- Global Stock Rout Intensifies, Powering Bond Rally: Markets Wrap
(Bloomberg) — A global stocks selloff deepened on Monday as concerns grew that the Federal Reserve is behind the curve with policy support for a slowing US economy, sending investors into the safety of bonds. - Dow closes down 600 points; Nasdaq enters correction after weak jobs report
Stocks fell sharply on Friday as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession. The broad market index dropped 1.84% to end at 5,346.56. The Nasdaq Composite lost 2.43% to close at 16,776.16, bringing the decline for the tech-heavy index from its recent all-time high to more than 10%. The Dow Jones Industrial Average fell 610.71 points, or 1.51%, to finish at 39,737.26. At its session low, the 30-stock index was down 989 points. - Oil Climbs from Seven Month Low as US Warns of Iran Retaliation
(Bloomberg) — Oil rose from a seven-month low as tensions in the Middle East intensified ahead of an anticipated strike on Israel by Iran. Brent climbed above $77 a barrel after closing at its lowest since Jan. 10 on Friday, while West Texas Intermediate traded near $74. - Gold retreats on profit-taking, logs weekly gain
Gold prices retreated on Friday as profit-taking kicked in after bullion jumped over 1% earlier in the session on hopes of rate cuts buoyed by weaker than expected U.S. jobs data. Spot gold fell 0.5% to $2,432.19 per ounce as of 2:34 p.m. ET (1834 GMT). U.S. gold futures settled 0.4% lower to $2,4769.8. - Buffett’s BofA Sale a Warning of Recession as Bonds Align
(Bloomberg) — Berkshire Hathaway Inc.’s sale of Bank of America Corp. shares may be a bad omen for the world’s largest economy. Warren Buffett’s company sold $3.8 billion worth of BofA shares from mid-July, the biggest sale of the stock in its history. That came as a slew of US macro data including manufacturing activity and employment disappointed. - Asia High-Grade Dollar Bond Spreads Widen the Most in 22 Months
(Bloomberg) — Asian investment-grade dollar bond yield premiums surged the most in 22 months, as investors turned to safer government notes on concerns about the global economy and tensions in the Middle East. The spreads widened at least 10 basis points, according to traders. - Global Bonds Erase This Year’s Loss as US Economic Outlook Sours
(Bloomberg) — Global bonds have erased their losses for the year as concern the US economic outlook is rapidly worsening spurs demand for fixed-income assets. Bloomberg’s index of global sovereign and corporate debt has now gained 1% for 2024 after being down as much as 4.6% in the middle of April. The gauge surged 2.3% last week alone. - Treasuries Surge as Traders Bet Big on a Fed Rescue Mode
(Bloomberg) — Bond traders are piling into bets that the US economy is on the verge of deteriorating so quickly that the Federal Reserve will need to start easing monetary policy aggressively to head off a recession. Previous worries about the risk of elevated inflation have virtually disappeared, swiftly giving way to speculation that growth will stall unless the central. - Goldman Economists Lift ‘Limited’ US Recession Risk to 25%
(Bloomberg) — Goldman Sachs Group Inc. economists increased the probability of a US recession in the next year to 25% from 15%, but said there are several reasons not to fear a slump even after unemployment jumped. “We continue to see recession risk as limited,” the Goldman economists led by Jan Hatzius said in a report to clients on Sunday. - Dollar Path Splits Goldman, Fidelity Over Emerging-Market Bonds
(Bloomberg) — Goldman Sachs Group Inc. says emerging-market investors should favor dollar-denominated bonds over local-currency ones. Fidelity International says the opposite. Goldman argues that dollar debt will outperform as potential US election volatility bolsters the greenback and leads to policy changes that could hurt developing-nation assets. - Stocks Set for Losses as Economy Fears Deepen: Markets Wrap
(Bloomberg) — Asian markets are poised for losses on Monday as fears of a deeper economic slowdown unnerve traders also bracing for more volatility from rising tensions in the Middle East. US futures dropped in early trading, amid the fallout from heavy losses on Wall Street on Friday and Berkshire Hathaway Inc.’s weekend disclosure that it slashed its stake in Apple. - BOJ’s Bonds Plan Means Life-Insurer Buying Can Hit ¥4 Trillion
(Bloomberg Intelligence) — The Bank of Japan’s road map to almost halve its monthly Japan government bond purchases to ¥2.9 trillion by 1Q26, from July’s ¥5.7 trillion, not only supports long-term bond yields but also means life insurers’ net purchases of JGBs could rise to ¥4 trillion this year and ¥5 trillion in 2025, we calculate. - Israel Braces for Attack by Iran as US Urges Gaza Cease-Fire
(Bloomberg) — Israel braced for a possible attack from Iran and regional militias in retaliation for assassinations of Hezbollah and Hamas officials as the US sent defensive reinforcements while pressing for a Gaza cease-fire deal. Prime Minister Benjamin Netanyahu said at the start of a cabinet meeting Sunday that “Israel is in a multifront war against Iran’s axis. - Harris Meets with Possible Running Mates as Decision Nears
