Market Update
U.S. Movers: Bath & Body Works, Best Buy, Burlington Stores, Costco, Foot Locker, GAP, Li Auto, Zscaler
Scott Peters
30 May, 2025
New York City
Bath & Body Works Inc. gained 0.3% to $28.68 after the personal care products retailer reported strong results in the fiscal first quarter of 2025.
Net sales climbed to $1.42 billion from $1.38 billion, net income jumped to $105 million from $87 million, and diluted earnings per share rose to 49 cents from 38 cents a year ago.
The company maintained its full-year guidance of 1% to 3% growth, compared to $7.31 billion, and diluted earnings per share between $3.25 and $3.60, compared to $3.61 a year earlier, respectively, inclusive of current tariff rates.
For the second quarter, the retailer estimated net sales to be flat to up 2%, compared to $1.53 billion, and diluted earnings per share between 33 cents and 38 cents, compared to 68 cents a year ago, respectively.
Best Buy Co. Inc. inched up 0.01% to $66.33 after the consumer electronics retailer reported lower sales in the fiscal first quarter of 2026.
Revenue edged down to $8.77 billion from $8.85 billion, net earnings dropped to $202 million from $246 million, and diluted earnings per share fell to 95 cents from $1.13 a year ago.
The company guided full-year revenue to be between $41.1 billion and $41.9 billion, compared to $41.5 billion, and adjusted diluted earnings per share between $6.15 and $6.30, compared to $6.37 a year earlier, respectively.
During the first quarter, the retailer returned $302 million to shareholders through dividends of $202 million and share repurchases of $100 million, and the company expects to spend approximately $300 million on share repurchases during fiscal year 2026.
Best Buy will pay its next quarterly cash dividend of 95 cents per share on July 10 to shareholders on record on June 19.
Costco Wholesale Corp. eased 0.4% to $1,004.99 despite the wholesale retailer reporting strong results for the fiscal third quarter of 2025.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
Zscaler Inc. surged 4.9% to $263.54 after the cloud security provider reported higher revenue in the fiscal third quarter of 2025, but net income swung to a loss.
Revenue edged up to $678.03 million from $553.20 million, net income swung to a loss of $4.12 million from a profit of $19.12 million, and diluted earnings per share swung to a loss of 3 cents from a profit of 12 cents a year ago.
The company guided fourth-quarter revenue to be between $705 million and $707 million, compared to $592.9 million, and non-GAAP net income per share between 79 cents and 80 cents, compared to 88 cents a year earlier, respectively.
For the full year, the cyber security company estimated revenue to be between $2.659 billion and $2.661 billion, compared to $2.168 billion, and non-GAAP net income per share between $3.18 and $3.19, compared to $3.19 a year ago, respectively.
The company expects non-GAAP income from operations in the fourth quarter to range between $152 million and $154 million, compared to $140.6 million, and for the full year, it will be between $573 million and $575 million, compared to $508.1 million in 2024, respectively.
Li Auto Inc. gained 0.7% to $28.70 despite the China-based electric vehicle maker reporting sharply lower net earnings in the fiscal first quarter 2025.
Revenue declined to 25.63 billion yuan from 44.27 billion yuan, net income slumped to 592.56 million yuan from 3.52 billion yuan, and diluted earnings per share fell to 0.28 yuan from 1.65 yuan a year ago.
The company delivered 92,864 vehicles in the quarter, an increase of 15.5% from 80,400 vehicles a year earlier.
Li Auto guided second-quarter revenue to be between 32.5 billion yuan and 33.8 billion yuan, an increase of 2.5% to 6.7% from 31.7 billion yuan a year earlier.
The company also expects to deliver between 123,000 and 128,000 vehicles during the second quarter, an increase of 13.3% to 17.9% from 108,581 vehicles in the previous year.
Burlington Stores Inc. traded flat at $227.80 after the off-price department store retailer reported strong results for the fiscal first quarter of 2025.
