Fixed Income Market Overview
U.S. Treasury yields declined on Thursday as investors anticipated key economic data. The 10-year Treasury yield dropped over 6 basis points to 4.562%, and the 2-year yield fell over 5 basis points to 4.933%. Investors await the latest personal consumption expenditures (PCE) price index figures, the Fed’s favored inflation measure, due Friday. Positive inflation news came from a revised lower chain-weighted price index in the updated first-quarter GDP report, although inflation remains above the Fed’s 2% goal. Fed officials have indicated that interest rate cuts may still be some time away, pushing expectations for cuts further into the year. Earlier weak auction demand had pushed yields up.
UBS splits wealth management role as part of executive reshuffle.
Klarna Swings Into Quarterly Profit With 29% Revenue Jump.
Amazon to expand drone delivery service after clearing FAA hurdle.
Salesforce shares tumble 20%, on pace for worst day since 2004.
U.S. crude oil falls 3.2% in May, on pace for worst month of the year.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,111.48 | -330.06 | -0.86%↓ |
| NASDAQ | 18,538.66 | -198.09 | -1.06%↓ |
| SNP 500 | 5,235.48 | -31.47 | -0.60%↓ |
| NIKKEI | 38,054.13 | -502.74 | -1.30%↓ |
| HIS | 18,230.19 | -246.82 | -1.34%↓ |
| VIX | 14.47 | 0.19 | 1.33%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.56% | -0.06 |
| US 30-YR | 4.68% | -0.06 |
| US 5-YR | 4.57% | -0.07 |
| JPN 10-YR | 1.06% | -0.02 |
| UK 10-YR | 4.35% | -0.06 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.91 | -1.32 | -1.67%↓ |
| NAT GAS | 2.572 | -0.094 | -3.53%↓ |
| GOLD | 2,366.50 | 25.30 | 1.08%↑ |
| SILVER | 31.53 | -0.84 | -2.59%↓ |
| COPPER | 4.659 | -0.133 | -2.77%↓ |
Equity Market Overview
Dell Inc.
Dell reported first-quarter earnings that surpassed analysts’ expectations for earnings and sales, solidifying its position as a leading vendor for AI servers. Shares initially fell about 12% in extended trading before recovering. Dell’s earnings per share matched Wall Street forecasts, coming in at $1.27 adjusted versus the $1.26 estimated. Revenue was $22.24 billion, beating the $21.64 billion estimate. Dell projected current-quarter earnings of $1.65 per share and sales between $23.5 billion and $24.5 billion. The Infrastructure Solutions Group saw a 22% sales increase to $9.2 billion, driven by a 42% rise in server sales, including $2.6 billion in AI-optimized server orders. The Client Solutions Group reported flat annual growth with $12.0 billion in sales.
Costco Wholesale Corporation
Costco reported strong fiscal Q3 earnings, beating expectations with net sales of $58.52 billion and adjusted EPS of $3.78. Same-store sales, excluding fuel, rose 6.5%, led by international growth (8.5%), Canada (7.4%), and the US (6%). E-commerce sales surged 20.7%, driven by high-demand items like gold, silver bullion, gift cards, and appliances. Foot traffic increased year-over-year, outpacing competitors. Membership fees, a key revenue stream, rose 7.6% to $1.12 billion. Despite inflation moderating, Costco maintained competitive pricing without widespread cuts, focusing on select private label reductions and expanding partnerships with Uber Grocery. The stock is up 25% year-to-date.
Kohl’s
Kohl’s shares experienced a drastic 25% decline following an unexpected loss per share, considerably below market expectations. CEO Tom Kingsbury attributed the sales slowdown to challenging comparisons and adverse weather affecting consumer spending on seasonal items. Despite efforts to revitalize through diversified merchandise and collaborations, such as with Sephora and Babies R Us, the company’s financial performance has faltered. Kohl’s reported a substantial net loss for the first quarter, alongside a significant drop in net sales. Revised guidance anticipates further declines in both metrics for the fiscal year, prompting questions about the efficacy of its turnaround strategy despite pockets of success in certain product categories like women’s apparel and Sephora offerings.
