Tesla powers S&P 500, Nasdaq to record highs

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Record highs
The S&P 500 and the tech-heavy Nasdaq Composite closed at record highs in a shortened session ahead of the July 4 Independence Day holiday. Megacap technology stocks, Tesla and Nvidia, led the charge. The Dow Jones Industrial Average was little changed, weighed down by UnitedHealth. The yield on the 10-year Treasury fell as the latest economic data indicated the jobs market was cooling. U.S. oil prices edged higher as demand rose ahead of the holiday.  

‘Greater confidence’
Federal Reserve officials at their June meeting noted that while inflation was improving, it wasn’t yet enough to lower interest rates, according to minutes released Wednesday. “Participants affirmed that additional favorable data were required to give them greater confidence that inflation was moving sustainably toward 2 percent,” the meeting summary revealed. Despite some officials advocating for potential rate hikes, the Federal Open Market Committee ultimately decided to hold rates steady.

Job growth slows
Private payroll growth slowed in June, with companies adding 150,000 jobs compared to May’s 157,000, according to ADP. This was below expectations and marked the weakest growth since January, potentially signaling a cooling labor market. “Job growth has been solid, but not broad-based,” said ADP’s chief economist, Nela Richardson. “Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.” The ADP report precedes the Labor Department’s broader nonfarm payrolls data due Friday, which is projected to show 200,000 jobs were added.

Poison pill
Southwest Airlines adopted a “poison pill” shareholder rights plan in response to activist investor Elliott Management’s stake and push for leadership changes. The plan, triggered if any investor acquires 12.5% or more of the company, allows other shareholders to buy discounted shares, effectively diluting the activist’s stake. Elliott currently holds around 11% of Southwest and has criticized the airline’s performance compared to competitors and pushed to oust CEO Bob Jordan and Chairman Gary Kelly.

JPMorgan’s Kolanovic leaves 
Marko Kolanovic, JPMorgan’s chief global markets strategist and co-head of global research, and one of the biggest bears in the bull market, is leaving the firm. Known for accurately predicting a stock market rebound during the Covid-19 pandemic, Kolanovic has been bearish recently despite market highs. JPMorgan’s year-end S&P 500 prediction is 4,200, the lowest among major firms. Officially the call has been credited to Dubravko Lakos-Bujas, who will takeover as the chief markets strategist. The S&P 500 is up nearly 17% this…