Hey Capitalists,

The anti-ICE riots in LA have radical leftist organizations’ fingerprints all over them. The tragic 787 crash in India spells bad news for Boeing. Treasury Sec. Scott Bessent says he is open to extend tariff pauses on one condition. Trump is considering replacing Jerome Powell with a strong ally, and a major bank just improved its outlook on the American economy.

Let’s break it down for you:

• The Top Line Market Numbers:

• DOW: 42911.32 (⬆️0.11) ✅

• S&P: 6040.77 (⬆️0.31) ✅

• NASDAQ: 19676.43 (⬆️0.31)✅

A robust financial network is funding the LA riots: report

Well-funded left-wing activists and coordinated social media campaigns orchestrated the pro-illegal migrant protests that turned into days of rioting in Los Angeles, the Daily Caller News Foundation reports. 

• Red Flags: The Justice Department arrested Service Employees International Union (SEIU) leader David Huerta, Friday for allegedly obstructing ICE agents. He is accused of conspiracy to impede officers by directing others to block law enforcement vehicles during lawful raids.

• Multiple activist groups used the same SEIU-branded graphics to simultaneously call for protests at a downtown LA federal building at 4 p.m. Friday, with SEIU California's 700,000+ members providing significant organizing power. The Coalition for Humane Immigration Rights (CHIRLA), which received nearly $34 million in Biden administration grants in 2023, co-organized the initial press conference that devolved into violence.

• Radical speakers like Unión del Barrio's Ron Gochez encouraged resistance "by any means necessary," telling crowds "Who gives a damn about legality" and urging people to "kick their asses out of every single ghetto." Protesters were systematically supplied with protective gear including gas masks, ear plugs, and water bottles that were then thrown at police, with unidentified individuals driving trucks to distribute equipment.

• The riots involved multiple organized groups including the Democratic Socialists of America, the Party for Socialism and Liberation (linked to pro-Chinese Communist Party networks), and the newly formed 50501 Movement, all of which promoted and participated in the protests through coordinated social media campaigns across platforms like X, Bluesky, and Instagram.

• FBI Director Kash Patel announced Monday that the FBI is investigating "any and all monetary connections responsible for these riots," as the coordinated nature and professional organization of the protests echoed the 2020 Black Lives Matter riots that involved similar activist networks and resulted in widespread destruction across the country.

Quote of the Day:

Deadly crash spells bad news for Boeing as questions swirl about the cause.

A tragic crash of a Boeing 787 jet in India this morning has sent Boeing’s share price tumbling, raising fresh questions about its safety record.

• Deadly Crash in India: An Air India Boeing 787 Dreamliner with 242 people onboard crashed shortly after takeoff in Ahmedabad, India, marking the first fatal incident for this model since its 2011 debut.

• Boeing’s Stock Takes a Hit: Boeing’s shares dropped over 7% in premarket trading as the crash fuels renewed scrutiny of the company’s safety practices, already under fire from past incidents like the 737 Max crashes in 2018 and 2019.

• Suppliers Feel the Pain: Shares of Boeing suppliers like GE Aerospace and Spirit AeroSystems also fell, with declines of over 2% and 3%, respectively, showing the ripple effect across the industry.

Bessent open to softer tariff approach for countries that operate “in good faith”

Treasury Secretary Scott Bessent’s latest comments signal a potential shift in tariff strategy.

• Tariff Pause Extension: Bessent suggested the Trump administration might extend the 90-day tariff pause beyond July 9 for the U.S.’s 18 key trading partners, as long as they’re negotiating trade deals in “good faith.”

• Trade Deal Progress: The White House has only secured a formal trade agreement with the U.K. and a framework with China, despite claims of being close to deals with several other countries, leaving uncertainty about specifics.

• Negotiation Stance: Bessent emphasized a hard line, stating that countries not negotiating sincerely won’t get deadline extensions, indicating the administration’s push for favorable trade terms.

