Market Brief: Brexit Optimism Boosts GBP, US Indices Pull Back



  • US indices closed marginally lower in “dog days of Summer” trade (see more on the S&P 500 here). Yield curve inversions were the story of the day, with the 2s10s inverting on a closing basis and the 30-year Treasury yield falling below that of the 3-month tenor for the first time in 12 years.
  • Utilities (XLU) were the strongest sector today while Energy stocks (XLE) were the weakest.
  • Stocks on the Move:
    • Altria (MO, -4%) and Philip Morris International (PM, -7%) are reportedly in talks to merge after separating back in 2008.
    • Costco Wholesale (COST) rallied 5% after opening its first store in China. It took some customers up to three hours to park and the store had to close early due to the massive crowds.
    • Johnson and Johnson (JNJ) rose 2% on a smaller-than-feared $572M fine for the firm’s role in fueling the opioid epidemic.
    • Snapchat (SNAP) dropped 4% on news that rival Instagram was working on a new messaging app called Threads for close friends and family.

*No major macroeconomic data is scheduled for release in the upcoming Asian session.*


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