Fixed Income Market Overview
Treasury yields rebounded on Tuesday after a global market sell-off on Monday. The 10-year Treasury note yield rose by over 5 basis points to 3.836%, and the 2-year yield increased by nearly 7 basis points to 3.948%. The U.S. trade deficit fell to $73.1 billion in June, slightly above expectations. Global markets began to recover from Monday’s downturn, with U.S. stocks rising about 1% by Tuesday morning. The Federal Reserve held interest rates steady in July, hinting at a possible rate cut in September. Traders are pricing in a 65% chance of a 50 basis point rate cut at the next Fed meeting.
Google loses landmark US antitrust case over search dominance.
Oil giant Saudi Aramco’s second-quarter profit dips 3% on lower crude production volumes.
Wall Street stocks stabilise after Japanese market rebounds.
Crude oil futures fall as recession fears outweigh rising Middle East tensions.
Harris taps Minnesota Gov. Tim Walz as Democratic running mate.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,997.66 | 294.39 | 0.76%↑ |
| NASDAQ | 18,077.92 | 182.77 | 1.02% |
| S&P 500 | 5,240.03 | 53.70 | 1.030%↑ |
| FTSE 100 | 8,026.69 | 18.46 | 0.23%↑ |
| SX5E | 4,575.22 | 3.62 | 0.08%↑ |
| NIKKEI | 34,675.46 | 3,217.04 | 10.23%↑ |
| HSI | 16,647.34 | -51.02 | -0.31%↓ |
| VIX | 27.71 | -10.86 | -28.16%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.89% | 0.10 |
| US 30-YR | 4.18% | 0.07 |
| US 5-YR | 3.73% | 0.12 |
| JPN 10-YR | 0.90% | -0.05 |
| UK 10-YR | 3.69% | 0.10 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 73.2 | 0.26 | 0.36%↑ |
| NAT GAS | 2.01 | 0.07 | 3.50%↑ |
| GOLD | 2,390.82 | -19.97 | -0.83%↓ |
| SILVER | 26.98 | -0.28 | -1.03%↑ |
| COPPER | 4.02 | 0.03 | 0.70%↑ |
Equity Market Overview
Uber
Uber’s second-quarter earnings surpassed Wall Street expectations, causing its stock to rise by about 6%. The company reported earnings per share of 47 cents versus the expected 31 cents and revenue of $10.7 billion compared to the anticipated $10.57 billion. Revenue grew 16% year-over-year, with significant increases in mobility and delivery bookings. Uber projected third quarter bookings to range between $40.25 billion and $41.75 billion. The company’s active users reached 156 million, with 2.77 billion trips in Q2. Partnerships with Instacart and BYD were highlighted, along with Uber’s ongoing collaboration with Waymo on autonomous vehicles. Despite previous stock declines, shares saw a boost after the earnings report.
Amgen
Amgen reported second-quarter revenue of $8.4 billion, surpassing expectations of $8.34 billion. Sales increased by 20%, with a 26% rise in product volume offset by lower net selling prices. CFO Peter Griffith highlighted double-digit sales growth for 12 products and anticipated continued growth in the second half of the year. Amgen raised its revenue guidance to $32.8 billion, expecting stable demand despite recession fears due to the essential nature of its medicines. Key growth areas include cardiovascular, bone, and asthma treatments, which Griffith described as “best-in- class” for serious illnesses. Amgen aims to maintain delivery regardless of economic conditions.
Airbnb
Airbnb shares dropped 14% in after-hours trading following a second-quarter earnings report that missed analyst expectations and indicated slowing U.S. demand. The company reported earnings per share of 86 cents versus the expected 92 cents and revenue of $2.75 billion, slightly above the expected $2.74 billion. Revenue increased 11% year-over-year, with net income down 15% to $555 million. Airbnb projected third-quarter revenue of $3.67 billion to $3.73 billion but warned of slower growth in “Nights and Experiences” and shorter booking lead times. The company noted continued regional growth, especially in Asia Pacific and Latin America, and removed over 200,000 low quality listings. Investors are concerned about economic pressure on consumers, highlighted by similar warnings from other companies like McDonald’s.
