What you need to know today

Short losses
Tesla’s strong delivery report has caused significant losses for short sellers, with the stock rallying 17% in two days and short sellers losing $3.5 billion, according to S3 Partners.

Tesla shares have surged 73% since April, nearing recovery with the stock $2 shy of wiping out losses for the year. Short interest is at 3.5% of the float, or 97 million shares, valued at $22.4 billion.

Friday’s ‘slowing payroll’
The June nonfarm payrolls report takes on added significance amid signs of a slowing labor market. Payroll gains in 2024 have slowed compared to last year, with economists predicting growth of 200,000 jobs for June, down from May’s 272,000.

While job gains remain historically solid, rising unemployment levels and broader economic uncertainty have raised concerns about future economic weakness.

Saks deal
Saks Fifth Avenue parent HBC will acquire Neiman Marcus Group in a $2.65 billion deal, creating a new luxury retail giant. The combined entity will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman.

The move comes amid a challenging period for traditional brick-and-mortar retail, with department stores struggling to attract younger shoppers and facing a pullback in discretionary spending.