*Pelosi said her trip demonstrated American solidarity with the Chinese-claimed self-ruled island, but China condemned that first such visit in 25 years as a threat to peace and stability*
Both indexes swung between gains and losses throughout the session as markets remained on edge with geopolitical tensions simmering and commentary from Fed officials making it apparent that a policy pivot was less likely.
*Treasury yields rose across the curve, with 10-year rates climbing as much as 20 basis points to 2.77%. The yen, which was on track for its fifth daily gain, fell as the dollar snapped four days of losses amid a sudden turnaround in risk sentiment.*
Stocks ended a seesaw session slightly lower on Monday, with the Dow falling less than 50 points, or 0.1%, while the S&P 500 lost 0.3% and the Nasdaq Composite ticked down 0.2%.
*Volume on U.S. exchanges was relatively heavy, with 11.2 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.*
*What drove stocks*
*U.S. stocks tumbled into the closing bell on Tuesday after Pelosi’s plane landed without incident in Taipei Tuesday night local time, or late morning in New York, in defiance of China.*
Tom Essaye, founder of Sevens Report Research, said that Tuesday’s session “wasn’t a bad performance overall, but ‘not bad’ isn’t going to be good enough to push the S&P 500 to 4,200. We need actual good news and there wasn’t any on Tuesday. Not starting a war between the U.S. and China wasn’t enough,” Essaye told MarketWatch by phone.
*Pelosi became the highest ranking elected U.S. official to visit the island in 25 years. Her trip comes as part of a visit abroad that has taken the speaker to Singapore, Malaysia, South Korea and Japan for talks on a variety of topics, including trade, COVID-19, climate change and security. It’s worth noting that a bevy of Congressional Republicans visited Taiwan last summer.*
*After denouncing the trip, Beijing announced plans to carry out military drills and missile tests in an area encircling Taiwan. Meanwhile, Taiwan’s government claimed that nearly two dozen Chinese warplanes entered its airspace on Tuesday, and also claimed that a cyberattack had been perpetrated against the website belonging to the Office of the President.*
*Pelosi’s trip has created a fresh pressure point for investors already dealing with the prospects of a US recession, worldwide rate hikes and inflation that risks becoming entrenched as Russia’s war in Ukraine exacerbates food shortages.*
*The Taiwan story fits into the broader risk-off theme. It raises concerns about global growth issues, especially if geopolitical tensions and knock-effects exacerbate inflationary concerns. In turn, that forces central banks to keep fighting inflation in spite of the clear deceleration of global growth.*
The tensions sparked initial demand for safe-haven assets, with gold prices rallying Tuesday. The 10-year Treasury note fell in early trade, but bounced back to rise around 13.5 basis points to 2.74%, its highest level in a week. Yields and debt prices move in opposite directions.
But the main action in Treasuries was seen at the short end of the curve on Tuesday, where the two-year yield climbed 16.8 basis points to 3.077%, according to Dow Jones Market Data, while the three-month Treasury bill yield increased by 15 basis points to 2.46%.
*Stocks started August on the back foot after posting their best month since 2020 in July. Investors have been keeping an eye out for hawkish comments from Fed officials about the need for higher rates to restrain elevated inflation.*
*Fed speakers were also in focus Tuesday. San Francisco Fed President Mary Daly said the Fed is “nowhere near” finished with its fight against inflation, while Chicago Fed President Charles Evans said he hoped the Fed could raise rates at a slower pace later in the year, but that it would ultimately depend on the data. Neither Daly nor Evans has a vote on the Fed’s rate-setting committee this year.*
Both indexes swung between gains and losses throughout the session as markets remained on edge with geopolitical tensions simmering and commentary from Fed officials making it apparent that a policy pivot was less likely.
*Treasury yields rose across the curve, with 10-year rates climbing as much as 20 basis points to 2.77%. The yen, which was on track for its fifth daily gain, fell as the dollar snapped four days of losses amid a sudden turnaround in risk sentiment.*
Stocks ended a seesaw session slightly lower on Monday, with the Dow falling less than 50 points, or 0.1%, while the S&P 500 lost 0.3% and the Nasdaq Composite ticked down 0.2%.
*Volume on U.S. exchanges was relatively heavy, with 11.2 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.*
*What drove stocks*
*U.S. stocks tumbled into the closing bell on Tuesday after Pelosi’s plane landed without incident in Taipei Tuesday night local time, or late morning in New York, in defiance of China.*
Tom Essaye, founder of Sevens Report Research, said that Tuesday’s session “wasn’t a bad performance overall, but ‘not bad’ isn’t going to be good enough to push the S&P 500 to 4,200. We need actual good news and there wasn’t any on Tuesday. Not starting a war between the U.S. and China wasn’t enough,” Essaye told MarketWatch by phone.
*Pelosi became the highest ranking elected U.S. official to visit the island in 25 years. Her trip comes as part of a visit abroad that has taken the speaker to Singapore, Malaysia, South Korea and Japan for talks on a variety of topics, including trade, COVID-19, climate change and security. It’s worth noting that a bevy of Congressional Republicans visited Taiwan last summer.*
*After denouncing the trip, Beijing announced plans to carry out military drills and missile tests in an area encircling Taiwan. Meanwhile, Taiwan’s government claimed that nearly two dozen Chinese warplanes entered its airspace on Tuesday, and also claimed that a cyberattack had been perpetrated against the website belonging to the Office of the President.*
*Pelosi’s trip has created a fresh pressure point for investors already dealing with the prospects of a US recession, worldwide rate hikes and inflation that risks becoming entrenched as Russia’s war in Ukraine exacerbates food shortages.*
*The Taiwan story fits into the broader risk-off theme. It raises concerns about global growth issues, especially if geopolitical tensions and knock-effects exacerbate inflationary concerns. In turn, that forces central banks to keep fighting inflation in spite of the clear deceleration of global growth.*
The tensions sparked initial demand for safe-haven assets, with gold prices rallying Tuesday. The 10-year Treasury note fell in early trade, but bounced back to rise around 13.5 basis points to 2.74%, its highest level in a week. Yields and debt prices move in opposite directions.
But the main action in Treasuries was seen at the short end of the curve on Tuesday, where the two-year yield climbed 16.8 basis points to 3.077%, according to Dow Jones Market Data, while the three-month Treasury bill yield increased by 15 basis points to 2.46%.
*Stocks started August on the back foot after posting their best month since 2020 in July. Investors have been keeping an eye out for hawkish comments from Fed officials about the need for higher rates to restrain elevated inflation.*
*Fed speakers were also in focus Tuesday. San Francisco Fed President Mary Daly said the Fed is “nowhere near” finished with its fight against inflation, while Chicago Fed President Charles Evans said he hoped the Fed could raise rates at a slower pace later in the year, but that it would ultimately depend on the data. Neither Daly nor Evans has a vote on the Fed’s rate-setting committee this year.*
The Fed is not likely to announce they’re letting up on the brakes at this point. They are still seeing inflation numbers that have not started to recede.
*Cleavland Fed President Loretta Mester echoed this, saying that she wants to see “very compelling evidence” that month-to-month price increases are moderating before declaring that central bank has been successful in curbing inflation.*
Neil Dutta, head of economics at Renaissance Macro Research, said in an emailed note that the hawkish tone from the two Fed speakers was consistent with remarks made by Minneapolis Fed President Neel Kashkari and other Fed officials in recent days. While that helps explain the jump in short-term interest rates, which are the most sensitive to expectations surrounding the path of Fed rate hikes, it might not be great for stocks.
“This does not strike us as the Fed being close to pivoting,” he wrote. “The squawking is having the intended result with two year yields up 18bps now. Perhaps the Fed rhetoric caps the upside to equity multiples.”
*An update on the state of the U.S. labor market showed job openings fell to 10.7 million in June from 11.3 million a month earlier. Openings have dropped three months in a row after peaking in the early spring at a record 11.9 million. The number of people who quit jobs in June, meanwhile, only fell slightly to 4.23 million, the Labor Department said Tuesday.*
*Fresh economic data kept investors on their toes. Recent data showed that US job openings in June fell to a nine-month low, a sign of moderating demand for labor as economic pressures mount. The job market has been a bright spot in an economy otherwise losing momentum and possibly heading toward a recession.*
*The highlight of this week’s economic data calendar arrives on Friday, when investors will receive an update on the state of the labor market for July. Essaye said that investors appear to be holding out hope that the upcoming economic data will confirm that both the labor market’s tightness, as well as high inflation, will start to moderate.*
*Goldman Sachs Group Inc. strategists led by Cecilia Mariotti said it was too soon for stock markets to fade the risks of a recession on expectations of a pivot in the Fed’s hawkish policy. JPMorgan Chase & Co. strategists, on the other hand, said the outlook for US stocks is improving for the second half of the year on attractive valuations.*
*Single-stock movers*
• Shares of *Uber Technologies Inc.* finished 18.9% higher Tuesday after the ride-hailing and delivery services company swung to a second-quarter loss but reported a more than doubling in revenue that beat expectations by a wide margin and became cash-flow positive for the first time.
