Fixed Income Market Overview
The 10-year U.S. Treasury yield fell by 3 basis points to 4.197% on Tuesday, while the 2-year Treasury yield rose by nearly 1 basis point to 4.46%. Federal Reserve Chair Jerome Powell stated that he Fed won’t wait for inflation to hit the 2% target before cutting interest rates, suggesting that waiting too long would keep monetary policy too tight. Recent data showed a 0.1% monthly decline in June’s consumer price index, with an annual rate of 3%. Traders anticipate no rate change at the upcoming Fed meeting but expect a rate cut in September. Better-than-expected retail sales data also influenced market sentiments.
Equity traders fuel US bank profits as stock markets rally.
Gold futures hit record above $2,460 an ounce on hopes Fed will soon cut rates.
Cleveland-Cliffs to buy Canadian steelmaker Stelco for $2.8 billion.
Luxury brands roll out 50% discounts as Chinese shoppers rein in spending.
UnitedHealth Beats on Profit But Continues To Feel Effects of Cyberattack.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,954.48 | 742.76 | 1.84%↑ |
| NASDAQ | 20,398.63 | 11.75 | 0.05%↑ |
| S&P 500 | 5,667.20 | 35.98 | 0.63%↑ |
| NIKKEI | 41,275.08 | -177.39 | -0.42%↓ |
| HSI | 17,727.98 | 11.43 | 0.06%↑ |
| VIX | 13.19 | 0.40 | 3.03%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.16% | 0.07 |
| US 30-YR | 4.37% | 0.08 |
| US 5-YR | 4.08% | 0.05 |
| JPN 10-YR | 1.02% | 0.02 |
| UK 10-YR | 4.05% | 0.05 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 80.8 | 0.04 | 0.04%↓ |
| NAT GAS | 2.173 | -0.015 | -0.68%↓ |
| GOLD | 2,471.9 | 2.82 | 0.11%↑ |
| SILVER | 30.89 | -0.35 | -1.13%↓ |
| COPPER | 4.44 | -0.08 | -1.70%↓ |
Equity Market Overview
Morgan Stanley
Morgan Stanley’s second-quarter profit surged 41% to $3.08 billion, or $1.82 per share, exceeding the LSEG estimate of $1.65 per share. Revenue rose 12% to $15.02 billion, driven by stronger- than-expected trading and investment banking results. Equity trading revenue increased 18% to $3.02 billion, and investment banking revenue surged 51% to $1.62 billion. The wealth management division, however, saw a 17% drop in interest income due to clients shifting cash to higher-yielding assets. Despite this, CEO Ted Pick highlighted the firm’s strong performance and strategic execution in an improving capital markets environment.
Hugo Boss
Hugo Boss shares plummeted by up to 10% after the company lowered its annual sales forecast, citing ongoing macroeconomic and geopolitical challenges, particularly in China and the UK. The German fashion house now anticipates full-year sales of up to €4.35 billion, down from a previous €4.45 billion estimate. Second-quarter sales fell by 1% to €1.02 billion, with a significant 42% drop in operating profit due to weaker sales and strategic investments. Despite these setbacks, CEO Daniel Grieder remains confident in the brand’s growth strategy. The luxury sector overall is experiencing similar struggles, with Burberry and Richemont also reporting disappointing sales amid Chinese market challenges.
Bank of America Corp
Bank of America reported second-quarter earnings of 83 cents per share, exceeding the LSEG estimate of 80 cents, with revenue at $25.54 billion, surpassing expectations. Profit declined 6.9% to $6.9 billion due to a 3% drop in net interest income, which matched analyst predictions. Investment banking fees rose 29% to $1.56 billion, and asset management fees increased 14% to $3.37 billion, boosting the wealth management division’s revenue by 6.3%. New guidance on net interest income suggests a rise to $14.5 billion in the fourth quarter, giving investors confidence. Shares climbed 5.4% following the positive NII outlook.
