Fixed Income Market Overview
U On Thursday, U.S. Treasury yields fell as investors scrutinized economic data for insights into the economy and monetary policy. The 10-year Treasury yield dropped nearly 4 basis points to 4.283%, and the 2-year yield fell 4 basis points to 4.706%. Economic data revealed a slight decrease in initial jobless claims and unexpected growth in durable goods orders. The Commerce Department’s final GDP revision showed first-quarter growth with inflation rising to 3.1%. The core PCE price index, the Fed’s preferred inflation measure, is anticipated to be released on Friday. Fed officials continue to emphasize that interest rate decisions will be data-dependent, with potential for further hikes if inflation progress stalls.
SpaceX is building a NASA craft to intentionally destroy the International Space Station.
Nvidia CEO Jensen Huang addresses rising competition at shareholder meeting after stock surge.
Oil prices gain 1% as Israel-Lebanon tensions overshadow soft U.S. demand.
Amazon plans to launch discount store in bid to fend off Temu and Shein.
Bank of England says UK households and businesses are coping with high rates.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,164.06 | 36.26 | 0.09%↑ |
| NASDAQ | 19,789.03 | 37.98 | 0.19%↑ |
| S&P 500 | 5,482.87 | 4.97 | 0.09%↑ |
| NIKKEI | 39,341.54 | -325.53 | -0.82%↓ |
| HSI | 17,716.47 | -373.46 | -2.06%↓ |
| VIX | 12.24 | -0.31 | -2.47%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.29% | -0.04 |
| US 30-YR | 4.43% | -0.05 |
| US 5-YR | 4.31% | -0.04 |
| JPN 10-YR | 1.07% | 0.05 |
| UK 10-YR | 4.13% | -0.01 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 81.74 | 0.84 | 1.04%↑ |
| NAT GAS | 2.675 | 0.047 | 1.79%↑ |
| GOLD | 2,336.60 | 23.40 | 1.01%↑ |
| SILVER | 29.26 | 0.33 | 1.13%↑ |
| COPPER | 4.349 | -0.019 | -0.42%↓ |
Equity Market Overview
Nike
Nike’s shares plummeted by approximately 11% as the company revised its full-year guidance downward and projected a 10% sales decline for the current quarter, primarily due to weak sales in China and inconsistent consumer trends globally. The sneaker giant now anticipates fiscal 2025 sales to decrease mid-single digits, significantly lower than previous expectations of growth. Despite surpassing earnings estimates in the fiscal fourth quarter, Nike fell short on revenue, reporting $12.61 billion against the expected $12.84 billion. The company attributed its underperformance to various factors, including a decline in its lifestyle business, softer online sales, and macroeconomic challenges in China. CEO John Donahoe emphasized Nike’s commitment to innovation and strategic adjustments to navigate these near-term challenges and drive long-term growth.
H&M
H&M shares plummeted over 14% following a disappointing second-quarter profit report and doubts about meeting its fullyear profit margin target. The company reported an operating profit of 7.1 billion Swedish kroner ($672 million), below analysts’ expectations of 7.37 billion but above last year’s 4.7 billion. CEO Daniel Ervér highlighted challenges in achieving the 10% operating margin goal for 2024, citing negative impacts from external factors. H&M also predicted a 6% sales decline in June due to bad weather. Despite these hurdles, the company continues investing in its online and instore experiences amidst a broader retail slowdown.
Walgreens Boots Alliance
Shares of Walgreens plummeted over 20% on Thursday following a fiscal third-quarter earnings report that missed expectations and a revised, lower full-year profit outlook, citing a challenging environment for pharmacies and U.S. consumers. The company now forecasts fiscal 2024 adjusted earnings of $2.80 to $2.95 per share, down from the previous $3.20 to $3.35 per share estimate. Despite surpassing revenue estimates with $36.4 billion, Walgreens faces hurdles from low pharmacy reimbursement rates and weakening demand for Covid products. In response, the company is simplifying its U.S. healthcare portfolio, planning to close underperforming stores, and focusing on cost-cutting measures. The U.S. healthcare unit was a bright spot, with sales increasing by 7.6% year-over-year, driven by growth in primary care and specialty pharmacy services.
