NEWS

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With Hurricane Barry in focus EIA reporting a larger than expected build of +81 Bcf in natural gas storage last week, Ahead we focus on LNG and Mexican exports. LNG Exports hit a new high this week as hub Futures climbed 10% off the low.

Bank of America reported better than expected second quarter earnings before the bell Wednesday. $BAC consumer banking led growth with stock buybacks also contributing to rising EPS. JPMorgan Chase $JPM. Wells Fargo $WFC, PNC Financial $PNC Goldman Sachs and  Citigroup have all reported also.

PNC Financial reported better than expected second quarter earnings before the bell on Wednesday. $PNC saw lower income tax expenses as well as higher interest income and a rise in non-interest income. Reporting after Citigroup, Goldman SachsWells Fargo $WFC and JPMorgan $JPM

There has been constant chatter China will dump it's US Treasury holdings. While they have fallen for the last 3 months, from $1120 to 1110 trillion the biggest seller was Japan in May. Ahead of Brexit the UK increased their holdings of US securities the U.S. Department of the Treasury's Treasury International Capital (TIC) data for May 2019.

US Treasury

The sum total in May of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC inflow of $32.9 billion.

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Net foreign private inflows were $73.5 billion and net foreign official outflows were $40.6 billion.

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Who Holds US Treasuries?

US TIC Report For May

Foreign residents decreased their holdings of long-term U.S. securities in May; net sales were $5.7 billion. Net purchases by private foreign investors were $10.1 billion, while net sales by foreign official institutions were $15.7 billion.

U.S. residents decreased their holdings of long-term foreign securities, with net sales of $9.2 billion.

Taking into account transactions in both foreign and U.S. securities, net foreign purchases of long-term securities were $3.5 billion.

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After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, overall net foreign sales of long-term securities are estimated to have been $14.6 billion in May.

Foreign residents decreased their holdings of U.S. Treasury bills by $7.3 billion.

Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $0.1 billion. Banks’ own net dollar-denominated liabilities to foreign residents increased by $47.5 billion.

Source: US Treasury

From The Traders Community News Desk

Railway giant CSX Corp delivered worse than expected Q2 earnings. Favorable mix and pricing gains across most markets were more than offset by intermodal volume decreases and lower other revenue. $CSX was down over 6% on the release

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