Revenue increased to $2.50 billion from $2.36 billion, net income jumped to $100.83 million from $78.51 million, and diluted earnings per share rose to $1.58 from $1.22 a year ago.
Comparable store sales were flat, at the midpoint of guidance, and on top of 2% last year.
The company repurchased 445,285 shares of its own stock for $105 million during the quarter, and $158 million remained under repurchase authorization.
In addition, the company’s board of directors authorized the repurchase of up to an additional $500 million, which is authorized to be executed through May 2027.
Burlington Stores guided second-quarter sales to increase between 5% and 7%, compared to $2.46 billion, assuming comparable store sales will be breakeven to up 2%, and adjusted earnings per share between $1.20 and $1.30, compared to $1.24 a year ago, respectively.
For the full year, the retailer estimated sales to grow between 6% and 8%, compared to $10.62 billion, assuming comparable store sales will be breakeven to up 2%, and adjusted earnings per share between $8.70 and $9.30, compared to $8.35 in the previous year, respectively.
GAP Inc. plunged 14.8% to $23.80 after the specialty apparel company failed to meet analyst expectations in the fiscal first quarter of 2025 and warned of tariff-related costs in the future.
Revenue increased to $3.46 billion from $3.39 billion, net income climbed to $193 million from $158 million, and diluted earnings per share rose to 51 cents from 41 cents a year ago.
Comparable sales were up 2% from a year earlier, and online sales increased 6%, representing 39% of total net sales.
Excluding the potential impact from imposed tariffs, the company guided full-year net sales to grow between 1% and 2% from $15.1 billion and net interest income to decline to $15 million from $25 million in the previous year, respectively.
Furthermore, GAP plans to close approximately 35 stores during 2025, after closing 56 stores last year.
For the second quarter, the retailer estimated net sales to remain flat year-over-year.
Foot Locker Inc. traded flat at $23.93 after the footwear and apparel retailer swung to a loss in the fiscal first quarter of 2025.
Total sales were down 4.6% to $1.79 billion from $1.87 billion, net income swung to a loss of $363 million from a profit of $8 million, and diluted earnings per share swung to a loss of $3.81 from a profit of 9 cents a year ago.
Comparable sales decreased 2.6%, with comparable sales in the North American region declining 0.5% and in the international segment they were down 8.5%, led by softness in Foot Locker Europe.
Dick's Sporting Goods Inc. has agreed to acquire Foot Locker for $2.4 billion.
Japan Stocks Closed Down After Elevated Inflation Supported Rate-Hike Case
Akira Ito
30 May, 2025
Tokyo
Stock market indexes in Tokyo declined and reversed the previous session's gains after core inflation in the Tokyo region accelerated.
Moreover, the temporary approval of global tariffs by a U.S. appeals court, ahead of a permanent ruling in three weeks, shook investor sentiment and prolonged market uncertainty.
Japan's Overall Inflation Stayed Elevated In May
Core inflation in the Tokyo region accelerated to a two-year high amid broad price increases, the Statistics Bureau of Japan reported Friday.
Core inflation, which excludes fresh food, in the Ku area of Tokyo advanced to 3.6% in May from 3.5% in April.
Core inflation has risen sharply from a low of 2.2% in February to 3.6% in May, and fresh food prices eased 0.3% from a surge of 23.1% in January because of stabilization in rice prices.
Overall inflation stayed unchanged at 3.4% in May, but inflationary pressures are building up in housing, transportation, entertainment, and communication.
The government is expected to reinstate utility subsidies from August, which could lower prices for electricity.
Japan's Retail Sales Growth Accelerated In April
Japan's retail sales growth accelerated to 3.2% in April, faster than 3.1% in the previous month, according to the Ministry of Economy, Trade & Industry.
Retail sales rose for the 37th consecutive month and advanced at the fastest pace since January, amid a rise in demand for automobiles offset by a decline in sales at department stores.
