Fixed Income Market Overview
Treasuries continued their post-Fed rally as investors awaited key US economic data. Fed Chair Jerome Powell’s comments assuaged concerns about imminent rate hikes, bolstering market sentiment. The 10-year Treasury yield fell to 4.59%, reflecting investors’ expectations of potential rate cuts this year. Despite April’s losses, Powell’s remarks and anticipation of upcoming data fueled optimism. Jobless claims, factory orders, and non-farm payrolls figures are pivotal. Analysts anticipate a soft landing for the economy, with UBS projecting a decline in 10-year Treasury yields to 3.85% by year-end. Market sentiment favors potential rate cuts, with money-market traders expecting at least one quarter-point cut by November. The Fed’s decision to reduce Treasury offloading further buoyed the market, easing concerns about tightening policy. Powell emphasized the importance of incoming data in shaping future policy decisions, signaling a cautious approach to monetary policy.
Trump Media pushes House to probe 8 firms over short-selling of DJT shares.
Standard Chartered first quarter profit rises 5.5%, beats estimates.
Shares of Nio soar more than 20% as EV deliveries more than double in April.
Peloton CEO Barry McCarthy to step down, company to lay off 15% of staff.
Microsoft to open new data center in Thailand as it doubles down on AI and Southeast Asia.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,225.66 | 322.37 | 0.85%↑ |
| NASDAQ | 17,541.54 | 222.99 | 1.29%↑ |
| SNP 500 | 5,064.20 | 45.81 | 0.91%↑ |
| NIKKEI | 38,236.07 | -37.98 | -0.10%↓ |
| VIX | 14.68 | -0.71 | -4.61%↓ |
| HIS | 18,207.13 | 444.10 | 2.50%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.58% | -0.06 |
| US 30-YR | 4.73% | -0.02 |
| US 5-YR | 4.58% | -0.08 |
| JPN 10-YR | 0.91% | 0.01 |
| UK 10-YR | 4.29% | -0.08 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.95 | -0.05 | -0.06%↓ |
| NAT GAS | 2.035 | 0.103 | 5.33%↑ |
| GOLD | 2,309.60 | -1.40 | -0.06%↓ |
| SILVER | 26.83 | 0.08 | 0.30%↑ |
| COPPER | 4.485 | -0.062 | -1.35%↓ |
Equity Market Overview
Novo Nordisk
Novo Nordisk, Europe’s leading pharmaceutical company, exceeded first-quarter profit projections, driven by surging demand for its weight loss medications, notably Wegovy. The company reported a 28% increase in net profit, reaching 25.4 billion Danish kroner, surpassing expectations of 23.7 billion kroner. Sales of Wegovy more than doubled, contributing to a 35% rise in North American sales. CEO Lars Fruergaard Jørgensen expressed satisfaction with the growth, attributing it to heightened demand for their innovative diabetes and obesity treatments. Novo Nordisk revised its 2024 outlook upwards, anticipating a sales growth of 19% to 27% and an operating growth of 22% to 30%, with an adjusted forecast reflecting U.S. market dynamics. Despite facing increasing competition, the company remains buoyed by strong performance and recent positive trial outcomes.
Shell
British oil giant Shell reported robust firstquarter profit of $7.7 billion, surpassing analyst expectations, driven by increased refining margins and strong oil trading. Despite a 20% decline from the previous year, the company’s operational and financial performance was hailed as strong by CEO Wael Sawan. Shell announced a $3.5 billion share buyback program, maintaining its dividend, and aims to reduce net debt. Amid a broader industry downturn, Shell’s performance contrasts with U.S. counterparts Exxon Mobil and Chevron, and European peers TotalEnergies and Equinor, all facing significant profit declines. Despite market challenges, Shell’s solid earnings underscore optimism, with attention now turning to BP’s forthcoming earnings report on May 7.
Apple
Apple’s shares surged 7% postannouncement of fiscal Q2 earnings exceeding estimates and a $110 billion share repurchase program, marking the largest buyback in history. Despite a 4% decline in overall sales and a 10% drop in iPhone sales attributed to tough yearover- year comparisons, Apple beat LSEG consensus estimates across major metrics. CEO Tim Cook anticipates low single- digit sales growth for the June quarter. Notably, iPad sales are projected to show double-digit year-overyear growth, and Services division maintains strong momentum with over 1 billion paid subscriptions. Sales in Greater China, though down 8%, outperformed expectations, potentially alleviating concerns of market share loss.
