Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Tuesday, July 1st, and I'm your host, Kim Khan. Our top story is so far.

Trump and Musk are back at it. Tesla is under pressure after CEO Elon Musk and President Trump bickered again on social media

about the government tax and spending bill. Following some complaints from Musk about the financial

danger of the tax and spending bill and a teaser on starting a new political party, Trump said

that, quote, Elon may get more subsidy than any human being in history by far, and without subsidies

Elon would probably have to

close up shop and head back home to South Africa, which may in a curious way remind some old-school

rap fans like me of public enemies' incident at 66.6 FM. For his part, Musk said,

every member of Congress who campaigned on reducing government spending and then immediately voted

for the biggest debt increase in history should hang their heads in shame, and they will lose their primary

next year if it is the last thing I do on this earth. In a separate post, Musk, who spent around

$290 million backing Trump and other Republicans in the 2024 election, said that if the, quote,

insane spending bill passes, the America

party will be formed the next day.

Weighing in on the spat, Wedbush Securities analyst Dan Ives said the Musk-Trump soap opera remains

an overhang on Tesla's stock, with investors fearing that the Trump administration will be more

hawkish and show scrutiny around U.S. government spending related to its companies,

and most importantly, the regulatory environment key to the future of robotaxies and cybercabs.

On the economic front, Fed Chairman J. Powell raised some eyebrows on Wall Street

by using what some saws language that puts the possibility of a July rate cut in play.

I really can't say if a July rate cut is too soon, he said at the ECB Forum on monetary policy,

...