Fixed Income Market Overview
U.S. Treasury yields saw a slight decline on Monday as investors awaited key inflation data and Federal Reserve officials’ comments scheduled for the week. The yield on the 10-year Treasury fell by 3 basis points to 4.473%, while the 2-year yield also dropped by 3 basis points to 4.834%. Investors are particularly focused on April’s consumer price index (CPI) and producer price index (PPI) reports, expected to shed light on whether consumer inflation is easing. The Fed, noting a lack of further progress in inflation returning to its 2% target, has emphasized the need for sustained evidence of easing before considering interest rate cuts. Central bank officials’ speeches this week will be closely monitored for insights into future monetary policy decisions. The University of Michigan’s consumer sentiment index revealed lower-than-expected readings, with rising inflation expectations contributing to concerns.
Brent hovers around $83 as inflation data takes center stage.
Emirates airline chalks record annual profit as travel demand booms.
SoftBank Vision Fund posts first annual gain in 3 years, up $4.6 billion.
Microsoft and Amazon to invest $5.6 billion into France as Macron courts tech giants.
Shein’s U.S. charm offensive and IPO could hinge on NRF membership. So far, it’s been rejected.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,431.51 | -81.33 | -0.21%↓ |
| NASDAQ | 18,198.61 | 37.43 | 0.21%↑ |
| SNP 500 | 5,221.42 | -1.26 | -0.02%↓ |
| NIKKEI | 38,179.46 | -49.65 | -0.13%↓ |
| VIX | 13.60 | 1.05 | 8.37%↑z |
| HIS | 19,115.06 | 151.38 | 0.80%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.49% | -0.01 |
| US 30-YR | 4.64% | -0.01 |
| US 5-YR | 4.51% | -0.01 |
| JPN 10-YR | 0.94% | 0.03 |
| UK 10-YR | 4.22% | 0.05 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 79.12 | 0.86 | 1.10%↑ |
| NAT GAS | 2.381 | 0.129 | 5.73%↑ |
| GOLD | 2,343.00 | -32.00 | -1.35%↓ |
| SILVER | 28.44 | -0.06 | -0.22%↓ |
| COPPER | 4.766 | 0.104 | 2.22%↑ |
Equity Market Overview
GameStop
GameStop shares surged on Monday following the return of “Roaring Kitty,” also known as Keith Gill, who inspired the 2021 short squeeze, with his first post on Reddit in three years garnering significant attention. The rally saw GameStop up 70%, halting trading multiple times due to volatility, while AMC and Reddit also saw notable gains. Gill, a former marketer, became known for rallying day traders on Reddit to invest in GameStop, sparking a meme stock frenzy and targeting short sellers. The episode triggered congressional hearings on trading practices, culminating in the 2023 movie “Dumb Money,” depicting Gill’s role.
BHP Group LTD
BHP Group expressed disappointment as Anglo American rejected a revised buyout offer, valuing the company at £34 billion ($42.67 billion), following an earlier rebuff of BHP’s $39 billion all-share takeover bid in April. BHP asserts that a merger would generate substantial value for shareholders but lamented Anglo American’s reluctance to engage in discussions regarding the improved terms. The statement underscores BHP’s commitment to pursuing a merger as it believes in the potential synergies between the two companies, despite the current impasse. The rejection signals ongoing negotiations and strategic maneuvering between the mining giants as they seek to unlock value and consolidate their positions in the industry.
Intel
Intel is reportedly in advanced discussions with Apollo Global Management for an $11 billion deal to establish a facility in Ireland, aligning with Intel’s broader strategy to expand its manufacturing presence globally, including a planned $100 billion investment across four US states. Exclusive negotiations between Intel and Apollo are ongoing, with other firms like KKR and Stonepeak also previously considered. Neither Intel nor Apollo commented on the matter. Despite challenges such as weak demand for traditional chips, Intel aims to apitalize on the growing market for AI components and leverage European Commission funding for its expansion plans in Ireland and France announced in 2022.
