Daily global market review

The market experienced another day of losses as major indices initially showed signs of a rebound from yesterday's trading but eventually tumbled lower towards the end of the session. The S&P 500, for instance, had seen a decline to 4,461 before recovering, yet it didn't manage to surpass the 4,500 mark, which led to late-session selling. This decline was relatively widespread across stocks, with mega-cap losses exerting a significant influence on index performance. Notable ETFs also experienced shifts during the day. The Invesco S&P 500 Equal Weight ETF (RSP) initially showed a 0.3% gain around 3:00 p.m. ET, but closed with a 0.3% loss. The Vanguard Mega Cap Growth ETF (MGK) was down 0.5% around 3:00 p.m. ET, ultimately closing with a 1.1% loss. The market-cap weighted S&P 500 similarly displayed a 0.1% loss around 3:00 p.m. ET, ending the day with a 0.7% loss. In terms of sector performance, the energy sector of the S&P 500 (+1.2%) stood out with the most significant gain, while the information technology sector (-1.5%) suffered the most significant loss.

There were notable stock movements linked to news catalysts, with Twilio, Duolingo, and Akamai Tech gaining after positive earnings reports. On the other hand, Penn Entertainment rose due to a 10-year exclusive U.S. online sports betting agreement with ESPN, Inc. and ESPN Enterprises.

Looking ahead, treasuries closed with mixed results in anticipation of the upcoming release of the July Consumer Price Index (CPI). The 2-year note yield rose by five basis points to 4.80%, while the 10-year note yield fell by one basis point to 4.01%.

Today's economic data included a 3.1% decline in the weekly MBA Mortgage Applications Index, attributed to a drop of 3.0% in purchase applications and a 4.0% decrease in refinance applications. Additionally, the weekly EIA crude oil inventories showed a build of 5.85 million barrels, following the previous week's draw of 17.1 million barrels.

The 10-year Treasury Note showed a slight increase of +2/32, resulting in a yield of 4.01%. In the NYSE, advancing stocks numbered 1253, while declining stocks amounted to 12573, with a trading volume of 829 million. On the Nasdaq, advancing stocks totaled 12607, and declining stocks were 2713, with a notable trading volume of 5.6 billion.

In terms of industry performance, the day highlighted strength in Energy, Utilities, Consumer Staples, and Health Care sectors. Conversely, weakness was observed in sectors such as Information Technology, Consumer Discretionary, Communication Services, Financials, Materials, and Industrials.

Several factors influenced the market's movement, including the pronounced impact of weak mega-cap stocks that are facing pressure due to consolidation efforts, thereby disproportionately contributing to index losses. The S&P 500 demonstrated a rebound from its low of the day at 4,461, which was close to the previous day's low at 4,464. However, the index was unable to breach the 4,500 mark, leading to increased selling towards the end of the session. The overall market sentiment appeared cautious as participants adopted a wait-and-see approach, likely in anticipation of tomorrow's CPI report.

The Dow Jones index for the United States stood at 35,123.36, marking a decrease of 191.13 points or a 0.54% decline. In a similar trend, the S&P 500, also in the United States, reached 4,467.71, experiencing a decrease of 31.67 points or a 0.70% decrease. The NASDAQ, another U.S. index, reached 13,722.02, showing a decline of 162.31 points or a 1.17% reduction. The VIX index, reflecting market volatility in the United States, settled at 15.96, indicating a marginal decrease of 0.03 points or a 0.19% decrease. In Canada, the S&P/TSX Composite index reached 20,275.27, exhibiting a positive movement with an increase of 69.29 points or a 0.34% rise. Moreover, the S&P/TSX 60 index in Canada reached 1,215.13, marking an increase of 5.84 points or a 0.48% rise. The BOVESPA index in Brazil closed at 118,408.77, recording a decline of 681.47 points or a 0.57% reduction. The S&P IPSA index in Chile increased to 6,342.02, reflecting a rise of 100.70 points or a 1.61% increase. Similarly, the S&P/BMV IPC index in Mexico reached 54,192.00, indicating a gain of 528.98 points or a 0.99% increase.

