The economic data will dominate headlines this morning. The Bureau of Labor Statistics will post non-farm payrolls for June. DOGE – the Department of Government Efficiency, which Tesla (TSLA), Elon Musk left, is a concern.
DOGE will account for at least 280,000 in government job cuts. However, the laid-off federal staff will still receive severance pay. As a result, they will not show up in the NFP report.
In the retail sector, VF Corp (VFC), Columbia Sportswear (COLM), and Abercrombie & Fitch (ANF) want to break out. Their stock price tested lows for the year but did not fall further. Investors are willing to bet that apparel sales will not weaken as much as previously thought.
Persistent inflation is above 2.0%, while disposable income is falling. Furthermore, U.S. tariffs against its trade partners will raise prices for Americans by at least 10%. 50% tariffs on steel and aluminum will raise prices for vehicles. Yet Ford Motor (F) shares gained 12.3% in the last week.
On July 1, Ford posted Q2 vehicle sales rising by 14.2% to 612,095 units. It gained 1.8% in market share, to 14.3%. Ford sold 19.3% more SUVs, 11% more trucks, and 3.2% more cars.
Investors might consider taking profits in F stock. The pull-ahead demand is a result of consumers avoiding tariffs. Similarly, General Motors (GM) gained 9.45% in the last week, closing at $52.68. Readers might also consider locking in profits on GM stock.
