Pre-Markets in Green on Soft PPI, Falling Oil Prices and Bond Yields

Falling Crude Prices and Yields

Crude oil prices fell today following a warning from the International Energy Agency (IEA). On Aug. 12, IEA stated that global crude oil demand this year is set to fall more than previously expected. Both the international benchmark – Brent crude – and the U.S. benchmark – WTI crude – fell around 2% this morning.

The Persian Gulf Strait Authority said “the Strait of Hormuz remains blocked and will not be reopened until Iran’s conditions are accepted.”  Traffic through this crucial crude oil transport channel sank to a 3-month low.

Following benign inflation data and falling crude oil prices, yields on U.S. government bonds of different maturities declined. The yield on the benchmark 10-Year U.S. Treasury Note fell by 2 basis points. The yield on the short-term 2-Year U.S. Treasury Note also fell by 2 basis points. The yield on the long-term 30-Year U.S. Treasury Note fell by 1 basis point.

The Department of Labor reported that initial claims increased by 9,000 to 209,000 for the week ended Aug. 8, above the Zacks Consensus Estimate of 203,000. The previous week’s data was revised marginally upward to 200,000 from 199,000 reported earlier.

Continuing claims (those who have already received government aid and reported a week behind) decreased 22,000 to 1.777 million for the week ended Aug. 1. The previous week's level was revised downward by 2,000 to 1,799,000 from 1,801,000 reported earlier.

AI-Led Earnings in Focus: CSCO, COHR, CBRS

Cisco Systems Inc. CSCO came up with quarterly adjusted earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.99 per share a year ago. The AI-powered networking giant posted quarterly revenues of $17.25 billion, surpassing the Zacks Consensus Estimate by 2.36%. For a detailed analysis of CSCO’s earnings, click here.

Coherent Corp. COHR reported quarterly adjusted earnings of $1.74 per share, outpacing the Zacks Consensus Estimate of $1.62 per share. This compares to earnings of $1 per share a year ago. The optical and photonics products behemoth registered quarterly revenues of $2.05 billion, surpassing the Zacks Consensus Estimate by 2.66%. For a detailed discussion on COHR’s earnings, click here.

Cerebras Systems Inc. CBRS came up with a quarterly adjusted loss of $0.04 per share, narrower than the Zacks Consensus Estimate of a loss of $0.21per share. This compares to breakeven earnings a year ago. The Ai computing bigwig reported quarterly revenues of $209.87 million, outpacing the Zacks Consensus Estimate by 8.09%. To get more information on CBRS earnings, click here.  

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This article originally published on Zacks Investment Research (zacks.com).

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