Stock Market Live July 1: Trump and Musk’s Renewed Feud Drives Down S&P 500 (VOO)
Key Points
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Following criticism of his “big, beautiful bill” from Elon Musk, President Trump threatened to cancel government contracts awarded to Tesla and SpaceX last night.
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Political turmoil has many investors spooked, but one analyst is optimistic about Nike stock today.
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Tuesday Wrap-up
The Vanguard S&P 500 ETF closed at 567.77 Tuesday, down 0.05%.
Housing Market Condemned
Circling back to the KB Homes downgrade, a new survey from Clever Real Estate reports that “nearly three-quarters of Americans who plan to sell their home in the next year (72%) are confident they’ll get offers above their asking price.” But only 42% of recent sellers say this actually happened. And in fact, “43% of recent sellers say they had to lower their asking price” to make the sale.
This doesn’t bode well for the housing market, and could be one reason why homebuilder stocks are suffering.
Dominion Fired Up for Nuclear Power
S&P 500 component company Dominion Energy (NYSE: D) has received approval from the Nuclear Regulatory Commission to extend the operating license for its V.C. Summer Nuclear Station in South Carolina for an additional 20 years (to 60 years total since construction).
Dominion stock is up 1.6% on the news. The Voo is down 0.3%.
Hyatt Selling Assets, Raising Cash
In further good news this morning, Raymond James analyst RJ Milligan upgrades Hyatt Hotels (NYSE: H) to Strong Buy with a price target of $165.00 following yesterday’s announcement that Hyatt will raise cash by selling its Playa-owned real estate. Hyatt’s planning to liquidate $2 billion in assets by the end of 2027, which could significantly lower its debt load, and RJ thinks this “removes a significant overhang on the stock.”
Hyatt stock opened up 2% this morning. The Voo is still down 0.2%.
This article will be updated throughout the day, so check back often for more daily updates.
The Vanguard S&P 500 ETF (NYSEMKT: VOO) set a second all-time high record Monday evening, 568.03, but it looks like this may not last. The ETF that tracks the fortunes of America’s 500 largest companies is trading 0.3% lower pre-market. And why?
Maybe ask Messrs. Trump and Musk.
Responding to criticism from his former tech confidant Elon Musk, who called the President’s “big, beautiful bill” “utterly insane and destructive” because it will add to the federal budget deficit, and the federal debt, President Trump threatened last night to sic the Department of Government Efficiency on Musk’s several companies, seeking out and repealing contracts to SpaceX and Tesla (Tesla (Nasdaq: TSLA).
“Elon may get more subsidy than any human being in history,” wrote the President on Truth Social. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
Tesla investors are spooked, and the stock is down 5.8% already in pre-market trading.
Analyst Calls
CFRA downgraded homebuilder KB Home (NYSE: KBH) to sell last night, with a $49 price target. Wells Fargo had previously lowered its price target on the stock to a similar level, $50, warning of weak earnings in 2026.
Goldman Sachs downgraded S&P 500 component company Textron (NYSE: TXT) to neutral this morning, with an $85 price target. “TXT appears to be losing share in business jet,” warns the analyst, “and there is limited growth at Systems and Industrial.”
On the plus side, Argus Research is upgrading S&P 500 component Nike (NYSE: NKE) to buy — also with an $85 price target. “We believe a recovery is underway,” argues Argus. “Following efforts to clear its inventory in the second half of FY25, most of the company’s products are up-to-date and attracting customers.”
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