Across Europe, the STOXX Europe 50 index stood at 3,984.02, marking an increase of 19.35 points or a 0.49% rise. The STOXX Europe 600 index reached 460.58, experiencing a rise of 1.98 points or a 0.43% increase. In the United Kingdom, the FTSE 100 index closed at 7,587.30, showing an increase of 59.88 points or a 0.80% rise. The FTSE MIB index in Italy reached 28,308.09, recording an increase of 365.84 points or a 1.31% rise. Meanwhile, the CAC 40 index in France reached 7,322.04, demonstrating a rise of 52.57 points or a 0.72% increase.

In Asia, the Nikkei 225 index in Japan closed at 32,204.33, marking a decrease of 172.96 points or a 0.53% decline. The Hang Seng index in Hong Kong increased to 19,246.03, reflecting a gain of 61.86 points or a 0.32% increase. In China, the Shanghai Composite index reached 3,244.49, experiencing a decrease of 16.13 points or a 0.49% reduction. The S&P/ASX 200 index in Australia closed at 7,338.00, showing an increase of 26.90 points or a 0.37% rise. The KOSPI index in South Korea increased to 2,605.12, indicating a gain of 31.14 points or a 1.21% increase. Similarly, the Taiwan SE index reached 16,870.94, marking a decrease of 6.13 points or a 0.04% reduction.

The latest market data from various indices in India shows mixed movements. On August 9th, the BSE MidCap rose by 0.39%, reaching 30,497.43, while the BSE Sensex increased by 0.23% to 65,995.81. The BSE SmallCap also demonstrated growth, surging by 0.57% to 35,450.37. Conversely, the India VIX dropped by 1.63% to 11.1400, indicating decreased market volatility. Among the notable gainers, the Nifty Smallcap 50 exhibited the highest increase, rising by 1.12% to 5,396.50. The Nifty Smallcap 100 followed suit with a gain of 0.59% to 11,825.15. Similarly, the Nifty 50 USD experienced an uptick of 0.33% to 8,213.25. Moreover, the Nifty 50 Value 20 saw a rise of 0.63% to 10,139.40. On the other hand, some of the lowest gainers include the S&P BSE-200, which went up by 0.29% to 8,516.66. The Nifty 50 and the Nifty 100 also showed slight growth, increasing by 0.32% and 0.29% to 19,632.55 and 19,554.75 respectively.

• PLTR (Palantir Technologies Inc. Class A) experienced a price of 15.25 with a decrease of -1.79, leading to a % change of 10.50%. The trading volume for PLTR reached 125 million, and its 52-week range was between 5.92 and 20.24.
• NKLA (Nikola Corporation) had a price of 1.94, showing a drop of -0.27, resulting in a % change of 12.22%. The volume of NKLA trades amounted to 112 million, and its 52-week range extended from 0.52 to 7.62.
• TSLA (Tesla, Inc.) was priced at 242.19, facing a decrease of -7.51, which equates to a % change of 3.01%. TSLA's trading volume was 100 million, and its 52-week range spanned from 101.81 to 314.67.
• RIVN (Rivian Automotive, Inc. Class A) witnessed a price of 22.35 with a decrease of -2.45, leading to a % change of 9.88%. The volume of RIVN trades reached 84 million, and its 52-week range was between 11.68 and 40.86.
• TNGX (Tango Therapeutics, Inc.) showcased a price of 7.81, experiencing a positive change of +3.98, resulting in a remarkable % change of 103.92%. TNGX's trading volume was 75 million, and its 52-week range extended from 2.47 to 9.39.
• NVDA (NVIDIA Corporation) was priced at 425.54, facing a decrease of -21.10, which translates to a % change of 4.72%. The trading volume for NVDA reached 58 million, and its 52-week range was between 108.13 and 480.88.
• AAPL (Apple Inc.) had a price of 178.19, showing a drop of -1.61, resulting in a % change of 0.90%. The trading volume of AAPL amounted to 58 million, and its 52-week range extended from 124.17 to 198.23.
• NIO (NIO Inc. Sponsored ADR Class A) experienced a price of 13.46, with a decrease of -0.61, leading to a % change of 4.34%. The trading volume of NIO reached 57 million, and its 52-week range was between 7.00 and 22.74.
• RBLX (Roblox Corp. Class A) showcased a price of 29.46, experiencing a decrease of -8.28, leading to a substantial % change of 21.94%. The trading volume for RBLX was 57 million, and its 52-week range extended from 25.32 to 53.88.
• AMD (Advanced Micro Devices, Inc.) had a price of 110.47, showing a drop of -2.76, resulting in a % change of 2.44%. The trading volume of AMD amounted to 56 million, and its 52-week range extended from 54.57 to 132.83.

