Market Update
European Markets Attempt a Rebound, Euro, Pound and Swiss Franc Edge Higher
Bridgette Randall
20 Jul, 2023
Frankfurt
Market averages in Europe attempted a rebound and investors reviewed another batch of fresh earnings.
European government bond yields edged higher and the yield on Italian bonds jumped above 4% and stayed below the UK gilts.
Investors are anticipating the European Central Bank to raise hike rates at its next policy meeting but the rates are still not restrictive.
Investors are also worried that the uneven economic recovery in China could dampen demand for industrial and luxury goods from the region but the demand in the U.S. could hold if the Federal Reserve manages to avoid dipping the economy into a recession.
Closer to home, German's producer price inflation slowed in June to 0.1% from 1% annual pace in May, the Federal Statistics Office or DeStatis reported Thursday.
Producer prices fell 0.3% on a monthly basis in June after falling 1.4% in May, largely driven by a sharp fall in prices of energy by 5% and electricity by 12.4%.
Europe Indexes & Yields
The DAX index increased 0.2% to 16,147.21, the CAC-40 index advanced 0.4% to 7,352.81 and the FTSE 100 index increased 0.6% to 7,637.29.
The yield on 10-year German bonds increased higher to 2.41%, French bonds traded lower to 2.97%, the UK gilts edged up to 4.21% and Italian bonds increased to 4.09%.
The euro edged higher to $1.19, the British pound to $1.28 and the U.S. dollar fetched 85.88 Swiss cents
Brent crude increased $0.39 to $79.85 a barrel and the Dutch TTF natural gas increased €0.24 to €27.10 per MWh.
Europe Stock Movers
ABB Ltd gained 2.9% to CHF 34.42 after the Swiss engineering company reported a rise in earnings on strong revenue growth.
Revenue in the second quarter rose 13% to $8.1 billion from $7.2 billion and earnings soared 139% to $906 million from $379 million and basic earnings per share jumped to 49 cents from 20 cents a year ago.
New orders in the quarter declined to $8.67 billion from $8.81 billion with 5% increase in the Americas and mid-single digit increase in the U.S.
ASML Holding NV declined 4% to €626.10 and extended two day losses to 7% despite the Netherlands-based semiconductor equipment maker reported higher revenue and earnings and said demand from China remained strong.
Electrolux AB plunged 20.5% to kr122.0 after the Swedish appliance maker reported sales declined 8% in its latest quarter.
Revenue in the quarter declined 8.4% to SEK 32.6 billion and the company swung to a loss of SEK 648 million from a profit of SEK 257 million and diluted earnings per share was (SEK 2.43) from a profit of SEK 0.93.
Sales were impacted by weaker demand and customers opting for cheaper priced products.
Housing Permits, Starts and Completions Declined in June
Brian Turner
19 Jul, 2023
New York City
In domestic economic news, seasonally adjusted housing starts declined 8% from the previous month to 1.434 million, the U.S. Census Bureau reported Wednesday.
Single family home starts declined 7% to 935,000 and multi-family unit starts fell 11.6% to 482,000.
Building permits in June were at 1.44 million, a decline of 3.7% from the revised May rate of 1.496 million and 15.3% below the annual rate of 1.701 million in June 2022.
Housing starts in June were 1.434 million and 8.0% below the revised May estimate of 1.559 million and 8.1% below the revised rate of 1.561 million in June 2022.
Home completions declined to 1.468 million, 3.3% below the revised May estimate of 1.518 million but 5.5% higher than the June 2022 rate of 1.39 million.
With Rising Appetite for Stocks, Investors Step Up and Hit Buy Button
Barry Adams
19 Jul, 2023
New York City
Market averages traded higher and investors stepped up to buy bank stocks after deposit and bad debt worries receded.
Stocks continued to retain upward bias and investors warmed up to bank stocks after regional and big banks reported earnings ahead of market expectations.
Regional banks rallied after Western Alliance reported an increase in customer deposits, despite Bank of America, Citigroup and PNC Financial reporting a slight decline in average deposits in the quarter.
Investors are increasingly taking a positive view of market performance this year and forecasting the delaying of economic slowdown.
Investors are hoping that market gains in the second half may surpass previous expectations because of improving economic trends and better-than-feared earnings picture.
