Profit Insights
Hosted by Dusty
About This Episode
Generated finance podcast with host Dusty based on prompt: Finance and economic news from yesterday and today
Transcript
Welcome to "Profit Insights," where we dive into the latest market moves and financial stories. I'm Dusty, your guide on this journey through the intriguing world of finance. Let's unpack what’s been happening.
Yesterday, U.S. equity benchmarks wrapped up a rather mixed day. The S&P 500 dipped slightly by 0.1%, taking a breather after three days of gains. Meanwhile, the Dow Jones Industrial Average rose by 0.9%, bucking the trend and showcasing a shift towards more stable stocks. On the other hand, the Nasdaq fell 0.8%, highlighting some profit-taking in the tech sector. Small-cap stocks shined as well, with the Russell 2000 climbing 0.9%.
Tech stocks took a hit as investors seemed to pivot away from these high-performers. Nvidia and Microsoft were among those seeing pullbacks. In contrast, healthcare stocks led the way up, especially for the Dow, with Amgen and UnitedHealth each jumping over 4%. Merck and Johnson & Johnson also added to the gains. Tesla, often a market mover, struggled due to renewed tensions involving Elon Musk and President Trump.
As we move into earnings season, anticipation is in the air. MSC Industrial's outlook wasn’t too rosy, expecting around a 22% decline year over year. Meanwhile, after the bell, Constellation Brands and Greenbrier had the spotlight, with expectations closely watched by investors keen to understand the broader economic impact. Tariffs and mixed guidance are also adding a layer of complexity to the overall earnings picture.
Now, let's talk about the U.S. economy. The recent JOLTS report indicated that job openings held steady at 7.8 million, while hiring dipped slightly. The labor market remains tight, underscoring ongoing economic strength. In the bond market, Treasury yields stayed near multi-year highs, reflecting uncertainty around Federal Reserve policies.
The manufacturing PMI showed contraction for the fourth month, but there was a slight uptick from May, driven by an increase in production. However, new orders were down and employment saw further contraction. On the services side, the PMI indicated growth, albeit slightly slower than the previous month. Despite ongoing tariff worries and cost pressures, the sector continues to expand.
Looking ahead, analysts are keeping a close eye on next week’s Federal Reserve meeting. Interest-rate projections could offer fresh insights into the economic landscape for the rest of the year. While growth persists, there are clouds on the horizon with inflation and trade tensions. Chris Williamson from S&P Global mentioned that the future might be challenging, especially if recent inventory-driven production doesn't hold up.
Now, before we sign off, a quick investment tip—diversification remains key. As we’ve seen, sectors can move in different directions on any given day. Balancing your portfolio across various areas can help weather market volatility.
Thanks for tuning in to this episode of "Profit Insights." I'm Dusty, reminding you that when the dust settles, only the truth remains. Catch you next time!
### Major Market Indexes Performance on July 1, 2025
U.S. equity benchmarks finished mixed on Tuesday, July 1, 2025, as investors rotated out of high-flying technology names and into more defensive areas. The S&P 500 closed at 6,198.01, down 6.94 points or 0.1%, marking its first decline in four sessions. The blue-chip Dow Jones Industrial Average bucked the trend, rising 400.17 points or 0.9% to end at 44,494.94, while the technology-heavy Nasdaq Composite fell 166.84 points or 0.8% to 20,202.89. The small-cap Russell 2000 outperformed, climbing 0.9% to 2,195.49 ([marketbeat.com](https://www.marketbeat.com/articles/how-major-us-stock-indexes-fared-tuesday-712025-2025-07-01/?utm_source=chatgpt.com), [cnbc.com](https://www.cnbc.com/2025/06/30/stock-market-today-live-updates.html?utm_source=chatgpt.com)).