The multi-year high wage increases for three years in a row continue to drive higher retail sales.
Annual Industrial Output Advanced 3rd Consecutive Month In April
Industrial output decreased in April from the previous month amid uncertainties about exports.
Output declined 0.9% from the previous month, reversing a 0.2% increase in March, weighed down by the fall in demand for production machinery by 8.7% compared to an increase of 7.1% and transportation equipment, excluding motor vehicles, by 7.0% compared to a rise of 6.6% in the previous month.
On an annual basis, industrial output advanced 0.7% in April, easing from a 1% increase in March and advancing for the third consecutive month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.3% to 37,932.45, and the broader Topix index declined 0.5% to 2,798.55.
For the week, the broader Topix advanced 2% and gained about 5% in May.
The Nikkei 225 Stock Average gained 1.6% in the week and advanced 5.3% in May.
Tech stocks led decliners amid uncertainty about the U.S. trade policy and rules.
Tokyo Electron declined 4% to ¥23,165.0, Advantest Corp. fell 4.1% to ¥7,330.0, and Disco Corp. decreased 5.4% to ¥32,940.0.
Sony Group decreased 2.1% to ¥3,886.0, Nintendo Co. Ltd. declined 2.3% to ¥12,055.0, and Fast Retailing Co. Ltd. fell 1.3% to ¥48,040.0.
Japan Stocks Closed Down After Elevated Inflation Supported Rate-Hike Case
Akira Ito
30 May, 2025
Tokyo
Stock market indexes in Tokyo declined and reversed the previous session's gains after core inflation in the Tokyo region accelerated.
Moreover, the temporary approval of global tariffs by a U.S. appeals court, ahead of a permanent ruling in three weeks, shook investor sentiment and prolonged market uncertainty.
Japan's Overall Inflation Stayed Elevated In May
Core inflation in the Tokyo region accelerated to a two-year high amid broad price increases, the Statistics Bureau of Japan reported Friday.
Core inflation, which excludes fresh food, in the Ku area of Tokyo advanced to 3.6% in May from 3.5% in April.
Core inflation has risen sharply from a low of 2.2% in February to 3.6% in May, and fresh food prices eased 0.3% from a surge of 23.1% in January because of stabilization in rice prices.
Overall inflation stayed unchanged at 3.4% in May, but inflationary pressures are building up in housing, transportation, entertainment, and communication.
The government is expected to reinstate utility subsidies from August, which could lower prices for electricity.
Japan's Retail Sales Growth Accelerated In April
Japan's retail sales growth accelerated to 3.2% in April, faster than 3.1% in the previous month, according to the Ministry of Economy, Trade & Industry.
Retail sales rose for the 37th consecutive month and advanced at the fastest pace since January, amid a rise in demand for automobiles offset by a decline in sales at department stores.
The multi-year high wage increases for three years in a row continue to drive higher retail sales.
Annual Industrial Output Advanced 3rd Consecutive Month In April
Industrial output decreased in April from the previous month amid uncertainties about exports.
Output declined 0.9% from the previous month, reversing a 0.2% increase in March, weighed down by the fall in demand for production machinery by 8.7% compared to an increase of 7.1% and transportation equipment, excluding motor vehicles, by 7.0% compared to a rise of 6.6% in the previous month.
On an annual basis, industrial output advanced 0.7% in April, easing from a 1% increase in March and advancing for the third consecutive month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.3% to 37,932.45, and the broader Topix index declined 0.5% to 2,798.55.
For the week, the broader Topix advanced 2% and gained about 5% in May.
The Nikkei 225 Stock Average gained 1.6% in the week and advanced 5.3% in May.
Tech stocks led decliners amid uncertainty about the U.S. trade policy and rules.
Tokyo Electron declined 4% to ¥23,165.0, Advantest Corp. fell 4.1% to ¥7,330.0, and Disco Corp. decreased 5.4% to ¥32,940.0.