Slowing inflation, resilient consumer spending, muted wage growth, better-than-expected corporate earnings and receding stress in the regional banking system are contributing to positive market sentiment.
On the positive side, overall inflation has fallen sharply after energy prices plunged from the previous year's high but core inflation, which largely represents service inflation, still remains stubbornly high.
Investors are also hoping that the Federal Reserve is nearing its rate hike regime and the strength in the labor market will prevent the economy from falling into a recession.
In domestic economic news, seasonally adjusted housing starts declined 8% from the previous month to 1.434 million, the U.S. Census Bureau reported Wednesday.
Single family home starts declined 7% to 935,000 and multi-family unit starts fell 11.6% to 482,000.
Building permits in June were at 1.44 million, a decline of 3.7% from the revised May rate of 1.496 million and 15.3% below the annual rate of 1.701 million in June 2022.
Housing starts in June were 1.434 million and 8.0% below the revised May estimate of 1.559 million and 8.1% below the revised rate of 1.561 million in June 2022.
Home completions declined to 1.468 million, 3.3% below the revised May estimate of 1.518 million but 5.5% higher than the June 2022 rate of 1.39 million.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.2% to 4,564.29 and the Nasdaq Composite futures edged down 0.1% to 14,341.96.
The yield on 2-year Treasury notes decreased to 4.77%, 10-year Treasury notes inched lower to 3.76% and 30-year Treasury bonds edged down to 3.86%.
Crude oil increased $0.46 to $76.17 a barrel and natural gas prices decreased 0,1 cents to $2.61 a thermal unit.
Stock Movers
Goldman Sachs Group Inc declined 0.3% to $336.85 after the company reported lower-than-expected adjusted quarterly earnings because of losses in real estate and GreenSky.
The financial services company reported quarterly revenue of $10.9 billion and earnings of $1.22 billion or $3.06 a share, reflecting sharp decline in trading revenue and investment banking fees.
Carvana Company soared 30.1% to $52.36 after the used automobile retailer said it struck a deal to lower its debt by $1.2 billion.
The company said the deal will eliminate about 80% of its unsecured notes in 2025 and 2027.
Joby Aviation Inc plunged 12.2% to $8.88 after JPMorgan Chase lowered its stock rating to "underweight" from "neutral" and analyst Bill Peterson added in a client note that the adoption of electric aircraft "will take much longer than currently embedded in bullish expectations."
Oddity Tech shot up 40% to $49.10 after the beauty company sold 12.1 million shares at $35 a share in an initial public offering.
Apple Inc popped 0.6% to $194.27 on a speculation that the company is looking to develop its own AI tools similar to ChatGPT and other chat based services.
European Markets Closed Higher After Inflation Data
European markets edged up after latest inflation data confirmed cooling trends of the last nine months.
Market averages in London, Paris and Frankfurt advanced after the consumer price inflation in the Euro Area confirmed at 5.5% in June, the lowest since January 2022.
However, the core rate of inflation accelerated to 5.5% in the month from 5.4% in the preliminary estimate released by Eurostat.
Overall inflation declined because of a sharp decline in energy prices compared to a high level a year ago but core rate of inflation, which excludes volatile energy and food prices, stayed near the peak of 5.7%.
Service sector inflation rose to 5.4% from the previous estimate of 5.0%, indicating deeply entrenched inflation in the economy.
The elevated core inflation supported the European Central Bank's case of raising rate higher because the inflation rate is still well above the target rate of 2%.
UK Consumer Inflation Eased In June, Core Inflation Remained Elevated
Consumer prices in the UK declined to 7.9% in June, the lowest level since March 2022, the Office for National Statistics reported Wednesday.
Core inflation, which excludes food and energy prices, eased to 6.9% from a three-decade peak of 7.1%.
Despite the slight easing of inflation, core and overall inflation remains well above the Bank of England's target rate of 2% and supports the case for higher rates at the next meeting of policyholders.
European Passenger Vehicle Sales Rebounded In June
European markets traded higher after slowing inflation trends lifted market sentiment.
Passenger car registration in the European Union increased 17.8% in June to one million units, the European Automobile Manufacturers Association reported Wednesday.
Passenger vehicle sales rose for the 11th month in a row with sales in rising in Germany by 24.8%, Spain by 13.3%, and France by 11.5%.
