Fixed Income Market Overview
Treasury yields dipped on Wednesday as investors awaited new economic data and assessed the U.S. economic outlook. The 10-year Treasury yield fell 1 basis point to 4.226%, while the 2-year Treasury yield remained flat at 4.387%. Data revealed weaker-than-expected U.S. manufacturing orders, with the PMI flash manufacturing output index dropping to 49.5 in July, indicating contraction. Additionally, new home sales for June were lower than anticipated. Key upcoming data include the second-quarter GDP and June’s personal consumption expenditures price index, the Fed’s preferred inflation gauge, which could influence the central bank’s monetary policy guidance in its upcoming meeting.
World’s largest luxury group LVMH slumps 4% after second quarter revenue miss.
Spotify surged 12% after reporting record Q2 profit, gross margin, and FCF thanks to its recent ‘efficiency’ strategy.
U.S. crude oil rebounds as inventories fall, gasoline demand rises.
Deutsche Bank shares drop 8% after lender snaps 15-quarter profit streak.
US stocks sink after Big Tech earnings disappoint.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,853.87 | -504.22 | -1.25%↓ |
| NASDAQ | 19,032.39 | -721.95 | -3.65%↓ |
| S&P 500 | 5,427.13 | -128.61 | -2.31%↓ |
| FTSE 100 | 8,153.69 | -62.31 | -0.76%↓ |
| SX5E | 4,861.87 | -58.09 | -1.19%↓ |
| NIKKEI | 39,154.85 | -1285.34 | -3.28%↓ |
| HSI | 17,311.05 | -306.08 | -1.77%↓ |
| VIX | 18.04 | 0.42 | +2.32 %↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.28% | -0.050 |
| US 30-YR | 4.54% | -0.035 |
| US 5-YR | 4.17% | -0.079 |
| JPN 10-YR | 1.08% | 0.016 |
| UK 10-YR | 3.94% | -0.044 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.59 | -0.68 | -0.88%↓ |
| NAT GAS | 2.12 | +0.02 | +0.85%↑ |
| GOLD | 2,397.7 | -22.82 | -0.95%↓ |
| SILVER | 28.909 | -0.90 | -3.14%↓ |
| COPPER | 4.099 | -4.7 | -1.13%↓ |
Equity Market Overview
AT&T
AT&T exceeded expectations for wireless subscriber additions in the second quarter, adding 419,000 monthly bill-paying wireless phone subscribers, surpassing the anticipated 284,800. This growth was driven by AT&T’s competitively priced unlimited plans, which attracted budget-conscious customers amid stiff competition from TMobile and Verizon. The company reported a low postpaid phone churn rate of 0.70%, indicating strong customer retention. Free cash flow rose over 9% to $4.6 billion, beating estimates. However, slower phone upgrades affected revenue, which missed estimates at $29.8 billion. AT&T also faced challenges with data breaches and a significant nationwide outage in February, potentially leading to fines.
IBM
IBM shares rose 5% in extended trading after surpassing second-quarter expectations. The company reported adjusted earnings per share of $2.43, beating the $2.20 expected, and revenue of $15.77 billion, above the $15.62 billion forecasted. Revenue grew 1.9% year-overyear, and net income increased to $1.83 billion. IBM now expects 2024 free cash flow to exceed $12 billion. CEO Arvind Krishna highlighted a strong outlook for technology spending despite higher interest rates and inflation. IBM’s software revenue was $6.74 billion, the consulting unit $5.18 billion, and infrastructure $3.65 billion. The company plans to acquire HashiCorp and announced other strategic moves. IBM shares are up 14% year-to-date.
Ford
Ford Motor missed Wall Street’s secondquarter earnings expectations but beat revenue forecasts due to ongoing warranty costs. The automaker raised its full-year free cash flow target but kept its 2024 earnings guidance unchanged, disappointing some investors. Shares fell 11% in after-hours trading. Ford reported adjusted earnings per share of 47 cents versus the expected 68 cents, with automotive revenue of $44.81 billion surpassing the expected $44.02 billion. The company’s profitability was impacted by increased warranty reserves, particularly for older models. Net income for the quarter was $1.83 billion, down slightly from $1.92 billion a year earlier. CEO Jim Farley emphasized progress in quality improvements and cost reductions as part of the Ford+ restructuring plan, despite ongoing challenges in the electric vehicle unit.