• *Caterpillar Inc.* shares fell 5.8% after the construction and mining equipment maker reported second-quarter profit that beat expectations but sales that came up short, as higher pricing and sales volume were partially offset by unfavorable currency impacts also warning of a bigger drop in demand for its excavators in property crisis-hit China, piling more pain on the industrial bellwether grappling with supply-chain disruptions.
• The most traded stock in the S&P 500 was *Tesla Inc* , with $28.7 billion worth of shares exchanged during the session. Its shares rose 1.1% after Citigroup hiked its price target on the electric car maker. Still, the investment firm maintained a sell rating on the electric vehicle maker.
• *TD Bank Group* said Tuesday it would buy investment bank *Cowen Inc.* for $1.3 billion, or $39 a share, a premium of about 10% over its closing price of $35.49 a share on Monday and a purchase price multiple of 8.1 times Cowen’s estimated 2023 earnings. Cowen shares rose 8.4%, while TD shares declined 0.3%.
• *Pinterest Inc.* late Monday missed expectations for earnings and guided for revenue lower than analysts expected in the current quarter, but shares were rallying as users stuck around and activist investor Elliott Management Corp. confirmed a previously reported investment in the company. Pinterest shares rose 11.6%.
*Cleavland Fed President Loretta Mester echoed this, saying that she wants to see “very compelling evidence” that month-to-month price increases are moderating before declaring that central bank has been successful in curbing inflation.*
Neil Dutta, head of economics at Renaissance Macro Research, said in an emailed note that the hawkish tone from the two Fed speakers was consistent with remarks made by Minneapolis Fed President Neel Kashkari and other Fed officials in recent days. While that helps explain the jump in short-term interest rates, which are the most sensitive to expectations surrounding the path of Fed rate hikes, it might not be great for stocks.
“This does not strike us as the Fed being close to pivoting,” he wrote. “The squawking is having the intended result with two year yields up 18bps now. Perhaps the Fed rhetoric caps the upside to equity multiples.”
*An update on the state of the U.S. labor market showed job openings fell to 10.7 million in June from 11.3 million a month earlier. Openings have dropped three months in a row after peaking in the early spring at a record 11.9 million. The number of people who quit jobs in June, meanwhile, only fell slightly to 4.23 million, the Labor Department said Tuesday.*
*Fresh economic data kept investors on their toes. Recent data showed that US job openings in June fell to a nine-month low, a sign of moderating demand for labor as economic pressures mount. The job market has been a bright spot in an economy otherwise losing momentum and possibly heading toward a recession.*
*The highlight of this week’s economic data calendar arrives on Friday, when investors will receive an update on the state of the labor market for July. Essaye said that investors appear to be holding out hope that the upcoming economic data will confirm that both the labor market’s tightness, as well as high inflation, will start to moderate.*
*Goldman Sachs Group Inc. strategists led by Cecilia Mariotti said it was too soon for stock markets to fade the risks of a recession on expectations of a pivot in the Fed’s hawkish policy. JPMorgan Chase & Co. strategists, on the other hand, said the outlook for US stocks is improving for the second half of the year on attractive valuations.*
*Single-stock movers*
• Shares of *Uber Technologies Inc.* finished 18.9% higher Tuesday after the ride-hailing and delivery services company swung to a second-quarter loss but reported a more than doubling in revenue that beat expectations by a wide margin and became cash-flow positive for the first time.
• *Caterpillar Inc.* shares fell 5.8% after the construction and mining equipment maker reported second-quarter profit that beat expectations but sales that came up short, as higher pricing and sales volume were partially offset by unfavorable currency impacts also warning of a bigger drop in demand for its excavators in property crisis-hit China, piling more pain on the industrial bellwether grappling with supply-chain disruptions.
• The most traded stock in the S&P 500 was *Tesla Inc* , with $28.7 billion worth of shares exchanged during the session. Its shares rose 1.1% after Citigroup hiked its price target on the electric car maker. Still, the investment firm maintained a sell rating on the electric vehicle maker.
• *TD Bank Group* said Tuesday it would buy investment bank *Cowen Inc.* for $1.3 billion, or $39 a share, a premium of about 10% over its closing price of $35.49 a share on Monday and a purchase price multiple of 8.1 times Cowen’s estimated 2023 earnings. Cowen shares rose 8.4%, while TD shares declined 0.3%.
• *Pinterest Inc.* late Monday missed expectations for earnings and guided for revenue lower than analysts expected in the current quarter, but shares were rallying as users stuck around and activist investor Elliott Management Corp. confirmed a previously reported investment in the company. Pinterest shares rose 11.6%.
• Shares of *DuPont de Nemours Inc.* fell 2.7% after the specialty materials and chemicals company reported second-quarter profit and sales that beat expectations but provided a downbeat third-quarter outlook, citing foreign currency headwinds and unplanned downtime at a Virginia site.
• *JetBlue Airways Corp.* fell 6.4% after the airline reported a larger loss than analysts had been expecting.
• *Sabre Corp.* shares rose 9% after the online travel company posted a smaller-than-expected second-quarter loss and said it believes the travel recovery is on a long-term uptrend.
• Hotel operator *Marriott International Inc.* beat estimates for the second quarter and offered upbeat guidance. Still, shares slid 0.8%.
• Shares of U.S. defense companies *Raytheon Technologies Corp, Lockheed Martin Corp , Northrop Grumman Corp and L3Harris Technologies Inc* rallied for much of the session, ending with gains between 0.5% and 2.3%. The United States is Taiwan's main supporter and arms supplier.
China’s benchmark Shanghai Composite ended 2.3% lower, while the Hang Seng Index shed 2.4% in Hong Kong and Japan’s Nikkei 225 declined 1.4%.
European markets on Tuesday pulled back slightly, tracking risk-off sentiment globally as investors assess whether last month’s rally has further to run.
U.K. oil giant BP boosted its dividend as it posted bumper second-quarter profits, benefitting from a surge in commodity prices. Second-quarter underlying replacement cost profit, used as a proxy for net profit, came in at $8.5 billion. BP shares climbed nearly 3% on the news.
*What to watch this week:*
• St. Louis Fed President James Bullard due to speak, Tuesday
• OPEC+ meeting on output, Wednesday
• US factory orders, durable goods, ISM services, Wednesday
• BOE rate decision, Thursday
• US initial jobless claims, trade, Thursday
• Cleveland Fed President Loretta Mester due to speak, Thursday
• US employment report for July, Friday
*Currencies*
# The Bloomberg Dollar Spot Index rose 0.8%
# The euro fell 0.9% to $1.0170
# The British pound fell 0.7% to $1.2168
# The Japanese yen fell 1.1% to 133.09 per dollar
*Bonds*
# The yield on 10-year Treasuries advanced 19 basis points to 2.76%
# Germany’s 10-year yield advanced four basis points to 0.82%
# Britain’s 10-year yield advanced six basis points to 1.87%
*Commodities*
# West Texas Intermediate crude rose 0.4% to $94.27 a barrel
# Gold futures fell 0.5% to $1,778.70 an ounce
• *JetBlue Airways Corp.* fell 6.4% after the airline reported a larger loss than analysts had been expecting.
• *Sabre Corp.* shares rose 9% after the online travel company posted a smaller-than-expected second-quarter loss and said it believes the travel recovery is on a long-term uptrend.
• Hotel operator *Marriott International Inc.* beat estimates for the second quarter and offered upbeat guidance. Still, shares slid 0.8%.
• Shares of U.S. defense companies *Raytheon Technologies Corp, Lockheed Martin Corp , Northrop Grumman Corp and L3Harris Technologies Inc* rallied for much of the session, ending with gains between 0.5% and 2.3%. The United States is Taiwan's main supporter and arms supplier.
China’s benchmark Shanghai Composite ended 2.3% lower, while the Hang Seng Index shed 2.4% in Hong Kong and Japan’s Nikkei 225 declined 1.4%.
European markets on Tuesday pulled back slightly, tracking risk-off sentiment globally as investors assess whether last month’s rally has further to run.
U.K. oil giant BP boosted its dividend as it posted bumper second-quarter profits, benefitting from a surge in commodity prices. Second-quarter underlying replacement cost profit, used as a proxy for net profit, came in at $8.5 billion. BP shares climbed nearly 3% on the news.