Battery powered electric vehicles sales rose 66% to 158,300 units, accounting for 15% of total sales.
Despite the improving trend, passenger vehicle sales are still down 21% from pre-Covid sales in 2019 in the comparable period.
Europe Indexes & Yields
The DAX index decreased 0.1% to 16,108.93, the CAC-40 index advanced 0.1% to 7,326.94 and the FTSE 100 index increased 1.8% to 7,588.20.
The yield on 10-year German Bunds inched higher to 2.33%, French bonds traded lower to 2.88%, the UK gilts edged up to 4.19% and Italian bonds increased to 3.99%.
The euro edged higher to $1.12, the British pound to $1.29 and the U.S. dollar fetched 85.85 Swiss cents
Brent crude decreased $0.23 to $79.86 a barrel and the Dutch TTF natural gas decreased €1.27 to €25.80 per MWh.
Europe Stock Movers
Resource and mining stocks extended gains this week after crude oil prices and copper prices rebounded.
Glencore, Antofagasta, and Anglo American advanced between 1% and 2%.
Kering SA jumped 5.5% to €521.20 after the company reshuffled management structure.
Luxury stocks rebounded after three days of weakness in Paris trading.
LVMH, Hermes and Richemont SA gained between 1% and 2.5% and Dassault Systems, Capgemini and Michelin jumped more than 1%.
However, Publicis Groupe, Schneider Electric and ArcelorMittal dipped down 1%.
In Frankfurt trading, Siemens Healthineers, Zalando, Vonovia and Sartorius gained between 1% and 2%.
Volvo AB declined 0.2% to 223.30 Swedish krona after the commercial vehicle maker reported higher sales and earnings in its latest quarter but orders declined.
Net sales in the quarter increased 18% to 140.80 billion kronor from 118.9 billion kronor and net income rose to 10.82 kronor from 10.52 kronor and earnings per share increased to 5.30 kronor from 5.14 kronor a year ago.
New truck orders in the quarter declined 10% to 48,300 units but deliveries in the period rose 5% to 68,300 units.
Movers: Ally Financial, Carvana, Goldman Sachs, J B Hunt, Joby Aviation, Western Alliance Bancorp
Scott Peters
19 Jul, 2023
New York City
Stocks continued to march higher after investors estimated the probability of a hard-landing scenario is receding.
The S&P 500 index traded higher 0.3% to 4,570.45 and the Nasdaq Composite futures edged up 0.3% to 14,391.64.
Goldman Sachs Group Inc declined 0.3% to $336.85 after the company reported lower-than-expected adjusted quarterly earnings because of losses in real estate and GreenSky.
Net revenue declined 8% to $10.9 billion from $11.9 billion and net earnings plunged to $1.2 billion from $2.8 billion and diluted earnings per share dropped to $3.08 from $7.73 a year ago.
Investment banking fees declined 20% to $1.4 billion from $1.8 billion after merger advisory fees plunged 46% to $647 million from $1.2 billion.
Fixed-income bonds, currencies and commodities trading revenue plunged 28% to $2.7 billion from $3.6 billion and equities trading revenue increased 1% to $2.9 billion.
Asset and wealth management revenue decreased 4% to $3.04 billion from $3.2 billion a year ago.
Book value increased 1.9% to $309.33 a share.
Carvana Company soared 30.1% to $52.36 after the used automobile retailer said it struck a deal to lower its debt by $1.2 billion.
The company said the deal will eliminate about 80% of its unsecured notes in 2025 and 2027.
Joby Aviation Inc plunged 12.2% to $8.88 after JPMorgan Chase lowered its stock rating to "underweight" from "neutral" and analyst Bill Peterson added in a client note that the adoption of electric aircraft "will take much longer than currently embedded in bullish expectations."
Ally Financial Inc increased 3.0% to $29.0 after the company reported a decline in earnings but ahead of market expectations.
Total revenue in the quarter was unchanged at $2.07 billion and net financing revenue declined to $1.6 billion from $1.8 billion and net income attributable to shareholders declined to $301 million from $454 million and diluted earnings per share fell to 99 cents from $1.40 a year ago.
The company has about 2.9 million retail deposit customers with an average balance of $50,000 and 92% of retail deposit balances are FDIC insured.
Net interest margin was 3.4%, indicating that the bank is passing on higher interest rates to its customers but not to depositors.
