Fixed Income Market Overview
U.S. Treasury yields slid after a weaker-than-expected jobs report for July heightened fears of slowing economic growth. The 10-year Treasury yield dropped to 3.796%, its lowest since December 2023, and the 2-year Treasury yield fell to 3.882%. Yields tumbled as the nonfarm payrolls report showed only 114,000 jobs added, far below the 185,000 expected, with the unemployment rate rising to 4.3%. The poor labor market data has increased concerns about a potential recession. The Federal Reserve, which hinted at a September rate cut, is now under pressure to act. Markets are pricing in a 58.5% chance of a half-percentage-point rate cut in September.
US economy cools more than expected in July with 114,000 jobs added.
Indian e-scooter maker Ola Electric drew $2B in bids for its $734M local IPO.
Oil falls, Brent settles at 7-month low after disappointing US job numbers.
Global stock sell-off deepens after disappointing US jobs data.
Britain cancels $1.7 billion of computing projects in setback for global AI ambitions.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,737.26 | -610.71 | -1.51%↓ |
| NASDAQ | 18,440.85 | -449.54 | -2.38%↓ |
| S&P 500 | 5,346.56 | -100.12 | -1.84%↓ |
| FTSE 100 | 8,174.71 | -108.65 | -1.31%↓ |
| SX5E | 4,638.70 | -127.02 | -2.66%↓ |
| NIKKEI | 35,909.70 | -2,216.63 | -5.81%↓ |
| HSI | 16,945.51 | -359.45 | -2.07%↓ |
| VIX | 23.39 | 4.80 | 25.82%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.79% | -0.04 |
| US 30-YR | 4.10% | -0.03 |
| US 5-YR | 3.61% | -0.06 |
| JPN 10-YR | 0.95% | -0.15 |
| UK 10-YR | 3.59% | -0.05 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 73.52 | -2.79 | -3.65%↓ |
| NAT GAS | 1.96 | -0.00 | -0.05%↓ |
| GOLD | 2,443.24 | -3.02 | -0.05%↓ |
| SILVER | 28.55 | 0.03 | -0.12%↑ |
| COPPER | 4.10 | 0.02 | -0.50%↑ |
Equity Market Overview
Exxon
Exxon Mobil reported its second-highest Q2 results in a decade, with record production in Guyana and the Permian Basin. Shares were marginally higher. Earnings per share were $2.14, beating the expected $2.01, and revenue was $93.06 billion, surpassing the expected $90.99 billion. Net income rose to $9.2 billion, a 17% increase year over- year. Production grew by 15% to 4.4 million barrels per day. Capital expenditures reached $7 billion for the quarter, with total spending expected to hit $28 billion for the year. Shareholder returns totaled $9.5 billion, and Exxon shares have risen nearly 17% in 2024.
Intel
Intel shares plunged 26% to $21.48, their largest drop in 50 years, after reporting a significant earnings miss and announcing a major restructuring. The stock’s fall contributed to a 2.4% drop in the Nasdaq and impacted global semiconductor stocks. Intel reported a $1.61 billion net loss, suspended its Q4 2024 dividend, and announced over 15% employee layoffs as part of a $10 billion cost-reduction plan. The restructuring aims to focus on AI chip production amidst fierce competition from AMD and Qualcomm. Additionally, Nvidia faces a DOJ antitrust investigation, adding pressure to the sector.
Berkshire Hathaway
Warren Buffett’s Berkshire Hathaway sold 19.2 million Bank of America (BofA) shares for $779 million over three days, continuing a 12-day selling streak with total sales exceeding $3.8 billion. Despite this, Berkshire still holds 942.4 million BofA shares worth $37.2 billion, making it the bank’s largest shareholder with a 12.1% stake. BofA has fallen to Berkshire’s thirdlargest holding, behind Apple and American Express. BofA shares dropped 5.2% this week amid recession fears but are up over 17% year-to-date. Buffett previously boosted confidence in BofA post-financial crisis, praising its business and management.
