U.S. Treasury yields fall as investors look ahead to key economic data
U.S. Treasury yields declined on Tuesday as investors braced themselves for a series of key economic data releases due this week that will shed light on the latest developments around inflation and the labor market, and could inform the Federal Reserve’s next monetary policy moves.
Yields and prices move in opposite directions and one basis point is equal to 0.01%.
A positive open for Europe
European stocks made a positive start to Tuesday’s trade, tracking positive momentum around the world.
The pan-European Stoxx 600 index was up 0.6% in early trade, with mining stocks adding 1.7% to lead gains as all sectors and major bourses opened in positive territory.
– Elliot Smith
Toyota suspends operations at a dozen Japan factories
Toyota has halted operations in 12 assembly plants in Japan as a result of a system glitch, the world’s largest automaker said, according to Reuters.
While the cause of the problem has not been identified, it is most likely not from a cyberattack, Toyota’s spokesperson said.
Toyota‘s shares last traded 0.39% lower.
— Reuters, Lee Ying Shan
Tech and industrial stocks power Shenzhen gains
Tech and industrial stocks powered the Shenzhen Composite to become the best performing index in Asia on Tuesday, with the index up 2.16%.
Battery manufacturer Contemporary Amperex Technology, commonly known as CATL, was the best performing stock by index points in Shenzhen, gaining as much as 5.39%.
— Lim Hui Jie
Japan unemployment rate for July comes in higher than expected
Japan’s unemployment rate came in at 2.7% for July, higher than the 2.5% in June and also higher than the 2.5% expected by economists polled by Reuters.
The country’s jobs-to-applicants ratio fell from 1.3 in June to 1.29 in July to mark the third month of decrease, against economists’ forecast for the ratio to remain flat.
— Lim Hui Jie
Opportunities are abundant in fixed income, says Newfleet’s David Albrycht
Investors sitting in fixed income would do well to stay there, according to Newfleet Asset Management’s David Albrycht.
“We’re getting all-in yields we haven’t seen going back to the global financial crisis,” said Albrycht, the firm’s chief investment officer, on CNBC’s “Closing Bell.” Short-term Treasury yields jumped on Monday, with the rate on the 1-year note briefly touching 5.553% — its highest level dating back to Aug. 25, 2000.
“It’s a great time, if you’re not in fixed income, to be dollar cost averaging,” he said. “If you’re in fixed income, stay.”
Investors should also think about their reinvestment risk and their timing if they’re sitting in money market funds and certificates of deposit, Albrycht added. Indeed, the Crane 100 Money Fund Index has an annualized 7-day current yield of 5.15%.
“It was the right move to get out of your bank account, your deposit account, but think about dollar cost averaging into fixed income, especially if the Fed can orchestrate a softer landing or a mild recession,” he said.
Stocks poised to see losses in August
With just three sessions left in the trading month, the major indexes remain on pace to end August with losses. Here’s where each stands:
— Alex Harring
Stocks move after the bell following earnings reports
Though the majority of earnings season is now in the rearview mirror, some stocks were moving after the bell following their reports.
Engine and aircraft part manufacturer HEICO slid 5.6% in extended trading. HEICO saw $723 million in revenue for the fiscal third quarter, beating the consensus estimate of $702 million from analysts surveyed by Refinitiv.
On the other hand, LifeVantage climbed 6.8% in after-hours trading. The wellness company earned 17 cents per share, excluding items, in its latest quarter. That is up from the 1 cent per share seen a year ago. Revenue came in at $54.2 million, above the $50.9 million a year ago. LifeVantage also declared a one-time special dividend of 40 cents.
Meanwhile, education stock Afya advanced 0.6% after the bell. The company reported higher adjusted net income, revenue and EBITDA than the same quarter a year prior. Afya also reaffirmed its full-year guidance.
— Alex Harring
Stock futures are little changed
Stock futures were little changed shortly after 6 p.m. ET.
Futures tied to the Dow, S&P 500 and Nasdaq 100 all traded near flat.
— Alex Harring