Total deposits increased by $13.9 billion from a year ago to $154.3 billion at the end of the second quarter.
Western Alliance Bancorp extended gains for the second day in a row by 8% to $46.42 despite the company reporting weak quarterly results.
Net revenue increased 21.3% to $669.3 million and net income decreased 17.1% to $215.7 million from $260.2 million and diluted earnings per share fell to $1.96 from $2.39 a year ago.
Total deposits declined 5% from a year ago and rose 7.3% from the previous quarter to $51.0 billion.
The rise in deposits from the previous quarter showed that the bank is attracting new customers and avoiding the much feared run on the bank, a key driver indicator of the customer confidence.
Net interest margin decreased to 3.42% from 3.54% a year ago and from 3.79% in the previous quarter.
J.B. Hunt Transportation Services increased 2.9% to $193..33 after the trucking services provider reported better-than-expected quarterly results.
Revenue in the second quarter declined 18% to $3.13 billion from $3.83 billion and net earnings dropped to $189.5 million from $1255.4 million and diluted earnings per share fell to $1.81 from $2.42 a year ago.
The company repurchased 315,000 of its own shares in the second quarter for $53 million and $463 million were still available in its stock repurchase plan.
Stocks Power Ahead After Investors Embrace Soft-landing Scenario
Barry Adams
19 Jul, 2023
New York City
Stocks continued to retain upward bias and investors await corporate earnings.
Investors are increasingly taking a positive view of market gains this year and forecasting the delaying of economic slowdown.
Investors are hoping that market gains in the second half may surpass previous expectations because of improving economic trends and earnings picture.
Slowing inflation trend, resilient consumer spending, muted wage growth, better-than-expected corporate earnings and receding stress in the banking system are contributing to positive market sentiment.
On the positive side, overall inflation has fallen sharply after energy prices plunged from the previous year but core inflation, which represents service inflation, still remains stubbornly high.
Investors are also hoping that the Federal Reserve is nearing its rate hike regime and the strength in the labor market will prevent the economy falling into a recession.
In domestic economic news, seasonally adjusted housing starts declined 8% from the previous month to 1.434 million, the U.S. Census Bureau reported Wednesday.
Single family home starts declined 7% to 935,000 and multi-family unit starts fell 11.6% to 482,000.
Building permits in June were at 1.44 million, a decline of 3.7% from the revised May rate of 1.496 million and 15.3% below the annual rate of 1.701 million in June 2022.
Housing starts in June were 1.434 million and 8.0% below the revised May estimate of 1.559 million and 8.1% below the revised rate of 1.561 million in June 2022.
Home completions declined to 1.468 million, 3.3% below the revised May estimate of 1.518 million but 5.5% higher than the June 2022 rate of 1.39 million.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.3% to 4,570.45 and the Nasdaq Composite futures edged up 0.3% to 14,391.64.
The yield on 2-year Treasury notes decreased to 4.71%, 10-year Treasury notes inched lower to 3.78% and 30-year Treasury bonds edged down to 3.91%.
Crude oil increased $0.88 to $76.62 a barrel and natural gas prices decreased 2 cents to $2.61 a thermal unit.
Stock Movers
Goldman Sachs Group Inc declined 0.3% to $336.85 after the company reported lower-than-expected adjusted quarterly earnings because of losses in real estate and GreenSky.
The financial services company reported quarterly revenue of $10.9 billion and earnings of $1.22 billion or $3.06 a share, reflecting sharp decline in trading revenue and investment banking fees.
Carvana Company soared 30.1% to $52.36 after the used automobile retailer said it struck a deal to lower its debt by $1.2 billion.
The company said the deal will eliminate about 80% of its unsecured notes in 2025 and 2027.
Joby Aviation Inc plunged 12.2% to $8.88 after JPMorgan Chase lowered its stock rating to "underweight" from "neutral" and analyst Bill Peterson added in a client note that the adoption of electric aircraft "will take much longer than currently embedded in bullish expectations."
Europe Movers: Kering SA, Resource Stocks, Luxury Stocks, Volvo
Inga Muller
19 Jul, 2023
Frankfurt
European markets traded higher after slowing inflation trends lifted market sentiment.
Passenger car registration in the European Union increased 17.8% in June to one million units, the European Automobile Manufacturers Association reported Wednesday.
