News
Treasuries rise ahead of PCE on Nike’s late-night success: Markets closed
(Bloomberg) — The world’s largest bond market rose after the latest batch of economic reports reinforced speculation that the Federal Reserve will be able to cut interest rates this year to prevent a deeper U.S. slowdown.
Most read on Bloomberg
Investors bracing for the Fed’s preferred inflation gauge piled into Treasuries as multiple data points illustrated a slowdown in growth linked to the central bank’s longer bull stance. The government reduced personal spending to 1.5% annualized in the first quarter. Separate releases showed declines in orders and shipments of certain business equipment, weakness in the job market and a drop in home purchases.
For Chris Low of FHN Financial, the slowdown story has gotten stronger.
“Continuing claims have increased and are now the highest since late 2021 – sending a warning signal that the job market may be slowing,” said Jeff Roach of LPL Financial. “We expect consumer and business activity to slow in the second half of 2024, giving the Fed ample opportunity to begin cutting rates later this year.”
The 10-year Treasury yield fell four basis points to 4.29%. The S&P 500 hovered around 5,480. In late trading, Nike Inc. tumbled as sales missed estimates. Walgreens Boots Alliance Inc. fell 22% in regular hours after cutting its guidance. and Petco Health and Wellness Co., as Keith Gill — known as “Roaring Kitty” — posted a cartoon image of a dog on the X.
Traders are pricing in roughly “one point of volatility” of premium added on Friday, the session after Joe Biden and Donald Trump debated, according to a Citigroup Inc. analysis that compared current and expected volatility. That assumes the effect of end-of-quarter options expiration, another potential catalyst that could rock stocks, will be similar to that of last week’s triple-witching.
US PREVIEW: May PCE Inflation Will Offer Welcome News for Fed
Atlanta Fed Bank President Raphael Bostic said he continues to expect a rate cut this year amid signs that inflation has resumed its decline. His projection echoes that of the Federal Open Market Committee. Earlier this month, Fed officials predicted only a rate cut in 2024, in line with the median forecast.
Swap markets are pricing in around 45 basis points of easing in 2024, which would amount to less than two cuts.
The story continues
Economists expect Friday’s data to show the Fed’s preferred gauge of underlying inflation slowed to an annualized rate of 2.6% last month from 2.8%. While that’s the lowest reading since March 2021, it remains above the Fed’s 2% inflation target.
“A consensus measure would conform to the narrative that the reflationary pressures of early 2024 are fading and the cooling trend seen during the second half of 2023 has again resumed in the second quarter,” said BMO’s Ian Lyngen and Vail Hartman. Capital Markets. . “Perhaps more importantly, investors are anticipating a round of inflation data that offers incremental support for a rate cut in September.”
A series of weaker-than-estimated data points pushed the U.S. version of Citigroup’s Economic Surprise Index to its lowest level since August 2022. The indicator measures the gap between actual releases and analysts’ expectations.
Concerns about the strength of the job market and the subsequent effect on consumer spending — plus the market’s reliance on just a few stocks — have caused consternation and warnings that the bull market needs rest, recalibration and perhaps help from the Fed, from according to Quincy Krosby of LPL Financial.
If Friday’s PCE data disappoints, headlines about stagflation will hit the tape, Krosby noted. But if estimates hold or surprise with cooler data, that should help the market heading into July.
“Still, an overbought and relatively expensive market based on just a handful of mega names may need to recalibrate and allow other sectors to coexist with them or even start leading the market,” she said. “Such adjustments could trigger pockets of volatility alongside attractive pockets of opportunity.”
Ed Clissold of Ned Davis Research says persistent pessimism about the economy and stocks has been a key driver of the bull market. And much of the pessimism has given way to optimism or neutral views.
“The change in sentiment puts more onus on fundamentals for the bull market to continue,” he said. “Our conclusion is that the stock market can no longer depend on the economy beating low expectations. Fundamentals will need to drive the bull market in the second half.”
