The Dow rises to another record high heading into the extended holiday weekend as chipmakers continue to struggle. Kelly Evans is joined by Wells Fargo’s Darrell Cronk and MJP Wealth Advisor’s Brian Vendig to break down their initial reaction to the June jobs report and look ahead to their strategy for the second half of the year. Meanwhile, Harris Oakmark’s David Herro joins the show to explain where he is investing overseas and AccuWeather’s Bernie Rayno gives the July 4th weekend forecast as millions of Americans are under a heat advisory. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Reacting to June Jobs Report, Looking to Oversea Opportunities, and Testing the U.S. Power Grid 7/2/26

Power Lunch

# Full Transcript

**Podcast:** Power Lunch

## Transcript

Welcome to Power Lunch. I'm Kelly Evans. Brian Sullivan will be back on Monday. A record run for the Dow in this shortened holiday week. The Blue Chip Index rallying more than 300 points to another all-time high today, even after the big miss in the jobs report today. So what's driving the move? Industrials and healthcare are breaking out to new highs.

And we're looking overseas. South Korea has been the can't-miss trade of the year, soaring more than 80%. But Harris Oakmark's David Harrow says the best opportunities now lie elsewhere. In fact, he'll reveal the two countries at the top of his buy list. Plus, the summer heat wave is putting America's power grid to the test. Triple-digit temps are driving electricity demand higher as millions crank up the air conditioning, raising questions about grid reliability. And one way to beat the heat is minions and monsters.

The seventh installment in the Despicable Me franchise hits theaters. And we'll look at what that means for the summer box office. But let's begin with these markets, with the Dow hitting a new all-time high, while the Nasdaq and S&P come under some more pressure as the chip stocks and memory names struggle. This all follows the weaker-than-expected jobs report. 57,000 jobs in June versus the 115,000 forecast. Let's bring in our panel for more on what this means for the economy, the Fed, the markets, your money.

Daryl Kronk is CIO for Wealth and Investment Management at Wells Fargo. And Brian Daly is CIO of MJP Wealth Advisors. Daryl, I'll start with you. I'm glad you could be here. And, I mean, look, a lot of today's trade, you could argue, goes back to Apple looking for other Chinese memory suppliers and just kind of a loss of momentum in the AI infrastructure and those hot parts of the market. What do you think is going on here?

Yeah, obviously, there is loss of momentum. If you look at momentum as a factor, right, it's been getting hit pretty hard here, I would say, in the last week. It seems to be this kind of durable rotation under the surface where you're starting to fade some of the build stocks of the phase one AI. And people are migrating into and towards more of the kind of monetize and implement stocks.

So things like storage, memory, equipment, those type of things instead of just the semis and hyperscalers. We still like tech. We actually took tech to a favorable in mid-April and used proceeds at the time from energy, when you'll recall, we were about at a peak of energy stocks, to fund that overweight. And that trade so far since mid-April on a Paris trade basis has been a plus 35% for us.

So it's been incredibly good. We still think tech kind of powers through this, but we do think, you know, you take a little froth off here through the summer months. So if you've got that next marginal dollar to invest, I think you can be patient through July and August as some of this churn and the repositioning happens...

Reacting to June Jobs Report, Looking to Oversea Opportunities, and Testing the U.S. Power Grid 7/2/26

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Reacting to June Jobs Report, Looking to Oversea Opportunities, and Testing the U.S. Power Grid 7/2/26

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.