Fixed Income Market Overview
U.S. Treasury yields rose on Thursday as investors considered recent comments from Federal Reserve officials. The 10-year Treasury yield increased by 2 basis points to 4.1672%, and the 2-year Treasury yield also rose by 2 basis points to 4.4524%. Traders are betting heavily on a Fed interest rate cut in September, with a less than 5% chance of a July cut. Fed Governor Christopher Waller indicated that cuts are near, but emphasized monitoring upcoming data. New York Fed President John Williams and Richmond Fed President Thomas Barkin echoed cautious sentiments about future rate cuts. Fed Chair Jerome Powell suggested cuts might come before inflation hits 2%. Jobless claims data and Treasury bill auctions are also due Thursday.
UK inflation holds steady at Bank of England’s 2% target, above expectations.
SoftBank-backed Indian escooter maker Ola Electric’s India IPO will likely fetch a $4.5B valuation.
Rising U.S. rate cut optimism steers gold to all-time high.
Nasdaq posts worst day since 2022, Dow gains 200 points as investors rotate out of tech.
GM to increase production of high-performance Cadillac Escalade V8 SUV.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 41,198.08 | 243.6 | 0.59%↑ |
| NASDAQ | 19,799.14 | -599.49 | -2.93%↓ |
| S&P 500 | 5,588.27 | -78.93 | -1.39%↓ |
| FTSE 100 | 8,187.46 | 67.06 | +0.81%↑ |
| SX5E | 4,891.46 | 14.38 | +0.29%↑ |
| NIKKEI | 41,097.69 | -971.34 | -2.36%↓ |
| HSI | 17,739.41 | 39 | +0.21%↑ |
| VIX | 14.48 | -0.19 | -1.31%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.15% | 0.02 |
| US 30-YR | 4.37% | 0.02 |
| US 5-YR | 4.07% | 0.02 |
| JPN 10-YR | 1.04% | 0.001 |
| UK 10-YR | 3.91% | -0.005 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.85 | 0.2 | 0.24%↑ |
| NAT GAS | 2.035 | 0.004 | 0.19%↑ |
| GOLD | 2,458.79 | 7.27 | 0.29%↑ |
| SILVER | 30.30 | 0.21 | 0.69%↑ |
| COPPER | 4.39 | -2.7 | -0.61%↓ |
Equity Market Overview
ASML Holding
ASML reported better-than-expected Q2 earnings, with net sales at 6.24 billion euros and net profit at 1.58 billion euros, driven by high demand for AI chipmaking equipment. Despite this, shares dropped 11% due to potential U.S. export restrictions to China, which accounts for 49% of ASML’s sales. Net sales declined 9.5% year-on-year, and net income fell 18.7%, narrower than previous declines. Net bookings rose 24% year-on-year. ASML sees 2024 as a transition year with continued investments in AI driving recovery. However, geopolitical issues and export restrictions remain challenges. The company’s share price has increased by 44% this year.
United Airlines
United Airlines’ Q2 profit rose over 20% due to strong international travel demand, earning $1.32 billion, or $3.96 per share, up from $1.08 billion last year. Adjusted earnings per share were 4.14, surpassing expectations of $3.93, while revenue hit $14.99 billion, slightly below estimates. Despite strong Q2 results, United’s Q3 forecast of $2.75 to $3.25 per share fell short of the $3.44 expected, as increased flight supply pressures fares. Premium revenue grew over 8%, and basic economy sales rose 38%. United and Delta, both expanding international flights, face challenges with domestic capacity impacting airfares. CEO Scott Kirby anticipates schedule adjustments to moderate supply by mid-August.
Adidas
Adidas shares rose nearly 5% before settling around 2% higher on Wednesday after announcing a hike in its 2024 earnings guidance following strong second-quarter results. The company now expects an operating profit of €1 billion for 2024, up from €700 million previously. Adidas reported an 11% revenue increase in the second quarter, with a 16% rise in currency-neutral revenue excluding Yeezy sales. The company plans to sell its remaining Yeezy inventory, contributing around €150 million in additional sales without further profit. Second-quarter operating profit surged to €346 million, significantly higher than last year’s €176 million.