(Bloomberg) — Vice President Kamala Harris met Sunday with at least three possible running mates: Arizona Senator Mark Kelly, Pennsylvania Governor Josh Shapiro and Minnesota Governor Tim Walz, according to people familiar with her plans. The meetings were part of Harris’ final stretch before selecting who will join her on the 2024 presidential ticket. - Snickers Maker Mars Explores Buying Kellanova, Reuters Says
(Bloomberg) — Candy giant Mars Inc., the maker of ubiquitous confections such as Snickers and M&M’s, is exploring the acquisition of Kellanova in what would be one of the biggest deals ever in the packaged food sector, Reuters reported. Battle Creek, Michigan-based Kellanova, with a market value of about $20 billion, declined to comment to Reuters. - Exxon Mobil Second Quarter 2024 Earnings
Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) also surpassed analyst estimates by 5.2%. Looking ahead, revenue is expected to decline by 2.6% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 1.9%. - Chevron hit with downgrade after Q2 miss, Hess deal setback
Chevron missed expectations in its second quarter, in part due to pressure from lower refining margins. Stewart Glickman, CFRA Research Energy Equity Analyst and Deputy Research Director joined Market Domination to discuss. Chevron (CVX) saw revenue of $51.18 billion for the quarter, higher than expected. But the oil giant’s adjusted earnings per share of $2.55 missed expectations of $2.93. - CrowdStrike says it isn’t to blame for Delta’s flight cancellations after July outage
CrowdStrike’s attorney said Delta turned down onsite assistance in the wake of the outage. Delta CEO Ed Bastian estimated last week that the mass cancellations after the outage cost the company some $500 million, and CrowdStrike’s lawyer says its liability is capped at under $10 million. Delta canceled more than 5,000 flights after the outage, taking longer to recover than rivals. - Elon Musk PAC being investigated by Michigan secretary of state for potential violations
A political action committee backed by Elon Musk is being investigated by the Michigan secretary of state’s office. Musk said he created and helped fund the America PAC, which is supporting Donald Trump. To be sure, legal experts could not point to any state laws that may have been broken by the PAC. - Taiwan under pressure to bolster its defense as Trump-Harris presidential race stokes policy concerns
Recent remarks by former President and Republican nominee Donald Trump highlight the unpredictability and risks that Taiwan faces. While Trump has remained ambiguous about his intention to defend Taiwan from a potential Chinese attack, the exact stance of his opponent, Kamala Harris, is also unclear. Experts say the race is likely to prompt Taiwan to bolster its military deterrence. - Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge
The cryptocurrency market plunged on Sunday, shedding around $270 billion in value over a 24-hour period. Bitcoin and ether each saw dramatic drops as investors sold out of risky assets. The slide comes after the Nasdaq wrapped up its worst three-week stretch in two years. - Japan stocks plunge over 12%, confirming bear market; South Korea’s Kospi sees trading halt
Heavyweight trading houses such as Mitsubishi, Mitsui and Co, Sumitomo and Marubeni all plunged more than 10%. The yen also strengthened to its highest level against the dollar since January and was last trading at 143.10. - Tech stocks see steepest three-week slump in two years, led by plunge in Amazon and Intel
The Nasdaq Composite fell 3.4% this week, bringing its three-week drop to 8.8%, marking the worst stretch of that length since 2022. The sell-off underscores investor concerns around forecasts for the back half of the year. Amazon, Intel, Microsoft and Nvidia have seen some of the steepest declines. - Amazon shares tumble after third-quarter outlook disappoints
Amazon shares tumbled on Friday, a day after the company reported a revenue miss and disappointing guidance for the second quarter. The company is navigating slower sales in its core retail business, and said the chaotic news cycle was partly to blame for its weak forecast. Despite the mixed quarter, analysts were encouraged by continued strength in Amazon’s cloud unit. - Japan Cabinet Approval Rating Rises 4.1 Ppts to 31%: JNN Poll
(Bloomberg) — Public approval for Japanese Prime Minister Fumio Kishida’s cabinet rose 4.1 ppts to 31% in a JNN poll conducted over the weekend. Disapproval rating fell 5.1 ppts to 66.4%. 70% of respondents said Kishida should be replaced in the Liberal Democratic Party leadership election expected in September. - Prologis Wins Bidding War for Mexican Real Estate Company
(Bloomberg) — Prologis Property Mexico said that a majority of Terrafina shareholders have accepted its acquisition offer. Holders of 77% of the shares in Terrafina accepted the deal, Prologis said in a statement to the stock exchange late on Saturday. Prologis paid a mix of cash and stock; the cash portion totaled 11.8b pesos ($616m), 217 million shares were exchanged. The deal becomes effective Aug. 6. - Michelle Obama for VP? Old Kamala Harris Photo Sparks Speculation
Kamala Harris is yet to announce her VP pick for the 2024 race. The Vice President, who announced her presidential run after President Joe Biden bowed out, has enough delegates to win the Democratic nomination, DNC chair announced last week. She is expected to name her running mate in the coming days.
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