Summary of Jay Cooke Insights (2024-07-10)

· The recent 10-year Treasury note reopening saw strong demand with a high yield of 4.276%, surpassing historical averages. This indicates sustained confidence in U.S. Treasuries, possibly driven by expectations of moderate inflation and potential rate cuts from the Federal Reserve. The event has implications for investors, including market confidence, interest rate outlook, portfolio diversification, and global economic conditions. It suggests a cautiously optimistic market sentiment and reinforces the importance of U.S. government bonds as a safe-haven asset.

Link: https://www.ainvest.com/news/analysis-of-recent-10-year-treasury-note-reopening-and-its-implications-2407101078b588bbf080a030

· PepsiCo's Q2 earnings report is expected to show a 3% adjusted EPS growth year-over-year to $2.16 and 1% sales growth to $22.62 billion, reflecting challenges in its core North American market. International markets have shown resilience, with volume improvements outside of North America. The company's retail shelf space resets and strategic initiatives could provide a foundation for recovery and growth. Investors should watch for volume growth in North America, international performance, guidance adjustments, and the competitive landscape. $PEP(PEP)

Link: https://www.ainvest.com/news/pepsico-pep-earnings-preview-navigating-volatility-amid-rising-prices-and-global-strategies-240710103844ed17462cd4ab

· Taiwan Semiconductor Manufacturing Co.'s (TSM) June 2024 sales outpaced expectations with NT$207.87 billion ($6.38 billion), a 32.9% increase from June 2023 and a 28.0% increase for the first half of 2024.The strong sales were driven by high demand for AI-related chips, particularly TSM's advanced process nodes.TSM's market leading position and dominance in the high-end semiconductor space has led to positive reactions in the tech sector, with shares of key customers like Nvidia and Apple also seeing gains. $TSM(TSM)

Link: https://www.ainvest.com/news/taiwan-semi-june-sales-outpace-expectations-240710103dd8903196950f11

· China's inflation data showed a slower-than-expected recovery, with consumer price index (CPI) increasing by 0.2% year-on-year in June, while producer price index (PPI) continued its 21-month streak of decline. The weak data points to ongoing deflationary pressures and sluggish consumer demand, which may require further government stimulus to boost the economy. Market reactions were mixed, with Chinese stocks dipping following the disappointing figures.

Link: https://www.ainvest.com/news/china-s-cooling-inflation-data-points-to-a-slower-recovery-24071010e05790ce14efd581

· Fed Chairman Jerome Powell's Senate testimony highlighted the importance of addressing inflation, maintaining central bank independence, and navigating the complexities of a post-pandemic world. He emphasized the need to bring inflation down to a sustainable 2% level and signaled that the 'likely next direction' of policy will involve loosening monetary policy, but only if progress is made in inflation and labor markets.

Link: https://www.ainvest.com/news/jerome-powell-s-senate-testimony-a-glimpse-into-fed-s-monetary-policy-strategy-2407101072ee18fc8c6557ee