Financial Markets Closing

Equities Level    Δ 1d %
S&P 500    1,457    -0.22
DJIA    13,559    -0.15
Nasdaq    3,161    -0.60
EuroStoxx 50    2,558    -0.74
Nikkei    9,069    -0.45
Hang Seng    20,695    -0.19

US Stocks fall on negative news from overseas. Chancellor Merkel and President Hollande disagreed on a timetable for starting joint oversight of Europe's banking sector. German business confidence unexpectedly fell in Sept, and China's manufacturers/retailers are less optimistic about sales.

Caterpillar cuts its forecast for 2015 earnings after commodity producers reduced capital expenditure. Sales will be $80-100 billion and profit will be $12 to $18. The slowdown in China is also affecting CAT, with the company shutting down its main Chinese excavator plant for much of July.  Shares dropped 0.93%.

Credit    Level    Δ 1d %
iBoxx IG    120.98    0.1%
iBoxx HY    93.03    -0.1%
CDX IG 5yr S19    98.47    2.8%
CDX HY 5yr S18    101.21    -0.5%

UPS raised $1.75 billion in a three part offering to refinance maturing debt, the company's first bond sales in almost two years. The company sold $375 million of 1.125% 5 year securities with 50 bp yield over 5yr Treasury, $1 billion of 2.45% 10 year bonds with 75bp spread, and $375 million of 3.625% 30 debt with a spread of 80bp. Proceeds will be used to repay its 4.5% notes due in January.

Commodities    Level    Δ 1d %
WTI Crude    91.93    -1.03
Natural Gas    2.86    -0.87
Copper    58,970    -1.32
Corn    745    -0.47
Gold    1,764    0.00

FX            Level    Δ 1d %
EURUSD     1.2931    -0.38
DXY $ Index    79.5    0.26

Rates  Yield %    Δ 1d bp
U.S. 10yr    1.71    -4
Germany 10yr    1.56    -4
Spain 10yr    5.65    -8
Italy 10yr    5.04    0