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Positive news on the job front, with strong numbers in jobless claims reflecting resilient demand for workers, could not lift the mood, nor could the expansion of the U.S. service sector, albeit at a more moderate pace. In contrast, long-term debt was labeled “overbought” by Ackman, who cited concerns over how the market would handle increased issuance without substantially higher rates. Meanwhile, Warren Buffett appeared unfazed by the Fitch move, as Berkshire Hathaway Inc . (NYSE:BRKa) continued to buy U.S. Treasurys.
In corporate highlights, several companies reported significant developments. Tesla (NASDAQ:TSLA) Inc.’s China deliveries hit their lowest level this year, reflecting ongoing struggles to attract buyers. Qualcomm (NASDAQ:QCOM) Inc. gave a lackluster sales forecast for the current quarter, signaling weak mobile device demand. Moderna (NASDAQ:MRNA) Inc. raised its Covid-19 vaccine sales outlook, finalizing new contracts, while DoorDash Inc. reported a record number of delivery orders in Q2. PayPal Holdings Inc (NASDAQ:PYPL)., on the other hand, revealed that a key profit measure shrunk in Q2, as they had to allocate more funds to cover bad loans.
In other financial news, the Bank of England increased its key interest rate by 25 basis points, leading to a weakening of the pound against the dollar. The move led traders to pare bets on where UK rates will peak, expecting a figure below 5.75%. This comes amidst an environment where investors and businesses are increasingly sensitive to rising yields, and some are opting for more bearish positions.
This article was originally published on Quiver Quantitative
