Fixed Income Market Overview
U.S. Treasury yields fell on Wednesday after Federal Reserve Chair Jerome Powell hinted at a possible rate cut in September, with the 10-year Treasury yield dropping nearly 5 basis points to 4.092% and the 2-year yield falling 4 basis points to 4.315%. The Federal Reserve maintained the short-term interest rate range of 5.25%-5.5% while noting progress towards the 2% inflation target. Powell indicated that if economic data continues to support inflation moderation, a rate cut could occur in September, aligning with traders pricing in three more cuts this year. Despite the tightest monetary policy in decades, the economy has shown resilience with robust GDP growth and a till-low unemployment rate, although recent data suggests a cooling labor market and slowing wage growth. The Fed’s statement reflected cautious optimism, acknowledging balanced risks to employment and inflation, and highlighting increasing confidence in achieving their inflation goals.
Euro zone inflation rises to 2.6% in July, above expectations.
Samsung second-quarter operating profit soars 1,458% as AI demand remains strong; results top estimates.
U.S. crude oil jumps more than 3% after Hamas political leader assassinated in Tehran.
Boeing reports wider-than expected loss, weaker revenue.
Uber to start using BYD cars in Europe, Latin America and develop ‘autonomous-capable vehicles’.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,842.79 | 99.46 | +0.24%↑ |
| NASDAQ | 19,362.43 | 566.16 | +3.01%↑ |
| S&P 500 | 5,522.30 | 85.86 | +1.57%↑ |
| FTSE 100 | 8,367.98 | -21.13 | -0.25%↓ |
| SX5E | 4,872.94 | -56.84 | -1.16%↓ |
| NIKKEI | 39,101.82 | -975.49 | -2.49%↓ |
| HSI | 17,344.60 | -39.64 | -0.22%↓ |
| VIX | 16.36 | 0.34 | 2.07%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.02% | 0.02 |
| US 30-YR | 4.30% | 0.02 |
| US 5-YR | 3.91% | 0.02 |
| JPN 10-YR | 1.05% | -0.01 |
| UK 10-YR | 3.76% | -0.03 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.91 | -3.18 | -4.08%↓ |
| NAT GAS | 2.03 | 0.09 | +4.42%↑ |
| GOLD | 2,447.6 | -36.82 | -1.50%↓ |
| SILVER | 29.00 | -0.62 | -2.14%↓ |
| COPPER | 4.17 | -0.09 | -2.21%↓ |
Equity Market Overview
Meta
Meta’s shares rose 5% in after-hours trading on Wednesday following a strong earnings report that surpassed analysts’ expectations. The company reported $39.07 billion in revenue and $5.16 earnings per share, exceeding predictions of around $38 billion in revenue and $4.7 per share. Capital expenditures were $8.47 billion, lower than anticipated. CEO Mark Zuckerberg highlighted the success of Meta’s AI initiatives, including the Meta AI assistant and Ray-Ban Meta AI glasses. Despite previous concerns affecting the stock, Meta’s positive revenue forecasts have stabilized investor sentiment. The company also faces ongoing legal challenges related to privacy and user protection.
Lam Research
Lam Research reported a quarterly profit of $1.02 billion, or $7.78 per share, up from $802.5 million, or $5.97 per share, a year earlier. Adjusted earnings were $8.14 per share, exceeding FactSet’s $7.58 estimate. Revenue rose to $3.87 billion, beating analysts’ $3.82 billion forecast. CEO Tim Archer highlighted strategic investments in R&D and operations, anticipating strong spending on wafer fab equipment for several years. For the current quarter, Lam Research expects adjusted EPS between $7.25 and $8.75 and revenue between $3.75 billion and $4.35 billion, against analyst expectations of $8 EPS on $4.03 billion revenue.
Qualcomm
Qualcomm reported fiscal Q3 earnings that exceeded Wall Street expectations, with EPS at $2.33 and revenue at $9.39 billion. Despite initially rising 7%, Qualcomm’s stock fell 1% in extended trading. The company expects Q4 sales between $9.5 billion and $10.3 billion. Handset sales grew 12% to $5.9 billion, indicating a rebound in smartphone sales. Automotive revenue surged 87% to $811 million, while IoT revenue fell 8% to $1.4 billion. Qualcomm’s chip business (QCT) reported $8.1 billion in sales, up 12% YoY, and licensing revenue (QTL) rose 3% to $1.3 billion. The company faced a revenue impact from a revoked U.S. export license to Huawei.