*What to watch this week:*
• St. Louis Fed President James Bullard due to speak, Tuesday
• OPEC+ meeting on output, Wednesday
• US factory orders, durable goods, ISM services, Wednesday
• BOE rate decision, Thursday
• US initial jobless claims, trade, Thursday
• Cleveland Fed President Loretta Mester due to speak, Thursday
• US employment report for July, Friday
*Currencies*
# The Bloomberg Dollar Spot Index rose 0.8%
# The euro fell 0.9% to $1.0170
# The British pound fell 0.7% to $1.2168
# The Japanese yen fell 1.1% to 133.09 per dollar
*Bonds*
# The yield on 10-year Treasuries advanced 19 basis points to 2.76%
# Germany’s 10-year yield advanced four basis points to 0.82%
# Britain’s 10-year yield advanced six basis points to 1.87%
*Commodities*
# West Texas Intermediate crude rose 0.4% to $94.27 a barrel
# Gold futures fell 0.5% to $1,778.70 an ounce
Stock Lending offer at Nse
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SGX Nifty +82 pts (17506) from last trade 17424 ,
Dow +416.36 pts ,Nsdq +319.40 pts, S&P
+63.98 pts, Bovespa +412 pts , Ftse +36 pts , Dax +138 pts , Cac +62 pts , Crude @ $91.17 brl (+0.51), Brent @ $97.35 brl (+0.57) , Gold @ 1780.00 (+3.60), Silver @ $19.975 (+0.08), Euro @ $1.0157, JPY @ $133.82, INR @ 79.115
Today's Corporate Action
4th Aug Ex Date
ADFFOODS
Final Dividend - Rs. - 4.0000
AKCAPIT
Final Dividend - Rs. - 3.0000
ALFREDHE
Dividend - Rs. - 3.0000
AMJLAND
Dividend - Rs. - 0.2000
ANDHRAPAP
Final Dividend - Rs. - 7.5000
BATAINDIA
Dividend - Rs. - 4.0000
BATAINDIA
Special Dividend - Rs. - 50.5000
BAYERCROP
Final Dividend - Rs. - 25.0000
BHAGCHEM
Final Dividend - Rs. - 2.0000
CHEVIOT
Final Dividend - Rs. - 60.0000
CRISIL
Interim Dividend
DELTACORP
Final Dividend - Rs. - 1.2500
ELGIEQUIP
Final Dividend - Rs. - 1.1500
FERMENTA
Final Dividend - Rs. - 1.2500
GUJHOTE
Final Dividend - Rs. - 2.0000
KOPRAN
Final Dividend - Rs. - 3.0000
MATRIMONY
Final Dividend - Rs. - 5.0000
PDMJEPAPER
Dividend - Rs. - 0.3000
PDMJEPAPER
Special Dividend - Rs. - 0.2000
RESONANCE
Dividend - Rs. - 1.00000
Stock under F&O ban on NSE
4-Aug-22
1ESCORTS
Dow +416.36 pts ,Nsdq +319.40 pts, S&P
+63.98 pts, Bovespa +412 pts , Ftse +36 pts , Dax +138 pts , Cac +62 pts , Crude @ $91.17 brl (+0.51), Brent @ $97.35 brl (+0.57) , Gold @ 1780.00 (+3.60), Silver @ $19.975 (+0.08), Euro @ $1.0157, JPY @ $133.82, INR @ 79.115
Today's Corporate Action
4th Aug Ex Date
ADFFOODS
Final Dividend - Rs. - 4.0000
AKCAPIT
Final Dividend - Rs. - 3.0000
ALFREDHE
Dividend - Rs. - 3.0000
AMJLAND
Dividend - Rs. - 0.2000
ANDHRAPAP
Final Dividend - Rs. - 7.5000
BATAINDIA
Dividend - Rs. - 4.0000
BATAINDIA
Special Dividend - Rs. - 50.5000
BAYERCROP
Final Dividend - Rs. - 25.0000
BHAGCHEM
Final Dividend - Rs. - 2.0000
CHEVIOT
Final Dividend - Rs. - 60.0000
CRISIL
Interim Dividend
DELTACORP
Final Dividend - Rs. - 1.2500
ELGIEQUIP
Final Dividend - Rs. - 1.1500
FERMENTA
Final Dividend - Rs. - 1.2500
GUJHOTE
Final Dividend - Rs. - 2.0000
KOPRAN
Final Dividend - Rs. - 3.0000
MATRIMONY
Final Dividend - Rs. - 5.0000
PDMJEPAPER
Dividend - Rs. - 0.3000
PDMJEPAPER
Special Dividend - Rs. - 0.2000
RESONANCE
Dividend - Rs. - 1.00000
Stock under F&O ban on NSE
4-Aug-22
1ESCORTS
*🔹INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 04-08-2022 :*
*FIIS F & O : RS. CRS. :*
*TOTAL NET BUY : +1164* 😄
*INDEX FUT. : -829*
*INDEX OPT. : +1129*
*STOCK FUT. : +701*
*STOCK OPT. : +163*
*🔹SEC. IN F&O BAN FOR, 05 AUG , 2022 :*
*1. ESCORTS*
*ADDITION : NIL*
*DELETION : NIL*
*🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 04-AUG-22 : (Rs. CRS )*
*FIIS : BUY +1,475 (8,705-7,230)* 😄
*DIIS : SELL -47 (5,255-5,302)* 😔
*BSE SENSEX : -52 (58,299)🔽*
*NSE NIFTY : -06 (17,382)🔽*
*BSE MIDCAP. : +70 (24,458)*🔼
*BSE SMLCAP. : +70 (27,541)*🔼
*B. CRUDE : $ 95.35* 🔽 😄😀
*GOLD: $1785=INR 51,970(10gr)* 🔼 😊
*SILVER :* *RS. 58,000 (kg) (5pm) 🔼 🙂*
*FOREX : RS. : $ 79.4650* 🔽 😩
*6.54% GOI '32 : 7.1566% (95.8125)* 🔽 😀
*5.74% GOI '26 : 6.8028% (96.10)* 🔽 😊
*7.54% GOI '36 : 7.3724% (101.42)* 🔽 😄
*FIIS F & O : RS. CRS. :*
*TOTAL NET BUY : +1164* 😄
*INDEX FUT. : -829*
*INDEX OPT. : +1129*
*STOCK FUT. : +701*
*STOCK OPT. : +163*
*🔹SEC. IN F&O BAN FOR, 05 AUG , 2022 :*
*1. ESCORTS*
*ADDITION : NIL*
*DELETION : NIL*
*🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 04-AUG-22 : (Rs. CRS )*
*FIIS : BUY +1,475 (8,705-7,230)* 😄
*DIIS : SELL -47 (5,255-5,302)* 😔
*BSE SENSEX : -52 (58,299)🔽*
*NSE NIFTY : -06 (17,382)🔽*
*BSE MIDCAP. : +70 (24,458)*🔼
*BSE SMLCAP. : +70 (27,541)*🔼
*B. CRUDE : $ 95.35* 🔽 😄😀
*GOLD: $1785=INR 51,970(10gr)* 🔼 😊
*SILVER :* *RS. 58,000 (kg) (5pm) 🔼 🙂*
*FOREX : RS. : $ 79.4650* 🔽 😩
*6.54% GOI '32 : 7.1566% (95.8125)* 🔽 😀
*5.74% GOI '26 : 6.8028% (96.10)* 🔽 😊
*7.54% GOI '36 : 7.3724% (101.42)* 🔽 😄
*SGX Nifty +81 pts (17451) from last trade 17370 ,*
Nikkei +111 pts ,
Hangseng +109 pts ,
Now @6.53am .
Dow -85.68 pts ,Nsdq +52.42 pts, S&P
-3.23 pts, Bovespa +2117 pts , Ftse +2 pts , Dax +75 pts , Cac +41 pts , Crude @ $88.44 brl (-0.10), Brent @ $93.96 brl (-0.16) , Gold @ 1809.70 (+2.80), Silver @ $20.185 (+0.06), Euro @ $1.0233, JPY @ $132.95, INR @ 79.155
*Today's Corporate Action*
*5th Aug Ex Date*
CENTENKA
Dividend - Rs. - 10.0000
SANOFI
Special Dividend
*Stock under F&O ban on NSE*
*5-Aug-22*
1ESCORTS
Nikkei +111 pts ,
Hangseng +109 pts ,
Now @6.53am .
