US STOCKS: Midday Equities Roundup: Tech Stocks Rising Tide for Indexes
Sep-18 16:37
- Stocks rose to new record highs early Thursday following better than expected weekly jobless claims, additional support in the aftermath of Wednesday's rate cut as market expectations for more before year end gained traction.
- Currently, the DJIA trades up 187.12 points (0.41%) at 46203.42 vs. 46317.52 record high, S&P E-Minis up 45.75 points (0.69%) at 6706.5 (record), Nasdaq up 249.4 points (1.1%) at 22508.64 vs. 22540.93 record high.
- Information Technology sector shares led gainers by far in the first half, namely semiconductor makers after Intel surged nearly 30% to new 52-wk highs of 32.37 after Nvidia (+3.31% - recovering from Wednesday's decline) announced a $5B investment and AI infrastructure collaboration.
- Other chipmakers benefitting from the news included: Synopsys +10.56%, KLA Corp +8.23%, Applied Materials +6.79% and Micron Technology +5.66%.
- A mix of Industrial and Utility sector shares followed: Cummins +2.97%, Quanta Services +2.39%, Pentair PLC +2.28%, AES Corp +2.76%, Vistra Corp +2.32% and Constellation Energy +1.99%.
- Leading decliners in the first half included Consumer Staples and Materials sector shares: Philip Morris Int -2.29%, Altria Group -1.66%, Procter & Gamble -1.48% and Sysco -1.27% weighed on the former, while the Materials sector weighed by Nucor Corp -4.76%, Dow Inc -1.79%, LyondellBasell Industries -1.10% and Linde PLC -1.05%.
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PIPELINE: Corporate Bond Update: $5B IBRD Priced, Guidance Updates
Aug-19 16:28
- Date $MM Issuer (Priced *, Launch #)
- 08/19 $5B *IBRD (World Bank) 10Y SOFR+60
- 08/19 $4B #EIB 5Y SOFR+39
- 08/19 $1.25B #Allianz Perp-NC8.7 6.55%
- 08/19 $1B #DBJ 3Y SOFR+50
- 08/19 $1B #MetLife $600M 3Y +45, $400M 3Y SOFR+70
- 08/19 $750M #CCDJ 5Y +75
- 08/19 $Benchmark Pricoa Global Funding 7Y +100a
- 08/19 $Benchmark National Rural Utilities 3Y +48
- 08/19 $Benchmark British Colombia 5Y SOFR+56
- 08/19 $Benchmark Hanover Insurance 10Y +150a
- 08/19 $Benchmark MassMutual 10Y +78
US STOCKS: Midday Equities Roundup: Communication Services, Chip Stock Lagging
Aug-19 16:21
- Stocks trade mixed early Tuesday, well off early highs - the DJIA outperforming weaker SPX emini and Nasdaq indexes ahead midday. Currently, the DJIA trades up 6.44 points (0.01%) at 44921.68, S&P E-Minis down 29.25 points (-0.45%) at 6440, Nasdaq down 243.1 points (-1.1%) at 21385.81.
- As noted in the 1113ET bullet, aside from a sell-program, Communication Services and Information Technology sectors underperformed in the first half, the former weighed by Trade Desk -3.38%, Netflix -3.22%, Paramount Skydance -2.33%, Warner Bros Discovery -2.16% and Meta Platforms -1.85%.
- The IT sector was weighed by: Palantir Technologies -5.83%, Jabil -4.31%, Advanced Micro Devices -3.93%, Oracle -3.92% and Super Micro Computer -3.35%.
- On the positive side, Real Estate, Consumer Staples and Health Care sectors outperformed. Investment trust stocks supported the former following this morning jump in (albeit volatile) Housing Starts data: Prologis Inc +4.01%, Federal Realty Investment +1.90%, Kimco Realty +1.85% and Weyerhaeuser +1.71%.
- Supporting Consumer Staples stocks included: Kenvue +1.59%, Colgate-Palmolive +1.52% and Kroger +1.39%. Meanwhile, pharmaceuticals buoyed the Health Care sector in the first half: Waters Corp +2.39%, West Pharmaceutical +2.34%, Baxter International +2.16% and Labcorp Holdings +2.00%.
BONDS: EGBs-GILTS CASH CLOSE: Gilts Underperform Again Pre-UK CPI
Aug-19 16:17
European curves flattened Tuesday, with Gilts underperforming yet again ahead of UK CPI data.
- With no evident catalysts today amid a thin data/speaker slate, Monday's weakness in Gilts on the back of lingering fiscal concerns spilled over into today's session. 10Y Gilt yields hit a fresh post-May high (4.756%) in early trade.
- Bund yields traded almost entirely within the prior session's ranges, with the 2.80% level holding for the 10Y. Longer-end German instruments led the space overall in a broader rally over the most of the remainder of the session, with Buxl rallying after yields hit a fresh post-2011 high.
- Yields fell to session lows a little over an hour before the cash close, as equities tumbled (led by US megacap tech), resulting in a modest safe-haven bid that also saw periphery EGB spreads move a little wider.
- The German curve bull flattened on the day, with the UK's twist flattening. Periphery/semi-core EGB spreads closed mixed, with BTPs underperforming.
- Attention Wednesday will be on the UK CPI report. MNI's preview is here: the BOE MPC is focused on headline CPI which is expected to come in higher than in June.
- We also get an appearance by ECB's Lagarde and the Swedish Riksbank decision, as well as final Eurozone July inflation.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is down 0.1bps at 1.958%, 5-Yr is down 1.3bps at 2.306%, 10-Yr is down 1.3bps at 2.75%, and 30-Yr is down 1.5bps at 3.323%.
- UK: The 2-Yr yield is up 1.5bps at 3.98%, 5-Yr is up 1.5bps at 4.138%, 10-Yr is up 0.2bps at 4.74%, and 30-Yr is down 0.9bps at 5.602%.
- Italian BTP spread up 1.2bps at 80.5bps / French OAT down 0.1bps at 68.3bps
