Fixed Income Market Overview
U.S. Treasury yields saw a modest uptick on Friday as investors assessed the implications of a surge in weekly jobless claims on interest rates. The 10-year Treasury yield edged up by over 1 basis point to approximately 4.463%, while the 2-year yield followed suit, rising by 1 basis point to 4.823%. This movement, marked by inverse shifts in yields and prices, reflects the market’s reaction to Thursday’s robust demand during the Treasury Department’s $25 billion auction of 30-year bonds. Traders, buoyed by relief from the auction’s outcome, refocused their attention on the Federal Reserve’s interest rate trajectory. The latest jobless claims data, hitting its highest level since August 2023 at 231,000, prompted speculation among Deutsche Bank strategists, led by Henry Allen, about potential rate cuts this year. Looking ahead, market sentiment remains sensitive to forthcoming U.S. inflation figures for April, with investors adjusting expectations towards a more dovish monetary policy stance. Meanwhile, attention shifts to consumer sentiment data for May and scheduled speeches by several Fed officials, including Lorie Logan, Neel Kashkari, Austan Goolsbee, and Michelle Bowman, against a backdrop of global monetary policy considerations.
UK no longer in recession after economy grows 0.6% in last quarter.
Jaguar Land Rover achieves record breaking sales as luxury car demand booms.
Citadel Securities Is Setting Revenue Records, CEO Zhao Says.
US Consumer sentiment tumbles as inflation fears surge, closely watched survey shows.
Neuralink Rival Synchron Aims to Expand to Treat Parkinson’s.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,512.84 | 125.08 | 0.32%↑ |
| NASDAQ | 18,161.18 | 47.72 | 0.26%↑ |
| SNP 500 | 5,222.68 | 8.60 | 0.16%↑ |
| NIKKEI | 38,229.11 | 155.13 | 0.41%↑ |
| VIX | 12.55 | -0.14 | -1.10%↓ |
| HIS | 18,963.68 | 425.87 | 2.30%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.50% | 0.04 |
| US 30-YR | 4.64% | 0.03 |
| US 5-YR | 4.52% | 0.04 |
| JPN 10-YR | 0.91% | 0.00 |
| UK 10-YR | 4.17% | 0.03 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.26 | -1.00 | -1.26%↓ |
| NAT GAS | 2.252 | -0.049 | -2.13%↓ |
| GOLD | 2,375.00 | 34.70 | 1.48%↑ |
| SILVER | 28.51 | 0.14 | 0.50%↑ |
| COPPER | 4.663 | 0.077 | 1.69%↑ |
Equity Market Overview
Ford
Ford Motor appointed Sherry House, former CFO of Lucid Motors, as its new CFO, replacing John Lawler, who will become vice chair. House will join Ford in June as finance vice president and transition to CFO in 2025. Lawler, the current CFO, played a key role in Ford’s turnaround plan, addressing operational inefficiencies and investing in electric vehicles (EVs). Despite increased focus on EVs, Ford’s EV unit remains unprofitable, expecting losses of $5-5.5 billion in 2024. House’s leadership experience at Lucid Motors and other tech firms aligns with Ford’s EV ambitions, aiming to build a profitable EV business. Ford’s organizational restructuring in 2022 separated EVs and legacy autos to enhance efficiency and profitability in the EV sector.
Novavax
Novavax announced a significant partnership with Sanofi to co-commercialize its Covid vaccine and develop combination shots targeting Covid and the flu. The deal, valued in the billions, marks a turning point for Novavax, lifting its “going concern” warning. Sanofi will pay Novavax upfront and milestone payments, and Novavax will receive royalties on Sanofi’s sales of Covid vaccines and combination shots. Sanofi will also take a stake in Novavax, facilitating financial stability and global reach. The agreement allows Novavax to focus on its strengths and enhances its vaccine technology platform’s impact. Novavax will lead commercialization of its Covid shot in 2024, with Sanofi assuming responsibility in 2025, except in certain regions. The partnership accelerates the development of multiple vaccines, including combination shots, benefiting public health globally. Additionally, Novavax plans to start a latestage trial on its combination vaccine targeting Covid and the flu later this year, expanding its pipeline.
TSMC
Taiwan Semiconductor Manufacturing Co. (TSMC) experienced a significant increase in April sales, rising by 60% to NT$236 billion ($7.3 billion), driven by sustained demand for artificial intelligence (AI) chips and a recovery in consumer electronics. The company’s strong performance in April follows a 34.3% sales increase in March, primarily fueled by the growing demand for AI semiconductors. TSMC’s US-traded shares surged by 3% in early Friday trading. Despite a challenging year in 2023, TSMC benefited from Nvidia’s AI chips, and now, with the resurgence in AI demand and improving consumer electronics prospects, the company’s outlook appears optimistic. TSMC’s strategic position as the sole manufacturer of Nvidia’s advanced training chips and its partnerships with tech giants like Apple and Advanced Micro Devices reinforce its market dominance. Additionally, TSMC’s board approved a cash dividend of NT$4 per share, reflecting the company’s robust financial performance.