Dow -85.68 pts ,Nsdq +52.42 pts, S&P
-3.23 pts, Bovespa +2117 pts , Ftse +2 pts , Dax +75 pts , Cac +41 pts , Crude @ $88.44 brl (-0.10), Brent @ $93.96 brl (-0.16) , Gold @ 1809.70 (+2.80), Silver @ $20.185 (+0.06), Euro @ $1.0233, JPY @ $132.95, INR @ 79.155
*Today's Corporate Action*
*5th Aug Ex Date*
CENTENKA
Dividend - Rs. - 10.0000
SANOFI
Special Dividend
*Stock under F&O ban on NSE*
*5-Aug-22*
1ESCORTS
*Good Morning*
• India’s rate-setting panel headed by RBI Governor Shaktikanta Das will probably raise the benchmark interest rate by 50 basis points to 5.40%
o India Rates to Return to Pre- Pandemic Levels: Decision Guide
• India Seeks Wider Authority Over Global M&A With Antitrust Law
o Bill may be placed before parliament as early as Friday
• India’s REC Gives $2.8 Billion Loan to Help Repay Power Dues
• India Scampers for LNG as Ex-Gazprom Unit Falters on Supplies
• AD Ports, Adani Ports Sign MoU on Tanzania Logistics Investments
• Flour Millers in India Seek Abolition of Wheat Import Levy
• Vodafone Idea Sees Scope for Further Tariff Hike Before 2022-End
• India SEBI Orders Future Retail Forensic Audit, Group Cos Say
• Emerging Economies 2Q GDP Forecast Declines
• Foreign Investors Buy Net INR39.7B of Indian Equities Wednesday
• Global Funds Buy Net 14.7B Rupees of India Stocks Aug. 4 : NSE
• Saudis Signal Oil Market Will Stay Tight With Price Hike
• Oil Falls Below $90 for First Time Since War as Demand Slows
• China Likely Fired Missiles Over Taiwan in Drills, Japan Says
• BOE Governor Bailey Says Pound’s Drop Is ‘Not a Crisis’ for Now
• Maharashtra cabinet expansion will take place before August 15: PTI
• India successfully test fires laser-guided anti-tank guided missiles: PTI
• Go First’s flight to Chandigarh returns to Ahmedabad after suffering bird hit: PTI
• Odisha approves investment proposals worth 22.5b rupees: PTI
• Adani Enterprises (ADE): 1Q net income +73% Y/y to 4.69B rupees; Revenue 408.4b vs. 125.8b y/y
o Adani Plans to Build Hotels, Shops on Haifa Seafront: Globes
• Adani Ports (ADSEZ): Sign accord with AD Ports group for Tanzania investments
• Alembic Pharma (ALPM): 1Q net loss 658.8m rupees vs. profit 1.65b y/y, est. profit 1.79b; revenue -5.3% to 12.6b
• Axis Bank (AXSB): Says Agreement for Planned Sale of UK Unit Terminated
• Balkrishna Industries (BIL): 1Q net income 3.2B rupees Vs. 3.31B Y/y; revenue +46% to 26.5b
• BEML (BEML): Executed INR6.63b of orders in 1Q; orders book at INR91b
• Berger Paints (BRGR): 1Q Net Income +81% Y/y to 2.53b rupees, est. 2.25b; revenue +54% to 27.6br
• Bharat Electronics (BHE): To give two free shares for each held after approvals
• Blue Star (BLSTR): 1Q Net Income 742.5m rupees vs. 126.9m Y/y, est. 805.7m; revenue +88% to 19.7b
• Britannia Industries (BRIT): 1Q Net Income -14% Y/y to 3.37b rupees, misses est. 3.95b; revenue +9% to 37b
• Central Depository (CDSL): Says its active Demat accounts has crossed the 70m
• Container Corp (CCRI): 1Q net income +14% Y/y to 2.91b rupees, revenue +9.4% to 19.8b
• Dabur India (DABUR): 1Q Net Income +0.7% Y/y to 4.4b rupees, est. 4.31b; revenue +8% to 28.2b
• Dalmia Bharat (DALBHARA): 1Q Net Income -27% Y/y to 1.96b rupees, -27% beats est. 1.44b; revenue +27% to 33b
• Edelweiss Financial (EDEL): 1Q Net Income 263.8M Rupees Vs. 180.9M Rupees Y/y
• Gujarat State Petronet (GUJS): 1Q net income 2.35B rupees Vs. 2.32B Y/y
• Hindustan Construction (HCC): Plans INR5b QIP of shares; approves INR8.41b bonds issue to lenders
• JB Chemicals & Pharma (JBCP): 1Q Net Income -12% Y/y to 1.05b rupees, beats est. 920.3m; revenue +29% to 7.85b
• LIC Housing (LICHF): 1Q net income 9.25B rupees Vs. 1.53B Y/y; Revenue +9% to 52.9b
• Manappuram Finance (MGFL): 1Q net income -35% Y/y to 2.82b rupees, misses est. 4.29b; revenue -4% to 15b
• REC Ltd. (RECL): 1Q net income 24.5B rupees Vs. 22.5B Y/y; revenue -0.5% to 94.6b
• Reliance Industries (RIL): Unit in India franchise pact with Balenciaga
• India’s rate-setting panel headed by RBI Governor Shaktikanta Das will probably raise the benchmark interest rate by 50 basis points to 5.40%
o India Rates to Return to Pre- Pandemic Levels: Decision Guide
• India Seeks Wider Authority Over Global M&A With Antitrust Law
o Bill may be placed before parliament as early as Friday
• India’s REC Gives $2.8 Billion Loan to Help Repay Power Dues
• India Scampers for LNG as Ex-Gazprom Unit Falters on Supplies
• AD Ports, Adani Ports Sign MoU on Tanzania Logistics Investments
• Flour Millers in India Seek Abolition of Wheat Import Levy
• Vodafone Idea Sees Scope for Further Tariff Hike Before 2022-End
• India SEBI Orders Future Retail Forensic Audit, Group Cos Say
• Emerging Economies 2Q GDP Forecast Declines
• Foreign Investors Buy Net INR39.7B of Indian Equities Wednesday
• Global Funds Buy Net 14.7B Rupees of India Stocks Aug. 4 : NSE
• Saudis Signal Oil Market Will Stay Tight With Price Hike
• Oil Falls Below $90 for First Time Since War as Demand Slows
• China Likely Fired Missiles Over Taiwan in Drills, Japan Says
• BOE Governor Bailey Says Pound’s Drop Is ‘Not a Crisis’ for Now
• Maharashtra cabinet expansion will take place before August 15: PTI
• India successfully test fires laser-guided anti-tank guided missiles: PTI
• Go First’s flight to Chandigarh returns to Ahmedabad after suffering bird hit: PTI
• Odisha approves investment proposals worth 22.5b rupees: PTI
• Adani Enterprises (ADE): 1Q net income +73% Y/y to 4.69B rupees; Revenue 408.4b vs. 125.8b y/y
o Adani Plans to Build Hotels, Shops on Haifa Seafront: Globes
• Adani Ports (ADSEZ): Sign accord with AD Ports group for Tanzania investments
• Alembic Pharma (ALPM): 1Q net loss 658.8m rupees vs. profit 1.65b y/y, est. profit 1.79b; revenue -5.3% to 12.6b
• Axis Bank (AXSB): Says Agreement for Planned Sale of UK Unit Terminated
• Balkrishna Industries (BIL): 1Q net income 3.2B rupees Vs. 3.31B Y/y; revenue +46% to 26.5b
• BEML (BEML): Executed INR6.63b of orders in 1Q; orders book at INR91b
• Berger Paints (BRGR): 1Q Net Income +81% Y/y to 2.53b rupees, est. 2.25b; revenue +54% to 27.6br
• Bharat Electronics (BHE): To give two free shares for each held after approvals
• Blue Star (BLSTR): 1Q Net Income 742.5m rupees vs. 126.9m Y/y, est. 805.7m; revenue +88% to 19.7b
• Britannia Industries (BRIT): 1Q Net Income -14% Y/y to 3.37b rupees, misses est. 3.95b; revenue +9% to 37b
• Central Depository (CDSL): Says its active Demat accounts has crossed the 70m
• Container Corp (CCRI): 1Q net income +14% Y/y to 2.91b rupees, revenue +9.4% to 19.8b
• Dabur India (DABUR): 1Q Net Income +0.7% Y/y to 4.4b rupees, est. 4.31b; revenue +8% to 28.2b
• Dalmia Bharat (DALBHARA): 1Q Net Income -27% Y/y to 1.96b rupees, -27% beats est. 1.44b; revenue +27% to 33b
• Edelweiss Financial (EDEL): 1Q Net Income 263.8M Rupees Vs. 180.9M Rupees Y/y
• Gujarat State Petronet (GUJS): 1Q net income 2.35B rupees Vs. 2.32B Y/y
• Hindustan Construction (HCC): Plans INR5b QIP of shares; approves INR8.41b bonds issue to lenders
