Fixed Income Market Overview
On Monday, U.S. Treasury yields declined ahead of the Federal Reserve’s policy meeting and anticipated economic data. The 10-year Treasury yield dropped 5 basis points to 4.62%, while the 2-year yield fell nearly 3 basis points to 4.973%. Investors await the Fed’s meeting conclusion and interest rate decision, focusing on potential policy guidance amidst expectations of unchanged rates. Recent economic indicators suggest resilience amid persistent inflation. Notably, the core PCE index for March slightly exceeded estimates at 2.8%, while including food and energy, the PCE rose 2.7%. Key data releases this week include the April jobs report, offering insights into the economy’s performance amid elevated rates and inflation. Investors are attentive to signals about potential rate cuts and their timing from the Fed’s meeting discussions.
Deutsche Bank falls 9% after Postbank litigation woes resurface.
ICICI Bank powers best session for India’s blue-chips in eight weeks.
Japanese yen strengthens sharply after hitting 160 against dollar for the first time since 1990.
Oil prices fall more than 1% as Secretary of State Blinken pushes for Gaza cease-fire.
Shell earns $1 billion a year from US crude trading, court filing shows.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,386.09 | 146.43 | 0.38%↑ |
| NASDAQ | 17,782.72 | 64.42 | 0.36%↑ |
| SNP 500 | 5,116.17 | 16.21 | 0.32%↑ |
| NIKKEI | 37,934.76 | 306.28 | 0.81%↑ |
| HIS | 17,746.91 | 95.76 | 0.54%↑ |
| VIX | 14.67 | -0.36 | -2.40%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.62% | -0.05 |
| US 30-YR | 4.73% | -0.04 |
| US 5-YR | 4.65% | -0.05 |
| JPN 10-YR | 0.93% | 0.00 |
| UK 10-YR | 4.30% | -0.03 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.63 | -1.22 | -1.45%↓ |
| NAT GAS | 2.030 | 0.107 | 5.56%↑ |
| GOLD | 2,357.70 | 10.50 | 0.45%↑ |
| SILVER | 27.37 | 0.12 | 0.44%↑ |
| COPPER | 4.677 | 0.103 | 2.24%↑ |
Equity Market Overview
Tesla
Tesla’s shares surged over 14% following news of advancements in its driver-assistance technology in China, prompted by CEO Elon Musk’s visit. With local authorities removing restrictions and passing data security requirements, Tesla’s Full Self-Driving (FSD) software is anticipated to expand in the Chinese market, despite previous data security concerns. Tesla’s collaboration with Baidu for access to mapping technology further underscores its progress, positioning it competitively against local rivals like BYD, Nio, and XPeng, amidst a burgeoning electric vehicle market in China.
Koninklijke Philips NV
Philips shares surged to a more than two year high after agreeing to a $1.1 billion settlement in U.S. personal injury cases related to its sleep apnea devices recall, provisionally closing over 29% higher. The settlement, lower than expected, ends uncertainty over litigation, with CEO Roy Jakobs emphasizing patient safety and quality. Despite a loss in the first quarter, adjusted earnings exceeded forecasts, prompting Philips to reaffirm its full-year guidance amid ongoing challenges and a focus on recovery.
Domino’s Pizza
Domino’s Pizza Inc. saw a 4.6% rise in stock following impressive Q1 earnings, with net income of $15.8 million, surpassing estimates, and revenue increasing by 5.9% to $1.085 billion. U.S. same-store sales surged 5.6%, outpacing projections, while international samestore sales rose 0.9%, alongside the addition of 164 net stores. CEO Russell Weiner attributes growth to the loyalty program and Uber Eats marketing, aiming for 3% or more sales from the latter by year-end, with long-term projections anticipating 8% global retail sales growth and over 1,100 net store additions by 2028.
