International Purchases of U.S. financial assets rose more than sevenfold in July as investors sought shelter from the debt crisis in Europe. Net buying totaled $67 billion during the month vs. estimate of $27.5 billion, up from net purchases of $9.3 billion in June. The trend of European private investors buying Treasuries and agencies to protect against deterioration in the euro financial markets is expected to continue into August’s data.
Goldman Sachs names Harvey Schwartz from the S&T unit to replace retiring David Viniar, the longest-serving CFO of a major Wall Street firm, in January.
S&P places NJ on negative outlook, citing revenue assumptions in the Governor’s comeback plan are too optimistic.
Equities:
DJIA: 13,565 (+0.09%)
S&P500: 1,459 (-0.13%)
Nasdaq: 3,178 (-0.03%)
EuroStoxx: -1.17%
Nikkei: -0.39%
Hang Seng: -0.27%
Fedex reports a 1Q EPS of $1.45 vs. estimated $1.40 and 1Q Sales of $10.79B vs. estimated $10.70B. 2Q guidance, however, is announced at $1.30-$1.45 after estimates were $1.67. The full year adjusted EPS was also lowered to $6.20-$6.60 vs. estimated $6.99 due to a weakening economy that prompted shippers in the U.S. and overseas to switch to cheaper delivery options. Fedex lowered its 2013 U.S. GDP forecast, seeing weaker economic growth for FY13, contraction in exports around the world, and trade/exports dropping faster than GDP. Fedex stock drops 3.1% overall from yesterday’s closing price to today’s.
Credit:
iBoxx IG: 120.48 (+0.3%)
iBoxx HY: 93.84 (+0.0%)
CDX IG S18 5Y: 85.46 (+1.9%)
CDX HY S18 5Y: 102.08 (+0.0%)
Commodities:
WTI Crude: 95.29 (-1.38%)
Nat Gas: -3.21%
Copper: -0.82%
Corn: -1.07%
FX:
EURUSD: 1.3045 (-0.02%)
DXY Dollar Index: 79.2 (+0.24%)
The Euro falls on concern leaders will struggle to tame the debt crisis.
Rates:
U.S. 10y: 1.81% (-3bp)
German 10y: 1.64 (-4bp)
Spanish 10y: 5.87% (-8bp)
Italian 10y: 5.04% (-5bp)
US Treasury yields decline for a second day amid speculation economic growth will fail to fuel employment. Treasuries have recouped more than half the losses triggered when the Fed announced QE3 last week.