• JB Chemicals & Pharma (JBCP): 1Q Net Income -12% Y/y to 1.05b rupees, beats est. 920.3m; revenue +29% to 7.85b
• LIC Housing (LICHF): 1Q net income 9.25B rupees Vs. 1.53B Y/y; Revenue +9% to 52.9b
• Manappuram Finance (MGFL): 1Q net income -35% Y/y to 2.82b rupees, misses est. 4.29b; revenue -4% to 15b
• REC Ltd. (RECL): 1Q net income 24.5B rupees Vs. 22.5B Y/y; revenue -0.5% to 94.6b
• Reliance Industries (RIL): Unit in India franchise pact with Balenciaga
*🔹INSTL. INVESTORS EQUITY DERIVAT. TRADES AS ON : 05-08-2022 :*
*FIIS F & O : RS. CRS. :*
*TOTAL NET SELL : -616* 😩
*INDEX FUT. : +902*
*INDEX OPT. : -2301*
*STOCK FUT. : +850*
*STOCK OPT. : -67*
*🔹SEC. IN F&O BAN FOR, 08 AUG, 2022 :*
*1. ESCORTS 2. DELTACORP 3. BALRAMCHIN*
*ADDITION : DELTACORP, BALRAMCHIN*
*DELETION : NIL*
*🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 05-AUG-22 : (Rs. CRS )*
*FIIS : BUY +1,606 (8,349-6,743)* 😀
*DIIS : SELL -496 (7,260-7,756)* 😔
*BSE SENSEX : +89 (58,388)🔼*
*NSE NIFTY : +15 (17,397)🔼*
*BSE MIDCAP. : +21 (24,479)*🔼
*BSE SMLCAP. : +63 (27,604)*🔼
*B. CRUDE : $ 94.77* 🔽 🙂
*GOLD: $1776=INR 51,580(10gr)* 🔽 😔
*SILVER :* *RS. 58,450 (kg) (5pm) 🔼 🙂*
*FOREX : RS. : $ 79.23* 🔼 😊
*6.54% GOI '32 : 7.3005% (94.87)* 🔼 😭
*5.74% GOI '26 : 6.9199% (95.69)* 🔼 😩
*7.54% GOI '36 : 7.4972% (100.3475)* 🔼 😭
*FIIS F & O : RS. CRS. :*
*TOTAL NET SELL : -616* 😩
*INDEX FUT. : +902*
*INDEX OPT. : -2301*
*STOCK FUT. : +850*
*STOCK OPT. : -67*
*🔹SEC. IN F&O BAN FOR, 08 AUG, 2022 :*
*1. ESCORTS 2. DELTACORP 3. BALRAMCHIN*
*ADDITION : DELTACORP, BALRAMCHIN*
*DELETION : NIL*
*🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 05-AUG-22 : (Rs. CRS )*
*FIIS : BUY +1,606 (8,349-6,743)* 😀
*DIIS : SELL -496 (7,260-7,756)* 😔
*BSE SENSEX : +89 (58,388)🔼*
*NSE NIFTY : +15 (17,397)🔼*
*BSE MIDCAP. : +21 (24,479)*🔼
*BSE SMLCAP. : +63 (27,604)*🔼
*B. CRUDE : $ 94.77* 🔽 🙂
*GOLD: $1776=INR 51,580(10gr)* 🔽 😔
*SILVER :* *RS. 58,450 (kg) (5pm) 🔼 🙂*
*FOREX : RS. : $ 79.23* 🔼 😊
*6.54% GOI '32 : 7.3005% (94.87)* 🔼 😭
*5.74% GOI '26 : 6.9199% (95.69)* 🔼 😩
*7.54% GOI '36 : 7.4972% (100.3475)* 🔼 😭
Pranam,
Greetings from Allies Fin Serve
Invitation to Join,
The Financial Well-Being…
Save… Invest… Protect…
Take a SIP of Life
Online Presentation Schedule:
Date: Sat 06 August 2022
11:00 a.m. To 12:00 noon
So join us and give yourselves the TFWB Edge…
Open for all Pre Book Your Seat
https://wa.me/919869958999
for more updates join whatsapp group
https://chat.whatsapp.com/GzgmMBBIq5NCPFHgbtFz2Z
Greetings from Allies Fin Serve
Invitation to Join,
The Financial Well-Being…
Save… Invest… Protect…
Take a SIP of Life
Online Presentation Schedule:
Date: Sat 06 August 2022
11:00 a.m. To 12:00 noon
So join us and give yourselves the TFWB Edge…
Open for all Pre Book Your Seat
https://wa.me/919869958999
for more updates join whatsapp group
https://chat.whatsapp.com/GzgmMBBIq5NCPFHgbtFz2Z
NaMaste!!!
US Markets in Detail...
Have A Great Weekend!!!
SGX: 17,340 (-84) (-0.48%)
Provisional Cash Rs. In Crs. (5th Aug)
FIIs +1,606 (8,349 – 6,743)
DIIs -496 (7,261 – 7,757)
Today’s Major Corporate Results:
AMARAJABAT, BIRLACORPN, BPCL, HINDPETRO, IOB, IPL, JAGRAN, MGL, ROSSARI, SBIN, TARSONS, TEGA, VINATIORGA, etc
Sensex: 58,388: +89: +0.15%
Nifty: 17,398: +16: +0.09%
BankNifty: 37,921: +165: +0.44%
NiftyIT: 29,974: +191: +0.64%
MIDCAP: 24,479: +21: +0.09%
Dow: 32,803: +77: +0.23%
S&P: 4,145 (-7) (-0.16%)
Nas: 12,658 (-63) (-0.50%)
Brazil: 106,472: +580: +0.55%
Ftse: 7,440 (-8) (-0.11%)
Dax: 13,574 (-89) (-0.65%)
Cac: 6,472 (-41) (-0.63%)
MOEX: 2,054 (-62) (-2.94%)
WTI Oil: $89.01: +0.53%
Brnt: $94.92: +0.85%
Gold: $1,791 (-16) (-0.87%)
Silver: $19.84: +1.39%
Copper: $355: +7: +2.03%
Copper (LME): $7,728: +50: +0.65%
Alluminum (LME): $2,403: +25: +1.05%
Zinc (LM): $3,451: +174: +5.29%
Tin (LME): $24,545: +300: +1.24%
Eur-$: 1.0183
GBP-$: 1.2073
Jpy-$: 135.01
Re: 79.2413 (-0.29%)
USD- RUB: 61.0135 (-1.23%)
US10yr: 2.83%
GIND10YR: 7.300: +2%
$ Index: 106.5770: +0.84%
US Vix: 21.15 (-1.35%)
India Vix: 18.91 (-1.82%)
BalticDry: 1,603 (-128) (-7.39%)
*ADR/GDR*
Cogni (-0.03%)
Infy: +0.79%
Wit (-0.36%)
IciciBk: +2.02%
HdfcBk: +0.61%
DrRdy: +0.42%
TataMo (-1.18%)
TatSt (-0.37%)
Axis: +1.10%
SBI (-0.60%)
RIGD (-2.17%)
INDA (-0.56%) (IShares MSCI INDIA ETF)
INDY (-0.27%) (IShares MSCI INDIA 50 ETF)
EPI (-0.50%) (Wisdom Tree India Earning)
PIN (-0.61%) (Invesco India Etf)
*The S&P 500 ended lower on Friday, weighed down by Tesla and other technology-related stocks after a solid jobs report torpedoed recent optimism that the Federal Reserve might let up its aggressive campaign to reign in decades-high inflation. Nasdaq Composite, S&P 500 decline Friday, but book another week of gains. Data showed U.S. employers hired far more workers than expected in July, the 19th straight month of payrolls expansion, with the unemployment rate falling to a pre-pandemic low of 3.5%.*
Losses were offset by bank stocks, which rose on hopes that interest rate hikes will continue at a solid clip. Energy stocks also gained, but technology companies slumped.
U.S. stocks closed mostly lower Friday, though closed at days high after a much stronger-than-expected reading on July employment reinforced expectations for the Federal Reserve to keep aggressively raising interest rates in its bid to rein in inflation.
*The strong jobs report validated the Fed’s view of a resilient economy that can withstand additional interest-rate hikes. Traders have now recalibrated expectations for Fed policy, with a hike of three-quarters of a percentage point the more likely scenario at the September meeting as the central bank battles inflation.*
Surging inflation, the war in Ukraine, Europe's energy crisis and COVID-19 flare-ups in China have rattled investors this year.
A largely upbeat second-quarter earnings season has helped the S&P 500 bounce back by about 13% from its mid-June lows after a rough first-half performance.
*The gap between 2-year Treasury yields and 10-year Treasury yields snapped to the widest since the year 2000 in Friday trading.*
*Both yields rose after the strong July jobs report ignited worries the Federal Reserve would be more aggressive about hiking interest rates to combat inflation.*
*The two yields were about 40 basis points apart, with the 2-year higher than the 10-year. When the shorter duration yield is higher, it is viewed by Wall Street as a recession warning.*
*The last time it was this inverted in 2s/10s, you have to go back to 2000, and that was a much different overall rate environment. We got as inverted as negative 56 during that episode.*
Oil prices eked out a slight gain on Friday, but ended the week sharply lower as recession fears and concerns around a slowdown in demand weighs.
*The second-quarter earnings season is winding down with 87% S&P 500 companies having reported results. Among those firms, 75% reported a positive EPS surprise, according to FactSet.*
US Markets in Detail...
Have A Great Weekend!!!
