Daily Market Color July 20, 2023Labor Market Flexes its Muscle Rates rise after jobless claims data. Swap rates and Treasury yields sold-off today, the 2-year yield rising 7bps to 4.84% and the 10-year yield climbing over 10bps to 3.85%. The move came after weak initial jobless claims data, which offered continued evidence of a robust labor market. Meanwhile, the KBW Bank Index rose to 88.53 today, levels not seen since its plunge in March. Earnings, jobless claims surprise to the downside. Tesla and Netflix were among the companies to report negative earnings calls today, with Netflix revealing a disappointing revenue forecast and Tesla’s Q2 profitability shrinking. Elsewhere, initial jobless claims came in at 228k today, significantly lower than the forecast of 240k and the lowest level seen since early May. Day ahead. Tomorrow’s schedule will be light ahead of the Fed’s rate hike decision next week. Oil figures will headline the day at 1 PM.
