Fixed Income Market Overview
The benchmark U.S. Treasury yield remained stable on Wednesday amid key economic data releases. The 10-year Treasury yield dipped by 2 basis points to 4.308%, while the 2-year yield fell to 4.76%. Treasury yields eased following an uptick in the services sector PMI, which rose to 53.8 in May, surpassing estimates.
Additionally, private payrolls grew by 152,000 in May, below the expected 175,000, and April job vacancies hit a three-year low at 8.059 million. These indicators suggest a softening labor market, potentially influencing the Federal Reserve’s interest rate decisions. As the Fed meeting approaches, markets anticipate no immediate rate changes, but future rate cuts remain a topic of interest.
Canada becomes first G7 central bank to cut interest rates this cycle.
Oil prices rise but hover near four-month low on OPEC+ supply increase later this year.
Nvidia overtakes Apple as its market capitalization surpasses $3tn.
India stocks recoup some losses as investors digest election results.
Citadel and BlackRock back project to start a national stock exchange in Texas.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,807.33 | 96.04 | 0.25%↑ |
| NASDAQ | 19,035.05 | 380.21 | 2.04%↑ |
| SNP 500 | 5,354.03 | 62.69 | 1.18%↑ |
| NIKKEI | 38,490.17 | -347.29 | -0.89%↓ |
| VIX | 12.63 | -0.53 | -4.03%↓ |
| HIS | 18,424.96 | -19.15 | -0.10%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.28% | -0.05 |
| US 30-YR | 4.43% | -0.04 |
| US 5-YR | 4.30% | -0.05 |
| JPN 10-YR | 1.01% | -0.03 |
| UK 10-YR | 4.19% | 0.00 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 74.07 | 0.82 | 1.12%↑ |
| NAT GAS | 2.757 | 0.171 | 6.61%↑ |
| GOLD | 2,375.50 | 28.10 | 1.20%↑ |
| SILVER | 30.07 | 0.46 | 1.54%↑ |
| COPPER | 4.606 | 0.069 | 1.52%↑ |
Equity Market Overview
Lululemon Athletica
Lululemon’s growth in the Americas, its primary market, appears to be stagnating with flat comparable sales and a cautious outlook for the current quarter despite surpassing earnings expectations. The company’s first fiscal quarter performance exceeded Wall Street forecasts, with earnings per share at $2.54 and revenue reaching $2.21 billion. Despite a modest increase in sales, Lululemon faces challenges such as inventory management issues and a narrower product assortment affecting consumer demand in the Americas. With a 3% sales increase compared to last year’s 17%, the company’s growth rate in the Americas has slowed significantly. Although concerns persist about its stock performance and potential challenges from shifting consumer preferences towards denim over athleisure wear.
Dollar Tree
Dollar Tree announced it is considering selling its Family Dollar brand. The company plans to close nearly 1,000 Family Dollar stores to revamp the struggling business, having already shut down over 500 in Q1. Family Dollar has struggled since Dollar Tree acquired it in 2015 for almost $9 billion. Despite this, Dollar Tree’s Q1 earnings met expectations, with revenue rising to $7.63 billion. However, Family Dollar’s samestore sales grew only 0.1%, lagging behind Dollar Tree’s 1.7% growth. The company expects flat sales growth for Family Dollar in Q2. Dollar Tree incurred losses from a tornado-damaged distribution center but expects insurance recoveries. Shares fell about 2% on Wednesday.
Semtech Corporation
Semtech Corporation has released its firstquarter financial results for fiscal year 2024, exceeding analyst projections for both earnings per share (EPS) and revenue. With adjusted EPS of $0.06 and revenue reaching $206.1 million, Semtech saw its shares rise by 2.7% post-announcement, indicating a favorable market response. President and CEO Paul H. Pickle lauded the company’s performance, citing sales surpassing guidance and significant reductions in channel inventories. Despite projecting a second-quarter EPS slightly below analyst consensus, Semtech’s revenue forecast of $212 million suggests a positive outlook, reflecting effective cost management and improved spending allocation, as noted by CFO Mark Lin.
