleged debt before federal gambling probe, court docs reveal
Already under federal investigation over gambling allegations, NBA free agent Malik Beasley is also being sued by his former agency, a landlord, a lender and a celebrity barber, according to court documents and a new report by The Detroit News. In what The News described Tuesday as '$8 million worth of financial problems,' alleged financial mismanagement has reportedly left Beasley in serious debt despite signing $59 million worth of NBA contracts over his career. Beasley was considering a three-year $42 million deal to return to the Detroit Pistons when the team pulled the offer amid the federal probe, according to the Detroit News. Daily Mail has reached out to team spokespeople for confirmation. He was sued on April 18 by his former agency, Hazan Sports Management Group, for allegedly breaching a marketing contract, according to court files obtained by Daily Mail. The agency claims it negotiated a $6 million deal for Beasley with the Pistons in the summer of 2024 before being fired and replaced with Seros Partners despite a four-year exclusive marketing agreement. Neither Hazan Sports nor Seros Partners responded to Daily Mail's request for comment on Wednesday evening. The lawsuit was previously reported by The Athletic but has resurfaced this week amid reports of the federal gambling probe into Beasley, who has not been charged in the case. He does face other lawsuits, however. As first reported by The News, Beasley lost a $5.8 million judgement to a lender in 2022. It remains unclear why Beasley needed the money. The News also uncovered a financing statement in which Beasley pledged his current and future NBA earnings to a Florida Firm in order to obtain a loan. Previously, he was sued by his downtown Detroit landlord for allegedly failing to pay $7,355 in back rent, according to The News, which also reports that a Milwaukee barber won $26,827 judgment against Beasley in January. That same month, Beasley lost a $34,390 default judgment to a Minnesota dentist. Court records from February show Beasley was having some paychecks garnished to pay the dentist. The debt remains outstanding, according to court records reviewed by Daily Mail. Beasley does not have an attorney listed for each case. However, he is represented in the gambling probe by criminal defense lawyer Steve Haney, who did speak with The News. 'I have been with Malik for a long time, I have seen a lot of people around him come and go, but I have stayed away from any of his financial management or mismanagement or decisions he would make with money,' Haney told The News. 'I'm his lawyer. I don't get involved in his finances,' he continued. 'You hope to get them around the best business people and planners and management people. Sometimes they do and sometimes they don't.' As for Beasley's borrowing history, Haney did not see it as unusual. 'It is very common for professional athletes to go to third-party lenders and get advances on contracts,' he said. 'It's a part of the business of professional sports. Many of these lenders are predatory and charge extremely high interest rates and outrageous fees that border on usury.' News of the investigation into Beasley comes just four months after his model wife Montana Yao filed for separation, and is just the latest in a series of off-field scandals. The split from his wife came four years after he was caught having an affair with Scottie Pippen's ex-wife, Larsa. Beasley and Yao ultimately reunited after he publicly apologized on social media, but she has since filed for separation, citing 'irreconcilable differences,' according to court documents obtained by The couple shares two children, but Daily Mail learned he moved on to a new lover: Instagram model and gamer Natalia Garibotto. The Pistons guard appeared to confirm as much on X earlier this year, describing a bikini-clad Garibotto as 'La mine' on the social media platform. He's also had other legal issues in the past, including an arrest on firearm and drug charges that resulted in a 78-day stint in a Minnesota jail. The incident took place in September of 2020, when Beasley was still playing for the Timberwolves. During a 'Parade of Homes' tour through his Plymouth, Minnesota neighborhood, an unidentified couple and their 13-year-old child inadvertently pulled up to a roped-off property being rented by Beasley. As they decided to look for another home to view, a man matching Beasley's description allegedly tapped a gun against their car window and told them to get off his property. As they drove off, the couple claimed, they could see Beasley pointing his gun at them. The couple then called 9-1-1. If Beasley is having financial issues, he's not showing it on Instagram, where he and his rumored girlfriend Natalia Garibotto have been seen galivanting on pristine beaches Police arrived at Beasley's rental, where they found 835 grams (1.8 pounds) of marijuana, a 12-gauge shotgun, a handgun, and an automatic rifle, which matched the description of the one he allegedly pointed at the family as they drove away. The search warrant for the surveillance cameras revealed that Beasley was seen retrieving the gun from the garage and returning it to a mudroom closet around the time of the alleged incident. Furthermore, the couple was able to identify both Beasley and the gun, according to police. A 28-year-old from Atlanta, Beasley is a nine-year NBA veteran who has just finished his first season with the Pistons. The former Florida State guard made $6 million this year and has career earnings approaching $60 million. He could still attract NBA teams despite his legal and financial issues. Beasley is coming off his best season as a pro after hitting an impressive 41.6 percent of his 3-point attempts as one of the premiere sixth men in the league.
