Profit Insights

Profit Insights

July 09, 2025 • Finance

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 financial headlines with a calm and thoughtful approach. I'm Dusty, and today we're exploring the shifting tide in U.S. equity markets amid a backdrop of trade uncertainty.

The markets closed on July 8, 2025, with a bit of a mixed bag. The S&P 500 dipped slightly by 0.07%, closing at 6,225.52, while the Dow lost 165 points, settling at 44,240.76. The Nasdaq, however, showed a tiny uptick of 0.03%. It was a choppy day, with investors seeking clarity on President Trump's next tariff moves and eagerly anticipating the Federal Reserve’s upcoming meeting minutes.

Sector-wise, we saw some divergence. The energy sector shone brightly, rising 2.72% thanks to stronger oil prices. On the flip side, consumer staples and utilities showed some weakness, both falling over 1%. Interestingly, small-cap stocks bucked the trend, with the Russell 2000 climbing 0.66%.

Take Tesla, for instance, which rebounded by 1.3% after a rough start to the week. Freeport-McMoRan also saw a rise of 2.5%, driven by news of a planned hefty tariff on copper imports. Moderna made waves, soaring 8.8% amid a lawsuit challenging federal policies on COVID-19 vaccines.

Shifting gears to commodities, President Trump's announcement of a 50% tariff on imported copper sent ripples through the market, pushing copper futures up by over 12%. This move significantly impacts industries reliant on copper, such as electric vehicles and electronics.

In the oil world, U.S. crude edged up to $68.33 a barrel, with Brent closing at $70.15. Meanwhile, the bond market saw U.S. 10-year Treasury yields ticking up, showing some unease as buyers held back on three-year notes.

The currency markets painted a picture of a stronger dollar. The yen slipped against the greenback, while the euro reached a one-year high against the yen. The Australian dollar saw a boost after the Reserve Bank of Australia decided to keep rates steady.

Let’s glance across the pond. European stocks welcomed some relief from tariff fears, with the STOXX 600 reaching a three-week high. In Germany, small-caps thrived, particularly Salzgitter, soaring 20% on product approval for military use.

Meanwhile, Asia displayed resilience. Japan’s Nikkei 225 ticked upwards, and South Korea’s markets showed robust gains. China’s CSI 300 and Hong Kong’s Hang Seng also advanced, pushing through the tariff noise.

Trade policy continues to sizzle, with President Trump broadening his tariff campaign. The focus now turns to copper, semiconductors, and pharmaceuticals. Treasury Secretary Scott Bessent noted that the U.S. could pull in as much as $300 billion in tariff revenue by year's end. Keep an eye on the Fed’s meeting minutes releasing soon; they might just hold clues to future rate cuts.

And let's not forget the corporate world. Samsung Electronics projects a significant dip in profits due to U.S. export controls on AI chips and delays with Nvidia. Hershey has appointed a new CEO—Kirk Tanner from Wendy’s, which sees Ken Cook stepping in as interim leader at Wendy's.

As we look ahead, the U.S. earnings season is on the horizon. Mid-July, we'll start seeing second-quarter results pour in from the S&P 500 companies, with mega-caps likely to set the tone. Europe’s earnings season will kick off with ASML taking the lead.

As always, keep your eyes on the markets, but remember to hold steady amidst the noise. After all, when the dust settles, only the truth remains. Thanks for joining me on "Profit Insights." Until next time, stay informed and keep investing wisely.

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