Stocks are mixed today with technology stocks leading gains, but concerns about weak labor market.

From Nasdaq: 2025-07-02 12:20:00

Stock indexes are mixed today, with the S&P 500 slightly up, the Dow Jones Industrials down, and the Nasdaq 100 up. Technology stocks like Apple and Tesla are leading gains, but concerns about the weakening US labor market are limiting broader market growth. Health insurance stocks are struggling, with Centene plunging 37% after withdrawing its 2025 guidance.

The House is set to vote on President Trump’s tax and spending bill, with trade talks also in focus before the July 9 deadline for reciprocal tariff implementation. The Senate passed the bill, which includes a debt ceiling hike. The bill could add $3.3 trillion to US deficits over the next decade. US MBA mortgage applications rose, but the June ADP employment change unexpectedly declined.

Expectations for Q2 earnings of S&P 500 companies are modest, with only six sectors projected to see an increase. The markets will watch for trade news, tariff updates, and progress on the tax bill this week. Economic data on Thursday includes nonfarm payrolls, employment rate, hourly earnings, factory orders, and the ISM services index. Federal funds futures indicate a 23% chance of a rate cut at the July FOMC meeting.

Interest rates are up today, with T-notes under pressure from rising inflation expectations and speculation around the tax bill. However, losses are limited as stocks weaken and the June ADP report shows a decline in employment for the first time in over two years. European government bond yields are also higher, with the Eurozone unemployment rate unexpectedly rising.

ECB officials express concerns about inflation being below target, with swaps indicating a low chance of a rate cut at the July policy meeting. Health insurance stocks like Centene and Molina Healthcare are down significantly today, impacting the broader market. BrightView Holdings cuts its revenue forecast, while Oscar Health, Adobe, and Crocs see stock declines.

Tesla and Apple lead stock gainers today, with cruise line operators and companies like Verint Systems, Cava Group, and Ross Stores also seeing positive movements. Earnings reports for Franklin Covey Co and UniFirst Corp/MA are expected on July 2, 2025. The author of the article did not hold any positions in the mentioned securities.



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