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TESLA SHARES SPIKE UP 3% IN PREMARKET

TESLA 2Q DELIVERIES 480,126, EST. 396,466

U.S. JOBS GROWTH MISSES, UNEMPLOYMENT FALLS

U.S. nonfarm payrolls rose just 57,000 in June, well below the 110,000 forecast, while private payrolls increased 49,000.

The unemployment rate unexpectedly fell to 4.2% from an expected 4.3%. Average hourly earnings matched forecasts, rising 0.3% m/m and 3.5% y/y, while labor force participation slipped to 61.5%.

HORMUZ SHIPPING STABILIZES, UNCERTAINTY REMAINS

Traffic through the Strait of Hormuz has recovered to an average of 40 vessel crossings per day, according to Kpler.

Shipping rebounded after recent attacks disrupted transit, but uncertainty persists over who controls passage. Iran claims authority over the strait, while the U.S. says no country has the right to restrict navigation.

JUNE JOBS REPORT IN FOCUS

Markets expect the U.S. economy to have added 114,000 jobs in June, down from 172,000 in May, with unemployment projected at 4.3%.

A strong jobs report could reinforce the Fed's cautious stance on interest rate cuts.

A weaker-than-expected reading may strengthen expectations for monetary easing.

Economists see limited market impact unless payrolls or wage growth significantly beat forecasts.

GOLDMAN: INVESTORS TRIM BIG TECH EXPOSURE

Goldman Sachs says investors are reducing exposure to the Magnificent Seven as they favor AI beneficiaries, such as semiconductor companies, over hyperscalers funding heavy AI spending.

The bank believes markets are rewarding companies generating returns from AI investments while questioning those bearing the costs. Until hyperscalers show stronger earnings growth, caution toward mega-cap tech is likely to persist.

CAT	
	Caterpillar price target raised to $1,218 from $1,043 at Truist

Truist raised the firm's price target on Caterpillar to $1,218 from $1,043 and keeps a Buy rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.

PLTR DA upgrades Palantir to Buy, sees 'gift' at current levels DA Davidson upgraded Palantir to Buy from Neutral with a price target of $175, up from $165. The company has "grown into its valuation" as its profits are up significantly and the stock's multiple has come in. This provides investors "with a gift just in time for the United States of America's 250th birthday," the analyst tells investors in a research note. DA believes Palantir has "several competitive advantages over all other software companies" that are becoming more pronounced due to AI. The firm thinks recent developments show why customers will use Palantir "as a way to orchestrate AI models." The company can now swap the AI models underneath its solution, which removes its biggest perceived threat - the notion that companies will go to Anthropic and OpenAI to solve their biggest problems, contends DA. Palantir in premarket trading is up 3%, or $4.22, to $129.95.

JUNE JOBS REPORT IN FOCUS

Markets expect the U.S. to have added 114,000 jobs in June, down from 172,000 in May, with unemployment seen at 4.3%.

A resilient labor market could keep the Fed cautious on rate cuts, while a weaker-than-expected report may boost easing hopes. Economists expect limited market reaction unless payrolls or wage growth significantly exceed forecasts.

SpaceX has developed a prototype for a handset-like device designed to reshape how humans interact with artificial intelligence: WSJ

The prototype features a sleek design that is slimmer than an iPhone; it was shown to some investors and other stakeholders ahead of the company’s IPO

The prototype was designed to run on a proprietary operating system and integrate AI technology from SpaceX’s xAI. The device would use a Qualcomm Snapdragon chipset