Trading and Economics

🇺🇸 Berkshire Hathaway Hits All-time High Berkshire Hathaway increased to an all-time high of 435.77 USD. Over the past 4 weeks, Berkshire Hathaway gained 6.95%, and in the last 12 months, it increased 26.56%.

🇺🇸 Goldman Sachs Hits All-time High Goldman Sachs increased to an all-time high of 493.98 USD. Over the past 4 weeks, Goldman Sachs gained 9.21%, and in the last 12 months, it increased 50.15%.

🇨🇦 Canada 10-Year Bond Yield Hits 3-Week Low The Canadian 10-year government bond yield declined toward 3.4% in July, a three-week low, tracking recent decline in US Treasury yields following dovish remarks from Fed Chairman Powell. Domestically, the latest data inflation data was mixed. Headline inflation fell to 2.7% in June from 2.9% in the previous month, surprising markets that had expected it to remain steady at 2.9%. However, the primary driver of disinflation was an external decrease in gasoline prices, and the BoC’s preferred measure of underlying inflation unexpectedly refrained from slowing at 2.9%. Meanwhile, investors fully anticipate a rate cut by the Federal Reserve in September and remain loosely split about whether the BoC will deliver another rate cut next week.

🇨🇦 Canadian Dollar Losses Ground The Canadian dollar weakened past 1.37 per USD, retreating from an eight-week high of 1.36 observed on July 4th, pressured by a stronger dollar as investors digested the latest Canadian inflation data. The annual headline inflation rate eased to 2.7% in June from 2.9% in the previous month, surprising markets that had expected it to remain at 2.9%, thus resuming the disinflation trend in Canadian consumer prices. Still, the disinflation was mostly due to the exogenous decline in gasoline prices, and the BoC’s preferred measure of underlying inflation remained unchanged at 2.9%, slightly above expectations. In the meantime, the dollar extended gains from robust retail sales data, pressuring the loonie.

🇺🇸 Treasury Yields Pare Some Losses The yield on the US 10-year Treasury note pared some losses to trade around 4.21% after retail sales data for the US pointed to a resilient consumer spending, with core retail sales rising 0.9%, the most since April last year. Still, traders have fully priced in a rate cut by the Fed in September, with Chair Powell saying the central bank will not wait until inflation hits 2% before cutting interest rates as it works with “long and variable lags". Meanwhile, rising odds of a second Trump presidency following a failed assassination attempt provided some support to Treasury yields. Trump’s policies are seen as inflationary due to tax cuts, tighter immigration and higher import tariffs.

🇺🇸 US Stocks Set to Open Higher US futures climbed on Tuesday as investors processed the latest economic data and reevaluated the monetary policy outlook, while also considering corporate earnings reports. Retail sales in the US remained flat in June compared to a 0.3% increase in May, aligning with expectations of slowing consumer spending. Import prices showed no change, falling short of the anticipated 0.2% rise, while export prices dipped by 0.5%, more than expected. Investors have fully priced in a Fed rate cut by September, with Chair Powell saying the central bank will not wait until inflation hits 2% before cutting interest rates as it works with “long and variable lags". On the earnings front, shares of Bank of America rose about 2% in premarket trading after its earnings and revenue topped estimates.

🇺🇸 US Export Prices Fall More than Expected Export prices in the US fell 0.5 percent month-over-month in June 2024, up from a downwardly revised 0.7 percent decline in the previous month, but more than market expectations of a 0.1 percent decrease. Prices for nonagricultural exports fell 0.6 percent, as lower prices for nonagricultural industrial supplies and materials and consumer goods more than offset higher prices for automotive vehicles and nonagricultural foods. On the other hand, prices for agricultural exports rose 0.6 percent due to higher prices for meat and nuts more than offset lower corn and vegetable prices. On an annual basis, export prices increased by 0.7%.

🇺🇸 US Import Prices Unexpectedly Flat Import prices in the US were unchanged from the previous month in June of 2024, below expectations of a 0.2% increase and after a 0.2% fall. Import fuel prices decreased 1.0 percent, the first drop since December 2023 due to lower prices for both petroleum and natural gas. On the other hand, prices for nonfuel imports increased 0.2 percent as higher prices in June for nonfuel industrial supplies and materials; foods, feeds, and beverages; and automotive vehicles more than offset lower prices for consumer goods.

🇺🇸 US Retail Sales Stall Retail sales in the US stalled in June from May 2024, following an upwardly revised 0.3% rise in the previous and matching market forecasts. Sales at gasoline stations were down 3% and those for autos declined 2.3%. Sales were also lower at sporting goods, hobby, musical instrument and book stores (-0.1%).

🇨🇦 Canada Housing Starts Fall More than Expected Housing starts in Canada fell by 9% over a month earlier to 241,672 units in June 2024, below market expectations of 260,000 units, according to the Canada Mortgage and Housing Corporation. The monthly SAAR of total urban housing starts decreased by 9%, with 223,234 units recorded. Multi-unit urban starts decreased by 12% to 180,205 units, while single-detached urban starts increased 2% to 43,029 units. The rural starts monthly SAAR estimate was 18,438 units. Among the most populated provinces, the housing start decline compared to the previous month was led by Ontario (-22.6%) and British Columbia (-12.1%). In contrast, Prairies rose the most ( 4.6%).