Sony Group decreased 2.1% to ¥3,886.0, Nintendo Co. Ltd. declined 2.3% to ¥12,055.0, and Fast Retailing Co. Ltd. fell 1.3% to ¥48,040.0.
Weekly Losses In China Stocks Trim May Gains, Hang Seng Advances 5%
Li Chen
30 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong fell sharply on Friday and trimmed monthly advances amid yet another twist in U.S. trade policy.
The Hang Seng index decreased as much as 1.7%, and the mainland-focused CSI 300 declined as much as 0.8% after growing uncertainties about the U.S. trade policy.
A federal appeals court reinstated tariffs for now, after the Trump administration lost the case in the U.S. Court of International Trade.
The appeals court is expected to make its ruling in about two weeks, setting the stage for the case to go all the way to the U.S. Supreme Court next month.
The unpredictability of the Trump administration is weighing on port operations on the West and East Coasts, and businesses are struggling to adjust to the head-spinning shifts in constantly changing rules.
Key trading partners are also not likely to offer concessions until the legality of the tariffs is resolved, further delaying the negotiations.
For the week, the Hang Seng index declined 1.2%, and the mainland-focused CSI 300 index eased 0.8%.
In May, the Hang Seng index jumped 5%, and the mainland-focused CSI 300 index advanced 2.5%.
China Indexes and Stocks
The Hang Seng Index declined 1.5% to 23,217.01, and the mainland-focused CSI 300 index dropped 0.3% to 3,846.02.
Alibaba Group Holding declined 4.5% to HK $113.20, Meituan decreased 1.3% to HK $138.40, and Tencent Holding dropped 3.2% to HK $499.40.
Orient Overseas Ltd. declined 6% to HK $134.40, CK Hutchison Holdings edged down 0.6% to HK $42.60, and COSCO Shipping declined 2.3% to HK $0.96.
Weekly Losses In China Stocks Trim May Gains, Hang Seng Advances 5%
Li Chen
30 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong fell sharply on Friday and trimmed monthly advances amid yet another twist in U.S. trade policy.
The Hang Seng index decreased as much as 1.7%, and the mainland-focused CSI 300 declined as much as 0.8% after growing uncertainties about the U.S. trade policy.
A federal appeals court reinstated tariffs for now, after the Trump administration lost the case in the U.S. Court of International Trade.
The appeals court is expected to make its ruling in about two weeks, setting the stage for the case to go all the way to the U.S. Supreme Court next month.
The unpredictability of the Trump administration is weighing on port operations on the West and East Coasts, and businesses are struggling to adjust to the head-spinning shifts in constantly changing rules.
Key trading partners are also not likely to offer concessions until the legality of the tariffs is resolved, further delaying the negotiations.
For the week, the Hang Seng index declined 1.2%, and the mainland-focused CSI 300 index eased 0.8%.
In May, the Hang Seng index jumped 5%, and the mainland-focused CSI 300 index advanced 2.5%.
China Indexes and Stocks
The Hang Seng Index declined 1.5% to 23,217.01, and the mainland-focused CSI 300 index dropped 0.3% to 3,846.02.
Alibaba Group Holding declined 4.5% to HK $113.20, Meituan decreased 1.3% to HK $138.40, and Tencent Holding dropped 3.2% to HK $499.40.
Orient Overseas Ltd. declined 6% to HK $134.40, CK Hutchison Holdings edged down 0.6% to HK $42.60, and COSCO Shipping declined 2.3% to HK $0.96.
Federal Court Blocks Poorly Introduced Tariffs, Protracting Trade Uncertainty
Barry Adams
29 May, 2025
New York City
Wall Street indexes roared back after a federal court struck down unilateral tariffs announced by the U.S. president.
The S&P 500 index rose 0.9%, and the tech-heavy Nasdaq advanced 1.1% amid hopes that the poorly introduced Trump tariffs may be delayed for several months.
