Fixed Income Market Overview
At their July meeting, Federal Reserve officials moved closer to an interest rate cut but held rates steady, indicating a probable September reduction. Confidence in inflation easing grew, although concerns remained about the labor market, particularly after a revision revealed 818,000 fewer jobs over the past year. Despite calls for a quicker cut, data showing lower jobless claims and better retail sales eased recession fears. Treasury yields remained stable as investors await Fed Chair Jerome Powell’s speech at the Jackson Hole symposium. Markets anticipate a September rate cut, though the size remains uncertain.
Nearly $90bn pours into US money market funds ahead of expected rate cuts.
Gold hits record highs as investors bet on rate cuts.
Ford warns of $1.9bn write down on cancellation of electric SUV.
Shein sues Temu over copyright infringement, alleges rival loses money one very sale.
BOJ is expected to raise rates again by year-end.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,890.49 | 55.52 | 0.13%↑ |
| NASDAQ | 19,824.84 | 105.02 | 0.53%↑ |
| S&P 500 | 5,620.85 | 23.73 | 0.42%↑ |
| FTSE 100 | 8,283.43 | 10.11 | 0.12%↑ |
| SX5E | 4,885.28 | 27.70 | 0.57%↑ |
| NIKKEI | 37,951.80 | -111.12 | -0.29%↓ |
| HSI | 17,391.01 | -120.07 | -0.68%↑ |
| VIX | 16.27 | 0.39 | 2.45%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.80% | -0.005 |
| US 30-YR | 4.07% | 0.016 |
| US 5-YR | 3.65% | -0.031 |
| JPN 10-YR | 0.88% | -0.013 |
| UK 10-YR | 3.70% | -0.032 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 71.93 | -1.24 | -1.69%↓ |
| NAT GAS | 2.18 | -0.02 | -0.95%↑ |
| GOLD | 2,512.56 | -1.43 | -0.05%↓ |
| SILVER | 29.60 | 0.16 | 0.55%↑ |
| COPPER | 4.19 | 0.03 | 0.75%↑ |
Equity Market Overview
Macy’s Inc
Macy’s has lowered its full-year sales forecast amid softer consumer spending and increased promotions, projecting net sales between $22.1 billion and $22.4 billion, down from its previous estimate. The department store operator posted better-than-expected earnings of 53 cents per share but missed on revenue at $4.94 billion. Despite attempts at turnaround efforts, including store closures and investments in remaining locations, comparable sales for its namesake brand fell 3.6%. CEO Tony Spring noted a decline in discretionary spending, even among affluent consumers. Shares dropped 13% after the earnings report, with the stock down 23% year-to-date.
Snowflake Inc.
Snowflake Inc. exceeded quarterly expectations with adjusted earnings of 18 cents per share and revenue of $868 million, driven by strong product growth and innovation in AI. Despite raising its full-year product revenue outlook to $3.356 billion, the stock dropped 8% in after-hours trading, partly due to concerns about potential deceleration in the second half of the year. Snowflake posted a wider net loss of $317 million but increased its buyback program by $2.5 billion, extending it through 2027. Analysts remain optimistic about the company’s positioning in AI despite short-term market pressures.
