Fixed Income Market Overview
U.S. Treasury yields dipped slightly on Tuesday as investors awaited key economic data. The 10-year Treasury yield dropped about a basis point to 4.25%, and the 2-year Treasury yield fell by 3 basis points to 4.491%. This data will help assess the U.S. economy’s state and guide the Federal Reserve’s upcoming monetary policy decisions. Expected data includes the second-quarter GDP and June’s personal consumption expenditures price index, the Fed’s preferred inflation gauge. While the market anticipates no rate cuts at the next Fed meeting, there are expectations for hints on future monetary easing, with traders pricing in a high chance of a September rate cut. Fed Chair Jerome Powell suggested cuts might begin before inflation hits the 2% target, leaving uncertainty about further cuts this year.
Firms quoted on London’s junior exchange plunged to a 22-year low.
Comcast posts mixed results, weighed down by film studio, theme parks.
Texas Instruments’ stock gains as earnings show company is ‘turning the corner’.
Oil continued to sell off, falling to its lowest level in a month and a half.
India’s Modi sets aside billions for jobs, allies in post-election budget.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,358.09 | -57.35 | -0.14%↓ |
| NASDAQ | 19,754.34 | -68.53 | -0.34%↓ |
| S&P 500 | 5,555.74 | -8.67 | -0.15%↓ |
| FTSE 100 | 8,167.37 | -42.71 | -0.52%↓ |
| SX5E | 4,916.80 | -56 | -1.13%↓ |
| NIKKEI | 39,594.39 | -439.54 | -1.11%↓ |
| HSI | 17,469.36 | -158.31 | -0.91%↓ |
| VIX | 14.72 | 0.72 | +4.89 %↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.25% | -0.015 |
| US 30-YR | 4.48% | -0.012 |
| US 5-YR | 4.16% | -0.019 |
| JPN 10-YR | 1.06% | 0.016 |
| UK 10-YR | 3.94% | 0.001 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 76.96 | 0.47 | +0.61%↑ |
| NAT GAS | 2.187 | -0.038 | -1.74%↓ |
| GOLD | 2,409.64 | 2.14 | +0.09%↑ |
| SILVER | 29.24 | -0.037 | -0.13%↓ |
| COPPER | 4.146 | -0.8 | -0.19%↓ |
Equity Market Overview
Tesla
Tesla shares fell over 8% in premarket trading after reporting second-quarter earnings that missed expectations, with a 7% year-on-year drop in automotive revenue to $19.9 billion and a decline in adjusted earnings margin. Price cuts, discounts, and rising competition, particularly in China, have pressured the company. Tesla’s stock is down nearly 1% year-to-date, contrasting with the S&P 500’s over 16% rise. Despite leading U.S. EV sales, Tesla is losing market share due to an aging vehicle lineup and CEO Elon Musk’s controversial commentary. Musk promised a new affordable car by midnext year and emphasized robotaxis, projecting their debut by next year, but he has a history of delays.
VISA
Visa’s third-quarter revenue growth fell short of Wall Street expectations, leading to a 4.6% drop in shares in extended trading. The Federal Reserve’s high interest rates have constrained consumer spending, particularly among lower income Americans. CFO Chris Suh noted stable growth in high-spend consumers but slight moderation among lower-spend consumers. Rival American Express also missed revenue expectations recently. Visa’s net revenue of $8.90 billion missed estimates of $8.92 billion, marking its first miss since early 2020. While payments volume rose 7% and cross border volumes jumped 14%, growth in the Asia-Pacific market was slower than expected.
Alphabet
Alphabet, Google’s parent company, reported second-quarter results in line with analyst estimates for revenue and earnings but fell short on YouTube advertising revenue. The company’s shares dropped about 2% in after-hours trading. Earnings per share were $1.89, exceeding expectations of $1.84, and revenue was $84.74 billion, above the expected $84.19 billion. YouTube ad revenue was $8.66 billion, missing the $8.93 billion estimate, while Google Cloud revenue surpassed expectations at $10.35 billion. Despite challenges, Alphabet’s ad revenue grew to $64.62 billion, and net income rose to $23.6 billion. The “Other Bets” unit, including Waymo, also saw revenue growth, with Alphabet committing a new $5 billion investment in Waymo. CEO Sundar Pichai highlighted strong performance in Search and Cloud, emphasizing the company’s AI innovation and infrastructure leadership.
