Bonds of financials are returning more than those of industrial firms for the first time since 2005 as banks cut debt amid regulation and companies borrow to tap record-low borrowing costs.
The Institute for Supply Management’s factory index fell 49.6 last month, the lowest since (July 2009), from 49.8 in July. US manufacturing shrank for a third month in August in longest decline since end of recession in 2009.
Equities:
DJIA: 13,036 (+0.42%)
S&P500: 1,405 (-0.12%)
Nasdaq: 3,075 (+0.26%)
EuroStoxx: -1.06%
Nikkei: -0.10%
Hang Seng: -0.66%
Chrysler, Ford, and GM said sales in August rose more than analysts estimated as new models bolster the market’s best year since 2007.
Caterpillar fell the most in almost two months on signs of a slowdown in mine investment and manufacturing slowdown in U.S. and China.
Campbell Soup beats street estimates with an EPS of $0.41 vs. estimated $0.38, and $1.61B revenue vs. estimated $1.60B revenue on improved soup sales. Stock reaches 21-month high.
Smithfield Foods misses street estimates with an EPS of $0.40 vs. estimated $0.45 and sales of $3.09B vs. estimated $3.15B on the drought raising corn prices.
Commodities:
WTI Crude: 95.49 (-1.02%)
Nat Gas: +1.82%
Copper: +0.13%
Corn: +0.66%
FX:
EURUSD: 1.256 (-0.24%)
DXY Dollar Index: 81.360 (+0.19%)
Rates:
U.S. 10y: 1.57% (+2bp)
German 10y: 1.39% (+1bp)
Spanish 10y: 6.57% (-28bp)
Italian 10y: 5.67% (-10bp)