For now, Clissold remains bullish on stocks — both in absolute terms and relative to bonds and cash.
For Chris Senyek of Wolfe Research, volatility will likely continue to increase, and this will generally benefit the “Magnificent Seven” megacaps and overall trading momentum in the coming weeks.
“More specifically, we expect these themes to continue to benefit from the environment where growth is slowing — but the Fed is expected to begin a deep cutting cycle,” he noted. “Additionally, our sense is that the biggest companies driving these trends will once again deliver very solid results during the second quarter earnings season.”
A survey by 22V Research showed that investors largely expect artificial intelligence companies to beat second-quarter earnings estimates.
About 59% of investors surveyed think AI gains will “exceed” expectations and 36% believe they will “catch up.” Only 5% think they will “lose” the predictions.
Despite believing these companies will exceed expectations, investors surveyed are unsure about how stocks of AI companies will react, 22V said.
In a month when Nvidia Corp. briefly became the world’s largest company amid optimism about AI, hedge funds were “aggressively” shorting technology stocks, according to analysis from Goldman Sachs Group Inc.
This month’s net selling in the U.S. technology sector is on track to be the biggest on record since 2017, according to Goldman prime brokerage data. The hedge fund cutbacks are in sharp contrast to the record flows seen into technology-related funds last week.
Corporate highlights:
-
Boeing Co.’s decision to change its offer for Spirit AeroSystems Holdings Inc. to a mostly stock deal is likely an effort to preserve cash and avoid ratings downgrades as the planemaker teeters on the brink of junk status, according to credit analysts.
-
Shares of Webtoon Entertainment Inc. rose 9.5% on the online comics company’s debut, following a U.S. initial public offering that raised $315 million, priced at the upper end of a marketed range.
-
Jeans maker Levi Strauss & Co. reported quarterly sales that came in slightly below estimates, underscoring Wall Street’s high expectations for the company.
-
International Paper Co. tumbled after Suzano SA said it would end its pursuit of the U.S. paper giant.
-
Customers of major U.S. telecommunications companies including AT&T Inc., T Mobile US Inc. and Verizon Communications Inc. are reporting problems connecting to their networks while they are out of the country.
-
Target Corp. is lowering standards to deter shoplifters, taking a tougher approach to further curb the thefts that weigh on its operations.
-
L’Oreal SA expects slower growth for the overall beauty market this year, according to its CEO, as weakness in China weighs on sales after years of rapid gains.
Main events this week:
-
Japan Tokyo CPI, unemployment, industrial production, Friday
-
US PCE Inflation, Spending and Income, Consumer Sentiment from the University of Michigan, Friday
-
Fed’s Thomas Barkin Speaks on Friday
Some of the main movements in the markets:
Actions
-
The S&P 500 was little changed as of 4 p.m. New York time
-
The Nasdaq 100 rose 0.2%
-
The Dow Jones Industrial Average index saw little change
-
MSCI World Index remained unchanged
Coins
-
The Bloomberg Dollar Spot Index was little changed
-
The euro rose 0.2% to $1.0703
-
The British pound rose 0.1% to $1.2639
-
The Japanese yen remained unchanged at 160.81 per dollar
Cryptocurrencies
-
Bitcoin rose 0.7% to $61,385.55
-
Ether rose 1.7% to $3,446.92
Titles
-
The 10-year Treasury yield fell four basis points to 4.29%
-
The yield on German 10-year debt remained virtually unchanged at 2.45%
-
The yield on 10-year UK bonds remained virtually unchanged at 4.13%
goods
-
West Texas Intermediate crude rose 1.2% to $81.89 a barrel
-
Spot gold rose 1.2% to $2,326.02 an ounce
This story was produced with assistance from Bloomberg Automation.
–With assistance from Michael Msika, Carly Wanna, Richard Henderson, Divya Patil and Robert Brand.
