Fixed Income Market Overview
Treasury yields fell on Tuesday as the producer price index (PPI) showed weaker-than-expected inflation, with the 10-year Treasury yield down 4 basis points to 3.867% and the 2-year yield decreasing by 4.8 basis points to 3.969%. The PPI rose just 0.1% in July, and core PPI was flat, fueling expectations that the Federal Reserve may cut rates in September. Investors are now focusing on the upcoming consumer price index (CPI) report, which is more crucial for near-term policy decisions amid ongoing concerns about a potential U.S. recession and market volatility.
US Treasuries rally on lower than expected wholesale inflation.
HelloFresh shares pop 19% as meal kit giant beats profit estimates.
U.S. crude oil near a three week high after rally fueled by Mideast jitters.
Falling commodity prices indicating there is trouble brewing with the economy.
Digital health company Ro launches GLP-1 insurance coverage checker.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,765.64 | 408.63 | 1.03%↑ |
| NASDAQ | 19,006.43 | 464.40 | 2.50%↑ |
| S&P 500 | 5,434.43 | 90.04 | 1.68%↑ |
| FTSE 100 | 8,235.23 | 24.98 | 0.30%↑ |
| SX5E | 4,694.92 | 23.04 | 0.49%↑ |
| NIKKEI | 36,232.51 | 1,207.51 | 3.44%↑ |
| HSI | 17,174.06 | 62.41 | 0.36%↑ |
| VIX | 18.12 | -2.59 | -12.50%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.84% | -0.060 |
| US 30-YR | 4.15% | -0.041 |
| US 5-YR | 3.67% | -0.074 |
| JPN 10-YR | 0.84% | -0.006 |
| UK 10-YR | 3.68% | -0.031 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.35 | -1.71 | -2.13%↓ |
| NAT GAS | 2.14 | -0.04 | -1.87%↓ |
| GOLD | 2,465.16 | -7.74 | -0.31%↓ |
| SILVER | 27.85 | -0.12 | -0.44%↓ |
| COPPER | 4.05 | -0.01 | -0.41%↓ |
Equity Market Overview
The Home Depot
Home Depot exceeded quarterly expectations but warned of weaker sales in the latter half of the year due to high interest rates and consumer uncertainty. The company revised its full-year comparable sales forecast to decline by 3% to 4%, compared to the previous expectation of a 1% decline. Despite a slight rise in revenue, Home Depot experienced a 3.3% drop in comparable sales and noted a decrease in customer transactions and average spending. The company attributed this to consumers delaying projects amid hopes of lower interest rates. However, Home Depot remains optimistic about long term growth due to the aging housing market and property value gains.
Starbucks
Starbucks replaced CEO Laxman Narasimhan with Chipotle’s Brian Niccol, causing Starbucks’ stock to soar 24.5%, its best day ever, while Chipotle’s stock fell over 10%. Narasimhan, who had struggled during his tenure, leaves immediately, with CFO Rachel Ruggeri stepping in as interim CEO until Niccol starts on September 9. Activist investor Elliott Management, which had pressured Starbucks for changes, supported Niccol’s appointment. Niccol, known for his success at Chipotle, is expected to turn around Starbucks, which has faced declining sales and increasing competition. The board had been considering this leadership change for months.