The U.S. Court of International Trade's three-judge panel ordered the Trump administration to stop collecting tariffs within 10 working days, ruling that the president wrongfully used emergency laws to justify levies.
The order stops 30% tariffs on China, 25% tariffs on some imports from Mexico and Canada, and 10% universal tariffs on global imports.
However, the ruling does not apply to 25% tariffs on vehicle and parts imports that were subject to Section 232 and Section 301.
The federal court's ruling brought an immediate halt to Donald Trump's signature global trade policy, further complicating the chaotic introduction of import tax.
The federal court added that the president's tariffs fail to perform the stated objective of limiting drug trafficking into the U.S.
The White House said it plans to appeal the federal court's decision, as judges ordered the administration to stop collecting tariffs and blocked levies permanently.
Trump's chaotic and incoherent and now illegal tariffs have whiplashed world markets, driving stock market volatility to a record high and throwing thousands of small businesses closer to bankruptcy.
Stock market indexes rebounded in Thursday's trading, driven by expectations that additional delay in implementing sky-high import tax may delay the rebound in inflation.
Moreover, solid earnings from Nvidia supported market enthusiasm after the artificial intelligence chip maker reported sharply higher quarterly earnings and revenues.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.5% to 5,915.83, the Nasdaq Composite edged up 0.8% to 19,256.31, and the Russell 2000 index advanced 0.4% to 2,076.10.
The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds declined to 4.97%.
WTI crude oil decreased $0.38 to $61.48 a barrel, and natural gas prices edged lower by $0.01 to $3.52 a thermal unit.
Gold increased by $26.58 to 3,313.00 an ounce, and silver edged up by $0.31 to $33.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.43 to 99.45 and traded at the lowest level since April 2022.
U.S. Stock Movers
Nvidia Corp. soared 5.3% to $141.90, and the artificial intelligence chip maker reported sharply higher earnings and revenue in the latest quarter.
The chip maker guided second-quarter revenue to be $45.0 billion, plus or minus 2%, compared to $30.0 billion a year ago.
The outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
Capri Holdings advanced 1.6% to $18.32, and the parent company of Versace and Jimmy Choo reported a smaller-than-expected decline in revenue in the fiscal fourth quarter.
The luxury fashion company reported a 15% decline in revenue and a wider loss in the latest quarter and trimmed its outlook, citing macroeconomic uncertainty.
Salesforce Inc. declined 1.4% to $271.52, and the customer relations management software company reported better-than-expected revenue and earnings in the latest quarter.
The company also boosted its annual outlook.
Federal Court Blocks Poorly Introduced Tariffs, Protracting Trade Uncertainty
Barry Adams
29 May, 2025
New York City
Wall Street indexes roared back after a federal court struck down unilateral tariffs announced by the U.S. president.
The S&P 500 index rose 0.9%, and the tech-heavy Nasdaq advanced 1.1% amid hopes that the poorly introduced Trump tariffs may be delayed for several months.
The U.S. Court of International Trade's three-judge panel ordered the Trump administration to stop collecting tariffs within 10 working days, ruling that the president wrongfully used emergency laws to justify levies.
The order stops 30% tariffs on China, 25% tariffs on some imports from Mexico and Canada, and 10% universal tariffs on global imports.
However, the ruling does not apply to 25% tariffs on vehicle and parts imports that were subject to Section 232 and Section 301.
The federal court's ruling brought an immediate halt to Donald Trump's signature global trade policy, further complicating the chaotic introduction of import tax.
The federal court added that the president's tariffs fail to perform the stated objective of limiting drug trafficking into the U.S.
The White House said it plans to appeal the federal court's decision, as judges ordered the administration to stop collecting tariffs and blocked levies permanently.
Trump's chaotic and incoherent and now illegal tariffs have whiplashed world markets, driving stock market volatility to a record high and throwing thousands of small businesses closer to bankruptcy.
