Fixed Income Market Overview
U.S. Treasury yields saw a retreat post-release of April’s consumer inflation data, softer than projected. The 10-year Treasury yield dropped 8 basis points to 4.363%, while the 2-year Treasury yield slid by over 7 basis points to 4.749%. April’s consumer price index rose 0.3%, slightly below the 0.4% consensus forecast, aligning with a 3.4% annualized increase in a basket of goods and services. This decline may signal potential for the Federal Reserve to adjust its rate hike campaign, with market attention focused on prospects for earlier rate cuts. Core CPI, excluding food and energy prices, rose 0.3% monthly and 3.6% annually, aligning with predictions. This data follows Tuesday’s release of April’s producer price index, indicating higher-than-expected wholesale prices, prompting Federal Reserve Chair Jerome Powell to emphasize patience in addressing prolonged inflation levels.
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S&P 500 and Nasdaq rise to all-time highs after light consumer inflation report.
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Jamie Dimon urges the U.S. to deal with its deficit sooner rather than later.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,908.00 | 349.89 | 0.88%↑ |
| NASDAQ | 18,596.65 | 273.88 | 1.49%↑ |
| SNP 500 | 5,308.15 | 61.47 | 1.17%↑ |
| NIKKEI | 38,385.73 | 29.67 | 0.08%↑ |
| VIX | 12.45 | -0.97 | -7.23%↓ |
| HIS | 19,073.71 | -41.35 | -0.22%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.34% | -0.10 |
| US 30-YR | 4.51% | -0.08 |
| US 5-YR | 4.35% | -0.11 |
| JPN 10-YR | 0.95% | -0.01 |
| UK 10-YR | 4.07% | -0.11 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.63 | 0.61 | 0.78%↑ |
| NAT GAS | 2.416 | 0.072 | 3.07%↑ |
| GOLD | 2,394.90 | 35.00 | 1.48%↑ |
| SILVER | 29.73 | 1.03 | 3.58%↑ |
| COPPER | 4.925 | 0.030 | 0.60%↑ |
Equity Market Overview
Uber
Uber unveiled several new product updates at its Go-Get showcase in New York, aiming to help customers save on rides and food. Key offerings include Uber Shuttle, where riders can reserve affordable seats for events, and Uber Caregiver, enabling booking for loved ones and three-way chats with drivers. Costco is now available on Uber Eats, offering discounts for members. Users can now schedule shared UberX rides in advance, saving 25% on average, initially in select cities. Uber One membership will be discounted for students, offering free items and special deals. Uber Eats introduces “Lists,” allowing users to curate and share restaurant recommendations.
Allianz
Allianz, Europe’s largest insurer, reported a 21.8% increase in net profit to €2.6 billion for the first quarter, driven by its propertycasualty segment benefiting from higher prices and fewer natural catastrophe claims. Operating profit rose by 6.8% to €4 billion, with core earnings per share up to €6.42. Its asset management business, including Pimco, saw strong results, with third-party assets under management reaching €1.784 trillion. While its life / health insurance business grew in volume, operating profit remained steady. Allianz reaffirmed its 2024 operating profit target of around €14 billion. Chief Financial Officer Claire-Marie Coste-Lepoutre expressed confidence in maintaining shareholder value, citing a strong Solvency II ratio of 203%.
Cisco Systems
Cisco Systems exceeded analysts’ fourthquarter revenue expectations due to increased enterprise spending and improved supply chain conditions. The company is diversifying away from its traditional networking equipment business and focusing on areas like AI and cloud computing. Cisco’s shares rose in extended trading, despite a year-to-date decline prior to the earnings report. The company’s forecasted revenue for the fourth quarter is higher than analysts’ estimates. Although revenue fell in the third quarter, the acquisition of Splunk contributed to its cybersecurity capabilities. Cisco’s revenue has declined for two consecutive quarters due to inventory backlogs, potentially leading to aggressive pricing strategies. However, on an adjusted basis, Cisco’s earnings per share surpassed estimates.
