Mid-Morning Look

Monday, July 07, 2025

U.S. stocks seeing a little breather after solid gains last week, with the S&P 500 and Nasdaq closing last Thursday at record highs as investors prepare for potentially catalyst filled week. President Trump said on Truth Social late Sunday that “tariff letters and/or deals” will be delivered from midday Monday and threatened an additional levy on countries aligning themselves with the “Anti-American policies” of the Bric’s group of emerging economies. “Any Country aligning themselves with the Anti-American policies of Bric’s, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump said. Those comments trumped those of Treasury Secretary Bessent this weekend who warned tariffs to revert to ‘Liberation Day’/steeper levels though also signaled some leeway with levies taking effect 1- Aug. He said focus is on 18 major partners and several big agreements are close (the US will reportedly start sending tariff letters to countries starting today). Meanwhile, latest reports suggest US difficulties reaching agreement with Japan, South Korea and India.

No major earnings or Fed speakers today, but several key items Wall Street focusing on this week include: 1) the start of Amazon Prime Day (Tuesday), the ending of 90 day tariff pause on Wednesday along with the U.S. 10-yr Treasury auction and the FOMC prior Meeting Minutes and then on Thursday 7/10, Jobless Claims, the 30-year Treasury auction and Q2 earnings kick off with Delta (DAL) in airlines (big banks not until next week). Big week of Treasury issuance, with $119B coming up for auction: $58B in 3s on Tuesday, $39B in 10s on Wednesday, and $22B in 30s on Thursday. Gold prices fall as the dollar and Treasury yields rise.

• In Metals & Mining: RGLD said it will acquire both Sandstorm Gold (GOLD) and Horizon Copper (HNCUF) and reinforce its position as a leading North American gold-focused streaming and royalty company. Royal Gold said it will acquire Canada’s Sandstorm Gold for an equity value of about $3.5 billion. First Mining Gold (FFMGF) said that it will sell its remaining stake in a Newfoundland mining project to Big Ridge Gold in a cash and stock deal (entered into an agreement with Big Ridge Gold to sell its last 20% interest in the Hope Brook Gold Project for 3 million Canadian dollars ($2.2 million) and 7 million Big Ridge shares).
• In Casinos/Gaming: Goldman Sachs initiates on WYNN and CZR at Buy, initiate on LVS ($52 tgt) at Neutral and MGM ($34 tgt) at Sell as they stay cautious due to their large-scale projects not opening until 2030+ and the upcoming capex cycle. Goldman Sachs said lean into casinos with exposure to high quality assets; clear catalyst path; near-to-medium term earnings growth; and strong FCF generation without a daunting capex cycle ahead. Favor Las Vegas and International over Regional. While near-term Las Vegas trends have been muted, see upside for companies exposed to high-end demographics with a focus on key marquee-driven events.
• In Crypto: CRWV to acquire CORZ in all-stock deal as Core Scientific holders to receive 0.1235 CRWV shares as exchange ratio implies $9B equity value and deal represents $20.40 per share value; IREN said posted record monthly revenue and hardware profit; 50 EH/s mid-year target achieved; AI Cloud expanded with ~2.4k Blackwell GPUs; $550m convertible notes offering oversubscribed; CLSK released its unaudited Bitcoin mining and operations update for the month ended June 30, 2025 as produced 685 Bitcoin in June and now holds a bitcoin treasury of 12,608 BTC, ranking seventh among all publicly traded companies worldwide; MSTR said during qtr ended June 30, achieved $14.05B unrealized gain on digital assets and its digital asset value at $64.36B as of June 30; FUFU said its Bitcoin production increased 11.3% M/M in June to 445 Bitcoin.

• GEO +4% along with gains in CXW for Prison REITs after the Senate and House of Representatives approved Donald Trump’s tax and spending bill that will add billions of dollars for immigrant detention centers.
• KALV +16%; announced that the U.S. FDA has approved EKTERLY, a novel plasma kallikrein inhibitor, for the treatment of acute attacks of hereditary angioedema in adult and pediatric patients aged 12 years and older. KalVista will launch EKTERLY in the U.S. immediately and physicians can begin writing prescriptions today.
• UBER +2%; seeing rivals of TSLA bouncing in several sectors given Musk comments about he had created the America Party after reigniting a feud with Trump over the mega bill that passed last week
• WNS +14%; as Capgemini agreed to buy the provider of business process-management technology WNS for $3.3B in cash, offering $76.5 per share, which represents a premium of 17% to the stock’s closing price on Thursday.

• CRWD -2%; was downgraded from Overweight to Neutral at Piper as shares have encroached on its $505 price objective (both base and bull cases), and it does not foresee a near-term scenario that would meaningfully increase numbers or its terminal multiple.
• HIMS -6%; after Truist Card Data trends point to revenues likely in-line to slightly below consensus in Q2. Analysis indicates HIMS’ revenues are likely to come in in-line to slightly below consensus and the firm said they remain cautious as we see risks to HIMS’ 2025 revenue guide.
• JSPR -51%; after saying its experimental drug, briquilimab, achieved a complete response at week 12 in an early-stage study to treat a skin condition called chronic spontaneous urticaria; the company says it halted the drug’s asthma trial due to the same drug product lot issue.
• MOH -1%; said it sees Q2 adjusted EPS $5.50, below consensus $6.21 and now expects its full year 2025 adjusted earnings to be in the range of $21.50 to $22.50 per share (vs. est. $24.48) driven by recent market dynamics and off-cycle disclosures from others in the managed health care sector.
• TSLA -7%; after CEO Elon Musk said he had created the America Party after reigniting a feud with Trump over the mega bill that passed last week. “Today, the America Party is formed to give you back your freedom,” Musk posted on his social-media platform, X.