Wall Street traders sent bonds lower and stocks wavered, with the latest economic reports doing little to alter bets the Federal Reserve will raise interest rates this year. Michael Purves, CEO and founder at Tallbacken Capital Advisors, discusses the 5% yield ceiling and the exceptional moment in US equities.
July's personal income and outlays report indicates the underlying pace of inflation increased relatively modestly. Real spending also came in soft. The weakness was exaggerated by temporary factors such as the earlier-than-usual Amazon Prime Day, but the concentration of spending in essentials suggests the underlying pace of spending has decelerated. Michael Ball, Macro Strategist with Bloomberg News, reacts to the PCE data.
On this episode of Stock Movers: - Intuit (INTU) shares are down after the tax-preparation software company gave a full-year forecast for both adjusted earnings and revenue that was weaker than expected. - Abercrombie & Fitch (ANF) is climbing as it raised its outlook for the year after logging higher second-quarter profit and sales, driven by improving demand across multiple geographies. - JM Smucker (SJM) shares are rising as it raised its full-year outlook for sales and profit, buoyed by growth in its Uncrustables sandwiches and coffee.
Vanguard CEO Salim Ramji and Altruist CEO Jason Wenk explain why they decided to combine assets. Speaking with Dani Burger on "Bloomberg Open Interest," Ramji and Wenk say they're focused on making financial advisors more accessible.
Meta Platforms has reached a $16.7 billion settlement in a high-profile case concerning harm caused to teens through its social media platforms. The settlement amount is significantly lower than Meta's worst-case scenario estimate of $1.4 trillion, which represented the maximum potential penalties if all accusations had been upheld at their severest levels. Ed Ludlow reports on "Bloomberg Open Interest."
Stephanie Roth, chief economist at Wolfe Research, expects to see cooler economic data ahead, giving the Federal Reserve cover to "credibly" avoid hiking interest rates in September.
Jay Goldberg, senior analyst at Seaport, says, "there's a lot more that can go wrong here than go right," as he previews earnings from Nvidia.
The Federal Reserve's preferred inflation metric, the so-called core PCE price index, which excludes food and energy items, rose 0.2% in July and advanced 3.3% from a year ago. Inflation-adjusted consumer spending was flat last month. Michael McKee reports on Bloomberg Television.
Improving economic conditions are driving renewed activity in Africa's capital markets according to Yvonne Ike at Bank of America. She spoke to Chief Africa correspondent Jennifer Zabasajja on Bloomberg's Next Africa program.
Matt Maley, Chief Market Strategist at Miller Tabak, joins Bloomberg's Vonnie Quinn on "Bloomberg Brief" to discuss how Nvidia's results will impact the AI trade.
Andrew Balls, global fixed income CIO at Pimco, says it is "not 100% clear to me why" the US Treasury would increase the purchases of long-dated bonds as he explains the factors he finds healthy about the fixed income market. He speaks on "Bloomberg Surveillance."
Simon MacAdam, deputy chief global economist at Capital Economics, joins Bloomberg's Lizzy Burden on "The Pulse" to discuss his reaction to ECB Governing Council member Isabel Schnabel emphasizing the need for further interest rate increases due to upside inflation risks. He also talks about what he'd like to hear from US Federal Reserve Chair Kevin Warsh at Jackson Hole.
