Fixed Income Market Overview
U.S. Treasury prices rose and yields fell Friday after the Fed’s preferred inflation gauge met expectations ahead of next week’s monetary policy meeting. The 10-year Treasury yield fell 3 basis points to 4.222%, and the 2-year Treasury yield dropped 4 basis points to 4.408%. June’s personal consumption expenditures price index showed a 0.1% monthly rise and a 2.5% annual gain, aligning with forecasts. This data bolsters the case for a potential September rate cut. Markets anticipate no change in rates at the July meeting but seek clarity on future cuts. Mixed economic signals included stronger-than-expected GDP growth and weaker manufacturing data.
US consumer sentiment weakens to 8-month low.
European stocks push higher as global selloff eases; NatWest up 7.2%.
Novo Nordisk’s Wegovy wins EU backing for reducing heart risks.
OpenAI announces a search engine called Search GPT; Alphabet shares dip.
U.S. crude oil on pace for third weekly decline as China demand raises concerns.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,589.34 | 654.27 | +1.63%↑ |
| NASDAQ | 19,023.66 | 193.08 | +1.02%↑ |
| S&P 500 | 5,459.10 | 59.88 | +1.10%↑ |
| FTSE 100 | 8,285.71 | 77.97 | +0.94%↑ |
| SX5E | 4,862.50 | -3.81 | -0.07%↓ |
| NIKKEI | 37,667.41 | 801.22 | +2.12%↑ |
| HSI | 17,021.31 | 217.03 | +1.27%↑ |
| VIX | 16.39 | -2.07 | -11.21%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.19% | -0.0318 |
| US 30-YR | 4.45% | -0.0335 |
| US 5-YR | 4.07% | -0.0279 |
| JPN 10-YR | 1.06% | -0.04 |
| UK 10-YR | 3.89% | -0.059 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 77.16 | -1.12 | -1.45%↓ |
| NAT GAS | 2.006 | -0.034 | -1.69%↓ |
| GOLD | 2,387.2 | 22.6 | +0.95%↑ |
| SILVER | 27.92 | 0.071 | +0.25%↑ |
| COPPER | 4.10 | -0.01 | -0.24%↓ |
Equity Market Overview
T. Rowe Price
T. Rowe Price reported increased earnings and revenue for the second quarter, driven by its expanding ETF business. The company posted a profit of $483.4 million, or $2.11 per share, up from $476.4 million, or $2.06 per share, a year ago. Adjusted earnings were $2.26 per share, slightly below analysts’ expectations of $2.27. Revenue rose nearly 8% year-over-year to $1.73 billion, falling short of the expected $1.79 billion. The firm’s assets under management grew by $26.9 billion to $1.57 trillion, despite client outflows of $3.7 billion, with notable growth in its ETF assets reaching $5.3 billion as of June 30.
3M
3M’s shares surged nearly 20% to a two year high following quarterly results highlighting investments in high-growth sectors and a renewed focus on innovation. The company raised its full year profit forecast, driven by cost cuts and price increases across categories, despite slow consumer demand. New CEO Bill Brown emphasized rejuvenating product development and strategic shifts towards automotive electrification and climate technology, while exiting less profitable lines. Adjusted profit for the quarter exceeded expectations at $1.93 per share, and adjusted revenue of $6 billion also beat estimates. Brown aims to reassess 3M’s portfolio to align with growth objectives.
Colgate – Palmolive
Colgate-Palmolive Co.’s stock rose 3.5% after reporting better-than-expected Q2 earnings and maintaining full-year guidance. The company posted net income of $731 million, or 89 cents per share, up from $502 million, or 60 cents per share, the previous year, with adjusted EPS of 91 cents surpassing analyst estimates of 87 cents. Sales increased to $5.058 billion from $4.822 billion, exceeding the FactSet consensus of $5.004 billion. CEO Noel Wallace emphasized the success of their strategy to enhance profit margins and reinvest in brand growth, resulting in increased volume and market penetration across all operating divisions. Colgate raised its organic sales growth forecast to 6%-8% and expects continued gross profit margin expansion and double-digit EPS growth for the year.
