Macro Events & News
As expected, the holiday-shortened week was relatively quiet in terms of market activity. One of the more significant developments was the passage of the comprehensive legislative package championed by the Republican Party. Despite some speculation about bipartisan compromise, the bill advanced along party lines and passed both the House and Senate, where Republicans currently hold the majority. Its passage removes a layer of uncertainty for markets and may provide a modest boost to economic sentiment. That said, given the bill’s size and scope, the full implications—positive or negative—on specific sectors and industries may take time to materialize as details are digested.
In trade news, a deal was finalized with Vietnam, adding to the short list of international agreements ahead of the July 9 expiration of the 90-day reciprocal tariff pause. The administration has promised more announcements to come, which could offer further relief to supply chains and support market confidence.
On the macro front, data was generally constructive. The Manufacturing Purchasing Managers’ Index (PMI) showed a modest 0.5 percentage point improvement over May, while the Services PMI returned to expansion territory at 50.8—indicating mild but positive momentum in the services sector. Labor market data was mixed: the Labor Department reported stronger-than-expected job growth in June and a slight decline in unemployment, but the ADP report showed a small contraction in private-sector payrolls. Together, the figures paint a picture of a labor market that remains stable, though possibly softening at the margins.
The 10-year Treasury yield inched higher to 4.35% on Thursday after the better than expected jobs report. The VIX was higher for the week, closing at 17.48.
All the major indexes had ended higher for the week: the Dow up 2.3%, the S&P 500 up 1.7%, and the Nasdaq up 1.6%.
Watchlist News
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Apple Inc (NASDAQ:AAPL) broke out of its recent consolidation pattern on Monday following reports that either OpenAI or Anthropic could power future versions of Siri. The stock gained further momentum through the week, riding the broader market rally sparked by the passage of the legislative bill and the announcement of a trade deal with Vietnam—both of which reduced macro uncertainty.
august bear notes
Apple had been underperforming relative to the rest of the Mag 7 and had been stuck in a consolidation range. The AI partnership rumors were not entirely new, but they provided just enough narrative to trigger a technical breakout. The Vietnam trade deal is particularly relevant, as it helps reduce geopolitical risk in one of Apple’s key manufacturing hubs. While Jeffries upgraded the stock last week, their mixed commentary—strong China-driven Q3, but weaker Q4 guidance—suggests the move wasn’t purely fundamentals-driven. More likely, this was a sentiment-driven breakout that could continue if broader tech momentum holds.
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Accenture PLC (NYSE:ACN) Accenture continued its slow recovery last week following its disappointing Q2 earnings report in late June. A rebound in overall market sentiment helped, along with the announcement of a deeper partnership with Palantir (NASDAQ: PLTR), a current retail favorite. Accenture also announced the acquisition of SYSTEMA, a German firm focused on automation for semiconductor manufacturing.
august bear notes
The initial post-earnings selloff appears to have been overdone, with support found near the 325-day moving average. As expected, the rebound is unfolding gradually, but positive news like this week’s partnership and acquisition announcements help accelerate the process by tying Accenture to high-momentum sectors and companies. Additionally, the passage of the legislative bill and trade deals could improve client visibility and reduce hesitation in committing to major technology projects.
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Baidu Inc (NASDAQ:BIDU) traded relatively flat last week. The company announced the launch of an open-source version of its ERNIE AI model and made internal management changes, but neither development produced any sustained move in the stock. Mixed macro data out of China on Monday—particularly the contrast between strong retail sales and ongoing weakness in industrial output and housing—may have limited enthusiasm.
august bear notes
Baidu is firmly in consolidation mode, and from a technical standpoint, this range is beginning to look like a potential setup for a breakout. The company continues to invest in growth areas such as AI, cloud computing, and autonomous vehicles, but faces pressure from softening ad revenue and growing concerns about its relationship with Beijing—especially following its absence from a recent high-profile tech summit with President Xi Jinping. Despite the risks, the current levels may represent an attractive risk-reward entry point for long-term investors, particularly if macro sentiment toward China improves.
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Berkshire Hathaway Inc (NYSE:BRK/B) traded as high as $491 early in the week before pulling back sharply to $479 on Wednesday. A modest recovery on Thursday’s shortened session helped it close the week roughly flat. There were no material company-specific headlines.
august bear notes
The stock continues to find support in this range, forming a tight three-week trading range that may be establishing a new base. Given the current “risk-on” market environment, Berkshire’s large cash position could act as a short-term drag on performance. Any move is likely to be gradual, and this ongoing consolidation presents an opportunity for long-term investors to add to a historically resilient and well-managed compounder. The lack of volatility here could be a positive for those seeking portfolio stability amid broader macro uncertainty.
