Fixed Income Market Overview
U.S. Treasury yields rose on Wednesday after weak demand for a $42 billion sale of 10-year notes and increased corporate debt issuance. Traders are focused on supply and awaiting new economic data to gauge the U.S. economy’s strength. Yields had dropped to over one year lows after July’s employment report showed higher unemployment and weaker job gains, raising recession fears. However, as stock markets rebounded, demand for safe-haven U.S. debt declined, leading to higher yields. The 10-year note yield increased to 3.96%, with the weakest demand since December 022. Traders anticipate potential Federal Reserve rate cuts in September, with upcoming inflation data and Fed Chair Powell’s comments being key indicators. Rising geopolitical tensions could further boost demand for U.S. Treasuries.
Microsoft and CrowdStrike hit back at Delta’s legal threats.
UK property market to feel boost from rate cuts, estate agents say.
U.S. crude oil rises more than 2%, bounces back from sixmonth low as stockpiles fall.
Airbnb Shares Dropped Dramatically As Travel Demand Slows.
Stocks close lower on Wednesday as market’s comeback attempt fizzles out.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,763.45 | -234.21 | -0.60%↓ |
| NASDAQ | 17,867.37 | -210.55 | -1.16%↓ |
| S&P 500 | 5,199.50 | -40.53 | -0.77%↓ |
| FTSE 100 | 8,166.88 | 140.19 | 1.75%↑ |
| SX5E | 4,668.06 | 92.84 | 2.03%↑ |
| NIKKEI | 35,089.62 | 414.16 | 1.19%↑ |
| HSI | 16,877.86 | 230.52 | 1.39%↑ |
| VIX | 27.85 | 0.14 | 0.50%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.94% | 0.05 |
| US 30-YR | 4.24% | 0.06 |
| US 5-YR | 3.76% | 0.03 |
| JPN 10-YR | 0.89% | -0.00 |
| UK 10-YR | 3.71% | 0.02 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 75.23 | 2.03 | 2.77%↑ |
| NAT GAS | 2.11 | 0.10 | 5.07%↑ |
| GOLD | 2,382.92 | -7.9 | -0.33%↓ |
| SILVER | 26.61 | -0.37 | -1.39%↓ |
| COPPER | 3.95 | -0.07 | -1.86%↓ |
Equity Market Overview
Disney
Disney’s fiscal third-quarter earnings exceeded expectations, with adjusted earnings per share at $1.39 and revenue at $23.16 billion. The company’s combined streaming business, including Disney+, Hulu, and ESPN+, turned a profit for the first time, a quarter earlier than anticipated. Despite a 19% increase in total segment operating income, Disney’s U.S. theme parks faced a slowdown due to flat attendance and inflation, impacting operating income. Disney announced streaming price hikes and plans to enhance platform features, while also addressing password sharing. CEO Bob Iger expressed confidence in future growth, especially in streaming, despite challenges in the theme park segment.
Novo Nordisk
Novo Nordisk reported weaker-than expected Q2 net profit of 20.05 billion Danish kroner, missing forecasts of 20.9 billion, and lowered its full-year 2024 operating profit growth outlook to 20%- 28% from 22%-30%. EBIT also fell short of expectations. Despite a 55% sales increase in its popular weight-loss drug We govy, shares dropped nearly 7% before recovering slightly. The company raised its full-year sales growth guidance to 22% – 28%. CEO Lars Fruergaard Jørgensen expressed confidence in future growth, despite rising competition in the weight loss market and highlighted promising developments, including Wegovy’s approval in China and backing from European regulators.
Shopify
Shopify’s shares surged 17.8% after surpassing Q2 expectations, reporting earnings per share of 26 cents versus the expected 20 cents, and revenue of $2.05 billion against $2.01 billion expected. The company’s gross merchandise volume increased 22% to $67.2 billion, beating estimates. Despite a challenging economic environment, Shopify’s diverse merchant base helped it outperform rivals like Amazon and Etsy, who noted more cautious consumer spending. Shopify anticipates Q3 revenue growth in the low to- mid-20s percentage range year overyear, aligning with analysts’ expectations of 21% growth.