### Sector Movements and Notable Stock Performances
Technology stocks led the decliners, with major components such as Nvidia and Microsoft seeing modest pullbacks amid profit-taking to kick off the third quarter. In contrast, healthcare shares powered the Dow’s advance—Amgen and UnitedHealth jumped over 4% each, while Merck and Johnson & Johnson added roughly 3% and 2%, respectively, lifting the index. Meanwhile, Tesla shares lagged after fresh headlines underscored tensions between CEO Elon Musk and President Trump, adding to downward pressure on growth-oriented names ([cnbc.com](https://www.cnbc.com/2025/06/30/stock-market-today-live-updates.html?utm_source=chatgpt.com), [seattlepi.com](https://www.seattlepi.com/business/article/how-major-us-stock-indexes-fared-tuesday-7-1-2025-20403362.php?utm_source=chatgpt.com)).
### Company Earnings: Expectations and Reports
Investors prepared for several key earnings reports on July 1. Before the open, MSC Industrial (MSM) was forecast to earn about $1.30 per share, a roughly 22% year-over-year decline. After the close, Constellation Brands (STZ) was expected to report $3.31 in EPS, and Greenbrier (GBX) $0.98, according to weekly calendars compiled by Kiplinger. These reports will set the tone for Q2 corporate results amid mixed guidance and growing tariff-related cost pressures ([kiplinger.com](https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks?utm_source=chatgpt.com), [nasdaq.com](https://www.nasdaq.com/articles/after-hours-earnings-report-july-1-2025-stz-gbx-ttgt?utm_source=chatgpt.com)).
### U.S. Economic Indicators
• Job Openings and Labor Turnover (JOLTS): The Bureau of Labor Statistics reported that job openings were little changed at 7.8 million in May, with the openings rate at 4.6%. Hires dipped modestly to 5.5 million, separations were 5.2 million, quits rose to 3.3 million, and layoffs and discharges held at 1.6 million. The report underscored a still-tight labor market even as openings stabilized ([bls.gov](https://www.bls.gov/news.release/archives/jolts_07012025.htm?utm_source=chatgpt.com)).
• Treasury Yields: On July 1, the 2-year Treasury yield stood at 4.76% and the 10-year at 4.79%, essentially unchanged from the prior session but remaining near multi-year highs as investors brace for continued Fed policy uncertainty and large upcoming debt refinancing needs ([home.treasury.gov](https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?field_tdr_date_value=2025&type=daily_treasury_long_term_rate&utm_source=chatgpt.com)).
### Purchasing Managers’ Indexes
• ISM Manufacturing PMI: The Institute for Supply Management’s June report showed the manufacturing PMI at 49.0, indicating contraction for the fourth straight month but up from 48.5 in May. New orders fell to 46.4, the Production Index rose to 50.3, Employment contracted further at 45.0, and the Prices Index remained elevated at 69.7, driven by raw materials cost pressures ([prnewswire.com](https://www.prnewswire.com/news-releases/manufacturing-pmi-at-49-june-2025-manufacturing-ism-report-on-business-302494937.html?utm_source=chatgpt.com)).
• S&P Global US Services PMI: The preliminary services PMI for June eased to 53.1 from 53.7 in May, but stayed above the 50-point threshold for growth. Surveyed firms noted continued gains in new business and hiring, though export orders contracted again amid tariff concerns, and cost pressures led to steeper increases in selling prices ([tradingeconomics.com](https://tradingeconomics.com/united-states/services-pmi/news/464829?utm_source=chatgpt.com)).
### Market Outlook
Analysts warn that the mixed market signals reflect growing caution ahead of next week’s Federal Reserve policy meeting, where interest-rate projections for late 2025 will be updated. Chris Williamson of S&P Global Market Intelligence noted that while the economy continues to expand moderately, elevated input-cost inflation and trade tensions cloud the outlook, and any rollback of the recent inventory-driven bump in production may weigh on hiring and output through year-end ([forexlive.com](https://www.forexlive.com/news/june-us-sp-global-services-pmi-531-vs-530-expected-20250623/?utm_source=chatgpt.com), [reuters.com](https://www.reuters.com/business/us-business-activity-moderates-price-pressures-building-up-2025-06-23/?utm_source=chatgpt.com)).
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