The Independent
33 minutes ago
- The Independent
Six Flags to close another park months after announcing the closure of its Maryland location
Six Flags is shutting down another theme park after announcing that it will close a location in Maryland. The theme park giant announced that it plans to close its Great America park in California at the end of its 2027 season, a full year before its lease on the land ends. The announcement was made during a recent investors' meeting, according to PEOPLE. 'Unless we decide to extend, and exercise one of our options to extend that lease, that park's last year without that extension would be after the '27 season,' Six Flags Chief Financial Officer Brian Witherow told PEOPLE. He said that Great America, located in Santa Clara, California, and Six Flags America in Bowie, Maryland, were "very low on the ranking of margins." Six Flags Great America began 50 years ago under the name Marriott's Great Adventure, and had several owners in the years since, including Paramount and Cedar Fair, which went on to merge with Six Flags in 2024. Great America was originally built on public land, but Cedar Fair purchased the site in 2019 and later sold it to a real estate firm, Prologis, in 2022. Prologis bought the land for $310 million and agreed to let the park stay at the site until the lease ended in June 2028. That agreement came with the potential for a five-year extension by Six Flags. At the time of the sale, Cedar Fair announced it planned to close the park at the end of its lease. Prologis has not announced what may replace the theme park once it is closed and its rides and attractions disassembled. 'We're focused on identifying and partnering with planning and design experts to help us create a master plan for the property, working with the city and community along the way," the company told the Los Angeles Times in January. Six Flags America in Maryland will close at the end of its 2025 season, according to the company. 'As part of our comprehensive review of our park portfolio, we have determined that Six Flags America and Hurricane Harbor are not a strategic fit with the company's long-term growth plan,' CEO Richard A. Zimmerman said in a statement. That site will be sold for redevelopment.
Reuters
an hour ago
- Reuters
Oil falls on signs of weak US demand ahead of key jobs report
July 3 (Reuters) - Oil prices eased on Thursday, reversing gains from the previous session, on concerns over weak U.S. demand after government data showed a surprise build in inventories in the world's biggest crude consumer. Brent crude futures fell 24 cents, or 0.35%, to $68.87 a barrel by 0044 GMT after gaining 3% on Wednesday. U.S. West Texas Intermediate crude fell 24 cents, or 0.36%, to $67.21 a barrel after climbing 3.1% previously. The U.S. Energy Information Administration said on Wednesday domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels. Gasoline demand dropped to 8.6 million barrels per day, prompting concerns about consumption in the peak U.S. summer driving season. Both benchmarks gained on Wednesday after Iran suspending cooperation with the U.N. nuclear watchdog, raising concerns the lingering dispute over the Middle East producer's nuclear program may once again devolve into armed conflict. Additionally, the U.S. and Vietnam reached a trade deal that sets 20% tariffs on many of the Southeast Asian country's exports, giving investors a sense of greater economic stability on international trade which could flow into higher demand for oil. The market will be watching the release of the key U.S. monthly employment report on Thursday to shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, analysts said. Lower interest rates could spur economic activity, which would in turn boost oil demand. A private payrolls report on Wednesday showed a contraction for the first time in two year though analysts cautioned there is no correlation between it and the government data.