Bloomberg Businessweek Most Read
©2024 Bloomberg LP
The spotlight next week will shift somewhat to the Federal Reserve’s second-quarter earnings season and monetary policy. Market watchers will be treated to results from several major names, including Dow 30 components Goldman Sachs (GS), UnitedHealth (UNH), Johnson & Johnson (JNJ) and American Express (AXP), along with streaming giant Netflix (NFLX).
The Fed will still attract some attention as investors will be eager to hear from a packed lineup of central bank speakers just before the policy meeting lockout period.
In terms of the economic calendar, after fifteen days of labor market and inflation indicators, activity data will gain momentum in the form of the latest retail sales and industrial production reports.
Earnings Highlight: Monday, July 15 – Goldman Sachs (GS) and BlackRock (Black). See the full earnings calendar.
Earnings Highlight: Tuesday, July 16 – UnitedHealth (UNH), Bank of America (BAC), Progressive (PGR), Morgan Stanley (IN), PNC Financial (PNC) and JB Hunt Transport (JBHT). See the full earnings calendar.
Earnings Highlight: Wednesday, July 17 – Johnson & Johnson (JNJ), US Bancorp (USB), Morgan Children (KMI), United Airlines (UAL) and Ally Financial (ALLY). See the full earnings calendar.
Earnings Highlight: Thursday, July 18 – Netflix (NFLX), Abbott Laboratories (ABT), Black stone (BX), Domino’s pizza (ZDP) and Taiwan Semiconductor Manufacturing (TSM). See the full earnings calendar.
Earnings Highlight: Friday, July 19 – American Express (AXP), Halliburton (THANKS) and Travelers (VRT (return to recoverable value)) See the full earnings calendar.
IPO Observation: Hospital and healthcare clinic operator Ardent Health Partners (TARDT), insurance service provider Twfg (TWFG) and the biotechnology company Lirum Therapeutics (LRTX) are expected to price their IPOs and begin trading next week. The analyst quiet period ends at Rectitude (RECT) to free up analysts to publish ratings.
Police cars outside the residence of Thomas Matthew Crooks, the suspected shooter at a Trump rally on Saturday, investigate the area in Pennsylvania. Following the incident, one rally attendee was killed, two rally attendees are in critical condition and Donald Trump suffered a non-fatal gunshot wound. The shooter is dead after being shot dead by the United States Secret Service. (Photo by Kyle Mazza/Anadolu via Getty Images)
Investors will initially favor traditional safe-haven assets and may lean toward trades more closely tied to former President Donald Trump’s chances of winning the White House after he survived an assassination attempt, according to market watchers.
“There will undoubtedly be some protectionist or safe-haven flows into Asia early this morning,” said Nick Twidale, chief market analyst at ATFX Global Markets. “I suspect gold could test all-time highs, we’ll see the yen being bought and the dollar, and flows into Treasuries as well.”
Early market commentary suggested Trump’s shooting at a rally in Pennsylvania on Saturday could also prompt traders to increase his likelihood of success in the November election. His support for looser fiscal policy and higher tariffs is generally seen as likely to benefit the dollar and weaken Treasuries.
An indicator of market sentiment heading into the weekend: Bitcoin surged above $60,000, likely reflecting Trump’s pro-crypto stance.
Other assets positively linked to the so-called Trump trade include stocks of energy companies, private prisons, credit card companies and health insurers.
Traders will also be closely watching market measures of expected volatility on Monday, such as those in the tariff-sensitive Chinese yuan and Mexican peso, which have begun to price in the U.S. vote.
Trump said he was shot in the right ear after a shooting at his rally. His campaign said in a statement that he was “fine” after the incident, which prompted him to rush off the stage.
“Currencies will be the first major market on Monday in Asia to react to the weekend’s shots. There’s potential for extra volatility, and getting a clear reading could be especially difficult because liquidity will be hurt by Japan’s national holiday,” said Garfield Reynolds, Asia team leader for Bloomberg Markets Live.
