MORNING SQUAWK - What you Think?

 

JULY 3, 2023

MORNING SQUAWK

1. Markets look for second half fireworks Stocks will open the second half of the year with a shortened trading day. Markets will shut down at 1 p.m. ET ahead of the July 4 holiday, and stay closed through Tuesday. Equities enjoyed a strong first half — though the gains are uneven across the major indexes. Hopes about artificial intelligence helped to fuel a 31.7% first-half spike for the tech-heavy Nasdaq.. The S&P 500 climbed 15.9%, but the Dow Jones Industrial Average trailed with a 3.8% gain. As the second half kicks off, traders will have their eye on the June jobs data due Friday. Follow live market updates here.   2. Yellen heads to China Treasury Secretary Janet Yellen will meet with top Chinese officials in Beijing this week. Her trip comes as the U.S. moves to boost engagement with China amid years of heightened rivalry between the world's two largest economies. The U.S. is reportedly considering restrictions on AI chip exports from China, which would mark only the latest salvo in a long economic conflict between the nations. The Treasury Department said Yellen will speak with Chinese officials about "the importance for our countries – as the world's two largest economies – to responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges." The Treasury secretary outlined her priorities for the U.S.-China relationship earlier this year.

3. Tesla deliveries jump Tesla deliveries surged in the second quarter. The company delivered 466,140 vehicles for the period, an 83% increase year over year. The total beat Wall Street's expectations. The spike follows the electric automaker's efforts to boost manufacturing capacity, and comes after it offered incentives to increase sales in the U.S.   4. Flight delay deluge Storms — and the often related staffing shortages — led to a cascade of flight delays during the busy July 4 travel period. More than 42,000 flights arrived late and more than 7,900 were canceled from last Saturday through Friday. United had a worse time than its rivals, prompting the airline to offer 30,000 frequent flyer miles to the most disrupted passengers. It will even consider tweaking its schedule following the rough patch.   5. A consequential Supreme Court term The conservative majority Supreme Court on Friday wrapped a term that will have massive implications for millions of Americans for years to come. It rejected affirmative action in college admissions, a decision that will not only influence whether students of color get into universities, but also could affect hiring decisions at companies. The court ruled in favor of a web designer who refused to work on same-sex weddings — an opinion that could affect how businesses treat other protected groups. It also struck down President Joe Biden's plan to forgive up to $20,000 per borrower in federal student loans, as millions of Americans start to factor the resumption of loan payments into budgets already stretched thin by stubborn inflation.   — CNBC’s Jacob Pramuk wrote this newsletter. Samantha Subin, Fred Imbert, Christine Wang, Lora Kolodny, Leslie Josephs, Dan Mangan and Annie Nova contributed.   — Follow Squawk Pod for the best conversations and analysis from Squawk Box in a curated, daily podcast.    Correction: Friday's newsletter misstated when Apple stock first crossed a $3 trillion market valuation. It was January 2022.