Fixed Income Market Overview
Investors saw an increase in the 10-year Treasury yield on Monday ahead of upcoming economic data releases, reflecting ongoing uncertainty about the economy and Federal Reserve policy. Yields move inversely to prices. Key data points expected this week include the PCE price index, durable goods orders, and Q1 GDP figures. Recent economic data showing persistent inflation and economic resilience has shifted market expectations for rate cuts. Fed officials, including Chairman Jerome Powell, have emphasized that the timing of rate cuts depends on economic developments, with the Fed currently in a blackout period before its next meeting.
Business travel picks up, bolstering outlook for US airlines.
FTSE 100 closes at record high as sterling weakens.
Reliance Industries beats Q4 profit estimates on boost from energy unit.
Tesla slides 4%, Li Auto sinks 8% as EV makers slash price samid fierce competition.
Salesforce abandons pursuit of Informatica.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,239.98 | 253.58 | 0.67%↑ |
| NASDAQ | 17,210.89 | 173.24 | 1.02%↑ |
| SNP 500 | 5,010.60 | 43.37 | 0.87%↑ |
| NIKKEI | 37,438.61 | 370.26 | 1.00%↑ |
| HIS | 16,511.69 | 287.55 | 1.77%↑ |
| VIX | 16.94 | -1.77 | -9.46%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.61% | -0.01 |
| US 30-YR | 4.72% | 0.01 |
| US 5-YR | 4.66% | -0.02 |
| JPN 10-YR | 0.89% | 0.05 |
| UK 10-YR | 4.20% | -0.03 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.85 | -0.29 | -0.35%↓ |
| NAT GAS | 1.791 | 0.039 | 2.23%↑ |
| GOLD | 2,346.40 | -67.40 | -2.79%↓ |
| SILVER | 27.25 | -1.60 | -5.54%↓ |
| COPPER | 4.476 | -0.021 | -0.48%↓ |
Equity Market Overview
Verizon
Verizon reported mixed results for the first quarter, with total retail postpaid phone net losses of 68,000, better than analysts’ expectations of 100,000 losses. The consumer segment saw 158,000
losses, an improvement from the previous year, while the business unit added 90,000 subscribers. Despite an initial stock price increase, Verizon shares later dropped by about 4%. The company posted a net income of $4.7 billion, slightly lower than the previous year, but adjusted earnings per share exceeded expectations. Total revenue remained flat at $33.0 billion, with improvements in churn rates and postpaid phone gross additions. Verizon also disclosed fixed-wireless revenue for the first time, showing growth in broadband net additions. The company maintained its full-year outlook for wireless-service revenue growth and adjusted earnings per share.
Alphabet
Alphabet Inc. may introduce dividends, following in Meta’s footsteps, as it reports strong cash reserves. Analysts see a dividend as a way to boost the stock, similar to Meta’s move that led to a 20% jump in shares. Dividends are gaining traction among tech firms, with Salesforce and Booking Holdings also initiating payouts. Alphabet’s shares have outperformed this year, supported by optimism about its generative AI strategy. With rising revenue and cost-cutting efforts, Alphabet’s free cash flow is expected to reach a record $83 billion in 2024. Analysts anticipate Alphabet will introduce dividends this year, given its strong financial position and investor sentiment.
L’Oreal
L’Oreal shares surged 5% after reporting robust first-quarter sales, easing worries about a U.S. slowdown. The stock’s biggest gain since January 2023 follows a 6% loss earlier this year. Sales growth in North America and Europe exceeded 12%, driven by mass market and dermatological products. Analysts praised L’Oreal’s performance, with Barclays calling it “rock solid” despite concerns. The positive update also lifted shares of Estee Lauder and Coty, with Bernstein analysts highlighting L’Oreal’s agility in global growth optimization.
