Opening Comment — Wednesday, July 01, 2026
DJIA: 52,319.20, up 136.46
S&P 500: 7,499.36, up 58.93
NASDAQ: 26,213.72, up 393.58
Stocks lower ahead of PMI and employment data
Stock futures are lower Wednesday morning ahead of today’s June ADP employment data and June manufacturing purchasing managers’ index (PMI) from the Institute for Supply Management (ISM). Investors are also looking forward to today’s comments from Federal Reserve Chair Kevin Warsh and other central bank leaders at the European Central Bank’s Forum on Central Banking. As of 7:23 AM ET, the Dow and the S&P 500 Index are both decreasing 0.2%. The Nasdaq 100 is falling 0.4% relative to fair value on the GLOBEX.
U.S. equities were higher on Tuesday as May’s job openings came in higher than forecasted, while June’s consumer confidence came in below projections. U.S. house prices declined in April, and Market News International’s Chicago PMI for June fell less than forecasted to 56.7. The Dow was up 0.3% and reached a new record closing level of 52319.20, while the tech-heavy Nasdaq Composite rose 1.5%. The S&P 500 increased 0.8% with five of 11 sectors finishing in positive territory. The Information Technology sector was the top performer, rising 2.6%, while the Real Estate sector was the bottom performer, falling 2.2%.
On the data front, the Challenger Report on job cuts for June showed a decline of 4.5% year-over-year (YOY) compared to prior month’s increase of 3.4%. The Mortgage Banker Association’s gauge of mortgage applications showed little change for the week ending June 26 versus the prior week’s increase of 1.0%. The ADP National Employment Report for June is expected to show private job gains of 120,000, versus the prior month’s 122,000. The finalized reading of S&P Global’s manufacturing PMI for June is expected to come in at 55.7, similar to the preliminary reading. ISM’s manufacturing PMI and prices paid component for June are expected to come in at 53.9 and 77.5, respectively, versus the prior month’s reading of 54.0 and 82.1, respectively. Construction spending is projected to show an increase of 0.1% month-over-month (MOM) in May, versus the prior month’s 0.4%. The Department of Energy’s measure of crude oil inventories is expected to have decreased by 2.26 million barrels for the week ending June 26 versus the prior week’s decrease of 6.09 million barrels. Total vehicle sales for June are expected to come in at a 16.10 million pace versus the prior month’s 16.08 million.
Across the pond, European stocks are mostly lower in mid-day trading as the eurozone’s preliminary Consumer Price Index came in softer than expected in June, with headline and core inflation easing to 2.8% and 2.4% YOY, respectively. The U.K.’s Nationwide House Price Index for June showed little change MOM and increased 2.2% YOY. The finalized June manufacturing PMIs for France, Germany, and the eurozone were revised higher to 51.2, 50.3, and 51.4, while the U.K.’s PMI was revised lower to 52.5.
Overnight in Asia, stocks were mixed as China’s private manufacturing PMI for June unexpectedly declined to 51.7. Japan’s second-quarter Tankan survey showed an improvement in both the Large Manufacturing Index and its outlook component, while the Large Non-Manufacturing Index also edged higher, though its outlook component weakened. Meanwhile, the country’s Consumer Confidence Index improved less than forecasted in June. The finalized June manufacturing PMI for Japan was revised lower to 54.8, while Australia’s reading was revised higher to 51.5. South Korea’s June trade surplus widened more than forecasted following greater-than-expected increases in both exports and imports, while the country’s manufacturing PMI for June fell to 52.1.
In FOREX trading, the U.S. dollar is slightly higher ahead of today’s U.S PMI and labor market data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.9% lower at $68.89/barrel as investors continue watching for developments in U.S.-Iran negotiations.
In the metals complex, gold is little changed at $4,006.64/ounce.