In the realm of cryptocurrencies, the Nasdaq Crypto Index stood at 1,707.46, showing a decline of 15.24 points or a 0.88% reduction. Bitcoin's value reached 29,453.00, marking a decrease of 329.00 USD or a 1.10% decline. Ethereum (Ether) exhibited a decrease, reaching 1,850.70, with a reduction of 6.20 USD or a 0.33% decline. Litecoin's value stood at 83.73, experiencing a minor decrease of 0.21 USD or a 0.25% reduction. On a different note, XRP reached 0.66, indicating an increase of 0.01 USD or a 1.87% rise.

In the domain of bonds and rates, the 3 Month Treasury yield reached 5.287%, reflecting an increase of 0.012%. The 2 Year Treasury yield stood at 4.804%, with an increase of 0.059%. Similarly, the 5 Year Treasury yield reached 4.139%, demonstrating an increase of 0.033%. However, the 10 Year Treasury yield decreased to 4.013%, showing a reduction of 0.008%. The 30 Year Treasury yield also decreased, reaching 4.178%, indicating a decrease of 0.020%.

Regarding currency rates, the Euro to US Dollar rate reached 1.0974, showing a 0.17% increase. The British Pound to US Dollar rate stood at 1.2721, also showing a 0.17% increase. The US Dollar to Canadian Dollar rate reached 1.3426, reflecting a 0.06% increase. Similarly, the US Dollar to Swiss Franc rate stood at 0.8773, indicating a 0.22% increase. The US Dollar to Japanese Yen rate reached 143.6925, demonstrating a 0.24% rise.

In the realm of commodities, the Bloomberg Commodity Index experienced a modest increase, gaining 1.90 points or 0.80%, bringing it to a value of 239.45. Similarly, the UBS Bloomberg CMCI showed a rise of 8.76 points or 0.57%, reaching a value of 1,544.51. The Reuters/Jefferies CRB Index witnessed a notable upswing, recording an increase of 3.20 points or 1.02%, resulting in a value of 315.50. The Rogers International Commodity Index demonstrated an upward movement, adding 36.98 points or 0.97%, placing its value at 3,847.29. Moreover, the S&P GSCI Index exhibited a 16.84-point increase, equating to a 0.47% rise, culminating in a value of 3,571.87 as of August 8, 2023.

In the domain of energy commodities, WTI Crude Oil (Nymex) advanced by 1.34 USD per barrel, signifying a 1.62% increase, leading to a value of 84.26 USD/bbl for the September 2023 contract. Brent Crude (ICE) followed suit, registering a rise of 1.29 USD per barrel or 1.50%, arriving at a value of 87.46 USD/bbl for the October 2023 contract. RBOB Gasoline (Nymex) experienced a substantial surge, climbing by 9.42 US cents per gallon or 3.31%, reaching a value of 293.93 USd/gal for the September 2023 contract. Additionally, Natural Gas (Nymex) exhibited significant growth, with an increment of 0.19 USD per MMBtu or 6.81%, resulting in a value of 2.97 USD/MMBtu for the September 2023 contract. Heating Oil (Nymex) saw a notable increase of 12.80 US cents per gallon or 4.15%, culminating in a value of 321.36 USd/gal for the September 2023 contract.

Moving to the realm of precious and industrial metals, Gold (Comex) experienced a decrease of 11.40 USD per troy ounce, indicating a decline of 0.58%, resulting in a value of 1,948.50 USD/t oz. for the December 2023 contract. Meanwhile, the Gold Spot (XAUUSD:CUR) dropped by 9.74 USD per troy ounce or 0.51%, setting its value at 1,915.50 USD/t oz. The Silver (Comex) commodity noted a slight dip of 0.07 USD per troy ounce or 0.32%, leading to a value of 22.74 USD/t oz. for the September 2023 contract. Copper (Comex) displayed a positive trend, rising by 2.10 US cents per pound or 0.56%, resulting in a value of 378.75 USd/lb. for the September 2023 contract. In contrast, Platinum Spot (XPTUSD:CUR) faced a decrease of 11.65 USD per troy ounce or 1.29%, bringing its value to 893.23 USD/t oz.

