Market Update
U.S. Movers: AutoZone, Okta, Toro
Scott Peters
28 May, 2025
New York City
AutoZone Inc. traded flat at $3,695.66 after the retailer of aftermarket automotive parts reported higher revenue in the fiscal third quarter.
Net sales climbed 5.4% to $4.46 billion from $4.23 billion, net income dropped 6.6% to $608 million from $652 million, and diluted earnings per share fell 3.6% to $35.36 from $36.69 a year ago.
The company repurchased $250 million of its own stock during the quarter and opened 84 new stores, compared to 45 stores a year earlier.
AutoZone increased its inventory by 10.8% to $6.82 billion from $6.15 billion in the prior year and reduced its debt by 1.6%.
Okta Inc. plunged 12.8% to $109.39 despite the identity management company reporting higher revenue in the first quarter of 2025.
Revenue increased to $688 million from $617 million, net income swung a profit of $62 million from a loss of $40 million, and diluted earnings per share swung to a profit of 36 cents from a loss of 24 cents a year ago.
The company guided second-quarter revenue to be between $710 million and $712 million, compared to $556 million, and non-GAAP diluted earnings per share between 83 cents and 84 cents, compared to 31 cents a year earlier, respectively.
For the full year, Okta estimated revenue to be between $2.85 billion and $2.86 billion, compared to $2.26 billion, and non-GAAP diluted earnings per share between $3.23 and $3.28, compared to $2.81 a year ago, respectively.
Toro Corp. increased 2.7% to $75.88 after the provider of lawn maintenance equipment maker reported a slight decline in revenue in the first quarter.
Net sales edged down to $995 million from $1.00 billion, net income dropped to $52.8 million from $64.9 million, and diluted earnings per share fell to 52 cents from 62 cents a year ago.
The company guided full-year net sales growth to be in the range of breakeven to 1%, compared to $4.58 billion, and adjusted diluted earnings per share between $4.25 and $4.40, compared to $4.17 a year earlier, respectively.
U.S. Movers: AutoZone, Okta, Toro
Scott Peters
28 May, 2025
New York City
AutoZone Inc. traded flat at $3,695.66 after the retailer of aftermarket automotive parts reported higher revenue in the fiscal third quarter.
Net sales climbed 5.4% to $4.46 billion from $4.23 billion, net income dropped 6.6% to $608 million from $652 million, and diluted earnings per share fell 3.6% to $35.36 from $36.69 a year ago.
The company repurchased $250 million of its own stock during the quarter and opened 84 new stores, compared to 45 stores a year earlier.
AutoZone increased its inventory by 10.8% to $6.82 billion from $6.15 billion in the prior year and reduced its debt by 1.6%.
Okta Inc. plunged 12.8% to $109.39 despite the identity management company reporting higher revenue in the first quarter of 2025.
Revenue increased to $688 million from $617 million, net income swung a profit of $62 million from a loss of $40 million, and diluted earnings per share swung to a profit of 36 cents from a loss of 24 cents a year ago.
The company guided second-quarter revenue to be between $710 million and $712 million, compared to $556 million, and non-GAAP diluted earnings per share between 83 cents and 84 cents, compared to 31 cents a year earlier, respectively.
For the full year, Okta estimated revenue to be between $2.85 billion and $2.86 billion, compared to $2.26 billion, and non-GAAP diluted earnings per share between $3.23 and $3.28, compared to $2.81 a year ago, respectively.
Toro Corp. increased 2.7% to $75.88 after the provider of lawn maintenance equipment maker reported a slight decline in revenue in the first quarter.
Net sales edged down to $995 million from $1.00 billion, net income dropped to $52.8 million from $64.9 million, and diluted earnings per share fell to 52 cents from 62 cents a year ago.
The company guided full-year net sales growth to be in the range of breakeven to 1%, compared to $4.58 billion, and adjusted diluted earnings per share between $4.25 and $4.40, compared to $4.17 a year earlier, respectively.
European Infrastructure and Defense Stock Rally Continues Unabated
Bridgette Randall
28 May, 2025
London
European markets advanced amid positive sentiment after Germany prepared to ramp up its infrastructure investment plans.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher after the U.S. president paused the threatened 50% tariff on the European Union, yet another flip-flop.
Manufacturing companies in Europe are ramping up their outreach to China, India, the ASEAN region, and South America as unpredictable U.S. trade policies begin to weigh.
Moreover, large companies are also looking to improve operating efficiencies and search deeper in the domestic markets as member nations increase infrastructure spending.
European bond yields advanced amid growing worries that the recent boom in the region's bond offering may lift debt burden to unsustainable levels.
Europe Indexes and Yields
The DAX index increased by 0.1% to 24,254.13, the CAC-40 index edged higher 0.1% to 7,834.95, and the FTSE 100 index advanced 0.2% to 8,798.22.
The yield on 10-year German bonds inched higher to 2.54%, French bonds increased to 3.22%, the UK gilts moved up to 4.70%, and Italian bonds edged higher to 3.55%.
The euro decreased to $1.13; the British pound was lower at $1.35; and the U.S. dollar was lower and traded at 82.64 Swiss cents.
Brent crude increased $0.19 to $64.46 a barrel, and the Dutch TTF natural gas was lower by €0.21 to €36.48 per MWh.
