US indices ended the session sharply higher (Dow Jones +1.7%, S&P500 +2.3%, and Nasdaq +2.8%), while investors seemed to favor the hypothesis of only a temporary correction in equity markets.

"The ongoing correction may have been amplified by seasonally low market liquidity, suggesting a short-term rebound", acknowledges SwissLife Asset Managers in its economic and financial outlook for August 2024.

Fundamentals remain weak, however, with movements insufficient to correct the high valuation of equities and credit', warns the Swiss asset manager, who therefore expects persistent volatility on financial markets.

On the employment front, the Department of Labor reported 233,000 new jobless claims in the US last week, down 17,000 on the previous week.

On the stock front, Eli Lilly rose sharply as the pharmaceutical company raised its annual EPS and revenue guidance ranges on the back of a strong quarterly release. The company raised its target range for adjusted EPS (non-GAAP) by $2.60 to between $16.10 and $16.60, and for revenues by $3 billion to between $45.4 and $46.6 billion.

On the other hand, Warner Bros Discovery fell sharply after the media and entertainment group reported a second-quarter net loss of nearly $10 billion on a major goodwill impairment charge.

Restaurant Brands International (RBI), the parent company of Burger King and Tim Hortons, reports adjusted EPS of $0.86 for Q2 2024, up 3.1% year-on-year.

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