Fixed Income Market Overview
U.S. Treasury yields declined post-Fed’s inflation report, with the 10-year yield dropping over 5 basis points to 4.501%. The 2-year yield also fell by over 5 basis points, settling at 4.877%. Core PCE, excluding food and energy, rose 0.2% in April, matching economist forecasts, with an annual increase of 2.8%, slightly exceeding expectations.
Inflation metrics, including CPI and Core CPI, showed increases of 3.4% and 3.6% respectively in April, indicating persistent inflationary pressures. Market expectations for rate cuts have diminished. Fed officials emphasize patience and data reliance before considering rate adjustments, with the upcoming June 11-12 policy meeting pivotal for further insights.
Costco’s new CFO says $1.50 hot dog and soda combo is here to stay.
Blackstone Agrees to Buy Japanese Manga Firm for $1.7 Billion.
Sneaker maker Golden Goose aims to list in Milan in June.
Shares of Dell fall 16% as AI servers are sold at ‘near-zero margins’..
Britain cuts stake in NatWest via £1.24 billion share sale.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,686.32 | 574.84 | 1.51%↑ |
| NASDAQ | 18,536.65 | -2.01 | -0.01%↓ |
| SNP 500 | 5,277.51 | 42.03 | 0.80%↑ |
| NIKKEI | 38,487.90 | 433.77 | 1.14%↑ |
| HIS | 18,079.61 | -150.58 | -0.83%↓ |
| VIX | 12.92 | -1.55 | -10.71%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.50% | -0.05 |
| US 30-YR | 4.65% | -0.03 |
| US 5-YR | 4.51% | -0.06 |
| JPN 10-YR | 1.08% | 0.01 |
| UK 10-YR | 4.32% | -0.03 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 76.99 | -0.92 | -1.18%↓ |
| NAT GAS | 2.587 | 0.015 | 0.58%↑ |
| GOLD | 2,345.80 | -20.70 | -0.87%↓ |
| SILVER | 30.44 | -1.09 | -3.47%↓ |
| COPPER | 4.602 | -0.056 | -1.21%↓ |
Equity Market Overview
Dell Technologies Inc.
Shares of Dell Technologies fell over 16% Friday despite beating fiscal Q1 expectations and offering positive guidance. Investors were concerned about a lower-than-expected AI server backlog and declining margins. Dell reported $22.24 billion in revenue, surpassing estimates, but operating margins for its Infrastructure Solutions Group compressed yearover- year, and AI servers generated minimal profits. Analysts noted high expectations weren’t met, citing flat operating profits despite incremental AI server revenues. Bank of America and JPMorgan reiterated buy ratings, believing concerns are overblown and expect future AI demand will boost margins and revenue.
Royal Bank of Canada
Royal Bank of Canada (RBC) exceeded profit expectations driven by its capital markets segment, with a 31% rise in net income, and projected a promising investment banking environment. Canadian Imperial Bank of Commerce (CIBC) also surpassed profit estimates due to capital markets strength and lower-than-expected loan loss provisions. The resurgence in M&A activity helped Canadian banks despite high interest rates impacting consumers. RBC and CIBC shares rose 4% and 5%, respectively, boosting the TSX finance index. RBC’s profit rose 7% to C$3.95 billion, earning C$2.92 per share, while CIBC earned C$1.75 per share. Both banks face uncertainties, including potential seasonal slowdowns and global elections.
Nordstrom, Inc.
Nordstrom missed Wall Street’s quarterly earnings expectations but saw sales growth and maintained its full-year forecast. It reported a loss of 24 cents per share against the expected 8 cents, and revenue of $3.34 billion, exceeding the $3.20 billion expected. Nordstrom Rack, its off-price chain, outperformed its flagship brand with a 7.9% increase in comparable sales, compared to a 1.8% rise for the flagship stores. Despite the earnings miss, the company reaffirmed its full-year earnings projection of $1.65 to $2.05 per share. Shares fell 7% in extended trading. Nordstrom also highlighted strong performance in activewear, kids’ and women’s apparel, and beauty products.
