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- 📈 Datadog's S&P 500 Coronation
📈 Datadog's S&P 500 Coronation
Microsoft Axes Thousands Across Divisions, ElevenLabs Eyes Global IPO Push, OpenAI Inks $30B Oracle Deal, Del Monte Files Bankruptcy Protection, Netflix Doubles Down on Live
Good morning.
⚡ The Fast Five → Microsoft Axes Thousands Across Divisions, ElevenLabs Eyes Global IPO Push, OpenAI Inks $30B Oracle Deal, Del Monte Files Bankruptcy Protection, Netflix Doubles Down on Live
🔎 Market Trends → S&P 500, Nasdaq end higher on Vietnam trade deal, tech stocks; US Futures Subdued as Investors Eye Key Employment Data
And now…
⏱️ Your 5-minute briefing for Thursday, July 3, 2025:
MARKET BRIEF
Before the Open

As of market close 07/02/2025.
Pre-Market
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Fear & Greed

Markets in Review
Nasdaq, S&P Hit Records as Vietnam Deal Revs Up Tesla, Eases Tariff Jitters
Wall Street rallies on trade clarity and Tesla’s long-awaited bounce. Nasdaq +0.9% to 20,393.1 and S&P 500 +0.5% to 6,227.4 closed at fresh all-time highs. The Dow slipped -0.02%, pausing after a 4-day climb.
The Big Picture:
President Trump’s new trade deal with Vietnam reignited market momentum, offering a shot of certainty after weeks of tariff tensions. While Vietnam will now face a 20% tariff—up from April's 10%—investors largely viewed it as a manageable midpoint.
Tesla (TSLA) led the charge, breaking its six-day losing streak. Energy stocks surged alongside a 3% spike in oil prices, while health care dragged.
Yields ticked higher as markets digested a mixed labor picture. Private job losses and cautious hiring hint at a cooling economy—yet inflation remains sticky, keeping the Fed on pause.
Market Movers:
Tesla (TSLA) +4.97%: Despite a drop in Q2 deliveries, the results beat “whisper numbers,” according to Wedbush, triggering a relief rally as investors recalibrated growth expectations.
Centene (CNC) -40.37%: The health insurer pulled its full-year earnings forecast, citing disappointing state revenue—raising red flags over Medicaid stability.
Packaging Corp. of America (PKG) +7.59%: Continued to benefit from its $1.8B acquisition of Greif’s containerboard unit, solidifying its edge in logistics.
What They’re Saying:
“Most investors had already baked in higher Vietnam tariffs... today’s deal simply confirmed the new normal.”— Truist Securities
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Average Hourly Earnings m/m - 8:30am
Why You Should Care: It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer;
Today: Bureau of Labor Statistics - Non-Farm Employment Change - 8:30am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity;
Today: Bureau of Labor Statistics - Unemployment Rate - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy;
Today: Institute for Supply Management - ISM Services Purchasing Managers' Index (PMI) - 10:00am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy;
Earnings Reports
Today: No noteworthy earnings reports
Tomorrow: U.S. Stock Market Holiday
MARKET BRIEF
Leading News
Datadog's S&P 500 Coronation: A $49B Cloud Monitoring Play Gets Its Due

Photo Credit: Chris Jung | Nurphoto | Getty Images
Why it matters:
Index inclusion triggers mandatory buying from passive funds, creating a technical tailwind for a profitable tech company that's been unfairly punished this year.
Zoom Out:
The S&P 500's latest tech addition reflects a broader truth: cloud infrastructure isn't just growing—it's becoming mission-critical. Datadog (DDOG) provides the digital equivalent of air traffic control for companies juggling thousands of cloud applications, servers, and databases.
While the stock jumped 10.8% in premarket trading Wednesday, this isn't just index euphoria. The company's $49 billion market cap rests on genuine fundamentals: $761.6 million in quarterly revenue with actual profits, a rarity in today's "growth at any cost" landscape.
The timing is particularly shrewd. Datadog was down 5.5% year-to-date before the announcement, while the S&P 500 gained 5.4%—creating a rare value opportunity in the monitoring software space.
Key Insights:
Index fund mechanics: Passive funds managing roughly $7 trillion must buy DDOG shares before July 9, creating predictable demand regardless of market sentiment
Competitive moat: Unlike flashy AI plays, Datadog's "observability" platform becomes stickier as companies' cloud complexity grows—think digital plumbing that's expensive to replace
Profitable growth: $24.6 million net income on $761.6 million revenue suggests management discipline in a sector known for cash burn
Market Pulse:
"This is about structural demand meeting a quality operator," notes one institutional investor tracking the cloud monitoring space.
Bull’s Take:
S&P 500 inclusion validates Datadog's transition from growth story to blue-chip infrastructure play—exactly what smart money wants in an uncertain macro environment.
Headlines
Tech Giant Microsoft Lays Off Thousands, Hits Xbox and Sales Teams (link)
AI Giant Warns Robinhood Tokens Aren't Authorized Equity (link)
AI voice startup ElevenLabs pushes global expansion as it gears up for an IPO (link)
OpenAI signs $30bn data center deal with Oracle (link)
Del Monte Files for Bankruptcy as Canned Food Sales Slide (link)
Netflix continues its big push into live television (link)
CRYPTO
Fear & Greed

Headlines

*Hat-tip to wallstmemes