SGX: 17,340 (-84) (-0.48%)
Provisional Cash Rs. In Crs. (5th Aug)
FIIs +1,606 (8,349 – 6,743)
DIIs -496 (7,261 – 7,757)
Today’s Major Corporate Results:
AMARAJABAT, BIRLACORPN, BPCL, HINDPETRO, IOB, IPL, JAGRAN, MGL, ROSSARI, SBIN, TARSONS, TEGA, VINATIORGA, etc
Sensex: 58,388: +89: +0.15%
Nifty: 17,398: +16: +0.09%
BankNifty: 37,921: +165: +0.44%
NiftyIT: 29,974: +191: +0.64%
MIDCAP: 24,479: +21: +0.09%
Dow: 32,803: +77: +0.23%
S&P: 4,145 (-7) (-0.16%)
Nas: 12,658 (-63) (-0.50%)
Brazil: 106,472: +580: +0.55%
Ftse: 7,440 (-8) (-0.11%)
Dax: 13,574 (-89) (-0.65%)
Cac: 6,472 (-41) (-0.63%)
MOEX: 2,054 (-62) (-2.94%)
WTI Oil: $89.01: +0.53%
Brnt: $94.92: +0.85%
Gold: $1,791 (-16) (-0.87%)
Silver: $19.84: +1.39%
Copper: $355: +7: +2.03%
Copper (LME): $7,728: +50: +0.65%
Alluminum (LME): $2,403: +25: +1.05%
Zinc (LM): $3,451: +174: +5.29%
Tin (LME): $24,545: +300: +1.24%
Eur-$: 1.0183
GBP-$: 1.2073
Jpy-$: 135.01
Re: 79.2413 (-0.29%)
USD- RUB: 61.0135 (-1.23%)
US10yr: 2.83%
GIND10YR: 7.300: +2%
$ Index: 106.5770: +0.84%
US Vix: 21.15 (-1.35%)
India Vix: 18.91 (-1.82%)
BalticDry: 1,603 (-128) (-7.39%)
*ADR/GDR*
Cogni (-0.03%)
Infy: +0.79%
Wit (-0.36%)
IciciBk: +2.02%
HdfcBk: +0.61%
DrRdy: +0.42%
TataMo (-1.18%)
TatSt (-0.37%)
Axis: +1.10%
SBI (-0.60%)
RIGD (-2.17%)
INDA (-0.56%) (IShares MSCI INDIA ETF)
INDY (-0.27%) (IShares MSCI INDIA 50 ETF)
EPI (-0.50%) (Wisdom Tree India Earning)
PIN (-0.61%) (Invesco India Etf)
*The S&P 500 ended lower on Friday, weighed down by Tesla and other technology-related stocks after a solid jobs report torpedoed recent optimism that the Federal Reserve might let up its aggressive campaign to reign in decades-high inflation. Nasdaq Composite, S&P 500 decline Friday, but book another week of gains. Data showed U.S. employers hired far more workers than expected in July, the 19th straight month of payrolls expansion, with the unemployment rate falling to a pre-pandemic low of 3.5%.*
Losses were offset by bank stocks, which rose on hopes that interest rate hikes will continue at a solid clip. Energy stocks also gained, but technology companies slumped.
U.S. stocks closed mostly lower Friday, though closed at days high after a much stronger-than-expected reading on July employment reinforced expectations for the Federal Reserve to keep aggressively raising interest rates in its bid to rein in inflation.
*The strong jobs report validated the Fed’s view of a resilient economy that can withstand additional interest-rate hikes. Traders have now recalibrated expectations for Fed policy, with a hike of three-quarters of a percentage point the more likely scenario at the September meeting as the central bank battles inflation.*
Surging inflation, the war in Ukraine, Europe's energy crisis and COVID-19 flare-ups in China have rattled investors this year.
A largely upbeat second-quarter earnings season has helped the S&P 500 bounce back by about 13% from its mid-June lows after a rough first-half performance.
*The gap between 2-year Treasury yields and 10-year Treasury yields snapped to the widest since the year 2000 in Friday trading.*
*Both yields rose after the strong July jobs report ignited worries the Federal Reserve would be more aggressive about hiking interest rates to combat inflation.*
*The two yields were about 40 basis points apart, with the 2-year higher than the 10-year. When the shorter duration yield is higher, it is viewed by Wall Street as a recession warning.*
*The last time it was this inverted in 2s/10s, you have to go back to 2000, and that was a much different overall rate environment. We got as inverted as negative 56 during that episode.*
Oil prices eked out a slight gain on Friday, but ended the week sharply lower as recession fears and concerns around a slowdown in demand weighs.
*The second-quarter earnings season is winding down with 87% S&P 500 companies having reported results. Among those firms, 75% reported a positive EPS surprise, according to FactSet.*
👍1
We’ve got most of the second-quarter earnings out of the way now. There’s not been any real disasters.
*So far, the earnings growth for the S&P 500 is 6.7%. If 6.7% is the actual growth rate for the quarter, it will mark the lowest earnings growth rate reported by the index since the fourth quarter of 2020, according to FactSet.*
*For the week, the Dow edged down 0.1%, while the S&P 500 rose 0.4% and the technology-heavy Nasdaq gained 2.2%, according to FactSet data. The Nasdaq and S&P 500 each rose for a third straight week, while the Dow snapped two straight weeks of gains, according to Dow Jones Market Data.*
*Volume on U.S. exchanges was relatively light, with 10.6 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.*
*What drove markets?*
Stocks mostly fell Friday after a surprisingly strong jobs report worried investors that the Federal Reserve may need to keep up its aggressive interest rate hikes to the cool economy and tame inflation.
*The U.S. economy added 528,000 jobs in July, the Labor Department reported Friday, far exceeding the 258,000 consensus estimate. The unemployment rate ticked down to 3.5%, below the 3.6% estimate., matching the lowest level since the late 1960s, while average hourly earnings climbed 15 cents, or 0.5%, to $32.27.*
Announcements of layoffs by a number of high profile companies had earlier raised concerns that a robust labor market may be softening.
Stocks opened lower following the report, even as it seemed to indicate the economy was not currently in a recession. Job growth was expected to slow as the Fed continues to hike interest rates to tame inflation, but this report shows a labor market still running hot. That means the central bank may act more aggressively at its next meeting.
The report added to recent data painting an upbeat picture of the world's largest economy after it contracted in the first half of the year. That deflated investors' expectations that the Fed might let up in its series of rate hikes aimed at cooling the economy.
*Friday’s jobs report is a crucial one as it’s one of two the central bank will see before it decides how much to raise rates at its September meeting. Indeed, traders are already betting on a tougher stance from the Fed. Policy makers will have another jobs report and two more consumer price index numbers to weigh before the central bank makes its next rate decision.*
*This is all about the Fed. A very strong jobs report like we had puts pressure on the Fed to tighten for longer. The market is scared the Fed is going to overshoot again. If they tighten too sharply and too long, that's going to cause a hard landing, a deep recession."*
Friday’s jobs data triggered a sharp rise in U.S. Treasury yields and a lower stock-market opening as investors priced in prospects of further jumbo-sized rate hikes by the Federal Reserve until they see strong and long-lasting evidence that inflation was trending toward the Fed's 2% goal.
*Some analysts argue that the strong jobs data reinforces the idea that the economy can withstand aggressive Fed monetary tightening without falling into recession. Sharp falls in commodity prices, including oil, have meanwhile helped support the idea that inflation may be near a peak.*
*It puts 75 basis points squarely on the table for the Fed in September, referring to market expectations for another large rate hike at the central bank’s next meeting. The jobs report “ups the ante for the Fed and puts them in a position where it should be an easy call for them to continue to tighten.”*
*A handful of Fed officials this week reiterated the central bank’s resolve to bring down high prices. Among them is Fed St Louis President James Bullard, who has said he favors a strategy of front-loading big interest-rate hikes. That stance has likely strengthened after Friday’s job report, ruling out the possibility of a dovish pivot that Fed Chair Jerome Powell hinted at last week.*
*So far, the earnings growth for the S&P 500 is 6.7%. If 6.7% is the actual growth rate for the quarter, it will mark the lowest earnings growth rate reported by the index since the fourth quarter of 2020, according to FactSet.*
*For the week, the Dow edged down 0.1%, while the S&P 500 rose 0.4% and the technology-heavy Nasdaq gained 2.2%, according to FactSet data. The Nasdaq and S&P 500 each rose for a third straight week, while the Dow snapped two straight weeks of gains, according to Dow Jones Market Data.*
*Volume on U.S. exchanges was relatively light, with 10.6 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.*
*What drove markets?*
Stocks mostly fell Friday after a surprisingly strong jobs report worried investors that the Federal Reserve may need to keep up its aggressive interest rate hikes to the cool economy and tame inflation.
*The U.S. economy added 528,000 jobs in July, the Labor Department reported Friday, far exceeding the 258,000 consensus estimate. The unemployment rate ticked down to 3.5%, below the 3.6% estimate., matching the lowest level since the late 1960s, while average hourly earnings climbed 15 cents, or 0.5%, to $32.27.*
Announcements of layoffs by a number of high profile companies had earlier raised concerns that a robust labor market may be softening.
Stocks opened lower following the report, even as it seemed to indicate the economy was not currently in a recession. Job growth was expected to slow as the Fed continues to hike interest rates to tame inflation, but this report shows a labor market still running hot. That means the central bank may act more aggressively at its next meeting.
The report added to recent data painting an upbeat picture of the world's largest economy after it contracted in the first half of the year. That deflated investors' expectations that the Fed might let up in its series of rate hikes aimed at cooling the economy.
