Wall Street Responds To 'America Party'; Musk Denies, Calls Party Filing 'Fake News'

 Tesla shares tumbled in premarket trading in New York as investors weighed Elon Musk's move to launch the new "America Party," just one day after President Trump signed a tax-cut and spending bill into law—legislation Musk had publicly denounced. Although Musk has denied founding the party, calling the reports "fake news," the market appears unconvinced.

Tesla's stock, already down 22% year-to-date as of Thursday's close, is poised to lose another 7% if premarket losses carry into the cash trading session.

Wall Street analysts are concerned that Musk is "diving deeper into politics," which could damage the brand, weaken demand, or further distract him from Tesla's core EV and robotics units.

Here's what some on Wall Street are saying, via Bloomberg:

Wedbush (Dan Ives)

• "Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/ shareholders want him to take during this crucial period for the Tesla story"

• With the autonomous future ahead and the AI revolution in full force, Musk should avoid acts of provocation. Trump can create more hurdles for Musk as well as Tesla and SpaceX if the political battle intensifies heading into mid-term elections in 2026

• "We remain firmly bullish on Tesla's AI future but clearly this is not the news we want to see as it adds another perceived overhang to the stock"

• Maintains outperform on stock with a price target at $500

Global X ETFs (Billy Leung)

• "This probably isn't what Tesla investors were hoping for. Musk just got back to focusing on the business and the stock was rallying. Now he's dragging it into another political headline cycle"

• For the stock, the move raises noise and volatility in the short term while long term, the core thesis for Tesla is still about AI, robotics, and autonomy — the political distractions don't really dent that 

Rayliant Global Advisors (Jason Hsu)

• This may be Musk's best route to protect what he has built once he realizes that his relationship with Trump has soured beyond repair. Without gaining meaningful political power, Musk and his companies remain exposed and highly at risk

• "Backing a few select congressional candidates won't do enough to give Musk political protection. But forming a party and aiming to play the middle is a much bigger game with a significantly larger impact and payoff"

• For the shares, expect some initial volatility as some investors would be concerned with Musk's distraction and many probably don't see this as the best move to protect Tesla from the wrath of the Trump administration

Goldman analyst Nelson Armbrust provided clients with a summary of the weekend events:

Musk said on Saturday that a new "America Party" he'd been threatening to launch was formed, a day after Trump signed a tax-cut and spending bill into law that Musk had denounced. He didn't provide details of the political party and there's no immediate indication that he has filed official paperwork. Tesla's stock, which has lost more than 20% this year, is poised to fall further: The company's shares slumped as much as 7.6% in premarket trading on Monday.

Armbrust also shared a chart with clients, highlighting Tesla's price action during the "good times" of the Musk-Trump relationship, pinpointing the inflection point where tensions began to deteriorate, which corresponded with a drag on the share price.

Musk has voiced deep frustration with GOP lawmakers over their failure to codify DOGE cuts and President Trump's "Big Beautiful Bill," which was signed into law on Independence Day. By Sunday, Musk's team submitted a filing to create the America Party...

BREAKING - FEC paperwork has been filed to create the “America Party,” but the listed treasurer is an Indian-born man named Vaibhav Taneja. pic.twitter.com/re9bmLdnxv

— Right Angle News Network (@Rightanglenews) July 6, 2025

On Truth Social, Trump responded to Musk... 

However, Musk chimed in late Sunday and called the America Party filing with the Federal Election Commission fake news.

. . . https://www.zerohedge.com/markets/wall-street-responds-america-party-musk-denies-calls-party-filing-fake-news

Israel Bombs Ports, Power Plant In Yemen After Month-Long Pause

 On Sunday Israel's military launched airstrikes on three ports and a power facility against Houthi-controlled Yemen, resulting in the group launching a barrage of missiles in retaliation. Israel is calling the major new initiative 'Operation Black Flag'.

The Israeli military (IDF) announced it had targeted the Red Sea ports of Hodeidah, Ras Isa, and as-Salif, as well as the Ras Kathib power station. Additionally, it described striking a radar system aboard the Galaxy Leader, a ship previously seized by the Houthis and currently docked in Hodeidah.

Illustrative: prior Israeli strikes on Yemen, via AP.

This is the first escalation of its kind in nearly a month, and the IDF defended the action as necessary and warranted after intercepting a missile launched from Yemen earlier that day.

At least two more missiles were fired on Israel following the port strikes, with Houthi military spokesperson Yehyaa Saree later confirmed the launches, saying they again targeted Ben Gurion Airport, as well as the ports of Ashdod and Eilat and a power station in Ashkelon.

