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US equity markets settled mostly firmer after resuming trading following the Independence Day holiday long weekend, staging a sharp intra-day rebound - Dow fell -129-points or 0.42%, paring an earlier decline of more than >700-points. The broader S&P500 edged +0.16% higher, rebounding from an earlier slump of over >2%. Communication Services (up +2.66%) and Consumer Discretionary (+2.28%) both gained over >2%, while Information Technology rose +1.24% to be the only three primary sectors to advance. Energy dropped -4.01% to sit at the foot of the primary sector leaderboard, with Chevron Corp down -2%. Ford Motor Co fell -1.06% despite the automaker reporting a +31.5% year-on-year jump in second quarter sales (to 152,262 vehicles), bucking the -11% decline in overall industry sales, as Ford's U.S. market share improved to 12.9%. The Nasdaq rallied +1.75% after opening the session sharply lower, with Facebook parent Meta Platforms Inc gaining +5.10%, Amazon.com Inc +3.60% and Google-parent Alphabet Inc +4.16%. The small capitalisation Russell 2000 rose +0.79%. There were reports that the Biden administration may roll back tariffs imposed on some Chinese goods, potentially helping to crimp inflation imported into the U.S.

Oil prices logged modest losses - WTI lost -US$0.32c or -0.3% to US$108.11/barrel. Brent eased -US$0.35c or -0.3% to US$111.28/barrel. In broader energy market moves, natural gas prices in Europe surged on Monday (4 July) to their most expensive since the early stages of Russia’s invasion of Ukraine as proposed strikes in Norway increased fears about inadequate supply. August natural gas futures on the Dutch-based TTF trading hub at one point rose more than >10% to change hands above >€160 a megawatt-hour. A year ago the product traded for €22.4. The ICE U.K. Natural Gas contract jumped +20% to 289.29 pence per British thermal unit , compared to 93.12p per British thermal unit months ago. There were reports that industrial action by workers would see six Norwegian natural gas fields shut down over the next few days, potentially cutting the major exporter’s supply by 13%. Elsewhere, the head of Germany’s regulatory agency for energy, Federal Network Agency President Klaus Mueller, called on residents Saturday (2 July) to save energy and to prepare for winter, when use increases. Mr Mueller said families should start talking now about “whether every room needs to be set at its usual temperature in the winter - or whether some rooms can be a little colder.” Separately, German Economy Minister Robert Habeck said the country should be prepared to cut further Russian gas supplies as President Vladimir Putin adopts a conscious strategy of raising prices to undermine European unity, and warned utilities are at risk of cascading failures, which may require activating a legal clause that would allow them to pass on price increases outside of contract commitments. Mr Halbeck said Germany refrained from activating the measure for now because it would lead to an “immediate price explosion” for consumers. The government is working on an alternative, he said, without elaborating.

US equity markets advanced on the first day of the third quarter ahead of the 4 July holiday long weekend, with both the S&P500 and Nasdaq snapping a four-session losing streak - Dow rose +322-points or +1.05%. The broader S&P500 gained +1.06%, with Utilities (up +2.48%) leading all eleven primary sectors higher. General Motors Co rose +1.35% despite the automaker warning of a second-quarter earnings shortfall, as vehicle wholesale volumes were hurt by the timing of semiconductor shipments and other supply chain disruptions. GM expects net income for the quarter to 30 June to be between US$1.6B and US$1.9B, well below current consensus analyst forecasts of US$2.46B. However, the company affirmed its full-year outlook (for net income of US$9.6B to US$11.2B) as the supply disruptions are expected to be temporary. The Nasdaq +0.9%. Meta Platforms Inc closed down -0.76% following news that it’s cutting its hiring plans for engineers as it prepares for a potential downturn. Chief Executive Officer (CEO) Mark Zuckerberg said “one of the worst downturns we’ve seen in recent history” is ahead, according to a recording heard by Reuters. Tesla Inc (up +1.24%) disclosed on Saturday (2 July) that sales of cars and SUVs fell -18% in the second quarter to 254,695 (versus consensus expectations for 256,250), snapping a two year streak of gains and marking their lowest quarterly level since last the third quarter of 2021 as supply-chain issues and pandemic restrictions in China hobbled production of its electric vehicles. Tesla delivered 310,048 vehicles in the first quarter of 2022 and 201,250 vehicles in the second quarter of 2021. Tesla is slated to release its second quarter result on 20 July. Micron Technology Inc fell -2.95% after the chipmaker provided a weak fourth quarter outlook after the closing bell of last Thursday’s (30 June) session. The small capitalisation Russell 2000 lost -0.49%. Retailer Kohl’s Corp slumped -19.63% after confirming a CNBC report that it had ceased talks with Franchise Group, saying that the retail environment has worsened since bidding began. Kohl’s also cut its outlook for the current quarter. US equity and bond markets are CLOSED tonight AEST for the Independence Day holiday.