Trump reportedly looking at Scott Bessent to replace Jerome Powell as Fed Chair

President Trump is reportedly looking to replace Federal Reserve Chair Jerome Powell, nicknamed "Mr. Too Late" for his slow interest rate moves. The Fed’s decisions impact everything from your mortgage rates to job growth, so a new chair could steer the economy in a different direction.

• Trump’s eyeing a change: He’s considering Treasury Secretary Scott Bessent and former Fed official Kevin Warsh to replace Powell, whose term ends in May 2026, signaling a shift in Fed leadership well in advance.

• Powell’s under fire: Trump’s criticized Powell for not cutting interest rates fast enough, calling him out for delaying economic boosts.

• Bessent’s content but open: Bessent, a top contender, says he loves his Treasury role but would follow Trump’s lead if picked for Fed chair, hinting at loyalty to the administration’s agenda.

Traders are betting that Powell will fold on interest rates, with 2 cuts this year

Traders are making bold moves based on what they think the Federal Reserve will do with interest rates.

• Traders Expect Rate Cuts Soon: After recent data showed steady jobless claims and producer prices rising 2.6% in May, traders are betting the Fed will start cutting interest rates in September, with another cut likely in December.

• Shift in Market Confidence: Before these reports, the market only priced in one rate cut for 2025, but now futures reflect growing confidence in two back-to-back cuts, signaling a shift in economic outlook.

• Economic Signals Driving Bets: The unchanged jobless claims and expected inflation data suggest the economy is stable but not overheating, prompting traders to anticipate the Fed will ease rates to support growth.

GM goes all in with $4 Billion investment to make 2 million cars a year in America

General Motors is pumping $4 billion into U.S. manufacturing, signaling a major commitment to building vehicles right here at home. This move, influenced by new tariffs and a push for domestic production, could reshape the auto industry and boost local economies.

• Massive Investment: GM is investing $4 billion through 2027 to expand U.S. plants in Michigan, Kansas, and Tennessee, aiming to assemble over 2 million vehicles annually.

• Shifting Production: Popular models like the Chevrolet Blazer and Equinox, previously made in Mexico, will now be produced in the U.S., with new gas-powered SUVs and EVs rolling out.

• Job Support & Tariffs: Backed by CEO Mary Barra and UAW, this aligns with Trump’s tariffs on imported vehicles, designed to strengthen American manufacturing and jobs.

Major Wall Street bank just improved its economic outlook prediction for America

Goldman Sachs, one of the biggest players on Wall Street, just tweaked their economic outlook, and it’s got people talking about where things might be headed.

• Lower Recession Odds: Goldman Sachs cut their 12-month U.S. recession probability from 35% to 30%, signaling a bit more optimism about the economy holding steady.

• Boosted Growth Forecast: They bumped up their 2025 GDP growth prediction to 1.2% from 1%, suggesting the U.S. might dodge a deeper slowdown thanks to easing trade tensions.

• Trade Truce Impact: The recent U.S.-China tariff reductions are seen as a key reason for the rosier outlook, with hopes it’ll keep markets calmer and support growth.

Costco just launched a new perk for its best members

Costco shoppers, listen up! If you’re an Executive Member or thinking about upgrading, there’s some exciting news that could make your shopping trips even better. Starting June 30, 2025, Costco is rolling out a new perk for its higher-priced membership tier, and it’s all about giving you a head start at the store.

• Early Shopping Hours: Executive Members can shop at 9 a.m. daily, an hour before Gold Star Members, giving them first dibs on popular items like rotisserie chickens or fresh croissants.

• Exclusive Perks for Loyalty: This move rewards Costco’s most loyal customers, who pay $130 annually for the Executive tier, and aims to reduce store crowding for a smoother experience.

• Mixed Reactions: While some members, like parents with young kids, are thrilled about the extra hour, others feel it’s not a big enough perk or worry it’ll push everyone to upgrade, keeping crowds the same.