Fixed Income Market Overview
U.S. Treasury yields dipped on Monday as investors anticipated key economic data, including inflation reports. The 10-year Treasury yield edged down to 3.928%, while the 2-year yield fell to 4.034%. Investors are closely watching this week’s producer price index on Tuesday and consumer price index on Wednesday amid concerns about a potential recession and Federal Reserve rate cuts. Recent mixed economic signals, including a weaker jobs report but lower-than-expected jobless claims, have fueled uncertainty. Markets are split on the size of the expected Fed rate cut in September, with retail sales data also due this week.
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Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,357.01 | -140.53 | -0.35%↓ |
| NASDAQ | 18,542.03 | 28.93 | 0.15%↑ |
| S&P 500 | 5,344.39 | 0.23 | 0.004%↑ |
| FTSE 100 | 8,210.25 | 42.15 | 0.51%↑ |
| SX5E | 4,671.88 | -3.40 | -0.07%↓ |
| NIKKEI | 35,025 | ||
| HSI | 17,111.65 | 21.42 | 0.12%↑ |
| VIX | 20.71 | 0.34 | 1.66%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.90% | -0.036 |
| US 30-YR | 4.20% | -0.018 |
| US 5-YR | 3.74% | -0.050 |
| JPN 10-YR | 0.85% | |
| UK 10-YR | 3.71% | -0.014 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 80.06 | 3.22 | 4.19%↑ |
| NAT GAS | 2.18 | 0.04 | 2.14%↑ |
| GOLD | 2,472.9 | 41.58 | 1.71%↑ |
| SILVER | 27.97 | 0.51 | 1.88%↑ |
| COPPER | 4.06 | 0.07 | 1.89%↑ |
Equity Market Overview
Barrick Gold
Barrick Gold’s shares surged by 6.2% on Monday after reporting betterthan-expected second-quarter results, narrowing their underperformance for the year. The stock reached C$25.38 in Toronto and $18.50 on the NYSE, marking year-to-date gains of 6% and 2.3%, respectively. This contrasts with stronger performances from rivals like Newmont, Agnico Eagle Mines, and Anglo Gold Ashanti. Barrick’s earnings rose to $370 million, or 21 cents per share, driven by higher gold and copper prices, with adjusted earnings of 32 cents per share beating analyst expectations. Revenue also grew 12% to $3.16 billion.
JetBlue Airways
JetBlue Airways initiated a $2.75 billion bond and loan sale, backed by its loyalty program, to bolster reserves and fund corporate needs. Both Moody’s and S&P downgraded JetBlue’s credit rating close to triple C levels, which may limit certain investors. The airline’s shares dropped up to 19% as it announced plans to sell $400 million in convertible notes. JetBlue is offering $1.5 billion in seven year bonds and a $1.25 billion five-year term loan, with pricing expected soon. Barclays and Goldman Sachs are leading the transaction.
