Fixed Income Market Overview
U.S. Treasury yields surged on Wednesday as investors assessed economic indicators and reacted to a disappointing auction of five-year notes. The 10-year Treasury yield rose over 6 basis points to 4.61%, marking its highest level since early May, while the 2-year Treasury yield climbed nearly 2 basis points to 4.973%. Tuesday’s lackluster auction, with a bid-to-cover ratio of 2.3 below the 10-auction average, contributed to the upward trajectory of yields. Market participants awaited forthcoming economic data, including the personal consumption expenditures price index, crucial for Federal Reserve deliberations on monetary policy. Amidst Fed officials’ cautious stance on rate cuts, Minneapolis Fed President Neel Kashkari emphasized the need for sustained positive inflation data before considering rate adjustments, echoing the central bank’s patience in assessing economic conditions and inflationary trends.
ConocoPhillips to buy Marathon Oil in $17 billion all-stock deal that bolsters shale assets.
Royal Mail owner agrees to ₤3.6 billion takeover by Czech billionaire Kretinsky.
Sterling climbs to 21-month high against euro as rate cut bets fade.
Anglo American rejects BHP’s 11th-hour bid to extend $49 billion takeover talks.
PwC agrees deal to become OpenAI’s first reseller and largest enterprise user.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,852.86 | -216.73 | -0.55%↓ |
| NASDAQ | 18,736.75 | -132.69 | -0.70%↓ |
| SNP 500 | 5,266.95 | -39.09 | -0.74%↓ |
| NIKKEI | 38,556.87 | -298.50 | -0.77%↓ |
| HIS | 18,477.01 | -344.15 | -1.83%↓ |
| VIX | 14.28 | 1.36 | 10.53%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.62% | 0.06 |
| US 30-YR | 4.74% | 0.07 |
| US 5-YR | 4.64% | 0.04 |
| JPN 10-YR | 1.08% | 0.04 |
| UK 10-YR | 4.41% | 0.13 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 79.23 | -0.60 | -0.75%↓ |
| NAT GAS | 2.666 | -0.159 | -5.63%↓ |
| GOLD | 2,341.20 | -15.30 | -0.65%↓ |
| SILVER | 32.37 | 0.24 | 0.73%↑ |
| COPPER | 4.791 | -0.064 | -1.32%↓ |
Equity Market Overview
Salesforce Inc.
Salesforce shares dropped as much as 17% in extended trading on Wednesday after reporting weaker-than-expected revenue and issuing disappointing guidance. The company reported adjusted earnings per share of $2.44, slightly above the $2.38 expected, but revenue fell short at $9.13 billion versus the $9.17 billion expected. For the current quarter, Salesforce expects earnings of $2.34 to $2.36 per share on revenue of $9.2 billion to $9.25 billion, below analysts’ estimates. Revenue for the fiscal first quarter rose 11% year-over-year but missed expectations, marking Salesforce’s first revenue shortfall since 2006. The company faced budget scrutiny and longer deal cycles, impacting bookings. Despite raising its earnings forecast for fiscal 2025, Salesforce’s revenue guidance remained unchanged.
HP Inc.
HP Inc.’s Q2 earnings decreased from last year but exceeded analyst expectations. The company’s GAAP earnings were $0.6 billion, or $0.61 per share, compared to $1.1 billion, or $1.06 per share, a year ago. Adjusted earnings were $0.82 per share, slightly above the $0.81 per share expected by analysts. Revenue for the quarter fell 0.8% to $12.8 billion from $12.9 billion last year. Despite
the decline, HP Inc. managed to surpass earnings estimates, though overall financial performance was lower compared to the previous year.
Agilent Technologies
Agilent Technologies’ shares dropped 14% after the company reduced its full-year earnings and revenue guidance. The new earnings per share forecast is between $5.15 and $5.25, down from the previous $5.44 to $5.55. Revenue guidance was lowered to $6.42 billion to $6.50 billion, compared to the earlier $6.71 billion to $6.81 billion range. Despite this, Agilent’s fiscal second-quarter earnings exceeded estimates, although revenue slightly missed expectations.
