Fixed Income Market Overview
U.S. Treasury yields fell on Monday as investors awaited key economic data and considered recent U.S. political developments. The 10-year Treasury yield decreased over 2 basis points to 4.215%, while the 2-year Treasury yield rose by 1 basis point to 4.517%. Investors are anticipating economic reports, including Q2 GDP on Thursday and the personal consumption expenditures price index on Friday, which could influence the Federal Reserve’s monetary policy decisions. The Fed is looking for more signs of easing inflation before adjusting rates, with a 96% chance of no rate change in September. Additionally, markets reacted to President Joe Biden’s withdrawal from the presidential race and his endorsement of Vice President Kamala Harris as the Democratic nominee.
Kamala Harris sees surge in big money support after Biden drops out of race.
LVMH-backed fund buys £1.5bn stake in Bicester Village owner.
Berkshire trims Bank of America stake for the first time since 2019.
Delta cancels hundreds more flights in struggle to recover from Microsoft outage.
Vodafone Sells €1.3 Billion Vantage Towers Stake to Pay Off Debt.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,415.44 | 127.91 | +0.31%↑ |
| NASDAQ | 19,822.87 | 300.25 | +1.53%↑ |
| S&P 500 | 5,564.41 | 59.41 | +1.07%↑ |
| FTSE 100 | 8,198.78 | -10.75 | -0.13%↓ |
| SX5E | 4,897.44 | 24.52 | +0.50%↑ |
| NIKKEI | 39,599.00 | -4.61 | -0.01%↓ |
| HSI | 17,635.88 | -166.52 | -0.94%↓ |
| VIX | 14.91 | 0.27 | +1.81%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.25% | -0.013 |
| US 30-YR | 4.47% | -0.013 |
| US 5-YR | 4.17% | -0.016 |
| JPN 10-YR | 1.05% | 0.01 |
| UK 10-YR | 3.98% | -0.007 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.4 | 0.02 | +0.02%↑ |
| NAT GAS | 2.251 | -0.001 | -0.04%↓ |
| GOLD | 2,396.59 | 7.27 | +0.30%↑ |
| SILVER | 29.125 | -0.158 | -0.54%↓ |
| COPPER | 4.180 | -3.85 | -0.91%↓ |
Equity Market Overview
Verizon Communications
Verizon Communications Inc. reported a marginal 0.6% sales increase to $32.8 billion in Q2, slightly below the $33.1 billion analyst consensus. Adjusted EPS was $1.15, matching expectations. Wireless service revenue rose 3.5% year-over-year to $19.8 billion, driven by consumer wireless growth. The company saw 148,000 postpaid phone net additions, exceeding estimates, and added 391,000 total broadband subscribers. Despite a 2.4% decline in business revenue, consumer revenue grew by 1.5%. Verizon reiterated its FY24 outlook, projecting 2.0% – 3.5% wireless service revenue growth and maintaining an adjusted EPS of $4.50 – $4.70.
Ryanair Holdings PLC
Ryanair shares dropped 17.15% on Monday after reporting a 46% decline in quarterly profit due to lower-than-expected summer fares. The airline’s profit after tax for the first quarter fell to 360 million euros from 663 million euros a year earlier, despite a 10% increase in passenger traffic to 55.5 million. Weakerthan- anticipated fares and the Easter season falling into the previous quarter were cited as reasons for the profit drop. CEO Michael O’Leary indicated that Q2 fares would be lower than last summer and noted it was too early to forecast the financial year ahead. Other European budget airlines, including EasyJet and Wizz Air, also experienced significant share declines.
Logitech International SA
Logitech International raised its full-year sales and profit outlook, anticipating up to 3% sales growth following robust performance across almost all product categories. The company saw more than 10% growth in devices for gamers, keyboards, tablets, and headsets, despite slower growth in other categories and declines in mobile speakers and webcams. This resulted in a second consecutive quarter of increased group sales, ending a post-pandemic downturn. CEO Hanneke Faber highlighted the broad-based growth across regions and key categories. Logitech now projects full-year sales between $4.34-$4.43 billion and expects Non-GAAP operating income to rise to $700-$730 million. Shares rose 3.7% in Zurich following these results, driven by lower product costs and reduced promotional spending.
