U.S. stock futures fell on Tuesday as investors weighed possible interest rate cuts ahead of a key jobs report and watched how a growing likelihood of a Trump victory would affect markets.
Dow Jones Industrial Average futures () and S&P 500 futures () both fell about 0.4% after closing slightly higher to open the third quarter. Contracts for the tech-heavy Nasdaq 100 () led the decline, down about 0.5%.
Stocks have slumped as the market has leaned to safety this week, with the key June jobs report on Friday and a shortened trading session for the July 4th holiday. Doubts are growing about whether stocks can hold onto their first-half gains through the end of the year, and investors are wary of any signs of economic strength that could dampen the momentum.
Jerome Powell is scheduled to speak at the European Central Bank’s (ECB) meeting on Tuesday, and investors will be watching the Federal Reserve chairman’s views on inflation developments and the state of the labor market, as well as the release of weekly jobs data, which will also influence interest rate cut expectations.
Meanwhile, political risks are on people’s minds as Wall Street gauges how a Trump election victory would affect markets amid growing speculation that Biden might withdraw from the presidential race. The 10-year Treasury yield (^TNX) edged lower on Tuesday after surging a day earlier amid the debate.
On the corporate side, Tesla’s (TSLA) China-made EV shipments fell 24% in June amid fierce price wars. The company’s shares fell more than 1% in premarket trading after closing up 6% as the market awaited data on the company’s second-quarter production and delivery.
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Arguments for Roaring Kitty’s possible investment in Chewy…
We’re talking about a timely note from Mark Mahaney, technology analyst at EvercoreISI.
Mahaney provided a nice breakdown of his investment thesis for Chewy (CHWY), the day after Keith “Roaring Kitty” Gill revealed that he owns 6.6% of the company, and he also shares some helpful research analysis below.
Mahaney says:
“We continue to view Chewy as a solid business that is vulnerable to overall industry weakness, but there are still many investment positives, including steady growth in spend and loyalty per Chewy customer, nascent growth opportunities in sponsored ads, international expansion, vertical expansion (e.g. veterinary practices) and the potential for continued gross profit and EBITDA margin expansion.”
Mahaney is maintaining the ratings as expected for now, citing competitive pressures, valuation and an unproven expansion into Canada.
Chewy has become the number one destination for pet supplies, according to a new survey from EvercoreISI. (Evercore ISI)
