Stocks started the second half of 2018 on a positive note, lifting this week in holiday-abbreviated trading. Early on, worries around potentially changing political winds in Europe resulted in risk-off trading sentiment. Coming out of the July 4th break, rising tensions surrounding trade and escalating tariffs were counterbalanced by another strong reading on the US jobs market and high expectations heading into the corporate earnings season. The US Treasury yield curve continued to flatten into territory not seen since 2007, while copper prices plumbed to fresh 1-year lows. Banks remained a notable laggard, unable to garner any momentum, while traditionally defensive groups and technology remained in leadership roles. For the week the S&P gained 1.5%, Dow rose 0.7% and the NASDAQ jumped 2.5%.
In corporate news this week, Tesla announced it hit its one-week production goal of 5,000 Model 3 units in the last week of Q2, but analysts noted a miss on overall Q2 deliveries and a decline in net Model 3 reservations, sending shares lower. Casino names fell after Macau gaming numbers came in below estimates for the second straight month. Facebook shares dropped Tuesday on news of an expanded probe into the Cambridge Analytica-linked data breach, with the FBI, SEC and FTC joining the DOJ in their investigation. Boeing and Embraer confirmed a joint venture deal in which Boeing will acquire control of Embraer’s $4.8B commercial jet division. Biogen surged after successful results from a phase two trial that showed its Alzheimer’s drug could slow the progression of the disease in its milder, early stages.
Macro :
- France to Tax U.S. Tech Giants by Yr-End or Early ’19: Le Maire
- EU Must Resist Temptation of Euro Pessimism: ECB’s Coeure
- U.S. Is Source of Global Uncertainty: BlackRock’s Hildebrand
- ECB’s Coeure Says World Order Being Called Into Question
Keep an eye on :
- ADP FP : Le Maire: Selling Stake in Paris Airports Because It Has Value
- AKE FP : Arkema CEO Says Chemical Sector Safe From Trade Wars So Far
- ALO FP : Proxinvest Recommends Alstom Shareholders Reject Rail JV: WiWo
- ATC NA : Altice Urges Level Playing Field With U.S. Internet Companies
- BNP FP : France’s Le Maire Wants to Cap Bank Fees for Modest Households
- BTG LN : BTG Holders Urged by ISS to Oppose Remuneration Report: S. Times
- 1COV GY : Covestro CFO Toepfer Says Company Looking for Acquisitions: BZ
- DIS US : Ant-Man Seen With Estimated $83.7M Opening Weekend: Variety
- GRPN US : Groupon Is Said to Be Looking For a Buyer, Recode Says
- HEN3 GY : Henkel to Raise Prices, Look for Acquisitions: Rheinische Post
- ISAT LN : EchoStar Walks Away From Its $4.2 Billion Bid for Inmarsat
- ORA FP : Orange CFO Sees Europe Ripe for Telecom Mergers
- PIRC IM : Intesa, UniCredit to Remain Invested in Pirelli: Messaggero
- RPC LN : RPC Short Sales Exceed GBP240m, Mail on Sunday Says, Citing FCA
- SIE GY : Proxinvest Recommends Alstom Shareholders Reject Rail JV: WiWo
- SOLB BB : Solvay CEO Says Trade War, Brexit May Hurt U.S., U.K. Investment
- STOB LN : Stobart Shareholders Re-Elect Chairman Ferguson in Narrow Vote
- TENCENT (700 HK) : *TENCENT PROPOSES SPIN-OFF OF TENCENT MUSIC ENTERTAINMENT
- FR FP : Valeo Says Siemens Has No Short-Term Plans to Exit JV
- VIE FP : Veolia Expects to Beat Cost-Cutting Goal Again: CEO to Reuters, Veolia CEO: Brexit Won’t Deter Co. From Investing in U.K.
- VOW3 GY : Diess Sees VW Struggling for Months With New Exhaust Tests: DPA
- WPP LN : Sorrell Offers MediaMonks Managers Stake in New Group: S. Times