Equity markets leaned into several stiff headwinds this week, but ultimately held up relatively well. Indices experienced some turbulence on Tuesday when US Treasury yields finally broke out to fresh multi-year highs highlighted by the benchmark 10-year surpassing the 2014 high of 3.03%. Tuesday also saw the May Empire manufacturing data jump and solid April retail sales figures solidify expectations that the Fed remains on a gradual path to normalization despite another soft first quarter. Subsequently, the greenback saw upside momentum accelerate, which continued to result in pain for a host emerging market currencies and relative weakness in their regional stock markets. European Union jitters re-emerged with the formation of a more populist government in Italy, which once again manifest in the widening of peripheral bond spreads, hearkening back to the Greek crisis earlier this decade. The trade news out of Washington DC wasn’t particularly positive, either: House Speaker Ryan’s imposed NAFTA deadline came and went without any concrete agreements to speak of, while President Trump himself noted he was doubtful China trade talks would be successful just hours before meeting Vice Premier Liu He at the White House. Nevertheless, the Russell 2000 was the first of the US indices to retake fresh all-time higher territory, and for the week the Dow fell 0.5%, S&P lost 0.5%, and the Nasdaq dropped 0.7%.
In corporate news, optical names rallied early in the week on a potential about-face by President Trump to perhaps loosen US sanctions against China’s ZTE. CBS sought to prevent Shari Redstone’s National Amusements from blocking a shareholder vote to dilute her voting power in the company, but a judge denied CBS’s motion for a temporary restraining order, sending CBS shares sharply lower Thurs. Home Depot earnings surprised to the upside, but revenue was weaker than expected, hampered by a long winter. Macy's jumped on an earnings beat and raised guidance, while Nordstrom fell on disappointing outlook. Deere beat and raised its net income outlook amid strengthening demand. Abaxis surged on a $2B Zoetis offer to buy the veterinary point of care instrument manufacturer for $83/shr. Kroger shares popped after inking a partnership deal with the UK’s Ocado Group. - Source TradeTheNews.com
Macro :
- It Was an Unlucky Week to Throw $8.8 Billion at the Stock Market
- U.K. to Propose Reform on Social Media Giants in Autumn: S.Times
- China agrees to purchase more US goods in effort to avoid trade war, but refuses to commit to US demand to narrow trade gap by $200B
Keep an eye on :
- ABE SM : ACS, Atlantia Increase Stake in Abertis to 90%, Expansion Says
- AF FP : France Won’t Sell Air France Stake For Now, Le Maire Says
- BT/A LN : BT Considers GBP1.5B Mast Sale to Fund Broadband: Telegraph
- DBK GY : Deutsche Bank CFO Sees Slowdown in Restructuring Costs: BZ
- DB1 GY : Deutsche Boerse Decides Rule Changes for MDAX, SDAX, TECDAX
- EDF FP : *EDF IS SAID IN TALKS TO SELL HALF OF ITS UK WIND ASSETS: FT
- EDP PL : Portugal Was Contacted by Major Shareholders in EDP: Expresso
- EDP PL : EDP Says Capital Group Companies Cuts Shareholding to 9.97%
- ENGI FP : Engie Board Approves Ex-Solvay Chief Clamadieu as Chairman
- ENPL LI : Deripaska Departs En+ Group; Tronox Outperforms: Materials Wrap
- FCA IM : FCA U.S. to Recall About 48,990 2018 Jeep Cherokee SUVs
- GE US : GE Said Near Deal to Merge Transportation Unit With Wabtec: Rtrs
- HMB SS : Swedish Royal Family Fund Sold H&M Stake in 1Q: SR
- IAG LN : IAG to Lease Gatwick Slots to Qatar Airways, Thomas Cook: FT
- LI01 GY : Sygnis Raises FY Rev Guidance After Purchase TGR Biosciences
- MAR PL : Martifer Names Pedro Duarte as Chief Executive Officer
- MITRA BB : Mithra CEO Isn’t Against Selling Belgian Drugmaker, L’Echo Says
- OERL SW : Vekselberg Cuts Stakes in Oerlikon, Schmolz + Bickenbach: Rtrs
- PAH3 GY : Porsche N. America to Recall 305 Vehicles of 918 Spyder: NHTSA
- SAN FP : Sanofi CFO Contamine to Become Ablynx Chairman When Deal Closes
- SBRY LN : Sainsbury takeover of Asda could face parliamentary inquiry amid concerns for UK farmers - thisismoney.co.uk
- STLN SW : Vekselberg Cuts Stakes in Oerlikon, Schmolz + Bickenbach: Rtrs
- TEF SM : Telefonica Says O2 Unit an Asset, Not For Sale: Economista
- UL NA : Unibail Weighs Rebranding Some Malls as Westfield After Deal