Fixed Income Market Overview
U.S. Treasury yields rose on Thursday after weekly jobless claims came in lower than expected, easing fears of a weakening labor market suggested by July’s payroll report. The 10-year Treasury yield increased by 2 basis points to 3.992%, nearing last week’s levels before the disappointing jobs data. The 2-year note yield rose by nearly 5 basis points to 4.048%. Initial unemployment claims were 233,000, below the expected 240,000, indicating the labor market remains robust. This report contributed to market stability after concerns of an economic slowdown earlier in the week.
Weekly jobless claims fall to 233,000, less than expected, in a positive sign for labor market.
Apple could charge up to $20 for some Apple Intelligence AI features, analysts say.
Meta is selling $10.5B of investment-grade bonds in its largest-ever debt sale.
JPMorgan raises 2024 recession odds to 35%.
Oil prices steady after two days of gains as market waits for Iran strike.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,763.45 | 683.04 | 1.76%↑ |
| NASDAQ | 17,867.37 | 546.45 | 3.06%↑ |
| S&P 500 | 5,199.50 | 119.81 | 2.30%↑ |
| FTSE 100 | 8,166.88 | -21.91 | -0.27%↓ |
| SX5E | 4,668.06 | 0.68 | 0.01%↑ |
| NIKKEI | 35,089.62 | -258.47 | -0.73%↓ |
| HSI | 16,877.86 | 13.97 | 0.08%↑ |
| VIX | 27.85 | -4.06 | -14.58%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.99% | 0.04 |
| US 30-YR | 4.28% | 0.03 |
| US 5-YR | 3.83% | 0.06 |
| JPN 10-YR | 0.85% | -0.04 |
| UK 10-YR | 3.75% | 0.04 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 76.19 | 0.96 | 1.28%↑ |
| NAT GAS | 2.12 | 0.01 | 0.71%↑ |
| GOLD | 2,427.53 | 44.61 | 1.87%↑ |
| SILVER | 27.54 | 0.93 | 3.51%↑ |
| COPPER | 3.95 | 0.00 | 0.18%↑ |
Equity Market Overview
Eli Lily
Eli Lilly reported exceptional second-quarter earnings, driven by soaring demand for its diabetes drug Mounjaro and weight loss injection Zepbound. The company raised its full-year revenue outlook by $3 billion, now expecting $45.4 billion to $46.6 billion. Quarterly revenue surged 36% year-over-year to $11.3 billion, far exceeding expectations, with Mounjaro and Zepbound contributing $3.09 billion and $1.24 billion, respectively. Despite ongoing supply challenges, Eli Lilly is ramping up production to meet demand. Shares rose over 7%, continuing a strong year after a 60% increase in 2023 due to high investor interest.
Siemens
Siemens reported better-than-expected quarterly operating profit of €3 billion, an 11% increase from the previous year, and confirmed its full-year outlook. Despite strong performance in electrification and industrial software, comparable orders declined by 15%, primarily due to a sharp drop in the mobility sector. CEO Roland Busch highlighted strong demand in key areas but noted challenges in the automation business. Siemens expects full-year revenue growth at the lower end of its 4%-8% forecast due to market difficulties. The company also emphasized its ongoing integration of artificial intelligence to enhance its portfolio.
Under Armour
Under Armour reported better-than expected fiscal first-quarter results despite sales declines across its business, sending its stock up 17%. The company posted a small profit of $4 million, or 1 cent per share, beating Wall Street’s expectations of an 8-cent loss, though sales dropped 10% year-over-year to $1.18 billion. Despite these results, Under Armour settled a costly securities lawsuit for $434 million and revised its fiscal 2025 outlook to a projected loss. The company is undergoing restructuring to regain relevance and boost profitability, including reducing discounts, laying off workers, and positioning itself as a premium brand.