*Friday’s jobs report is a crucial one as it’s one of two the central bank will see before it decides how much to raise rates at its September meeting. Indeed, traders are already betting on a tougher stance from the Fed. Policy makers will have another jobs report and two more consumer price index numbers to weigh before the central bank makes its next rate decision.*
*This is all about the Fed. A very strong jobs report like we had puts pressure on the Fed to tighten for longer. The market is scared the Fed is going to overshoot again. If they tighten too sharply and too long, that's going to cause a hard landing, a deep recession."*
Friday’s jobs data triggered a sharp rise in U.S. Treasury yields and a lower stock-market opening as investors priced in prospects of further jumbo-sized rate hikes by the Federal Reserve until they see strong and long-lasting evidence that inflation was trending toward the Fed's 2% goal.
*Some analysts argue that the strong jobs data reinforces the idea that the economy can withstand aggressive Fed monetary tightening without falling into recession. Sharp falls in commodity prices, including oil, have meanwhile helped support the idea that inflation may be near a peak.*
*It puts 75 basis points squarely on the table for the Fed in September, referring to market expectations for another large rate hike at the central bank’s next meeting. The jobs report “ups the ante for the Fed and puts them in a position where it should be an easy call for them to continue to tighten.”*
*A handful of Fed officials this week reiterated the central bank’s resolve to bring down high prices. Among them is Fed St Louis President James Bullard, who has said he favors a strategy of front-loading big interest-rate hikes. That stance has likely strengthened after Friday’s job report, ruling out the possibility of a dovish pivot that Fed Chair Jerome Powell hinted at last week.*
This jobs report is consistent with an inflationary boom. The Fed has a lot more work to do and in an odd way, that the Fed needs to get more aggressive in pushing up rates, makes the hard-landing scenario more likely.
*Fed-funds futures traders priced in a 66.5% chance of a 75 basis point rate hike in September, up from 34% on Thursday. Traders see a 33.5% probability of a 50 basis point move when the Fed next meets on September 20-21.*
“The economy is clearly firing on all cylinders as this morning’s job report showed growth across all sectors. The release should quiet the bears in the room who have been crying recession in recent days.
Strong jobs growth and moderating price inflation should help extend the current relief rally through the end of the year.
*The monthly employment report, however, is a lagging indicator. And investors and policy makers still have lots of data to sift through between now and the Fed’s September policy meeting. The next reading of the U.S. consumer-price index will be released next week.*
Friday’s extremely strong jobs data suggests that many businesses are not allowing recession fears to stand in the way of hiring. The jury is out on whether this robust pace of hiring can continue as many large and small companies have recently taken steps to slow hiring or even layoff existing employees.
*We believe next Wednesday’s Consumer Price Index data will weigh more heavily on Federal Reserve policy than Friday’s jobs report, as fighting inflation is the Fed’s top focus. U.S. annual consumer prices expected to jump by 8.7% in July after a 9.1% rise in June.*
*Here’s what else Wall Street is saying about the jobs surprise:*
Win Thin, global head of currency strategy at Brown Brothers Harriman & Co:
“Odds of a 75 basis point move next month have shot up, as they should. We still get one more jobs report before the September FOMC but barring a disaster, I think 75 bp then is a done deal.”
Eric Theoret, global macro strategist at Manulife Investment Management:
“For the Fed, this report confirms the need to continue tightening and also endorses much of this week’s Fedspeak that sought to jawbone rate expectations. For markets, the report may pose a challenge for rate-sensitive equities like tech which had recently been leading in terms of sector performance.”
Seema Shah, chief strategist at Principal Global Investors:
“All the jobs lost during the pandemic have now been regained. But while that is positive news, markets will take today’s number as a timely reminder that there is significantly more Fed hiking still to come. Rates are going above 4% -- today’s number should put to bed any doubters.”
Peter Boockvar, chief investment officer at Bleakley Financial Group:
“This was a great number with the obvious big upside in hirings but when this is happening at the same time GDP is declining, it means productivity is plunging. Also, as the pace of firing is at the highest level in nine months, this pace of hiring is just not sustainable.”
Keith Lerner, co-chief investment officer at Truist Advisory Services:
“Some of the conviction levels around recession are somewhat less. And I think that’s offsetting the other side of the equation which is, OK, that means the Fed will have to be more aggressive. So that’s why you’re netting this out to be a flat day because it really comes down to people questioning their confidence that we were in a recession, which was the primary reason why we were down.”
Despite being the focus of the day for traders, the jobs report supposedly has little value for those trying to predict a recession because it’s backward-looking.
Corporate earnings, combined with thin liquidity that’s common in the summer, took the stock market on a ride this week. Many firms beat expectations and proved they could handle high inflation and a gloomy economic outlook. But investors have resumed shunning global stocks in favor of bonds, according to Bank of America Corp. strategists, who say it’s time to step back from US equities after July
*Fed-funds futures traders priced in a 66.5% chance of a 75 basis point rate hike in September, up from 34% on Thursday. Traders see a 33.5% probability of a 50 basis point move when the Fed next meets on September 20-21.*
“The economy is clearly firing on all cylinders as this morning’s job report showed growth across all sectors. The release should quiet the bears in the room who have been crying recession in recent days.
Strong jobs growth and moderating price inflation should help extend the current relief rally through the end of the year.
*The monthly employment report, however, is a lagging indicator. And investors and policy makers still have lots of data to sift through between now and the Fed’s September policy meeting. The next reading of the U.S. consumer-price index will be released next week.*
Friday’s extremely strong jobs data suggests that many businesses are not allowing recession fears to stand in the way of hiring. The jury is out on whether this robust pace of hiring can continue as many large and small companies have recently taken steps to slow hiring or even layoff existing employees.
*We believe next Wednesday’s Consumer Price Index data will weigh more heavily on Federal Reserve policy than Friday’s jobs report, as fighting inflation is the Fed’s top focus. U.S. annual consumer prices expected to jump by 8.7% in July after a 9.1% rise in June.*
*Here’s what else Wall Street is saying about the jobs surprise:*
Win Thin, global head of currency strategy at Brown Brothers Harriman & Co:
“Odds of a 75 basis point move next month have shot up, as they should. We still get one more jobs report before the September FOMC but barring a disaster, I think 75 bp then is a done deal.”
Eric Theoret, global macro strategist at Manulife Investment Management:
“For the Fed, this report confirms the need to continue tightening and also endorses much of this week’s Fedspeak that sought to jawbone rate expectations. For markets, the report may pose a challenge for rate-sensitive equities like tech which had recently been leading in terms of sector performance.”
Seema Shah, chief strategist at Principal Global Investors:
“All the jobs lost during the pandemic have now been regained. But while that is positive news, markets will take today’s number as a timely reminder that there is significantly more Fed hiking still to come. Rates are going above 4% -- today’s number should put to bed any doubters.”
Peter Boockvar, chief investment officer at Bleakley Financial Group:
“This was a great number with the obvious big upside in hirings but when this is happening at the same time GDP is declining, it means productivity is plunging. Also, as the pace of firing is at the highest level in nine months, this pace of hiring is just not sustainable.”
Keith Lerner, co-chief investment officer at Truist Advisory Services:
“Some of the conviction levels around recession are somewhat less. And I think that’s offsetting the other side of the equation which is, OK, that means the Fed will have to be more aggressive. So that’s why you’re netting this out to be a flat day because it really comes down to people questioning their confidence that we were in a recession, which was the primary reason why we were down.”
Despite being the focus of the day for traders, the jobs report supposedly has little value for those trying to predict a recession because it’s backward-looking.
Corporate earnings, combined with thin liquidity that’s common in the summer, took the stock market on a ride this week. Many firms beat expectations and proved they could handle high inflation and a gloomy economic outlook. But investors have resumed shunning global stocks in favor of bonds, according to Bank of America Corp. strategists, who say it’s time to step back from US equities after July
US-China tension also remains among the uncertainties clouding the outlook. China announced it would halt cooperation with the US in a number of areas -- including working-level talks on climate change and defense -- after US House Speaker Nancy Pelosi’s trip to Taiwan this week. China also sent warships across the Taiwan Strait’s median line in the first such incursion in years, a day after likely firing missiles over the island.
West Texas Intermediate rose to near $90 a barrel, but remains on track for its biggest weekly decline since April. Gold fell and Bitcoin gained.
*Something interesting to read*
*Danger ahead: The U.S. economy has yet to face its biggest recession challenge*
https://www.cnbc.com/2022/08/05/danger-ahead-the-us-economy-has-yet-to-face-its-biggest-recession-challenge.html
*Which companies were in focus?*
• *Tesla Inc.* shareholders on Thursday approved a proposal expected to lead to a 3-for-1 stock split and sided with the company on most of the proposals up for a vote. Shares dropped 6.6%.
• Meme-stock favorite *AMC Entertainment Holdings Inc.* late Thursday announced a special dividend in the form of “Ape” preferred shares. AMC shares jumped 18.9%.
• Shares of *Twilio Inc. plunged 13.5%* after the software company’s outlook came in below Wall Street expectations following a reported beat in the previous quarter.