Stock market indexes rebounded in Thursday's trading, driven by expectations that additional delay in implementing sky-high import tax may delay the rebound in inflation.
Moreover, solid earnings from Nvidia supported market enthusiasm after the artificial intelligence chip maker reported sharply higher quarterly earnings and revenues.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.5% to 5,915.83, the Nasdaq Composite edged up 0.8% to 19,256.31, and the Russell 2000 index advanced 0.4% to 2,076.10.
The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds declined to 4.97%.
WTI crude oil decreased $0.38 to $61.48 a barrel, and natural gas prices edged lower by $0.01 to $3.52 a thermal unit.
Gold increased by $26.58 to 3,313.00 an ounce, and silver edged up by $0.31 to $33.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.43 to 99.45 and traded at the lowest level since April 2022.
U.S. Stock Movers
Nvidia Corp. soared 5.3% to $141.90, and the artificial intelligence chip maker reported sharply higher earnings and revenue in the latest quarter.
The chip maker guided second-quarter revenue to be $45.0 billion, plus or minus 2%, compared to $30.0 billion a year ago.
The outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
Capri Holdings advanced 1.6% to $18.32, and the parent company of Versace and Jimmy Choo reported a smaller-than-expected decline in revenue in the fiscal fourth quarter.
The luxury fashion company reported a 15% decline in revenue and a wider loss in the latest quarter and trimmed its outlook, citing macroeconomic uncertainty.
Salesforce Inc. declined 1.4% to $271.52, and the customer relations management software company reported better-than-expected revenue and earnings in the latest quarter.
The company also boosted its annual outlook.
European Markets Rebounded After US Court Blocked Bulk of Tariffs
Bridgette Randall
29 May, 2025
London
European markets surged after a U.S. court ruling blocked global tariffs imposed by the U.S. president.
Benchmark indexes in Frankfurt, Paris, Milan, and London jumped in the hopes that the "permanent injunction" by a court in Manhattan will at least temporarily delay tariffs.
The U.S. Court of International Trade's three-judge panel ordered the Trump administration to implement the block within 10 working days, citing that the president wrongfully used emergency laws to justify levies.
The order stops 30% tariffs on China, 25% tariffs on some imports from Mexico and Canada, and 10% universal tariffs on global imports.
However, the ruling does not apply to 25% tariffs on vehicle and parts imports that were subject to Section 232 and Section 301.
Global markets have swung wildly over the last two months after the U.S. president announced the so-called "reciprocal tariffs" on April 2.
The court's ruling is the latest iteration over the last ten weeks, as the Trump administration has walked back and shifted stance for key trading partners amid resistance from key trading partners—China, Mexico, and Canada.
Despite the court's permanent ban, investors fear that the Trump administration will find other ways to impose tariffs or trade barriers, potentially limiting international trade and raising prices for American consumers and businesses.
Europe Indexes and Yields
The DAX index increased by 0.6% to 24,185.37, the CAC-40 index edged higher 1.0% to 7,866.14, and the FTSE 100 index advanced 0.02% to 8,727.87.
The yield on 10-year German bonds inched higher to 2.58%, French bonds increased to 3.24%, the UK gilts moved down to 4.72%, and Italian bonds edged higher to 3.57%.
The euro decreased to $1.13; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 82.96 Swiss cents.
Brent crude increased $0.97 to $65.89 a barrel, and the Dutch TTF natural gas was higher by €0.46 to €36.99 per MWh.
Europe Movers
Semiconductor and artificial intelligence-linked stocks advanced after Nvidia reported a surge in revenue and earnings in its latest quarter.
Infineon Technologies increased 2.2% to €35.18, STMicroelectronics advanced 2.4% to €22.92, and ARM Holdings PLC advanced 3.2% to €124.0.
Luxury stocks were among the top performers after the U.S. court ruling.
Kering SA increased 1.5% to €176.14, LVMH added 1.2% to €489.30, and Hermes International gained 1% to €2,407.0.