Next Day Prep: Highs for S&P, Rotation into Russell 2000 Sparks Action
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep! Today we’re focusing on the market briefing for July 3rd. While the S&P 500 achieved a new record high, the real narrative lies in the ongoing rotation into smaller caps and cyclicals, indicating underlying market dynamics beyond the surface.
Overnight Headlines
- ADP Jobs Report: Showed a loss of 33,000 private-sector jobs, but market anticipation awaits the Nonfarm Payrolls report for a more comprehensive insight.
- Trade Deal with Vietnam: Zero tariffs trade agreement added momentum to the market sentiments.
Economic Announcements
All eyes are on:
- Nonfarm Payrolls Report: Tomorrow morning at 8:30 AM Eastern.
- ISM Services Data: Release at 10 AM.
Earnings Highlights
Centene (CNC) faced a drastic 40% decline due to lowered 2025 guidance and unexpected challenges in market growth and customer health conditions, raising concerns not just for the company but the healthcare sector at large.
Top Movers
Sectors such as Energy and Materials surged upwards, while Tech sector exhibited mixed signals with notable companies like NVIDIA and Google leading the cap-weighted gains but broader tech names facing weaknesses.
Quick Trade Ideas
For continuation plays, consider monitoring KLA Corp (KLAC) for potential entries. For anticipation plays, look at accumulating positions in Google (GOOGL) and Amazon around support levels.
Key Takeaway
While headline indices show strength, the underlying market dynamics suggest a focus on small caps, cyclicals, and caution with managed care stocks. Stay alert, agile, and have a solid plan in place especially amidst evolving market rotations.