Fixed Income Market Overview
On Monday, U.S. Treasury yields edged higher as investors anticipated key economic data throughout the week, including fresh inflation insights. The 10-year Treasury yield rose slightly to 4.281%, while the 2-year Treasury yield climbed to 4.62%. Investors are focused on upcoming data that could influence Federal Reserve monetary policy. Last week’s data showed nonfarm payrolls increased by 206,000 in June, with the unemployment rate rising to 4.1%. Uncertainty persists about the timing of interest rate cuts, with Fed officials seeking more evidence of easing inflation. This week’s consumer price index and producer price index reports, along with Federal Chairman Jerome Powell’s testimony before Congress, are crucial for gauging future monetary policy actions.
French bond markets calm despite country hitting political gridlock.
Amazon rival Shein wants to be supply chain giant, some fear China cyber spying.
Danish brewer Carlsberg to buy soft drinks maker Britvic.
U.S. crude oil prices fall nearly 1% as market tracks path of Hurricane Beryl.
Paramount agrees to merge with Skydance.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,344.79 | -31.08 | -0.08%↓ |
| NASDAQ | 20,439.54 | 47.57 | 0.23%↑ |
| S&P 500 | 5,572.85 | 5.66 | 0.10%↑ |
| NIKKEI | 40,780.70 | -131.67 | -0.32%↓ |
| HSI | 17,524.06 | -275.55 | -1.55%↓ |
| VIX | 12.37 | -0.11 | -0.88%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.28% | 0.00 |
| US 30-YR | 4.47% | -0.02 |
| US 5-YR | 4.25% | 0.01 |
| JPN 10-YR | 1.09% | 0.02 |
| UK 10-YR | 4.12% | -0.01 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.33 | -0.83 | -1.00%↓ |
| NAT GAS | 2.382 | 0.032 | 1.36%↑ |
| GOLD | 2,363.50 | -34.20 | -1.43%↓ |
| SILVER | 30.91 | -0.78 | -2.45%↓ |
| COPPER | 4.618 | -0.034 | -0.73%↓ |
Equity Market Overview
Eli Lilly and Company
Eli Lilly & Co. is acquiring gut-drug maker Morphic Holding Inc. for $3.2 billion, paying $57 per share in cash, a 79% premium over Morphic’s last closing price. This acquisition is funded by proceeds from Lilly’s obesity drug Zepbound, and aligns with CEO Dave Ricks’ strategy to invest in early-stage technologies, particularly in immunology. Morphic’s stock surged 75% to $55.78 following the announcement. The company is developing a selective oral small molecule inhibitor for inflammatory bowel disease, with its leading compound in mid-stage trials for ulcerative colitis and Crohn’s disease. Lilly’s acquisition aims to enhance treatment options for these conditions.\
TSMC
Taiwan Semiconductor Manufacturing Co. (TSMC) briefly surpassed $1 trillion in market capitalization as Morgan Stanley raised its price target ahead of the company’s earnings report. TSMC’s ADR shares surged by 4.8%, marking an 80% increase this year, making it the world’s eighth most valuable company. The chipmaker, a key supplier to Apple and Nvidia, has seen rising demand driven by AI advancements. Analysts anticipate TSMC will increase its full-year sales estimate and possibly hike wafer prices due to strong demand and bargaining power. Despite geopolitical risks from China, TSMC’s shares continue to perform well in both US and Taiwan markets.
Boeing
Boeing Co. will plead guilty to criminal conspiracy related to two fatal 737 Max crashes, resulting in a fine up to $487.2 million, though a judge may reduce this to $243.6 million considering a prior fine. As part of the deal, Boeing must install a corporate monitor, spend $455 million on compliance, and undergo court-supervised probation. This agreement follows the DOJ’s finding that Boeing breached a 2021 deferred-prosecution agreement. The plea deal aims to help Boeing avoid a trial amidst financial and leadership turmoil, but has been criticized by victims’ families as insufficient. Boeing’s stock has fallen 29% this year.