Passenger vehicle sales rose for the 11th month in a row with sales rising in Germany by 24.8%, Spain by 13.3%, and France by 11.5%.
Battery powered electric vehicles sales rose 66% to 158,300 units, accounting for 15% of total sales.
Despite the improving trend, passenger vehicle sales are still down 21% from pre-Covid sales in 2019 in the comparable period.
The DAX index increased 0.1% to 16,142.09, the CAC-40 index advanced 0.4% to 7,347.21 and the FTSE 100 index increased 1.5% to 7,567.28.
The yield on 10-year German Bunds inched higher to 2.33%, French bonds traded lower to 2.88%, the UK gilts edged up to 4.19% and Italian bonds increased to 3.99%.
Resource and mining stocks extended gains this week after crude oil prices and copper prices rebounded.
Glencore, Antofagasta, and Anglo American advanced between 1% and 2%.
Kering SA jumped 5.5% to €521.20 after the company reshuffled management structure.
Marco Bizzarri, President and CEO of Gucci since 2015 and a member of Kering’s executive committee since 2012, will leave the company effective September 23.
Francesca Bellettini, President and CEO of Yves Saint Laurent since 2013, in addition to her current role, is appointed Kering Deputy CEO, in charge of Brand Development.
Jean-François Palus, currently Kering Group Managing Director, is appointed President and CEO of Gucci for a transitional period and Jean-Marc Duplaix, Chief Financial Officer since 2012, is appointed Kering Deputy CEO, in charge of Operations and Finance.
Luxury stocks rebounded after three days of weakness in Paris trading.
LVMH, Hermes and Richemont SA gained between 1% and 2.5% and Dassault Systems, Capgemini and Michelin jumped more than 1%.
However, Publicis Groupe, Schneider Electric and ArcelorMittal dipped down 1%.
In Frankfurt trading, Siemens Healthineers, Zalando, Vonovia and Sartorius gained between 1% and 2%.
Volvo AB declined 0.2% to 223.30 Swedish krona after the commercial vehicle maker reported higher sales and earnings in its latest quarter but orders declined.
Net sales in the quarter increased 18% to 140.80 billion kronor from 118.9 billion kronor and net income rose to 10.82 kronor from 10.52 kronor and earnings per share increased to 5.30 kronor from 5.14 kronor a year ago.
New truck orders in the quarter declined 10% to 48,300 units but deliveries in the period rose 5% to 68,300 units.
Inflation Slowed In Euro Area and UK, Passenger Vehicle Sales Rebounded
Bridgette Randall
19 Jul, 2023
Frankfurt
European markets edged up after latest inflation data confirmed cooling trends of the last nine months.
Market averages in London, Paris and Frankfurt advanced after the consumer price inflation in the Euro Area was confirmed at 5.5% in June, the lowest since January 2022.
However, the core rate of inflation accelerated to 5.5% in the month from 5.4% in the preliminary estimate released by Eurostat.
Overall inflation declined because of a sharp decline in energy prices compared to a high level a year ago but core rate of inflation, which excludes volatile energy and food prices, stayed near the peak of 5.7%.
Service sector inflation rose to 5.4% from the previous estimate of 5.0%, indicating deeply entrenched inflation in the economy.
The elevated core inflation supported the European Central Bank's case of raising rate higher because the inflation rate is still well above the target rate of 2%.
UK Consumer Inflation Eased In June, Core Inflation Remained Elevated
Consumer prices in the UK declined to 7.9% in June, the lowest level since March 2022, the Office for National Statistics reported Wednesday.
Core inflation, which excludes food and energy prices, eased to 6.9% from a three-decade peak of 7.1%.
Despite the slight easing of inflation, core and overall inflation remains well above the Bank of England's target rate of 2% and supports the case for higher rates at the next meeting of policyholders.
European Passenger Vehicle Sales Rebounded In June
Passenger car registration in the European Union increased 17.8% in June to one million units, the European Automobile Manufacturers Association reported Wednesday.
Passenger vehicle sales rose for the 11th month in a row with sales rising in Germany by 24.8%, Spain by 13.3%, and France by 11.5%.
Battery powered electric vehicles sales rose 66% to 158,300 units, accounting for 15% of total sales.
Despite the improving trend, passenger vehicle sales are still down 21% from pre-Covid sales in 2019 in the comparable period.
