Fixed Income Market Overview
On Thursday, the 10-year U.S. Treasury yield edged higher to 4.17%, while the 2-year Treasury yield rose slightly to 4.46%. This rise occurred as investors evaluated Federal Reserve officials’ comments on interest rates. Traders now largely expect a rate cut in September, with the CME FedWatch tool indicating a less than 5% chance of a July cut but a 95% probability for a September reduction. Fed Governor Christopher Waller and other officials hinted that while rate cuts are near, more data is needed to confirm inflation progress. Fed Chair Jerome Powell noted that waiting for inflation to hit 2% before cutting rates might be too late, as recent data shows falling prices.
European Central Bank holds interest rates, says domestic price pressures ‘still high’.
Amazon Prime Day Drives US Online Sales up 11% to $14.2 Billion.
Volvo Cars jumps 9% after reporting a record core operating profit.
U.S. oil holds to gains after three weeks of crude inventory declines.
Singapore c.bank expects 2024 growth closer to potential rate of 2-3%.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,665.02 | -533.06 | -1.29%↓ |
| NASDAQ | 19,705.09 | -94.05 | -0.47%↓ |
| S&P 500 | 5,544.59 | -43.68 | -0.78%↓ |
| FTSE 100 | 8,204.89 | -39.05 | -0.47%↓ |
| SX5E | 4,870.12 | -20.4 | -0.41%↓ |
| NIKKEI | 40,126.35 | -62.56 | -0.15%↓ |
| HSI | 17,778.41 | -360.73 | -2.02%↓ |
| VIX | 15.93 | 0.63 | 3.95%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.20% | -0.006 |
| US 30-YR | 4.42% | -0.008 |
| US 5-YR | 4.11% | -0.002 |
| JPN 10-YR | 1.04% | 0.002 |
| UK 10-YR | 3.89% | 0.006 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.82 | -0.13 | -0.15%↓ |
| NAT GAS | 2,125 | -0.032 | -1.50%↓ |
| GOLD | 2,445.08 | -29.72 | -1.21%↓ |
| SILVER | 29.83 | -0.61 | -2.04%↓ |
| COPPER | 4.26 | -0.5 | -0.11%↓ |
Equity Market Overview
Netflix
Netflix reported strong second-quarter earnings, adding more global subscribers and seeing significant growth in its advertising business. Ad-supported memberships grew 34% year-over-year, bolstering the company’s revenue and stock. For the quarter ending June 30, Netflix reported earnings per share of $4.88 (above the expected $4.74) and revenue of $9.56 billion (beating the $9.53 billion expected). Total memberships reached 277.65 million, exceeding expectations. Driven by increased paid memberships, revenue rose 17% yearover – year to $9.6 billion. Netflix forecasts full-year revenue growth of 14%-15%. The company is focusing on scaling and monetizing its ad-supported tier and expects further growth in this area by 2026.
Blackstone Group
Blackstone’s second-quarter distributable earnings rose 3% to $1.3 billion, despite a slump in its real estate arm, due to increased asset sales in its private equity and credit divisions. High interest rates impacted real estate values and dealmaking costs but boosted credit assets. Distributable earnings per share were 96 cents, just below analysts’ estimates. Private equity and credit units saw significant earnings increases, while real estate declined. The firm cashed out on $7.8 billion in private equity and $5.5 billion in real estate assets, with $40 billion in fund inflows and $34 billion in capital deployment. Total assets under management reached $1.1 trillion, a 7% increase year-over-year, and a quarterly dividend of 82 cents was declared.
Novartis AG
Novartis raised its 2024 earnings guidance due to increased prescriptions for drugs like Entresto and Cosentyx. The company now expects full-year adjusted operating income growth in the “mid- to high teens” percentage, up from “low double-digit to mid-teens.” Second-quarter adjusted operating income rose 17% to $4.95 billion, surpassing analyst estimates. Strong sales of Entresto, Kesimpta, and Cosentyx exceeded market expectations. Despite preparing for the loss of U.S. patent protection for Entresto and Promacta next year, Novartis remains optimistic about its medium-term growth, banking on Kesimpta and Leqvio. The company reaffirmed its 5% annual sales growth target through 2028.
