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Patterson Companies (PDCO 30.90, +2.64, +9.3%): beats by $0.14, beats on revs; guides FY24 EPS above consensus
Treasuries are little changed from yesterday’s settlement levels.
The 2-yr note yield is up one basis point to 4.71% and the 10-yr note yield is up three basis points to 3.75%.
The U.S. Dollar Index is flat at 102.57.
The weekly MBA Mortgage Applications Index rose 0.5% with purchase applications rising 2.0% while refinancing applications fell 2.0%.
U.S. Treasuries modestly lower start after a fairly quiet night in the futures market.
Treasury futures falling to lows alongside the release of latest inflation figures from the U.K., which have raised expectations for a 50-bps rate hike from the Bank of England tomorrow.
However, the market bounced quickly, eventually returning to levels seen before the report was released. Elsewhere, property stocks in Hong Kong underperformed amid ongoing hope for more impactful stimulus measures while China Securities Journal speculated that more rate cuts will be made this year.
The U.S. session will not feature any top-tier data, but Fed Chairman Powell will begin his two-day semiannual testimony on monetary policy with a 10:00 ET appearance before the House Financial Services Committee.
Crude oil is little changed at $71.17/bbl while the U.S. Dollar Index is flat at 102.58.
Yield
2-yr: UNCH at 4.70%
3-yr: +2 bps to 4.31%
5-yr: +1 bp to 3.97%
10-yr: +2 bps to 3.75%
30-yr: +1 bp to 3.83%MOONSOON season in mtns of SW VIRGINIA (4″ yesterday alone)
“I went down to VIRGINIA seeking shelter from the storm”Dow 33,951.45 -102.42 -0.30%
S&P 500 4,365.73 -22.98 -0.52%
Nasdaq 13,502.20 -165.09 -1.21%
VIX 13.19 -0.69 -4.97%
Gold 1,944.70 -3.00 -0.15%
Oil 72.64 1.45 2.04%Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note while markets in China and Hong Kong were closed for Dragon Boat Festival.
—Equity Markets—
Japan’s Nikkei: -0.9%
Hong Kong’s Hang Seng: CLOSED
China’s Shanghai Composite: CLOSED
India’s Sensex: -0.5%
South Korea’s Kospi: +0.4%
Australia’s ASX All Ordinaries: -1.7%China’s foreign ministry spokesperson criticized President Biden for calling Xi Jinping a dictator.
Australia’s treasurer indicated that the appointment of the next Reserve Bank of Australia governor will be finalized in the coming weeks.
New Zealand’s May trade surplus NZD46 mln (expected deficit of NZD350 mln; last surplus of NZD236 mln).
May credit card spending 3.3% yr/yr (expected 13.9%; last 11.0%)Major European indices trade in the red.
—Equity Markets—
STOXX Europe 600: -0.8%
Germany’s DAX: -0.5%
U.K.’s FTSE 100: -0.9%
France’s CAC 40: -1.0%
Italy’s FTSE MIB: -0.8%
Spain’s IBEX 35: -1.0%The Bank of England raised its bank rate by 50 bps to 5.00%, which was more than the consensus expected, but it was in-line with the minority view.
Swiss National Bank raised its policy rate by 25 bps to 1.75%, as expected,
Norges Bank announced a 50-bps increase to 3.75% against expectations for a smaller increase.
The Central Bank of Turkey raised its benchmark rate by 650 bps to 15.0%, representing the first increase in two years.The Swiss National Bank also lowered its 2023 CPI forecast for Switzerland to 2.2% from 2.6% while the outlook for 2024 was increased to 2.2% from 2.0%.
KB Home (KBH 50.78, -0.85, -1.6%): beats by $0.61, beats on revs, home deliveries increased 6%, raises full year housing revenue guidance
Darden Restaurants (DRI 159.00, -7.41, -4.5%): beats by $0.04, reports revs in-line; guides FY24 EPS in-line, revs in-line
Accenture (ACN 296.00, -17.20, -5.5%): beats by $0.18, reports revs in-line; guides Q4 revs in-line; guides FY23 EPS in-line
FactSet (FDS 427.00, +3.66, +0.9%): beats by $0.18, reports revs in-line; raises FY23 EPS guidance; reaffirms FY23 revenue guidance
Tesla (TSLA 250.90, -8.54, -3.3%): downgraded to Equal Weight from Overweight at Morgan Stanley
Alcoa (AA 33.69, -1.22, -3.5%): downgraded to Underweight from Equal Weight at Morgan Stanley
Anheuser-Busch InBev (BUD 57.77, +1.04, +1.8%): upgraded to Buy from Hold at Deutsche Bank
Boeing (BA 205.00, -7.08, -3.3%): Spirit Aerosystems (SPR 27.17, -2.51, -8.5%) to suspend factory operations
Initial jobless claims for the week ending June 17 were unchanged at 264,000 and the four-week moving average of 255,750 was the highest since November 13, 2021. Continuing jobless claims for the week ending June 10 decreased by 13,000 to 1.759 million.
The key takeaway from the report is that initial jobless claims have remained elevated (third straight week above 260,000), suggesting that there is some loosening in the labor market, although the level of initial claims remains well below average levels north of 375,000 seen in all recessions since 1980.
Treasury yields turned higher in response to the data.
The 2-yr note yield is up six basis points to 4.76% and the 10-yr note yield is up five basis points to 3.78%.
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