Israeli defense systems were active in seeking to intercept the inbound missiles, with possible damage on the ground still being assessed. No casualties on either side of this fresh flare-up were initially reported.

There are meanwhile new fears that another war could erupt in the Red Sea, as we also reported earlier.

On Saturday evening, air raid sirens sounded across the Dead Sea region and parts of the West Bank following the launch of a ballistic missile from Yemen toward Israel. The launch, attributed to Iran-backed Houthi forces, marked an alarming expansion of their missile capabilities beyond the Red Sea maritime chokepoint. 

Hours later, on Sunday morning, the UK Maritime Trade Operations (UKMTO) received a report that a merchant vessel transiting 51 nautical miles southwest of Al Hudaydah, Yemen, came under attack by multiple boats armed with small arms and rocket-propelled grenades. The vessel's onboard security team returned fire. The incident remains ongoing.

Israeli Prime Minister Benjamin Netanyahu is visiting  the White House on Monday, where a potential ceasefire deal could materialize to end the 21-month war in Gaza. Trump has previously announced a "final proposal" for a 60-day ceasefire. Renewed conflict in Yemen is likely to also be on the agenda, after the US military formally ended its Red Sea mission.

* * *

Below are more developing events and headlines via Newsquawk:

Middle East

• Israeli military issued an evacuation order to people at Yemen’s ports of Hodeidah, Ras Isa and Al-Salif, as well as to those inside the Hodeidah power station, while it announced to carry out airstrikes in those areas due to military activities being conducted there. Israel's Defence Minister later confirmed military strikes on Houthi targets in Yemen's ports of Hodeidah, Salif, Ras Isa, as well as the Ras Qatib power plant
• A Liberia-flagged, Greek-owned bulk carrier was attacked 51NM off Yemen’s Hodeidah, while the UKMTO later announced that all crew abandoned a ship that was attacked southwest of Yemen’s Hodeidah.
• Israeli PM’s office said the changes requested by Hamas to the Qatari proposal are not acceptable to Israel, while the negotiating team will depart to Qatar for Gaza talks.
• Israeli PM Netanyahu said he is determined to ensure hostages’ return to Israel and remove the Hamas threat from Gaza, while he said his negotiators in ceasefire talks have clear instructions to achieve an agreement under conditions Israel has accepted. Furthermore, Netanyahu said ahead of his White House meeting that he believes the discussion with US President Trump can certainly help advance these results.
• US President Trump said he will discuss Iran with Israeli PM Netanyahu and noted Iran’s nuclear program was set back permanently but they may restart in a different location, while Trump also said there could be a Gaza deal during the week ahead.
• First session of indirect ceasefire talks between Israel and Hamas in Qatar ended inconclusively and the Israeli delegation does not have sufficient mandate to reach an agreement with Hamas as it has no real power, according to two Palestinian officials cited by Reuters.
• Hamas government office rejected a US State Department accusation that Hamas was involved in an attack on Americans at a Gaza Humanitarian Foundation site on Saturday.
• UK government re-established diplomatic relations with Syria.
• The second round of (Israel-Hamas) negotiations in Doha will begin this afternoon, via Al Arabiya sources. Subsequently, there is reportedly a positive atmosphere in Israel-Hamas negotiations, no breakthrough so far, according to Al Hadath.

Ukraine

• US President Trump said they won’t be sending patriot missiles to Ukraine but talked about it and noted they have to be protected, while he said Russian President Putin is worried about sanctions and understands it may be coming.
• Russian military forces gained control of Sobolivka in Ukraine’s Kharkiv region and Piddubne in Donetsk region.
• Russian Foreign Minister says Russia does not need a temporary ceasefire, but rather a lasting peace.

https://www.zerohedge.com/geopolitical/israel-bombs-ports-power-plant-yemen-after-month-long-pause

Canada's Manufacturing Sector Faces Sharp Decline Amid Tariffs And Trade Uncertainty

Canada’s manufacturing sector shrank for the fifth month in a row, with the S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) falling to 45.6 in June, down from 46.1 in May — well below the neutral 50 mark that separates growth from contraction, according to the Financial Post.

The latest data shows the steepest drop in production since the spring of 2020, when the pandemic hit. According to S&P Global, this downturn was driven by weak demand, a sharp fall in new orders, and ongoing trade challenges. “A lack of new orders underpinned the latest downturn and helped to explain the steepest reduction in production since the height of the pandemic,” said Paul Smith, economics director at S&P Global Market Intelligence.

