Fixed Income Market Overview
U.S. Treasury yields remained stable on Tuesday as investors awaited labor market data and the Federal Reserve’s July meeting. The 10-year Treasury yield dipped slightly to 4.171%, while the 2-year yield decreased to 4.379%. Markets expect the Fed to keep interest rates unchanged this week, but seek hints on future rate cuts. The Labor Department reported a decrease in job openings to 8.18 million in June, with a notable increase in the hiring rate. Consumer confidence exceeded expectations, rising to 100.3 in July from 97.8 in June, despite ongoing concerns about high prices and interest rates.
US consumer confidence ticks higher but concerns over prices persist.
Apple says its AI models were trained on Google’s custom chips.
StanChart unveils record $1.5 billion buyback, boosts income outlook.
U.S. crude oil falls below $76 per barrel, lowest level since early June.
Google parent Alphabet’s partnership with AI firm Anthropic under investigation in the UK.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,743.33 | 203.4 | +0.50%↑ |
| NASDAQ | 18,796.27 | -263.22 | -1.38%↓ |
| S&P 500 | 5,436.44 | -27.1 | -0.49%↓ |
| FTSE 100 | 8,274.41 | 115.75 | +1.39%↑ |
| SX5E | 4,841.00 | 55.2 | +1.14%↑ |
| NIKKEI | 38,525.95 | 575.87 | +1.49%↑ |
| HSI | 17,002.91 | 341.69 | +2.00%↑ |
| VIX | 17.69 | -1.1 | -6.21%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.13% | -0.002 |
| US 30-YR | 4.39% | -0.0009 |
| US 5-YR | 4.03% | 0.001 |
| JPN 10-YR | 1.00% | 0.052 |
| UK 10-YR | 3.84% | -0.036 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 74.73 | -1.08 | -1.42%↓ |
| NAT GAS | 2.12 | 0.09 | +4.42%↑ |
| GOLD | 2,410.78 | 26.59 | +1.12%↑ |
| SILVER | 28.38 | 0.52 | +1.88%↑ |
| COPPER | 4.08 | -0.0005 | -0.01%↓ |
Equity Market Overview
Microsoft
Microsoft’s shares declined by up to 7% in after-hours trading despite surpassing earnings and revenue expectations, due to underwhelming cloud performance. The company reported a 15% year- over-year revenue increase to $64.73 billion and net income of $22.04 billion. Azure and other cloud services revenue grew by 29%, slightly below analyst expectations of 31%, with AI services contributing 8 percentage points to this growth. Microsoft projects a cloud growth acceleration in the first half of 2025, with fiscal first-quarter revenue guidance between $63.8 billion and $64.8 billion. CEO Satya Nadella highlighted increased demand for AI services, although capacity constraints impacted growth in Europe.
Advanced Mirco Devices
Advanced Micro Devices (AMD) raised its 2024 forecast for AI chip sales by $500 million to $4.5 billion, predicting supply constraints until 2025, which boosted its shares by 7.5%. The AI chips, primarily sold to cloud computing giants like Meta and Microsoft, are seen as key competitors to Nvidia’s market dominance. AMD’s data center revenue surged 115% to $2.8 billion in Q2, exceeding expectations, with AI chip revenue surpassing $1 billion for the first time. Despite a 9% rise in total Q2 revenue to $5.8 billion, AMD’s forecast for Q3 revenue is $6.7 billion, slightly above analyst estimates. The company also benefited from a recovery in the PC market, reporting $1.5 billion in PC chip revenue for Q2.
Mondelēz International
Mondelēz shares rose 2.9% in extended trading after the company projected annual organic revenue growth at the high end of its previous forecast range. Despite missing second-quarter revenue estimates with $8.34 billion versus the expected $8.47 billion, adjusted EPS exceeded expectations at $0.86. The company reported an adjusted gross margin of 40.5% and an adjusted operating margin of 17.9%, both surpassing analyst forecasts. Organic net revenue grew by 2.5%, below the anticipated 3.81%, with regional variations in performance. Mondelez maintains its forecast for organic net revenue growth at the high end of 3% to 5% and expects at least $3.5 billion in free cash flow.
