Corporate Surges and Falls
Oracle shines brightly today, soaring over +13% due to robust Q1 adjusted revenue. In the same vein, Tesla revs up more than +3% as Deutsche Bank lauds it a top pick. Johnson Controls International also climbs over +3% as Bank of America Global Research gives it a buy recommendation. However, on the flip side, Goldman Sachs tumbles more than -3%, pulling down the Dow Jones Industrials, following insights from CEO Solomon regarding a potential dip in the trading unit. Apple dips more than -1% after a legal setback in the European Union over a hefty tax bill.
Global Economic Pulse
Today brings positive Chinese trade news, with Aug exports surging +8.7% year-on-year, surpassing expectations and marking the highest increase in 17 months. This upswing in Chinese exports bodes well for the global economic landscape. Moreover, the market braces for the impending Harris-Trump debate, a potential turning point as the November elections loom.
Market Anticipation
Ahead of the US consumer price data release on Wednesday, focus sharpens on potential inflation fluctuations that could influence the Federal Reserve’s monetary policy decisions. Forecasts predict a slight ease in Aug Consumer Price Index to +2.6% year-on-year, an essential factor for the Sep 17-18 FOMC meeting’s anticipated -25 bp rate cut.
Market Movements Worldwide
Overseas indexes display a mixed picture, with the Euro Stoxx 50 dipping -0.45%, China’s Shanghai Composite reclaiming lost ground to close up +0.28%, and Japan’s Nikkei Stock 225 finishing down by -0.16%.
Interest Rates and Bond Yields
The 10-year T-note market experiences a slight downtick amidst weakening European government bonds. Supply pressures further weigh down T-notes with a $58 billion 3-year T-note auction planned. German bund yield ascends by +1.3 bp, and the UK gilt yield by +0.7 bp. Across the pond, swaps bet heavily on a -25 bp rate cut by the ECB come Sep 12.
Celestial Stock Movement
The megacap technology sector spearheads market gains, with stalwarts like Nvidia, Amazon.com, Microsoft, Meta Platforms, and Alphabet all seeing upticks. Oracle and Tesla specifically stand out with double-digit and single-digit gains, respectively.
Corporate Highlights
Wells Fargo & Co reports a more than +2% uptick post reassurance on deposit performance. On the flip side, Hewlett Packard Enterprise dives over -7% following a sizable offering of convertible preferred stock. Ups and downs also manifest in the like of Ulta Beauty, Apple, AngloGold Ashanti Plc, and StepStone Group, with each navigating individual trials and tribulations.
Upcoming Earnings Reports (9/10/2024)
Market watchers eagerly anticipate upcoming earnings reports from companies like Academy Sports & Outdoors Inc, Cantaloupe Inc, Critical Metals Corp, Dave & Buster’s Entertainment, Evolution Petroleum Corp, GameStop Corp, Innovage Holding Corp, Mama’s Creations Inc, and Petco Health & Wellness Co Inc.
