Fixed Income Market Overview
The 10-year U.S. Treasury yield rose by 2 basis points to 4.493% on Tuesday, while the 2-year yield fell by 2 basis points to 4.933%, as investors anticipated new inflation data. This movement follows the release of Federal Reserve meeting minutes, which revealed policymakers’ uncertainty about easing policy. Investors are looking forward to Friday’s April personal income and expenditures report for further economic insights. Additionally, consumer confidence unexpectedly increased, but inflation expectations also rose. Minneapolis Fed President Neel Kashkari stated that sustained positive inflation data is needed before considering rate cuts this year. Traders predict the Fed will maintain rates until at least September.
Nasdaq rises to record above 17,000 as Nvidia shares jump.
U.S. crude oil gains more than 1% as market looks to OPEC+ meeting on production levels.
GameStop Shares Rally as Video Game Retailer Raises Nearly $1 Billion.
Wall Street switches to one day settlement for stocktraders.
Toyota bets on new line of combustion engines in challenge to Tesla.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,852.86 | -216.73 | -0.55%↓ |
| NASDAQ | 18,869.44 | 61.09 | 0.32%↑ |
| SNP 500 | 5,306.04 | 1.32 | 0.02%↑ |
| NIKKEI | 38,855.37 | -44.65 | -0.11%↓ |
| HIS | 18,821.16 | -6.19 | -0.03%↓ |
| VIX | 12.92 | 0.99 | 8.30%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.56% | 0.09 |
| US 30-YR | 4.67% | 0.09 |
| US 5-YR | 4.60% | 0.06 |
| JPN 10-YR | 1.04% | 0.01 |
| UK 10-YR | 4.28% | 0.02 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 79.83 | 2.11 | 2.71%↑ |
| NAT GAS | 2.825 | 0.052 | 1.88%↑ |
| GOLD | 2,356.50 | 22.00 | 0.94%↑ |
| SILVER | 32.14 | 1.64 | 5.37%↑ |
| COPPER | 4.855 | 0.102 | 2.14%↑ |
Equity Market Overview
Texas Instruments Inc.
Elliott, a $65 billion hedge fund, has invested $2.5 billion in Texas Instruments (TI) and is urging the company to improve its free cash flow by adopting a more flexible capital expenditure plan. In a 13-page letter, Elliott proposes a “dynamic capacity-management strategy” to achieve free cash flow of up to $9 a share by 2026. TI’s shares rose 3% on the news before stabilizing. Elliott criticizes TI’s current capex plan, which significantly increased spending, reducing free cash flow and negatively impacting its stock performance. Elliott suggests either better justifying the capex increase or adopting a more deliberate approach to expansion. The letter maintains a generally non-adversarial tone but emphasizes the need for prudent capital discipline.
Amazon.com Inc.
Amazon’s AWS is in talks with Italy to invest billions of euros in expanding its data center business, aiming to boost its cloud services in Europe. The discussions focus on either expanding the current site in Milan or building a new one. AWS, which launched its first cloud region in Italy in 2020, counts Ferrari and Assicurazioni Generali among its customers. The potential investment might not reach the scale of AWS’s recent 15.7 billion euro commitment in Spain. AWS also plans significant investments in Germany and is building infrastructure for telecom cloud services. Cloud computing interest is rebounding, driven by AI, with competitors like Alphabet and Microsoft also investing heavily in Italy.
T-Mobile US Inc.
Shares of U.S. Cellular surged nearly 6% after T-Mobile announced plans to acquire most of the company for $4.4 billion. The deal includes cash and up to $2 billion in debt, with part of the cash contingent on meeting financial and operational metrics. T-Mobile shares rose over 1%. T-Mobile will acquire 30% of U.S. Cellular’s wireless spectrum to enhance rural coverage, while U.S. Cellular retains 70% of its spectrum and towers. The deal includes long-term leases on additional towers, benefiting U.S. Cellular customers. The transaction follows T-Mobile’s previous acquisitions and is expected to close by mid-2025.
