Good morning! Stocks dropped after Trump announced steep tariffs on 14 countries set to take effect August 1. Tesla lost $68 billion after Elon Musk announced his own political party. Trump posted that he’s saddened to see Elon go completely “off the rails.”

Zuck poached Apple’s top executive overseeing AI models, dealing another blow to the iPhone maker’s struggling AI efforts. CoreWeave is acquiring Bitcoin miner Core Scientific in a $9 billion deal. Jack Dorsey is rolling out a WhatsApp rival that operates via Bluetooth.

Plus: Every American newborn will now receive a $1,000 investment account, more retailers are opening coffee shops, and ‘overtourism’ is straining Europe.

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SQUEEZ OF THE DAY

Dividend Taxes Are So 2024

Wall Street just engineered a workaround for one of investing’s biggest headaches: dividend taxes, and this time, it’s not tucked away in the Caymans.

Roundhill Investments is launching $XDIV, a new ETF launching July 10, designed to track the S&P 500 while avoiding taxable dividend payouts.

Here’s how it works: XDIV will hold traditional S&P ETFs like $VOO, then rotate out of those positions just before dividend dates, swapping into similar funds that aren’t about to distribute income.

The idea is to maintain exposure to the S&P 500’s total return while dodging the taxable income that shows up on your 1099.

High-earners pay a federal tax of 15-20% on qualified dividends, with total rates topping 30% in states like New York or California. If you’re not depending on the income, you’re essentially paying a tax penalty for simply holding broad-market ETFs. 

Importantly, skipping the dividend doesn’t necessarily mean sacrificing returns. When companies pay dividends, their stock price typically drops by the same amount. By selling beforehand, the ETF gives up the payout but sidesteps that price dip, theoretically leaving the investor in roughly the same economic position but with greater tax efficiency.

Think of it as a stealth recap: you keep the upside but restructure how it’s delivered.

Takeaway: XDIV aims to replicate the S&P 500’s performance without triggering taxable payouts. It’s the latest sign that tax optimization is no longer exclusive to private wealth circles, as public-market tools become more sophisticated. Uncle Sam might be the only one not cheering for this ETF.

HEADLINES

Top Reads

• Trump announces steep tariffs on 14 countries starting Aug. 1 (CNBC)

• Trump sends tariff letters, placing 25% levies on top allies (Axios)

• Tesla stock sinks as Musk's 'America Party' worries investors (YF)

• Mark Zuckerberg poaches Apple’s top AI executive (BB)

• CoreWeave will acquire Core Scientific for $9 billion (CNBC)

• "Choppy" is the new "uncertainty" on Wall Street (Axios)

• Private credit’s boom fueling warnings of financial contagion (CNBC) 

• KKR fails to get any acceptances for $2.32B Assura takeover bid (WSJ)

• Jack Dorsey launches a WhatsApp messaging rival built on Bluetooth (CNBC)

• Saudi fund invests hundreds of millions in proposed NYC skyscraper (WSJ)

• Robinhood stock tokens face scrutiny in the EU after OpenAI warning (CNBC)

• NYC real estate dealmakers brace for battle with Mamdani’s policies (NYP)

• Trade deals come and go. Can stocks rally either way? (Axios)

• Investors expect Bitcoin to break out to new records in second half (CNBC)

• America's newborns to get $1,000 investment accounts (Axios)

• More retailers are opening coffee shops inside stores (Fortune)

• Overtourism strains Europe (BB)

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CAPITAL PULSE

Markets Rundown

Market Update

• Stocks closed lower to start the week, as new tariff announcements weighed on sentiment.

• Utilities and consumer staples outperformed, while consumer discretionary and materials lagged.

• Asia finished mixed overnight; Europe closed higher as eurozone retail sales slowed to 1.8% annualized, above expectations.

• The U.S. dollar advanced, and WTI oil rose despite OPEC+ hiking output more than expected at its July 6 meeting.

Reported Earnings

• No significant earnings reported.

Earnings Today

• AEHR Test Systems (AEHR) – Reporting July 8 (After Market Close): Focus on silicon carbide test demand and exposure to EV supply chains.

Movers & Shakers

• (+) Rocket Lab ($RKLB) +9% after Cantor Fitzgerald reiterates overweight rating; SpaceX backlash could benefit the company.

• (–) Tesla ($TSLA) -7% because Elon Musk announced plans to launch a new political party.

• (–) Core Scientific ($CORZ) -18% after investors make sense of the CoreWeave merger.

Private Dealmaking

• CoreWeave to acquire Core Scientific for $9 billion

• TPG acquired an additional 70% stake in DirecTV for $7.6 billion

• Capgemini bought WNS Holdings for $3.3 billion

• CarOnSale, a B2B marketplace, raised $82 million

• Field Medical, a cardiac ablation technology developer, raised $35 million

• Wonderful, a chatbots provider, raised $34 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Sleep Drink Breathe

Description: From the renowned "Sleep Doctor," Dr. Michael Breus delivers a surprisingly simple wellness manual: optimize your sleep, hydration, and breathing to supercharge energy, clarity, stress resilience, weight stability, and mental health. Through a science-backed three-week regimen, real patient stories, and approachable habits, he shows how mastering these basics can transform well-being.

Rating:
• Amazon/Barnes & Noble: 5.0 / 5
• Goodreads: 4.2 / 5

Book Length: 320 pages

Ideal For: Anyone wanting foundational, science-backed habit change—especially wellness seekers, biohackers, executives, or those recovering from burnout, chronic fatigue, or stray habits.

“A manageable plan, offering profound long‑term benefits for both mind and body—it’s a must‑read for anyone serious about wellness.” — Daniel G. Amen, MD

DAILY VISUAL

Elon Musk Challenges America’s “One-Party” System

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DAILY ACUMEN

Energy

In any room, your energy compounds—up or down.

Science calls it positive relational energy: the emotional charge we give others through presence, encouragement, and care.

It’s not about being cheerful; it’s about being real, engaged, and generous.

Top performers aren’t just smart—they uplift. They leave others feeling valued, not depleted. And over time, that impact outweighs resumes and credentials.

People may forget what you said—but they’ll remember how you made them feel.

That’s leverage.

ENLIGHTENMENT

Short Squeez Picks

• The skills and habits aspiring CEOs need to build

• Why mistakes linger in your memory

• 5 minute micro-organizing tasks

• Tricks to be more confident with public speaking

• 10 lifestyle hacks for organizing your home

MEME-A-PALOOZA

Memes of the Day

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