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