Daily Brief - July 07, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are mixed ahead of the market open. Dow Jones futures are showing gains, signaling some optimism in industrial and financial sectors. However, futures for the S&P 500 and Nasdaq 100 are slipping, reflecting caution in technology and growth stocks. This divergence sets a cautious tone for the session, with investors weighing recent earnings and geopolitical developments. Overnight in Asia, markets struggled as chip stocks fell sharply following Samsung’s earnings report, which, despite a record profit, failed to meet lofty AI-related expectations. The Kospi triggered a circuit breaker due to the selloff, highlighting investor jitters about the sustainability of the AI-driven rally. European shares are flat, with defense stocks gaining some traction ahead of the NATO summit, but overall sentiment remains subdued amid ongoing geopolitical tensions in the Middle East. The major overnight news impacting today’s session includes SpaceX’s debut on the Nasdaq 100, which has drawn significant Wall Street attention but also raised "sell-the-news" concerns. Rivian’s stock is under pressure after announcing a $75 million share sale to raise capital. Meanwhile, tech giants like Intel and Nvidia are facing renewed selling pressure amid fears of intensifying AI chip competition. ## Top Stories Moving Markets - **SpaceX Nasdaq 100 Inclusion** SpaceX officially joins the Nasdaq 100, a milestone that has attracted bullish ratings from several Wall Street banks, including RBC Capital and Goldman Sachs. Despite the enthusiasm, history suggests a potential "sell-the-news" reaction, which could weigh on tech ETFs like **$QQQ** today. Investors should watch for volatility around SpaceX-related trades. - **Samsung Earnings and Chip Sector Selloff** Samsung reported a 19-fold jump in quarterly profit, driven by AI demand, but the stock fell sharply as investors questioned the sustainability of the AI chip boom. This triggered a circuit breaker in South Korea and dragged down other semiconductor stocks such as **$MU** (Micron) and **$INTC** (Intel), which fell 4% premarket. The tech sector faces renewed pressure amid valuation concerns. - **Rivian Capital Raise and Stock Drop** Rivian announced a $75 million share offering, causing its stock to fall 10% in premarket trading. This capital raise signals potential liquidity concerns or a need for funding to support growth initiatives. Traders should monitor **$RIVN** for further volatility and reassess risk appetite in the EV space. - **Salesforce Commits $1 Billion to Switzerland for AI Expansion** Salesforce is investing heavily in agentic AI development with a $1 billion commitment in Switzerland, boosting its stock **$CRM** by 2% premarket. This underlines the ongoing AI investment theme and could provide a positive catalyst for enterprise software and cloud-related stocks. - **Goldman Sachs Q2 Earnings Preview** Goldman Sachs is set to report Q2 earnings on July 14, with analysts expecting $13.95 EPS on $15.9 billion revenue. The bank’s shares **$GS** have gained attention as investors look for signs of strength in financials amid mixed economic signals. This preview may influence financial sector sentiment today. ## Stocks to Watch Today - **$RIVN** - Shares down 10% after announcing a $75 million share sale to raise capital, signaling potential funding needs. - **$MU** - Micron dragged lower by semiconductor selloff following Samsung’s earnings; watch for further downside risk. - **$INTC** - Intel shares down 4% premarket amid broader tech weakness and AI chip competition fears. - **$CRM** - Salesforce up 2% premarket on $1 billion AI investment in Switzerland, reinforcing AI growth narrative. - **$SPCX** - SpaceX debut on Nasdaq 100 draws strong Wall Street coverage but may face volatility due to "sell-the-news" dynamics. - **$META** - Meta Platforms testing key technical levels as Wall Street evaluates cloud and AI potential; shares under pressure. - **$AAPL** - Apple mentioned among top tech picks; watch for reaction to broader tech sector weakness. - **$GS** - Goldman Sachs in focus ahead of Q2 earnings preview; financials could benefit from positive earnings momentum. - **$LMT** - Lockheed Martin signs MoU with Rheinmetall for European munitions production, supporting defense sector strength. - **$MA** - Mastercard receives price target raise to $680 from Baird, highlighting confidence in payments sector. - **$NVDA** - Nvidia stock falls amid AI chip competition concerns, contributing to tech sector pressure. - **$AMZN** - Amazon plans $25 billion bond sale to fund AI infrastructure, signaling aggressive investment in AI capabilities. ## Sector Setup - **Technology:** Negative bias due to semiconductor selloff after Samsung’s earnings miss expectations despite record profits. Intel and Nvidia weakness adds to pressure. However, AI-related investments by Salesforce and Amazon provide selective support. - **Financials:** Mixed but cautiously optimistic ahead of Goldman Sachs earnings. Some strength expected as banks benefit from rising yields and robust trading volumes. - **Energy:** Neutral to slightly positive as oil prices edge higher on Middle East tensions and supply concerns, but Russian oil price weakness limits upside. - **Defense:** Positive momentum from new deals at NATO summit and Lockheed Martin’s European munitions partnership, supporting defense stocks. ## Economic Calendar & Fed No major economic releases or Fed events are scheduled for today. Market focus remains on corporate earnings previews and geopolitical developments. ## Crypto & Commodities - Bitcoin is down 0.89% at $63,446.10, and Ethereum is down 0.94% at $1,781.49, reflecting some profit-taking amid geopolitical tensions and tech sector weakness. - Gold prices are steady near $4,200, supported by rate uncertainty ahead of upcoming Fed minutes. - Oil prices have edged higher following reports of Iranian missile attacks on commercial ships in the Strait of Hormuz, raising supply risk concerns. ## Trading Game Plan - Monitor tech sector closely for continued volatility, especially semiconductor stocks like **$MU**, **$INTC**, and **$NVDA** amid AI competition fears. - Watch SpaceX-related trades and **$QQQ** for potential "sell-the-news" reactions following Nasdaq 100 inclusion. - Favor defense stocks such as **$LMT** and related ETFs, supported by NATO summit deals and geopolitical tensions. - Financials may offer opportunities ahead of Goldman Sachs earnings; focus on banks benefiting from rising yields. - Keep an eye on energy stocks amid Middle East supply risks and oil price volatility. - Track Salesforce and Amazon as AI investment leaders with significant capital commitments. - Manage risk around EV stocks like **$RIVN**, which face dilution and funding concerns. - Stay alert for updates on geopolitical developments in the Middle East and their impact on commodities and market sentiment.