In the sphere of agriculture, Corn (CBOT) experienced a decline of 2.75 US cents per bushel or 0.55%, leading to a value of 496.00 USd/bu. for the December 2023 contract. Wheat (CBOT) encountered a more substantial decrease, recording a drop of 19.00 US cents per bushel or 2.79%, culminating in a value of 662.50 USd/bu. for the December 2023 contract. Cocoa (ICE) exhibited a minor decrease of 13.00 USD per metric ton or 0.39%, resulting in a value of 3,363.00 USD/MT for the December 2023 contract. On a positive note, Cotton #2 (ICE) demonstrated an increase of 0.15 US cents per pound or 0.18%, with a value of 85.35 USd/lb. for the December 2023 contract. Additionally, Live Cattle (CME) exhibited growth, with a rise of 0.80 US cents per pound or 0.44%, culminating in a value of 181.70 USd/lb. for the October 2023 contract.

Tomorrow, there are several economic data releases scheduled for the day. At 8:30 AM ET, the Consumer Price Index (CPI) figures for both Month over Month (M/M) and Year over Year (Y/Y) will be made available. This is an important indicator that reflects changes in prices for goods and services. The Core CPI, which excludes Food & Energy, will also be released. Following this, at the same time, data regarding Jobless Claims will be released, including the Initial Claims level and the change in Initial Claims, as well as the 4-Week Moving Average. This information gives insights into the labor market's health. Later in the day, at 10:30 AM ET, the Energy Information Administration (EIA) Natural Gas Report will provide data on natural gas inventories. Finally, at 2:00 PM ET, the Treasury Statement will be issued, showing the current balance. These releases hold significance for economic analysis and decision-making.

• Equity Market Trends: The equity markets in Canada and the U.S. are showing limited movement due to the absence of significant new catalysts. Recent trading has been range-bound, following a minor pullback prompted by Moody's downgrade of 10 small and midsized banks. Although these banks experienced a rebound from their recent lows, they are currently slightly down as investors digest the reasons behind the downgrade. These reasons, which relate to profit challenges stemming from sector stress earlier in the year, are now well-understood by the market. Despite the initial concerns, the market seems to have adapted to these conditions.
• International Markets: European markets are demonstrating strength, possibly due to investor confidence in Italy's plans to mitigate the impact of a proposed windfall tax on bank profits. In contrast, China's equity market experienced a decline after the July Consumer Price Index (CPI) showed negative growth (-0.3% year-over-year), indicating sustained weakness in domestic demand.
• U.S. Inflation and Monetary Policy: Market focus is centered on the upcoming U.S. inflation data, particularly the Consumer Price Index (CPI) reading. This reading holds crucial significance in shaping expectations regarding the Federal Reserve's future policy decisions. The trend of disinflation, characterized by the headline CPI dropping to 3% in June, is expected to continue. The forecast for the July reading suggests a slight increase in consumer prices, growing by 3.3% compared to the previous year. While this represents a slight uptick from the prior month, it still maintains a relatively subdued pace, close to the slowest rate in two years. The core index, which excludes food and energy, is anticipated to demonstrate a similar monthly gain as observed in June. This could contribute to a decrease in the year-over-year core inflation rate to 4.7% from the previous 4.8%.
• Canadian Inflation and Monetary Policy: Similar trends are expected in Canada, where the July CPI data will be released the following week. Factors such as declining used-car prices, decelerating rent inflation, and the deflationary impact of Chinese goods are likely to exert downward pressure on core inflation. As a result, this supports the expectation that both the U.S. Federal Reserve and the Bank of Canada (BoC) will conclude their interest rate hiking campaigns in September.
• Bond Market Outlook: The bond market, which witnessed a surge in 10-year U.S. Treasury yields to a nine-month high, has shown recent signs of stabilization and recovery. Factors contributing to the yield increase include concerns over U.S. fiscal deficits, larger Treasury bond sales, better-than-expected U.S. economic performance, and rising commodity prices. Despite the recent increase in yields, there has been a recent rebound in bond prices. The historically high yields are being seen as an opportunity for investors to generate income. Furthermore, historical trends reveal that after the conclusion of past rate-hiking cycles, there has been an average decline of about 1% in 10-year yields within six months. This highlights the potential for lower yields ahead as the Federal Reserve pauses and potentially implements rate cuts in the coming year.