Market Reacts to Jobs Report, Key Stock Movements in Tech, Airlines, and Healthcare

1. The June jobs report came in weaker than expected, with nonfarm payrolls up 57,000 versus the Dow Jones consensus of 115,000. Stock futures are strengthening in response, and the yield on the Fed-sensitive 2-year Treasury is falling. The market is taking this as a sign that the central bank won't need to be as hawkish near term. Oil continues to fall, which eases the inflationary pressures, too. (The stock market is closed tomorrow in observance of the Fourth of July, which is on a Saturday this year.)

2. OpenAI has considered giving the U.S. government a 5% stake in the company, the Financial Times reported. Part of CEO Sam Altman's argument, according to the FT, is that this would help the public share in the upside of AI. Worth noting: We've seen the Trump administration turn up the heat on OpenAI's main rival Anthropic.

3. Palantir was upgraded to buy from hold at DA Davidson. Price target of $175 implies almost 40% upside for the stock, which is having a rough year like so many others in software. The data analytics company is growing at an impressive clip, analysts said, making the stock's valuation the most attractive it's been in a while. They called it a "gift" just in time for America's 250th birthday.

4. Nvidia is introducing a new business model for fast-growing AI startups, with the chipmaker offering quick access to compute power in exchange for a piece of future revenue. Interesting move? Yes. But Club name Nvidia still needs to start buying back stock hand over fist to reignite its stock and close the underperformance gap versus its chip peers.

5. Meta is down a few bucks this morning as the market chews on news that it's planning a cloud business to sell AI computing power. This is an incredibly lucrative business model, so it's difficult to believe Meta was only up 8.8% yesterday. This is worth a whole lot more than that. JPMorgan called it highly additive to Meta's current AI efforts, but said its preference would be developing core AI products. Can it do both?

6. BMO Capital started Club name Honeywell Aerospace with a buy and a $276 price target, implying roughly 21% upside from yesterday's close. Analysts said that a supply chain unlock is key to its investment story. I think a merger is a possibility for this one.

7. Goldman Sachs loves the airlines as fuel prices come down, raising its PTs on Delta Air Lines ($116 from $80) and United Airlines ($162 from $131). Revenue trends are strong, too. Goldman kept both at a buy. Instead, I would think about buying Club stock Boeing. We believe in the turnaround story under CEO Kelly Ortberg.

8. DuPont 's price target was nudged up to $170 from $168 at Citi. Another beneficiary of lower fuel prices and cooling Middle East tensions. I haven't been thrilled with this Club stock. DuPont wisely spun off its electronics business Qnity in November, and that's been a star for us. Now, I want DuPont CEO Lori Koch to take action to boost the company's exposure to healthcare and water.

9. Bank of America increased its General Mills price target to $39 from $36, but kept the stock at a hold. Shares soared 8.5% yesterday after reporting a blowout quarter and announcing multiyear cost-cutting targets. Other food stocks rose in sympathy. I don't think this means the struggling group has turned the quarter, so I wouldn't chase the moves.

10. Cardinal Health 's price target was upped to $260 from $240 at BofA. Analysts see relative upside to consensus and continued execution at the healthcare distributor. There's been an impressive comeback in healthcare stocks in recent weeks. I admit we started buying Cardinal too early back in March, but we took advantage of a pullback prior to this rally to scale up our position since we didn't see anything wrong with the business.