• *DoorDash Inc. shares fell 1.3%* after the company late Thursday reported continued growth in the second quarter, saying that its food-delivery business remains healthy despite economic uncertainty, though its loss was worse than what Wall Street expected.
• Shares of *Cloudfare Inc. soared 27.1%* after the cybersecurity company reported results late Thursday that topped Wall Street expectations and hiked its revenue outlook for the year.
• *Beyond Meat Inc. shares surged 21.9%* after UBS raised its price target. Shares had tumbled in early trade after the maker of plant-based meat substitutes posted on Thursday afternoon a larger-than-expected net loss and smaller-than-expected revenues, while announcing layoffs.
• *Block Inc. shares edged down 2.2%* after the payment-technology company late Thursday swung to a loss and projected that July volume growth for the Square seller business would be lower than what was expected in the second quarter when looking on a year-over-year basis.
• *Carvana Co. shares skyrocketed 40.1%* even as the used-car retailer missed expectations with its second-quarter revenue and logged a larger loss than analysts were anticipating. The company reported second-quarter sales volume of 117,564, up from 105,185 the previous quarter and 107,815 a year earlier. Shares are down almost 80% this year.
*The yield on the 10-year Treasury note jumped 16.4 basis points to 2.838%. Yields and debt prices move opposite each other.*
The Shanghai Composite ended with a gain of 1.2% Friday, but remained down 0.8% for the week. The Hang Seng Index in Hong Kong rose 0.1% Friday, bringing its weekly rise to 0.2%. Japan’s Nikkei 225 gained 0.9% Friday and climbed 1.3% for the week.
European markets closed lower on Friday afternoon after a key U.S. jobs report showed unexpected strength in the labor market.
*On the data front, French industrial output unexpectedly rose in June, posting a strong 1.4% monthly increase despite forecasts for a 0.2% contraction amid persistent supply chain problems and the energy crisis.*
*Currencies*
# The Bloomberg Dollar Spot Index rose 0.7%
# The euro fell 0.7% to $1.0178
# The British pound fell 0.8% to $1.2066
# The Japanese yen fell 1.7% to 135.10 per dollar
*Bonds*
# The yield on 10-year Treasuries advanced 15 basis points to 2.84%
# Germany’s 10-year yield advanced 15 basis points to 0.96%
# Britain’s 10-year yield advanced 16 basis points to 2.05%
*Commodities*
# West Texas Intermediate crude rose 0.4% to $88.91 a barrel
# Gold futures fell 0.9% to $1,790.50 an ounce
West Texas Intermediate rose to near $90 a barrel, but remains on track for its biggest weekly decline since April. Gold fell and Bitcoin gained.
*Something interesting to read*
*Danger ahead: The U.S. economy has yet to face its biggest recession challenge*
https://www.cnbc.com/2022/08/05/danger-ahead-the-us-economy-has-yet-to-face-its-biggest-recession-challenge.html
*Which companies were in focus?*
• *Tesla Inc.* shareholders on Thursday approved a proposal expected to lead to a 3-for-1 stock split and sided with the company on most of the proposals up for a vote. Shares dropped 6.6%.
• Meme-stock favorite *AMC Entertainment Holdings Inc.* late Thursday announced a special dividend in the form of “Ape” preferred shares. AMC shares jumped 18.9%.
• Shares of *Twilio Inc. plunged 13.5%* after the software company’s outlook came in below Wall Street expectations following a reported beat in the previous quarter.
• *DoorDash Inc. shares fell 1.3%* after the company late Thursday reported continued growth in the second quarter, saying that its food-delivery business remains healthy despite economic uncertainty, though its loss was worse than what Wall Street expected.
• Shares of *Cloudfare Inc. soared 27.1%* after the cybersecurity company reported results late Thursday that topped Wall Street expectations and hiked its revenue outlook for the year.
• *Beyond Meat Inc. shares surged 21.9%* after UBS raised its price target. Shares had tumbled in early trade after the maker of plant-based meat substitutes posted on Thursday afternoon a larger-than-expected net loss and smaller-than-expected revenues, while announcing layoffs.
• *Block Inc. shares edged down 2.2%* after the payment-technology company late Thursday swung to a loss and projected that July volume growth for the Square seller business would be lower than what was expected in the second quarter when looking on a year-over-year basis.
• *Carvana Co. shares skyrocketed 40.1%* even as the used-car retailer missed expectations with its second-quarter revenue and logged a larger loss than analysts were anticipating. The company reported second-quarter sales volume of 117,564, up from 105,185 the previous quarter and 107,815 a year earlier. Shares are down almost 80% this year.
*The yield on the 10-year Treasury note jumped 16.4 basis points to 2.838%. Yields and debt prices move opposite each other.*
The Shanghai Composite ended with a gain of 1.2% Friday, but remained down 0.8% for the week. The Hang Seng Index in Hong Kong rose 0.1% Friday, bringing its weekly rise to 0.2%. Japan’s Nikkei 225 gained 0.9% Friday and climbed 1.3% for the week.
European markets closed lower on Friday afternoon after a key U.S. jobs report showed unexpected strength in the labor market.
*On the data front, French industrial output unexpectedly rose in June, posting a strong 1.4% monthly increase despite forecasts for a 0.2% contraction amid persistent supply chain problems and the energy crisis.*
*Currencies*
# The Bloomberg Dollar Spot Index rose 0.7%
# The euro fell 0.7% to $1.0178
# The British pound fell 0.8% to $1.2066
# The Japanese yen fell 1.7% to 135.10 per dollar
*Bonds*
# The yield on 10-year Treasuries advanced 15 basis points to 2.84%
# Germany’s 10-year yield advanced 15 basis points to 0.96%
# Britain’s 10-year yield advanced 16 basis points to 2.05%
*Commodities*
# West Texas Intermediate crude rose 0.4% to $88.91 a barrel
# Gold futures fell 0.9% to $1,790.50 an ounce
👍1
*SGX Nifty -55 pts (17360) from last trade 17415 ,*
Nikkei -44 pts ,
Hangseng -137 pts ,
Now @6.52am .
Dow +76.65 pts ,Nsdq -63.03 pts, S&P
-6.75 pts, Bovespa +579 pts , Ftse -8 pts , Dax -88 pts , Cac -41 pts , Crude @ $88.36 brl (-0.65), Brent @ $94.20 brl (-0.72) , Gold @ 1790.20 (-1.00), Silver @ $19.775 (-0.06), Euro @ $1.0165, JPY @ $135.21, INR @ 79.365
*Today's Corporate Action*
*6th Aug Ex Date*
ALKEM
Final Dividend - Rs. - 4.0000
BEL
Final Dividend - Rs. - 1.5000
CASTROLIND
Interim Dividend - Rs. - 3.0000
CHENNPETRO
Final Dividend - Rs. - 2.0000
CIPLA
Dividend - Rs. - 5.0000
DBCORP
Interim Dividend - Rs. - 3.0000
GGENG
Right Issue of Equity Shares
HIGHENE
Stock Split From Rs.10/- to Rs.2/-
HONAUT
Dividend - Rs. - 90.0000
ICICIBANK
Final Dividend - Rs. - 5.0000
KRITIIND
Final Dividend - Rs. - 0.2000
KRITINUT
Final Dividend - Rs. - 0.1800
RJSHAH
Dividend - Rs. - 2.5000
RUPA
Dividend - Rs. - 3.0000
WSTCSTPAPR
Final Dividend - Rs. - 6.0000
Nikkei -44 pts ,
Hangseng -137 pts ,
Now @6.52am .
Dow +76.65 pts ,Nsdq -63.03 pts, S&P
-6.75 pts, Bovespa +579 pts , Ftse -8 pts , Dax -88 pts , Cac -41 pts , Crude @ $88.36 brl (-0.65), Brent @ $94.20 brl (-0.72) , Gold @ 1790.20 (-1.00), Silver @ $19.775 (-0.06), Euro @ $1.0165, JPY @ $135.21, INR @ 79.365
*Today's Corporate Action*
*6th Aug Ex Date*
ALKEM
Final Dividend - Rs. - 4.0000
BEL
Final Dividend - Rs. - 1.5000
CASTROLIND
Interim Dividend - Rs. - 3.0000
CHENNPETRO
Final Dividend - Rs. - 2.0000
CIPLA
Dividend - Rs. - 5.0000
DBCORP
Interim Dividend - Rs. - 3.0000
GGENG
Right Issue of Equity Shares
HIGHENE
Stock Split From Rs.10/- to Rs.2/-
HONAUT
Dividend - Rs. - 90.0000
ICICIBANK
Final Dividend - Rs. - 5.0000
KRITIIND
Final Dividend - Rs. - 0.2000
KRITINUT
Final Dividend - Rs. - 0.1800
RJSHAH
Dividend - Rs. - 2.5000
RUPA
Dividend - Rs. - 3.0000
WSTCSTPAPR
Final Dividend - Rs. - 6.0000