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Morning Briefing: August 8th, 2023

Market Sentiment and Economic Indicators

U.S. Markets and Guidance Shift

After yesterday’s gains, market participants have shown a tendency to withdraw some money, with disappointing guidance from major companies like UPS leading the way. The shift in sentiment can also be attributed to Moody’s downgrade of credit ratings for 10 small and mid-sized U.S. banks, along with changing its outlook to negative for an additional 11 banks.

Trade Data and Economic Slowdown in China

China’s larger than expected trade surplus for July ($80.6 billion vs. expected $70.6 billion) should have been good news. However, the country’s imports contracted at their fastest pace in over two years, and exports declined 14.5% against an expected 12.5% decline. This indicates a weakening in domestic demand and has a broader implication on global economic dynamics.

European Markets and Italian Windfall Tax

Europe felt a shiver as the Italian government announced a surprise windfall profit tax on Italian banks, affecting stock markets there and in other parts of Europe.

Treasury Note Yields

With the 2-year Treasury note yield down five basis points to 4.73% and the 10-year note yield down ten basis points to 3.99%, the bond market reflects a move towards safety among investors.

Corporate Updates


  • Palantir Technologies: Reports in-line earnings; authorizes up to $1.0 billion for repurchases.
  • UPS: Beats on earnings, misses on revenue; guides FY23 revenue below consensus.
  • Intl Flavors: Misses on both earnings and revenue; lowers FY23 guidance.
  • Eli Lilly: Beats expectations; raises FY23 guidance.
  • Beyond Meat: Beats on earnings, misses on revenue; lowers FY23 revenue guidance.
  • Lucid Group: Misses expectations; on track for manufacturing more than 10,000 vehicles in 2023.
  • Five9: Agrees to acquire Aceyus; financial terms not disclosed.
  • Home Depot and Lowe’s: Downgraded at Telsey Advisory Group.
  • Datadog: Beats on earnings and revenue; mixed guidance.
  • RingCentral: Names new CEO; mixed guidance.

Global Financial Landscape

U.S. and European Banks

Fears about the health of the U.S. economy and banks have surfaced, with Moody’s cuts and Italy’s unexpected tax impacting both American and European lenders.

China’s Economic Woes

China’s disappointing economic recovery is affecting exporting nations, especially in the developing world. Reduced demand for raw materials and commodities signals potential economic hardships for countries heavily reliant on these exports.

Treasury Auction and Inflation Data

A significant deluge of 3-, 10-, and 30-year auctions before the week is out, up $7 billion from May, will be key in shaping the yield curve. Alongside, U.S. inflation data due on Thursday are seen as the next pressure points for the market.

Banking Performance in Europe

Despite the looming fears, European banks remain a reliable profit center. With a 69% beat rate on consensus estimates this season, the sector stands as the highest among all sectors on the MSCI Europe.


Today’s briefing paints a picture of uncertainty and caution, with a mix of positive and negative corporate news and concerning macroeconomic indicators. From the surprising government actions in Italy to alarming signals from China, market participants will have to navigate a complex landscape. The U.S. economy’s warning signs and the anticipated Treasury auction add to the intricate situation. Investors, governments, and corporations must approach the coming days with measured optimism and strategic planning, as the global economic environment continues to shift unpredictably.




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