US equity markets weaker, with the S&P500 cementing its worst first half in more than 50 years - Dow -351-points or -1.13%, with Salesforce Inc (down -3.26%) and Walgreens Boots Alliance Inc (-7.27%) the two worst performing index components overnight. The broader S&P500 fell for a forth consecutive session, down -0.63%. Energy (down -2.05%), Communication Services (-1.56%) and Consumer Discretionary (-1.54%) all fell over >1.5% to lead eight of the eleven primary sectors lower. More defensive sectors outperformed for a second straight session, with Utilities up +1.10%. Carnival Corp fell -2.48%, a day after tumbling -14.13% after Morgan Stanley cut its price target on the stock roughly in half and said it could potentially go to zero in the face of another demand shock. Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd fell -3.08% and -3.89% respectively. American Airlines Group Inc (down -2.69%) has offered its pilots pay raises totalling nearly 17% under a new contract, according to an internal video seen by CNBC. The latest proposal to the pilots’ union, the Allied Pilots Association, comes less than a week after rival United Airlines Holdings Inc (-0.73%) and its pilots’ union reached a tentative agreement that includes more than 14% in total raises over the next 18 months. The technology-centric Nasdaq dropped -1.85%. Facebook-parent Meta Platforms Inc (down -1.64%) has warned employees to expect a tough second half of the year as the company continues to weather challenges related to its core online advertising business amid a weakening economy. Meta chief product officer Chris Cox detailed the company’s financial dilemma in an internal memo that detailed key areas where the social media giant plans to invest, a spokesperson confirmed to CNBC. The memo was previously reported by Reuters. The small capitalisation Russell 2000 lost -0.66%. High-end furniture chain RH fell -10.56% after it issued a profit warning for the full year.

Morgans Co-Head of Research and Senior Analyst Alexander Mees gives us an update on May's retail sales in Australia. As well as stock analysis on Collins Foods (ASX:CKF) and Dominos Pizza (ASX:DMP).

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US equity markets closed narrowly mixed , with the S&P500 on track to close out its worst first half of the year since 1970 - Dow added +82-points or +0.27%, The broader S&P500 slipped 0.07%, with the Energy sector (down -3.43%) the worst performing primary sector after being the leading sector for the preceding two session. More defensive sectors outperformed overnight, with Healthcare up +0.87% and Consumer Staples +0.49%. Carnival Corp tumbled -14.13% after Morgan Stanley cut its price target on the stock roughly in half and said it could potentially go to zero in the face of another demand shock. The call dragged other cruise stocks lower, with Royal Caribbean Cruises Ltd and Norwegian falling -10.26% and -9.33% respectively. The Nasdaq dipped -0.03%. Chipmakers led declines after Bank of America downgraded several chip stocks due to rising competition. Advanced Micro Devices fell -3.45%, Micron Technology Inc -3.18% and Teradyne Inc -5.23%. However, Amazon.com Inc gained +1.4% after JPMorgan reiterated its overweight rating on the stock. Meta Platforms rose +2.03%, Apple Inc +1.30% and Microsoft Corp +1.47%.The small capitalisation Russell 2000 lost -1.12%.

US slowdown, Australian boom.

Chicago FED National Activity Index: https://www.chicagofed.org/research/data/cfnai/current-data

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US equity markets retreated following some weak consumer confidence data, and as oil prices climbed for a third day - Dow down -491-points or -1.56%, The broader S&P500 shed -2.01%, with Consumer Discretionary (down -4.03%) and Information Technology (-3.01%) leading ten of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard for a second consecutive session with a +2.70% gain. Warren Buffett's Berkshire Hathaway Inc said it had acquired an additional 794,389 shares in Occidental Petroleum Corp (up +4.77%), lifting the conglomerate’s stake to ~16.4%. The Nasdaq dropped -2.98%. Qualcomm Inc (up +3.48%) bucked the weaker trend after a prominent analyst (Ming-Chi Kuo at TF International Securities) said Apple Inc (-2.98%) is likely to use the company’s 5G modems for its 2023 iPhones rather that relying on technology built in-house. All three benchmark indices booked their worst daily percentage declines since 16 June, according to Dow Jones Market Data. The small capitalisation Russell 2000 lost -0.49%.

US equity markets settled with modest losses to open the new week following a strong rebound last Friday (24 June), shrugging off some better-than-expected economic data - Dow eased -62-points or -0.20%. Boeing Co fell 1.99% following a pair of reports appearing to question the safety of 737 MAX jets, including by Australia’s taxpayer-funded broadcaster that cited “at least six mid-air emergencies” and various other problems experienced by MAX jets since the planes were recertified to fly. The problems were pulled from publicly available databases maintained by the U.S. government. The broader S&P500 lost -0.30%, with Consumer Discretionary (down -1.09%) and Communication Services (-1.05%) leading the decline. Energy returned to the top of the primary sector leaderboard with a +2.78% rally. The S&P 500 is up more than >7% since hitting a bear-market low in mid-June, although the benchmark is down 19% from its high and 18% lower since the year began. The Nasdaq fell -0.72%. The small capitalisation Russell 2000 added +0.34%.

Morgans Research Analyst Max Vickerson provides an overview of the business fundamentals for Tesla.

*Disclaimer: Morgans does not formally cover Tesla and does not offer an investment rating. This presentation is for informative purposes only.*

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