Global Market Overview

Fixed Income Market Overview

U.S. Treasury yields fell on Tuesday as investors evaluated inflation and interest rates following remarks from Federal Reserve officials. The 10-year Treasury yield dropped by 3 basis points to  4.408%, while the 2-year yield slipped by one basis point to 4.826%. Investors considered the economy’s state and its impact on inflation and interest rates. Fed Governor Christopher Waller expressed the need for more positive inflation data before supporting rate cuts. Fed Vice Chair Philip Jefferson and Vice Chair of Supervision Michael Barr also voiced caution about inflation trends. April’s consumer price index showed a 0.3% monthly increase and a 3.4% annual rise, aligning with expectations. Investors anticipate further insights from Fed officials’ remarks  and the upcoming release of the Fed’s last meeting minutes. Additionally, home sales and durable goods orders data are expected this week.

Mastercard and Visa face crackdown by UK watchdog on merchant fees.

Samsung Electronics names new chief for semiconductor business as AI chip race heats up.

Nvidia earnings could spark $200 billion swing in shares, options show.

Oil prices drift lower but remain stuck in narrow range as market struggles to find catalysts.

World’s first major law for artificial intelligence gets final EU green light.

Major Indicies

Bonds

Futures & Commodities

Equity Market Overview

Macy’s, Inc.

Macy’s surpassed Wall Street’s expectations for fiscal first-quarter earnings, reflecting early success in its turnaround strategy. The retailer raised its full-year earnings outlook, despite forecasting  cautious consumer spending, and saw its shares dip in morning trading. Investments in 50 stores have increased customer visits and sales, supported by new brands and enhanced services. Macy’s  expects net sales to drop slightly from 2023 but raised its adjusted earnings per share forecast. Despite store closures, Macy’s plans to invest in high-performing areas and expand Bloomingdale’s and Bluemercury locations, focusing on attracting younger customers. The retailer continues to navigate challenges, including a takeover bid by an activist investor, while aiming to strengthen its market position.

AstraZeneca

AstraZeneca aims to increase its revenue to $80 billion by 2030, up 75% from 2023, driven by its robust oncology, biopharmaceuticals, and rare diseases portfolios. The company plans to release  20 new medicines within six years, with several potentially reaching $5 billion in peak annual sales. Strategic investments include a new manufacturing facility in Singapore for antibody drug conjugates, targeting the replacement of traditional cancer treatments. AstraZeneca, post-COVID, focuses on oncology and cardiovascular health, and is expanding into weight management  drugs through a collaboration with Eccogene. Shares rose 0.66% following these announcements, reflecting investor confidence in the company’s growth strategy. The pharmaceutical giant continues to leverage its expertise and innovation to address global health challenges.

Lowe’s

Lowe’s exceeded Wall Street’s expectations for quarterly earnings and revenue despite a decline in purchases of high-priced items by do-it-yourself customers. The company maintained its full- year forecast, anticipating total sales between $84 billion and $85 billion and a 2-3% decline in comparable sales from the previous year. CEO Marvin Ellison highlighted that inflation and economic uncertainty are affecting consumer spending. Lowe’s net income for the quarter dropped to $1.76 billion, marking the fifth consecutive quarter of year-over-year sales decline. Efforts to increase business from home professionals and online sales helped mitigate the decline in DIY spending. Lowe’s continues to adapt its strategies to attract more professional customers and  strengthen its market position amid challenging economic conditions.