Strategists had already expected a volatile run-up to the election, particularly as Democrats are still agonizing over President Joe Biden’s candidacy after his poor performance in last month’s debate raised questions about his age. Investors were also grappling with the possibility that the election could end in a drawn-out dispute or political violence.
But there is little precedent for events like those in Pennsylvania. When President Ronald Reagan was shot four decades ago, the stock market plunged before closing early. The next day, March 31, 1981, the S&P 500 rose more than 1% and benchmark 10-year Treasury yields fell 9 basis points to 13.13%, according to data compiled by Bloomberg.
Bond investors should pay particular attention as the attack is likely to boost Trump’s election chances and ultimately lead to concerns about the fiscal outlook, according to Marko Papic, chief strategist at California-based BCA Research Inc.
“The bond market must at some point become aware of President Trump’s greater chances of winning the White House than any of his rivals,” Papic wrote. “And I continue to believe that as his chances increase, so too must the likelihood of a bond market revolt.”
Kyle Rodda, senior financial markets analyst at Capital.com, said he was seeing client flows into Bitcoin and gold following the shooting.
“This news marks a turning point in American policy norms,” he said. “For markets, it means safe-haven trades, but more tilted toward non-traditional safe-havens.”
Follow us for stories on Bill Gates, Elon Musk, Mukesh Ambani, Gautam Adani as we bring you everything that’s happening in the business world. Follow the latest gold and silver prices here too. Stay in the know on all things business with us.
Latest news on July 11, 2024: Airtel says its new Xstream Fiber plans bundle over 350 live TV channels (Official Photo) (Reuters) Disclaimer: This is an AI-generated live blog and has not been edited by Hindustan Times staff.
Follow all the updates here:
-
Thu, 11 Jul 2024 08:44 PM
Business News LIVE Updates: Decoding Airtel’s new Xstream Fiber packages, finding value with Live TV and OTT
- Airtel confirms to HT that the live TV proposition is being delivered using its DTH network, while the bundled streaming subscriptions are an extension of its Xstream Play platform.
-
Thu, 11 Jul 2024 03:58 PM
Business News LIVE Updates: TCS Q1 results meet estimates: Net profit up 9%, ₹10 dividend declared
- TCS’s consolidated revenue rose 5.4% to Rs 626.13 billion in the June quarter. Analysts had expected revenue of Rs 622.07 billion, as per LSEG data.
-
Thu, 11 Jul 2024 03:51 PM
Business News LIVE Updates: Indian companies falsified generic Viagra data to get approval, says US FDA: Report
- Synapse Labs Pvt. Ltd may have been used in hundreds of drugs that are still available for sale, the report said.
-
Thu, 11 Jul 2024 03:09 PM
LIVE Business News Updates: Namita Thapar’s emotional post on Emcure IPO listing: ‘Mirza Ghalib sums up my feelings’
- Emcure Pharmaceuticals was listed at ₹1,325.05, up 31.45% on the BSE and NSE on July 10.
-
Thu, 11 Jul 2024 02:39 PM
LIVE business news updates: Amazon could face investigation over treatment of UK food suppliers, watchdog says
- An Amazon spokesperson said the company has made several improvements for food suppliers since last year’s results.
-
Thu, 11 Jul 2024 01:39 PM
LIVE Business News Updates: This Bengaluru company aims to launch a ‘space habitat’ by 2027, in talks with SpaceX
- AkashaLabdhi calls itself a “home among the stars” as it says the company’s area of expertise is signal processing and continuous automation.
-
Thu, 11 Jul 2024 01:10 PM
Business News LIVE Updates: Amazon India employees on working conditions: Made to stand for hours, bathroom breaks not allowed
- A survey conducted by UNI Global Union with the Amazon India Workers Association had 1,838 participants who alleged appalling working conditions at Amazon facilities in India.
-
Thu, 11 Jul 2024 12:44 PM
LIVE Business News Updates: UK overhauls listing rules in bid to attract IPOs to London: What has changed?
