The Dow Industrial Average closed just above 40,000 but couldn’t reach a record high. The 2-10 year yield rose to -27.3 basis points, the highest since January 29. Crude oil futures settled at $82.21. Stock earnings for the quarter began, and upcoming earnings were discussed. The impact of the first rate cut on the economy was explored. Several currency pairs reached key target levels, including the NZDUSD. China’s Third Plenum meeting and Japan’s Kanda’s intervention comments were highlighted. House Democratic Leader Jeffries’ meeting with Biden was mentioned. The UMich July consumer sentiment was slightly below expectations at 66.0. The FX trading day for July 12 was kicked off with a technical look at the EURUSD, USDJPY, and GBPUSD. Canadian June home sales activity fell by 9.4%, and Canada building permits for May were lower than expected at -12.2%. US June PPI came in higher than expected at +2.6%. The GBP was the strongest, and the JPY was the weakest at the start of the NA session. The impact of the US CPI and PPI reports on the USD and yields was discussed. The USD ended the day mostly lower against major currencies. Looking at the US debt market, yields moved lower, with the 2-year yield falling the most. The yield spreads continued to narrow. Crude oil, gold, silver, and Bitcoin prices were also mentioned. Upcoming economic events and major earnings releases were outlined for the following week. The Magnificent 7 companies’ earnings release dates were also provided.