The Financial Post writes that manufacturers reported a significant decline in export demand, particularly from the U.S., which accounts for around 75% of Canada’s exports. Rising costs due to U.S. tariffs have made Canadian goods less competitive. As a result, international orders dropped at one of the steepest rates in the survey’s history.

“Canada’s manufacturing economy continued to struggle in the face of tariffs and the ongoing uncertainty related to future trade policies,” Smith added.

The slump has forced firms to cut output and reduce purchasing, leading to the fastest drop in input inventories in five years. Some of this was due to intentional destocking, but supply chain delays also led companies to rely on existing stock.

Employment in the sector fell for the fifth consecutive month, with firms choosing not to replace departing staff or enacting layoffs to manage costs. “International sales unsurprisingly were especially subdued, and, against this backdrop, firms chose to make further cuts to their employment and purchasing activity,” said Smith.

Despite the grim data, some manufacturers are cautiously optimistic. Confidence in the outlook rose to its highest level since January, though it remains below the historical average. “Although sentiment improved on hopes of some stability in the year ahead, confidence in the outlook remains subdued and uncertain,” Smith concluded.

https://www.zerohedge.com/markets/canadas-manufacturing-sector-faces-sharp-decline-amid-tariffs-and-trade-uncertainty

Vaping social media trend harming the health of kids as young as 12

 The kids are not all right.

While many things have changed over the years, one constant that has remained is parents needing to keep an eye on the friendship group of their impressionable teens.

Of course, doing so is arguably more difficult than ever thanks to the rise of social media.

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New research out of Australia has found that teens are increasingly exposed to peer pressure and social media hype around this potentially deadly habit.Synthex – stock.adobe.com

New research out of Australia has found that teens are increasingly exposed to peer pressure and social media hype around vaping — thanks in part to the insidious nature of online trends.

A study published in the journal Nicotine and Tobacco Research found that young people who had friends who vaped were a shocking 15 times more likely to pick up the habit themselves.

“We analyzed data from 20,800 American youth between 2015 and 2021 and found that while the proportion of friends who smoked declined, having friends who vaped remained concerningly common,” Giang Vu, a PhD candidate at the University of Queensland, said in a press release.

“In 2015, 31.6% of young people had friends who vaped, and while this decreased to 22.3% by 2021, this figure is still high.”

Much of this decline is likely due to an increase in public disapproval of vaping — which spiked from 55.4% to 77.5% between 2015 and 2020 — following a spate of vaping-related illness and deaths.

However, researchers are sounding the alarm over the role that digital content plays in the glamorization of this dangerous habit.

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“We need more regulation on social media, along with targeted policies and campaigns to decrease vaping rates,” study co-author Gary Chung Kai Chan said.Brian – stock.adobe.com
“In many videos, vaping is portrayed as trendy and a healthier lifestyle choice when compared to cigarette smoking, but this is dangerous messaging,” study co-author Gary Chung Kai Chan said.

“We need more regulation on social media, along with targeted policies and campaigns to decrease vaping rates.”

The good news is that parental disapproval proved to be one of the strongest protective factors — decreasing the likelihood of vaping by about 70%.

But a companion piece published in the American Journal of Preventive Medicine discovered another chilling trend: an uptick in the amount of teens vaping THC and CBD — both of which are compounds that are derived from the same plant as weed — along with lab-made synthetic cannabinoids.

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It was concerning to see a rise in synthetic cannabinoids, where vaping doubled in young people aged between 11–15 years,” said Jack Chung.New Africa – stock.adobe.com

Some of these adolescents are 12 — or younger — and rates were higher among girls than boys.

“We saw an increase in all products between 2021 and 2023, but it was concerning to see a rise in synthetic cannabinoids, where vaping doubled in young people aged between 11–15 years,” said Jack Chung, a PhD candidate at the National Center for Youth Substance Use Research of the University of Queensland.

“Synthetic cannabinoids are particularly dangerous as they can lead to unpredictable health consequences and even death.”

Even worse — many of them are wholly unaware of what they are putting into their bodies.

“It was also worrying to see more adolescents were unsure about the substances they were vaping—1.8% of teens in 2021 weren’t sure if they had vaped synthetic cannabinoids, increasing to 4.7% in 2023,” he said.

Experts are increasingly warning that vaping carries hidden dangers — including lung damage, cardiovascular issues, and exposure to toxic chemicals like acrolein.

Teens may be especially vulnerable because their brains and bodies are still developing, making them more susceptible to addiction and long-term health consequences.

https://nypost.com/2025/07/06/health/doctors-warn-of-dangerous-social-media-trend-harming-the-health-of-kids-as-young-as-12/

Ped's summer warnings for kids

 Soak up the fun!