- The new rules allow companies to carry out more activities without putting them to a shareholder vote, the UK’s Financial Conduct Authority said.
-
Thu, 11 Jul 2024 12:18 PM
Business News LIVE Updates: Want to send money abroad? Open foreign currency accounts at GIFT City
- Foreign currency accounts will be like a bank account in India, but instead of rupees, you hold foreign currency like US dollars.
-
Thu, 11 Jul 2024 11:30 AM
Business News LIVE Updates: First Abu Dhabi Bank denies interest in acquiring stake in Yes Bank: Report
- The report said the Yes Bank stake sale has attracted interest from Japan, including Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc.
-
Thu, 11 Jul 2024 11:04 AM
LIVE Business News Updates: TCS Share Price Surges Ahead of Q1 Results: What Brokers Say About the Stock
- TCS Share Price: The stock opened at ₹3,944.65 against its previous close of ₹3,909.90. It then rose 1.8 percent to ₹3,979.90 level.
-
Thu, 11 Jul 2024 10:22 AM
LIVE Business News Updates: Reliance Jio IPO listing likely in 2025 at $112 billion valuation: Jefferies
- Jio “could list at a valuation of $112 billion” and add “7-15 percent upside” to Reliance Industries’ share price, Jefferies said.
-
Thu, 11 Jul 2024 09:42 AM
LIVE Business News Updates: Yes Bank shares rise after Moody’s revises outlook to ‘positive’ from ‘stable’
- Global rating agency Moody’s has raised its outlook on Yes Bank to positive from “stable” despite expectations of a gradual improvement in its depositor base.
-
Thu, 11 Jul 2024 09:16 AM
Business News LIVE Updates: Sahaj Solar IPO opens today: All you need to know before subscribing to the issue
- Sahaj Solar IPO: The block issue aims to raise ₹52.56 crore through issuance of 2.92 million new shares and will close on July 15.
-
Thu, 11 Jul 2024 08:40 AM
LIVE Business News Updates: Why Analysts Believe India’s Earnings Season May Disappoint Stock Market Investors
- Investors in Indian stocks hoping for a robust earnings season to justify expensive valuations are likely to be disappointed.
-
Thu, 11 Jul 2024 08:35 AM
LIVE Business News Updates: Elon Musk Says Second Neuralink Brain Implant Will ‘Give People Superpowers’ Within a Week
- Elon Musk said Neuralink will make some changes to try to alleviate the problem of its electrode wires retracting from brain tissue.
-
Thu, 11 Jul 2024 07:59 AM
LIVE Business News Updates: Apple warns Indian iPhone users of possible Pegasus-like ‘spyware attack’
- In April this year, the Indian Computer Emergency Response Team (Cert-In) flagged several vulnerabilities in Apple’s operating system for iPhone and iPad.
-
Thu, 11 Jul 2024 07:45 AM
Business News LIVE Updates: US stock markets at record highs led by world’s biggest tech companies
- The Philadelphia Semiconductor Index rose 2.4% to a record high after Taiwan Semiconductor Manufacturing Co. reported strong quarterly revenue.
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
News / Business / Latest Business News Live Updates Today, July 11, 2024
Source
News
Jio Financial share price: Should you buy this Reliance group stock on Monday ahead of Q1 FY2024 results?
Q1 2024 Results: Jio Financial Share Price will be in focus on Monday as the Reliance Group company has a fixed board meeting on July 15, 2024 to consider and approve the company’s unaudited standalone and consolidated financial results. Trust Group company informed about the Q1 2024 Results date on Wednesday last week via an exchange filing. According to stock market experts, Jio Financial Services Limited is poised to deliver impressive Q1 results for FY25 on solid operating income. They have forecast a healthy QoQ PAT for the company in Q1 FY25.