Europe Indexes & Yields
The DAX index increased 0.1% to 16,142.09, the CAC-40 index advanced 0.4% to 7,347.21 and the FTSE 100 index increased 1.5% to 7,567.28.
The yield on 10-year German Bunds inched higher to 2.33%, French bonds traded lower to 2.88%, the UK gilts edged up to 4.19% and Italian bonds increased to 3.99%.
The euro edged higher to $1.12, the British pound to $1.29 and the U.S. dollar fetched 85.85 Swiss cents
Brent crude decreased $0.23 to $79.86 a barrel and the Dutch TTF natural gas decreased €1.27 to €25.80 per MWh.
Europe Stock Movers
Resource and mining stocks extended gains this week after crude oil prices and copper prices rebounded.
Glencore, Antofagasta, and Anglo American advanced between 1% and 2%.
Kering SA jumped 5.5% to €521.20 after the company reshuffled management structure.
Luxury stocks rebounded after three days of weakness in Paris trading.
LVMH, Hermes and Richemont SA gained between 1% and 2.5% and Dassault Systems, Capgemini and Michelin jumped more than 1%.
However, Publicis Groupe, Schneider Electric and ArcelorMittal dipped down 1%.
In Frankfurt trading, Siemens Healthineers, Zalando, Vonovia and Sartorius gained between 1% and 2%.
Volvo AB declined 0.2% to 223.30 Swedish krona after the commercial vehicle maker reported higher sales and earnings in its latest quarter but orders declined.
Net sales in the quarter increased 18% to 140.80 billion kronor from 118.9 billion kronor and net income rose to 10.82 kronor from 10.52 kronor and earnings per share increased to 5.30 kronor from 5.14 kronor a year ago.
New truck orders in the quarter declined 10% to 48,300 units but deliveries in the period rose 5% to 68,300 units.
S&P 500 and Nasdaq Extend 2023 Gains After Positive Earnings from Banks
Barry Adams
18 Jul, 2023
New York City
Stocks powered ahead on Wall Street after investors reviewed earnings from several banks.
The S&P 500 index and the Nasdaq Composite index advanced more than 0.5% after Bank of New York, Bank of America and PNC Financial reported better-than-expected earnings.
Large banks are reporting higher earnings largely because of higher interest rates and deposit rate increase are still lagging higher interest rates, widening net interest rate margin.
Banks also reported a decline in average deposits held in accounts, as investors searching for higher yields have other options including Treasury notes and bills.
In economic news, retail sales, not adjusted for inflation, rose in June, indicating resilient consumer spending despite higher prices.
Retail sales have been rising because in urban areas wages are faster than inflation and retail sales are not adjusted for inflation, so higher retail sales are also reflecting higher prices.
Industrial production declined for the second month in a row in June, the Federal Reserve reported Tuesday.
Industrial production, which includes output from manufacturing, utilities and mining, fell 0.5% matching the upwardly revised rate in May.
Output from manufacturing declined 0.3%, mining fell 0.2% and utilities declined 2.6%. Capacity utilization decreased to 78.9%, a rate that is below its long term average by 0.8 percentage point.
June Retail Sales Jumped 0.2%
U.S. retail sales rose 0.2% in June following an upwardly revised 0.5% increase in May, the U.S. Census Bureau reported Tuesday.
From a year ago, retail sales increased 1.5%.
Retail sales data are not adjusted for inflation and consumer spending continues to remain resilient in the face of inflation falling to a two-year low.
Core retail sales, which excludes automobiles, gasoline, food services and building materials rose 0.6%.
Furniture sales rose 1.4%, electronic appliance sales increased 1.1% and sales at non-store retailers and miscellaneous stores jumped 1.9% and 2.0% respectively.
Apparel store sales increased 0.6% and motor vehicle parts sales inched higher 0.3%.
However, gasoline station sales declined 1..1%, building materials and garden equipment sales fell 1.2%, food and beverage store sales decreased 0.7% and sports, music and book store sales eased 1.0%.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.7% to 4,555.07 and the Nasdaq Composite futures edged up 0.9% to 14,367.41.
The yield on 2-year Treasury notes decreased to 4.71%, 10-year Treasury notes inched lower to 3.78% and 30-year Treasury bonds edged down to 3.91%.
