May construction spending, on the other hand, was up 0.9% month-over-month (m\/m), exceeding the consensus expectation of 0.6%. Driving the monthly gains were the residential and manufacturing categories, each rising 2.1% and 1.0% m\/m, respectively. The residential segment has benefitted from renewed demand while inventory of existing homes for sale has remained low because homeowners have little incentive to sell in a weaker real estate market and assume larger mortgage payments on another home purchase due to mortgage rates almost tripling since pandemic era lows. Residential construction spending grew for the second consecutive month while manufacturing construction spending rose for the fifth consecutive month to a fresh all-time high. Within the construction industry, the manufacturing segment continues to grow as companies want to onshore manufacturing operations in order to prioritize security and reliability over short-term profitability.<\/p>\n\n\n\n Markets are muted during today\u2019s shortened session on the eve of Independence Day. Equities are near the flatline while bond yields are climbing 1 to 3 basis points (bps) across the curve. The 2- and 10-year Treasury maturities are up 3 and 2 bps to 4.91% and 3.84%, widening the inversion to 107 bps. The Dollar Index is quiet as well, climbing only 4 bps to 102.95 as we await a big Jobs report this Friday that may shift Fed tightening expectations. Equities are quite unchanged with the only major index firmly in the green being the Russel 2000, which is up 0.3%. The S&P 500 Index is flat with mixed performances among sectors. Crude oil is up 0.3% to $70.84 per barrel on news that Moscow and Riyadh will both reduce oil supply in August.\u00a0 Saudi Arabia\u2019s 1 million barrel per day production cut serves as an extension of a previous announcement. Coming on the heels of the Saudi extension this morning, however, Russia\u2019s statement that it would cut oil exports by 500,000 barrels per day in August came as a surprise.<\/p>\n\n\n\n Tesla is bucking the trend of weak sales for goods. The company, which has an approximate 62% share of the U.S. electric vehicle (EV) market, posted second-quarter deliveries that significantly exceeded expectations, a result of government subsidies for EV buyers and the company dropping its prices. Automobile manufacturer BYD, which is competing for customers in China, one of Tesla\u2019s key markets, also generated strong second-quarter results. Tesla\u2019s stock soared roughly 6.8% this morning as investors focused on the company delivering 466,000 vehicles, up from 423,000 in the first quarter and exceeding the analyst consensus expectation of 448,350. On a year-over-year basis, deliveries climbed 83%, a result of the company increasing production in Austin, Texas, and in Germany. Additionally, in the year ago quarter, deliveries were dampened in China by Covid-19 restrictions. However, the strong delivery results alleviated fears that Tesla could face excessive inventory. The results combined with Tesla\u2019s upcoming launch of its Cybertruck model, also fueled optimism that Tesla can continue to grow its deliveries in the coming quarters. Tesla deliveries jumped after the company reduced its prices and added three months of free charging. Additionally, new rules provide buyers of certain EVs with a $7,500 tax credit. Tesla is scheduled to announce earnings and other results on July 19. While some investors believe Tesla\u2019s strong deliveries point to its potential for growth in the coming quarters, the company faces stiff competition from BYD. Of the 700,244 cars BYD sold in the second quarter, half were EVs.<\/p>\n\n\n\n![\"Onshoring](\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/07\/Picture1.png\")
<\/figure>\n\n\n\nTraders Prepare for July 4<\/strong><\/h2>\n\n\n\n
Tesla and BYD Post Strong Results<\/strong><\/h2>\n\n\n\n
Services Industries Could Follow Manufacturing Into Contraction Territory<\/strong><\/h2>\n\n\n\n
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