MORGAN STANLEY starts coverage of SpaceX (SPCX.O), assigns Overweight rating and $300 price target.

WSJ reports Silicon Valley startups are receiving a surge in free compute and token credits as AI model vendors compete for new enterprise clients. Cursor, the AI coding firm acquired by SpaceX, offered a 75% discount through July 5. OpenAI and Anthropic sales teams are presenting highly generous terms. Some founders say fundraising has been delayed and they can negotiate between AI vendors. Combined cloud and token credits from some providers can exceed $3m, roughly the median US seed round. Google Cloud is granting select startups up to $500k in cloud credits plus early access to Gemini; Microsoft and AWS are offering similar packages. Vendors are pushing such deals to lock in early customers and secure durable revenue while facing competition from increasingly capable free and lower-cost models.

Dow Jones Industrial Average opened 86.01 points higher (0.16%) at 52,986.08 on Monday, July 6; S&P 500 opened 36.79 points higher (0.49%) at 7,520.03; Nasdaq Composite opened 200.88 points higher (0.78%) at 26,033.56.