Fixed Income Market Overview
On Thursday, the U.S. 10-year Treasury yield rose 3 basis points to 3.869%, with investors anticipating a key inflation report due Friday. The 2-year Treasury yield also increased by 2 basis points to 3.889%. Market focus is on the U.S. Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, which could influence future interest rate decisions. Economic data showed a drop in weekly jobless claims and a revised GDP growth of 3% for the second quarter, easing recession fears. Market participants currently expect a rate cut at the Fed’s September 18 meeting.
Berkshire Hathaway sold another $982M stake in Bank of America.
CrowdStrike beats quarterly consensus but lowers full-year guidance.
U.S. crude oil rises as traders weigh Libya disruption against China demand.
Nvidia takes $100bn hit on outlook fears.
IndiGo co-founder Rakesh Gangwal’s family trust sells ₹9,549 cr stake in airline.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 41,335.05 | 243.63 | 0.59%↑ |
| NASDAQ | 19,325.46 | -25.32 | -0.13%↓ |
| S&P 500 | 5,591.96 | -0.22 | -0.00%↓ |
| FTSE 100 | 8,379.64 | 35.79 | 0.43%↑ |
| SX5E | 4,966.27 | 53.24 | 1.08%↑ |
| NIKKEI | 38,362.53 | -9.23 | -0.02%↓ |
| HSI | 17,786.32 | 2 93.87 | 0.53%↑ |
| VIX | 15.65 | -1.46 | -8.53%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.86% | 0.027 |
| US 30-YR | 4.15% | 0.021 |
| US 5-YR | 3.67% | 0.001 |
| JPN 10-YR | 0.90% | -0.004 |
| UK 10-YR | 4.02% | 0.018 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 75.91 | 1.39 | 1.87%↑ |
| NAT GAS | 2.14 | 0.04 | 1.91%↑ |
| GOLD | 2,520.58 | 15.97 | 0.64%↑ |
| SILVER | 29.42 | 0.85 | 1.01%↑ |
| COPPER | 4.15 | -0.00 | -0.05%↓ |
Equity Market Overview
Dell
Dell reported strong quarterly results, surpassing Wall Street expectations, driven by an 80% increase in server sales, leading to a 3% rise in its stock. Revenue reached $25.06 billion, above the expected $24.53 billion, with adjusted EPS at $1.89, also beating estimates. Net income surged 85% to $841 million. Dell slightly revised its full-year revenue guidance upward to between $95.5 billion and $98.5 billion. The company’s Infrastructure Solutions Group, which includes AI-focused servers, saw sales grow 38% to $11.65 billion. However, Dell’s storage business declined 5%, and its PC sales dropped 4%.
Dollar General
Dollar General shares plunged 25% after the retailer slashed its full-year sales and profit guidance, reflecting financial struggles among its lower-income customers. The company now expects same-store sales to increase by just 1.0% to 1.6%, down from its previous forecast of 2% to 2.7%, and adjusted EPS between $5.50 and $6.20, well below earlier projections. CEO Todd Vasos acknowledged the financial constraints of its core customers and the need for the company to improve store operations and inventory management. In Q2, Dollar General reported earnings of $1.70 per share, missing expectations, with revenue rising 4.2% to $10.21 billion. Competitor Dollar Tree also saw its shares fall in response.
