Fixed Income Market Overview
U.S. Treasury yields rose on Wednesday as investors analyzed recent comments from Federal Reserve officials regarding monetary policy and anticipated upcoming economic data. The yield on the 10-year Treasury increased by 7 basis points to 4.308%, while the 2-year Treasury yield rose almost 6 basis points to 4.747%. Fed Governor Michelle Bowman indicated that rate cuts were premature and left open the possibility of further rate hikes if inflation does not ease towards the Fed’s 2% target. Meanwhile, Fed Governor Lisa Cook forecasted minimal changes to inflation this year but expected sharper declines next year. Investors are also awaiting the personal consumption expenditures price index, the Fed’s preferred inflation measure, due on Friday.
FCA urged to block Shein London listing over forced labour concerns.
Nvidia’s half-a-trillion dollar wipeout leaves global chip stocks volatile.
Southwest Airlines cuts revenue forecast as booking patterns change.
European stocks close lower as euro extends declines; tech firms nudge higher.
Oil prices edge lower after unexpected build in U.S. crude, gasoline stockpiles.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,127.80 | 15.64 | 0.04%↑ |
| NASDAQ | 19,751.05 | 49.92 | 0.25%↑ |
| S&P 500 | 5,477.90 | 8.60 | 0.16%↑ |
| NIKKEI | 39,667.07 | 493.92 | 1.26%↑ |
| HSI | 18,089.93 | 17.03 | 0.09%↑ |
| VIX | 12.55 | -0.29 | -2.26%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.33% | 0.08 |
| US 30-YR | 4.48% | 0.09 |
| US 5-YR | 4.35% | 0.07 |
| JPN 10-YR | 1.03% | 0.03 |
| UK 10-YR | 4.14% | 0.06 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 80.90 | 0.07 | 0.09%↑ |
| NAT GAS | 2.628 | -0.128 | -4.64%↓ |
| GOLD | 2,313.20 | -17.60 | -0.76%↓ |
| SILVER | 28.93 | 0.06 | 0.21%↑ |
| COPPER | 4.367 | -0.004 | -0.09%↓ |
Equity Market Overview
Volkswagen
Volkswagen plans to invest up to $5 billion in electric vehicle startup Rivian, starting with an initial $1 billion investment and an additional $4 billion by 2026. This investment includes a joint venture to develop electrical architecture and software technology. Rivian’s stock surged over 50% after the announcement. The initial $1 billion will be a convertible note, aiding Rivian’s goal to become cash flow-positive and ramp up production of its R2 SUVs. Volkswagen will use Rivian’s technology for its vehicles, with the joint venture expected to close in the fourth quarter. Despite Ford’s earlier exit, Volkswagen remains committed to its own EV plans, including Scout Motors.
General Mills, Inc.
General Mills reported adjusted earnings of $1.01 per share for its fourth fiscal quarter, beating estimates of 99 cents but falling short on revenue with $4.71 billion against the expected $4.85 billion. The company anticipates volume trends to improve in fiscal 2025 despite a challenging macroeconomic environment. For fiscal 2025, General Mills forecasts organic net sales to be flat or up 1%, with adjusted earnings per share between a 1% decrease and a 1% increase. The dividend was increased by 2% to 60 cents per share. The stock fell 4.1% to $64.53 in premarket trading. Analysts have a generally muted outlook, with the majority rating the stock as Hold.
Jefferies
Jefferies Financial Group reported Q2 2024 net earnings of $146 million, or $0.64 per diluted share, with net revenues of $1.66 billion. Investment Banking net revenues rose to $803 million, a significant increase from previous periods, while Capital Markets net revenues reached $691 million. The company’s quarterly cash dividend increased by 16.7% to $0.35 per share, payable on August 30, 2024. Jefferies highlighted strong performance in Equities and a positive outlook for the remainder of 2024 and 2025. The firm emphasized improved operating margins and ongoing investments in technology and client services.