There are many ways kids can have a blast this summer — swimming, playing in the park, fishing and going to the beach are just a few.

Unfortunately, summer is also prime time for child injuries and illnesses.

Here are six important precautions for keeping kids safe, including one thing I wouldn’t do as a father.

This is how everyone can be a happy camper this summer.

Let the good times roll — with the right gear

One thing I would never let my kids do is get on a bike, scooter, skateboard, ATV or anything else that has wheels without a helmet. 

Head trauma is probably the most preventable serious injury that kids can get while playing.

It really is an absolute requirement that they wear a helmet at all times.

I worry about brain damage and major injuries that aren’t recoverable.

Head trauma is probably the most preventable serious injury that kids can get while playing.Kawee – stock.adobe.com

That’s why I would be particularly cautious with ATVs. While they can be a lot of fun, they present significant risks.

First, they can go fast. Younger children can get thrown very easily, so helmets and seatbelts are imperative.

They’re also heavy and can crush a child if they roll over. Parents need to confirm that the machine is the right size and that operators know what they’re doing. Alcohol should not be involved.

Don’t make waves — follow pool rules

As far as water safety goes, make sure that an adult who knows how to swim can watch children when they’re in the water.

It’s very easy for kids to drown, even in just a few inches of water. The adult must keep watch at all times in case a rescue is needed.

Also pay attention to the depth of the water. We don’t want kids diving into water less than 4 feet high because of the risk of head injuries.

Keep cool in extreme heat

It’s important to avoid dehydration by making sure kids get enough fluids.

One way to do that is to monitor how often they go to the bathroom.

A well-hydrated child will pee at least three or four times a day. That urine will be pale yellow, not dark.

Water and clear liquids are great for hydration. Electrolyte drinks are particularly good for older children exercising in the heat.

It’s best to avoid caffeine and sugary drinks that can increase urination.

Dr. Arun Chopra, chair of the Department of Pediatrics at NYU Langone Hospital—Long Island, shares six precautions for keeping kids safe, including one thing he wouldn’t do as a father.Andrew Neary

Dehydration is when you don’t have enough water in your body. When you couple dehydration with excessive heat, that’s what we call heat exhaustion.

The body gets overheated and can’t cool down on its own. It can immediately become dangerous.

There should be a shady spot where children can escape the sun. Consider packing a large umbrella.

Kids should be dressed appropriately — a wide-brimmed hat can help, and sunscreen is a must.

Cover any exposed skin with sunscreen. Reapply at least every two hours and when coming out of the water.

While we’re talking about heat, we should talk about car safety.

Even on a moderately hot day, the interior of a parked car can reach well over 100 degrees.

So never, ever, ever leave pets or kids unattended in a closed vehicle.

Also, beware of hot playground equipment. Kids can get burned holding onto jungle gym bars and going down slides, especially metal ones.

Playground surfaces are a concern, too.

Black surfaces can get really hot because they absorb heat. Check for trip hazards like tree roots and unevenness that can lead to injuries — and make sure there’s enough cushioning on the ground.

Achoo-choo-choose activities wisely

We see a lot of allergies early in the summer, thanks to pollen and animal dander.

If you know your child has allergies, try to limit exposure to triggers.

That’s not to say they can’t go outside, but when they come in, they should wash their hands.

If they’re very allergic, they should change their clothes.

Consider keeping windows closed and using air conditioning to prevent pollen from coming inside.

The good news is that several over-the-counter meds can help prevent and treat mild allergic reactions in kids.

Don’t let insects bug you

Bug spray is key in the summer. A neat trick is to spray it onto clothes so that it sticks around and creates almost a protective halo around the child.

One of the things to be aware of, especially in this area, is Lyme disease.

Be sure to frequently check kids who have been outside for ticks.

These bugs are really small when they initially attach, making them very easy to miss. Comb through the entire body very carefully.

Other bug bites are simply annoying, but they can get infected with constant scratching. Put some antibiotic ointment on the bite.

Don’t let food bite back

Food poisoning is a greater risk in the summer, especially when eating outdoors, because bacteria grow faster in warmer temperatures.

Perishable fare can quickly become unsafe if left out in the heat.

Kids should avoid eating these foods at picnics or have a cooler on site to keep them cold.

And don’t forget — although it’s important to pay attention to safety, summertime should be fun. Let your kids go outside and experience the world!

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Dr. Arun Chopra is the chair of the Department of Pediatrics at NYU Langone Hospital—Long Island. He specializes in pediatric critical care.

https://nypost.com/2025/07/07/health/pediatric-doctor-reveals-risky-mistake-hed-never-let-his-kids-make/