Crude oil increased $1.77 to $75.90 a barrel and natural gas prices increased 12 cents to $2.63 a thermal unit.
Stock Movers
Morgan Stanley gained 3% to $88.88 after the financial services provider reported a smaller-than-expected decline in earnings in its latest quarter.
The company increased its quarterly dividend by 7.5% to 85 cents a common share. payable to shareholders on record on July 31 on August 15.
Bank of America jumped 2.5% to $30.01 after the bank reported better-than-expected revenue and earnings in its latest quarter results.
PNC Financial Services declined 0.6% to $126.25 after the regional bank reported lower-than-expected revenue in its latest quarter.
The bank lowered its annual net interest income increase range between 5% and 6% from the previous range between 6% and 8%.
Microsoft Corp jumped 5% to $363.05 after the company announced a monthly $30 subscription plan for a new artificial intelligence service for Microsoft 365.
Charles Schwab Corp soared 12.5% to $65.95 after the online broker reported a decline in earnings and revenues but quarterly results were ahead of market expectations.
Revenue declined 9% to $4.6 billion from $5.09 billion and net income fell 28% to $1.3 billion from $1.8 billion and diluted earnings per share decreased to 64 cents from 87 cents a year ago.
The company completed the transition of 5 million Ameritrade accounts to Charles Schwab platform in late May and all of the remaining 70% Ameritrade accounts are expected to transition over the year's end.
European Markets Turned Higher, Natural Gas and Crude Oil Rebounded
European markets were nearly unchanged and investors awaited the release of key economic data and corporate earnings later today.
Market indexes extended lackluster trading for the second day in a row after China reported weaker-than-expected economic data.
Market sentiment was also cautious on the growing worries that the European Central Bank is likely to keep its aggressive rate hike stance despite the raft of cooling inflation data.
Luxury stocks traded lower in Paris and resources stocks edged down in London for the second day following the mixed economic data.
Investors looking ahead to the start of corporate earnings season this week.
Large and small banks are in focus and investors are looking for insights in how banks are handling the stress of rising deposit costs and losses in government bonds held by banks.
Europe Indexes & Yields
The DAX index increased 0.4% to 16,125.16, the CAC-40 index advanced 0.4% to 7,319.18 and the FTSE 100 index increased 0.6% to 7,453.69.
The yield on 10-year German Bunds inched higher to 2.37%, French bonds traded lower to 2.92%, the UK gilts edged up to 4.37% and Italian bonds increased to 4.02%.
The euro edged higher to $1.12, the British pound to $1.31 and the U.S. dollar fetched 85.80 Swiss cents
Brent crude increased $1.55 to $80.07 a barrel and the Dutch TTF natural gas increased €1.97 to €27.08 per MWh.
Europe Stock Movers
Novartis AG gained 3% to CHF 87.52 after the company lifted its annual earnings outlook and mapped out a plan to spin off its generic pharmaceutical division in the fourth quarter.
The company board also approved the repurchase of $1.5 billion of its stock.
SEB AB declined 0.6% to kr 122.65 in Stockholm trading and the Swedish bank reported earnings ahead of market expectations.
Danone SA declined 0.3% to €55.06 and a day ago Russia announced to takeover a stake held by the company in its Russian subsidiary.
AstraZeneca plc gained 0.5% to 10,250 pence on a report that the U.S. Food and Drug Administration has approved the company and its partner Sanofi's antibody therapy to prevent respiratory syncytial virus in infants and toddlers.
Retail Sales Advanced In June 0.2%
Brian Turner
18 Jul, 2023
New York City
U.S. retail sales rose 0.2% in June following an upwardly revised 0.5% increase in May, the U.S. Census Bureau reported Tuesday.
Retail sales data are not adjusted for inflation and consumer spending continues to remain resilient in the face of inflation falling to a two-year low.
Core retail sales, which excludes automobiles, gasoline, food services and building materials rose 0.6%.
Furniture sales rose 1.4%, electronic appliance sales increased 1.1% and sales at non-store retailers and miscellaneous stores jumped 1.9% and 2.0% respectively.
Apparel store sales increased 0.6% and motor vehicle parts sales inched higher 0.3%.
However, gasoline station sales declined 1..1%, building materials and garden equipment sales fell 1.2%, food and beverage store sales decreased 0.7% and sports, music and book store sales eased 1.0%.