Fixed Income Market Overview
U.S. Treasury yields fell on Monday as investors awaited key economic data and the Federal Reserve’s meeting this week. The 10-year Treasury yield dropped nearly 3 basis points to 4.173%, while the 2-year Treasury yield decreased to 4.385%. Yields move inversely to prices, with one basis point equaling 0.01%. The Fed’s meeting will conclude Wednesday with an interest rate announcement, where rates are expected to remain unchanged. Investors seek clues on future rate cuts and will scrutinize the Fed’s guidance and Chairman Powell’s remarks. Upcoming data includes JOLTs job openings, ADP private payrolls, and the July jobs report, crucial for labor market insights.
Loews CEO James Tisch to step down after 25 years.
SoftBank-backed Ola Electric aims to raise $734 million in India’s biggest IPO this year.
Oil prices fall as traders unfazed by Israel-Hezbollah escalation.
European markets close lower as earnings season continues.
UK’s Reeves scraps plan for Natwest public share sale as too costly.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,539.93 | -49.41 | -0.12%↓ |
| NASDAQ | 19,059.49 | 35.83 | +0.18%↑ |
| S&P 500 | 5,463.54 | 4.44 | +0.08%↑ |
| FTSE 100 | 8,292.35 | -35.84 | -0.44%↓ |
| SX5E | 4,815.39 | 20.71 | +0.43%↓ |
| NIKKEI | 38,468.63 | 57.32 | +0.14%↑ |
| HSI | 17,238.34 | -235.43 | -1.36%↓ |
| VIX | 16.60 | -0.03 | -0.18%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.17% | +0.009 |
| US 30-YR | 4.42 | +0.011 |
| US 5-YR | 4.07% | +0.005 |
| JPN 10-YR | 1.02% | -0.023 |
| UK 10-YR | 3.86% | +0.008 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 75.81 | -1.35 | -1.75%↓ |
| NAT GAS | 2.036 | 0.03 | +1.50%↑ |
| GOLD | 2,384.19 | -3.01 | -0.13%↓ |
| SILVER | 27.86 | -0.05 | -0.21%↓ |
| COPPER | 4.08 | -0.01 | -0.38%↓ |
Equity Market Overview
McDonald’s
McDonald’s reported quarterly earnings and revenue below analysts’ expectations, with same-store sales declining across all divisions. CEO Chris Kempczinski cited industry traffic declines in key markets and negative impacts from the Middle East conflict. The company acknowledged high prices as a factor in underperformance and plans to adjust value offerings. McDonald’s reported earnings per share of $2.97, below the expected $3.07, and revenue of $6.49 billion, below the $6.61 billion expected. U.S. same-store sales decreased 0.7%, with a significant drop in foot traffic. The company is extending a successful $5 meal deal to attract budget-conscious diners. International markets also saw declines, partly due to pricing competition and boycotts related to geopolitical issues.
Philips
Shares of Dutch device maker Philips surged 14.62% on Monday after reporting better-than-expected second-quarter earnings. Comparable group sales rose 2% to 4.5 billion euros, driven by strong demand in North America despite declining sales in China. Philips’ comparable order intake increased by 9% over the period. CEO Roy Jakobs expressed confidence in meeting the full year guidance of 3%-5% sales growth. The company achieved significant cost savings through various productivity programs and has been undergoing a reorganization to cut 10,000 jobs. Additionally, Philips agreed to a $1.1 billion settlement in the U.S. related to faulty sleep apnea devices.
Reckitt Benckiser
Reckitt Benckiser shares dropped to an 11- year low, falling 10% after a verdict against Abbott Laboratories highlighted infant formula lawsuit concerns. Abbott was ordered to pay nearly $500 million for hiding risks associated with its Similac formula, which affected premature infants. This follows a $60 million verdict against Reckitt’s Mead Johnson Nutrition unit in March. Analysts believe the Abbott verdict will negatively impact both companies, complicating Reckitt’s potential sale or IPO of Mead Johnson. Reckitt faces numerous lawsuits and may need to settle them, potentially costing up to £2 billion, before proceeding with any strategic options for Mead Johnson. Abbott’s $500 million verdict exceeded investor expectations, raising fears of higher settlement amounts.
