Fixed Income Market Overview
U.S. Treasury yields declined on Tuesday as investors analyzed recent economic indicators, signaling potential impacts on the economy. The 10-year Treasury yield decreased by 6 basis points to 4.334%, while the 2-year yield retreated 3.5 basis points to 4.78%. April’s employment data revealed 8.059 million vacancies, lower than the 8.4 million estimate, suggesting a weaker labor market. This trend prompts speculation that the Federal Reserve may consider interest rate cuts, albeit concerns about recession risks persist. Investors await Friday’s jobs report for a comprehensive assessment. Yields had dropped on Monday following news of a contraction in the manufacturing sector, with the ISM index below expectations at 48.7. The upcoming release of ISM’s services index and the May jobs report will provide further insights into economic trends. With the Federal Reserve’s meeting approaching, market participants closely monitor signals regarding monetary policy and economic outlook. Meanwhile, anticipation surrounds the European Central Bank’s anticipated interest rate adjustment this week.
US job openings hit lowest since February 2021 as labour market cools.
U.S. crude oil extends losses, falls below $73 per barrel on OPEC+ increasing supply.
Paramount leadership team outlines job cuts, streaming JV plans.
India Stocks Lose $386 Billion on Tight Indian Election Polls Outcome.
Google cuts at least 100 jobs across its cloud unit, CNBC reports.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,711.29 | 140.26 | 0.36%↑ |
| NASDAQ | 18,654.84 | 53.87 | 0.29%↑ |
| SNP 500 | 5,291.34 | 7.94 | 0.15%↑ |
| NIKKEI | 38,837.46 | -85.57 | -0.22%↓ |
| VIX | 13.16 | 0.19 | 0.38%↑ |
| HIS | 18,444.11 | 41.07 | 0.22%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.33% | -0.06 |
| US 30-YR | 4.48% | -0.06 |
| US 5-YR | 4.35% | -0.06 |
| JPN 10-YR | 1.04% | -0.03 |
| UK 10-YR | 4.18% | -0.04 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 73.25 | -0.97 | -1.31%↓ |
| NAT GAS | 2.586 | -0.170 | -6.17%↓ |
| GOLD | 2,347.40 | -21.90 | -0.92%↓ |
| SILVER | 29.62 | -1.17 | -3.79%↓ |
| COPPER | 4.537 | -0.131 | -2.80%↓ |
Equity Market Overview
Intel Corporation
Intel announced new AI data center chips to compete with Nvidia and AMD.Their Xeon 6 processor promises better performance and power efficiency.This comes after Nvidia and AMD’s recent AI chip announcements.Intel also offers lower priced Gaudi 2 and 3 AI accelerators.Their upcoming Lunar Lake processors target the AI PC category.Intel aims to regain market share in the booming AI industry.The CHIPS and Science Act funding could aid Intel’s development.
Hewlett Packard Enterprise
Hewlett Packard Enterprise (HPE) beat Wall Street expectations with strong AI server sales. Their AI systems revenue doubled due to high demand and better supply chain. AI integration boosted hybrid cloud and data storage sales as well. HPE predicts higher Q3 revenue than analysts expected. Their Q2 revenue also surpassed estimates. HPE raised its fullyear earnings forecast slightly. Their adjusted EPS was 42 cents per share, exceeding expectations.
Cisco Systems Inc.
Cisco’s ThousandEyes unveiled new AI features for faster outage prediction.Their AI, called DXA, allows automatic network issue resolution.ThousandEyes is like “Google Maps” for the internet with broad network visibility.DXA offers analysis, prediction, and remediation with minimal manual work.ThousandEyes platform uses over 650 billion daily global measurements.New AI product will generate automatic reports on internet health.This AI tool uses large language models similar to ChatGPT.
