Fixed Income Market Overview
U.S. Treasury yields saw a modest rise on Monday, with the 10-year Treasury yield increasing by 3 basis points to 4.445% and the 2-year Treasury yield up by nearly 2 basis points to 4.844%. Investors await fresh economic data and remarks from Federal Reserve officials scheduled for the week, pondering the economy’s status and interest rate prospects. This week holds significance with forthcoming reports on existing and new home sales, durable goods orders, and the release of minutes from the Fed’s recent meeting, crucial for understanding the central bank’s economic and monetary policy stance. Despite the Fed’s decision to maintain interest rates at its previous meeting, investors seek clarity on rate cut possibilities, especially after recent inflation data and policymakers’ forthcoming speeches, aligning with the prevailing sentiment from the Fed’s recent deliberations.
London insurance market jobs hit highest level in decade.
Bank of America to buy WaFd’s multi-family loan portfolio for $2.9 bln.
Oil little changed after Iran’s president dies in helicopter crash.
Top Anglo shareholder backs break-up plan as clock ticks for BHP.
SoftBank Plans $3.5 Billion Bond in Japan, Adding to Jumbo Deals.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,806.77 | -196.82 | -0.49%↓ |
| NASDAQ | 18,674.19 | 127.96 | 0.69%↑ |
| SNP 500 | 5,308.13 | 4.86 | 0.09%↑ |
| NIKKEI | 39,069.68 | 282.30 | 0.73%↑ |
| HIS | 19,636.22 | 82.61 | 0.42%↑ |
| VIX | 12.15 | 0.16 | 1.33% |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.45% | 0.02 |
| US 30-YR | 4.59% | 0.02 |
| US 5-YR | 4.47% | 0.02 |
| JPN 10-YR | 0.98% | 0.03 |
| UK 10-YR | 4.18% | 0.04 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 79.80 | -0.26 | -0.32%↓ |
| NAT GAS | 2.751 | 0.125 | 4.76%↑ |
| GOLD | 2,438.50 | 21.10 | 0.87%↑ |
| SILVER | 32.43 | 1.17 | 3.73%↑ |
| COPPER | 5.079 | 0.029 | 0.57%↑ |
Equity Market Overview
Palo Alto Networks
Palo Alto Networks Inc. experienced a significant drop in after-hours trading following a downbeat forecast for the current period, causing concerns about a slowdown in cybersecurity services. The company projected fiscal fourth-quarter revenue of $2.15 billion to $2.17 billion, slightly below analysts’ expectations. Fourth-quarter billings are expected to be $3.43 billion to $3.48 billion, also below estimates. This comes after a disappointing quarterly report in February, where concerns about customer spending fatigue emerged. Shares of Palo Alto Networks, along with peers Crowdstrike, Zscaler, and Fortinet, declined. Despite these challenges, CEO Nikesh Arora emphasized the strength of subscription revenue and remaining performance obligations, dismissing billings as an “artificial metric.” The company reported slower third-quarter revenue growth of 15%, with billings rising only 3%, the smallest gain since its IPO. However, next-generation annualized recurring revenue exceeded estimates, highlighting growth in newer product categories.
Zoom Video Communications
Zoom Video Communications raised its annual profit and revenue forecast, driven by strong demand as companies adopt hybrid work. The company credited its success to the incorporation of artificial intelligence (AI) and an expanded service range, including the AIpowered Zoom Workplace and AI companion expansions for paid users. CEO Eric Yuan highlighted AI integration across platforms like Zoom Contact Center and Zoom Workplace. Zoom now anticipates 2025 revenue of about $4.61 billion to $4.62 billion, slightly above previous forecasts. First-quarter revenue was $1.14 billion, surpassing expectations, with adjusted earnings of $1.35 per share also beating estimates. Second-quarter revenue is projected slightly below analysts’ estimates.
Ryanair Holdings PLC
Ryanair reported its best-ever annual profit, with a 34% increase in profit after tax to 1.92 billion euros and a 25% revenue rise to 13.44 billion euros for the year ending March 2024. The airline served 184 million passengers, 23% more than pre-pandemic levels, which helped offset a 24% rise in operating costs and a 32% increase in its jet fuel bill. Despite these successes, Ryanair flagged a weaker pricing environment for the current quarter. The company announced a 700-million-euro share buyback program, reflecting a strong balance sheet. Ryanair’s CEO attributed softer pricing to a “recessionary feel” in Europe and weaker consumer sentiment. Additionally, Ryanair faces challenges from delayed Boeing deliveries and grounded Airbus aircraft due to engine issues.