Jio Financial Services News
Speaking on the Jio Financial Services Q1 2024 results, Manish Chowdhury, Head of Research, StoxBox, said, “We believe Jio Financial Services is poised to deliver impressive results in Q1FY25 aided by its operating income, which is likely to show robust growth driven by strong investment income, which in turn should lead to healthy PAT growth on a sequential basis. Jio Financial Services continues to make strategic moves such as launching digital products and expanding its ecosystem, with a clear focus on future growth. The company has announced plans to introduce products for lending against stocks and mutual funds, leveraging Jio’s large user base, which could be a significant growth driver in the coming quarters.”
“Furthermore, with the NBFC receiving RBI approval to become a primary investment company, Jio Financial Services is well-positioned to unlock value from its investments. Overall, we expect the company to report robust numbers in the upcoming quarter,” the StoxBox expert added.
Jio Financial Stock Target Price
Speaking about the technical outlook of Jio Financial share price, Ganesh Dongre, Senior Manager, Technical Research at Anand Rathi, said, “Jio Financial Services share price is poised to make a fresh high at the ₹260 apiece level. If the stock breaks above this mark, the Reliance Group stock could make a fresh high by touching the ₹290-₹295 zone. Hence, those with Jio Finance stock in their portfolio are advised to stick to the script by keeping a stop loss at ₹205. If the stock breaks above ₹260 decisively, then one can upgrade the stop loss at ₹240 for the near-term target of ₹295.”
On the advice to new buyers regarding Jio Financial stock, Ganesh Dongre said, “New buyers are advised to wait for the breakout. Once the stock breaks above ₹260, one can buy this Reliance Group stock at the short term target of ₹295, keeping a stop loss of ₹240 apiece.”
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore Latest Updates here!
Topics that may interest you
The race is becoming crazy! Bitcoin goes over $ 850 Max Keizer 1
Bitcoin Big Bang is near – Lyn Alden emits a red code.
Once this happens, Bitcoin is pushing towards $ 200k without brakes – Matt Hugan
The next Bitcoin event will be so large, it will make 2021 look like heating – James Lumo
I’m 100% sure that Bitcoin will challenge the financial rules and soon reach $ 1 million
Switchboard Revolutionizes DeFi with New Oracle Aggregator
👀 Lido prepares its response to the recovery boom
Latest Business News Live Updates Today, July 11, 2024
Is Zypto Wallet a Reliable Choice for DeFi Users?
FinTech LIVE New York: Mastercard and the Power of Partnership
The race is becoming crazy! Bitcoin goes over $ 850 Max Keizer 1
Bitcoin Big Bang is near – Lyn Alden emits a red code.
Once this happens, Bitcoin is pushing towards $ 200k without brakes – Matt Hugan
The next Bitcoin event will be so large, it will make 2021 look like heating – James Lumo
I’m 100% sure that Bitcoin will challenge the financial rules and soon reach $ 1 million
-
DeFi9 months agoSwitchboard Revolutionizes DeFi with New Oracle Aggregator
-
DeFi11 months ago👀 Lido prepares its response to the recovery boom
-
News9 months agoLatest Business News Live Updates Today, July 11, 2024
-
DeFi9 months agoIs Zypto Wallet a Reliable Choice for DeFi Users?
-
Fintech9 months agoFinTech LIVE New York: Mastercard and the Power of Partnership
-
DeFi9 months agoEthena downplays danger of letting traders use USDe to back risky bets – DL News
-
Fintech11 months agoFintech unicorn Zeta launches credit as a UPI-linked service for banks
-
News11 months agoSalesforce Q1 2025 Earnings Report (CRM)
-
Fintech11 months ago121 Top Fintech Companies & Startups To Know In 2024
-
ETFs11 months agoGold ETFs see first outing after March 2023 at ₹396 cr on profit booking
-
Videos11 months ago“We will enter the ‘banana zone’ in 2 WEEKS! Cryptocurrency prices will quadruple!” – Raoul Pal
-
Videos11 months ago“BlackRock HAS UNLEASHED a massive multi-trillion monster” – Lyn Alden and Eric Balchunas