Europe Stock Movers
Defense and infrastructure stocks extended a two-month rally after Germany's Finance Minister Lars Klingbeil announced that the German government plans to allocate €110 billion in public investment this year.
Siemens AG increased 1% to €221.0, Siemens Energy advanced 2.6% to €85.40, BASF gained 1.2% to €42.87, Bayer edged up 1% to €24.93, and Salzgitter AG decreased 6.2% to €21.30.
Defense stock rallied amid rising tensions with Russia and a lack of immediate resolution to a three-year war in Ukraine.
Rheinmetall AG gained 2.2% to €1,889.0, Hensoldt AG soared 5.7% to €86.60, but Thyssenkrupp AG decreased 1.3% to €9.27.
France and Indonesia signed several defense cooperation agreements, including the purchase of Rafael jets developed by Dassault Aviation and Scorpene submarines manufactured by the French government-owned Naval Group.
Dassault Aviation SA gained 1% to €311.80, Thales SA advanced 1.3% to €266.90, and Safran SA increased 0.8% to €259.20.
Stellantis NV edged up 0.4% to €9.22, and 52-year-old Antonio Filosa assumed the role of chief executive, succeeding Carlos Tavares.
Airbus SE increased 0.4% to €162.20, and the company signed an agreement with Vietnam-based VietJet to sell an additional 20 A330 neo widebody aircraft, following last year's deal to purchase jets.
European Infrastructure and Defense Stock Rally Continues Unabated
Bridgette Randall
28 May, 2025
London
European markets advanced amid positive sentiment after Germany prepared to ramp up its infrastructure investment plans.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher after the U.S. president paused the threatened 50% tariff on the European Union, yet another flip-flop.
Manufacturing companies in Europe are ramping up their outreach to China, India, the ASEAN region, and South America as unpredictable U.S. trade policies begin to weigh.
Moreover, large companies are also looking to improve operating efficiencies and search deeper in the domestic markets as member nations increase infrastructure spending.
European bond yields advanced amid growing worries that the recent boom in the region's bond offering may lift debt burden to unsustainable levels.
Europe Stock Movers
Defense and infrastructure stocks extended a two-month rally after Germany's Finance Minister Lars Klingbeil announced that the German government plans to allocate €110 billion in public investment this year.
Siemens AG increased 1% to €221.0, Siemens Energy advanced 2.6% to €85.40, BASF gained 1.2% to €42.87, Bayer edged up 1% to €24.93, and Salzgitter AG decreased 6.2% to €21.30.
Defense stock rallied amid rising tensions with Russia and a lack of immediate resolution to a three-year war in Ukraine.
Rheinmetall AG gained 2.2% to €1,889.0, Hensoldt AG soared 5.7% to €86.60, but Thyssenkrupp AG decreased 1.3% to €9.27.
France and Indonesia signed several defense cooperation agreements, including the purchase of Rafael jets developed by Dassault Aviation and Scorpene submarines manufactured by the French government-owned Naval Group.
Dassault Aviation SA gained 1% to €311.80, Thales SA advanced 1.3% to €266.90, and Safran SA increased 0.8% to €259.20.
Stellantis NV edged up 0.4% to €9.22, and 52-year-old Antonio Filosa assumed the role of chief executive, succeeding Carlos Tavares.
Airbus SE increased 0.4% to €162.20, and the company signed an agreement with Vietnam-based VietJet to sell an additional 20 A330 neo widebody aircraft, following last year's deal to purchase jets.
Weakening Yen and Bond Yields Keep Stock Rally In Check In Japan
Akira Ito
28 May, 2025
Tokyo
Stock market indexes in Japan extended gains for the fourth consecutive session, the yen weakened, and bond market yield edged lower, easing pressure on stocks.
The Nikkei 225 Stock Average inched higher 0.3%, and the Topix index edged up 0.4% to 2,781.55, following gains in overnight trading in New York.
The S&P 500 index jumped 2%, and the Nasdaq Composite advanced 2.5% after investors returned from a three-day weekend in recognition of Memorial Day.
Japan's government bond yields edged slightly higher, snapping a three-day losing streak after the Bank of Japan Governor Kazuo Ueda addressed parliament.
Japan's 10-year government bond yield hovered near 1.5% after a local report suggested that the Ministry of Finance is considering paring back the issuance of super-long bonds to stem the rising yields.
The move came after last week's 20-year government bond auction drew the weakest interest in more than a decade, and anxieties remained high for the upcoming 40-year government bond auction.
The yield on the 20-year bond traded at 2.41% and the 40-year bond at 3.32%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.3% to 37,867.16, and the broader Topix index added 0.4% to 2,781.55.
Technology, financial, retail, and consumer-focused stocks led market gainers in Tokyo.
Advantest Corp. edged up 0.3% to ¥7,235.0, Disco Corp. declined 0.3% to ¥33,710.0, and Tokyo Electron inched higher 0.3% to ¥23,280.0.
Seven & I Holdings inched up 0.3% to ¥2,168.50, Fast Retailing Co. declined 0.2% to ¥47,210.0, Takashimaya Co. Ltd. edged higher 0.4% to ¥1,162.50, and Isetan Mitsukoshi advanced 1.6% to ¥2,202.50.
Weakening Yen and Bond Yields Keep Stock Rally In Ch
Akira Ito
28 May, 2025
Tokyo
Stock market indexes in Japan extended gains for the fourth consecutive session, the yen weakened, and bond market yield edged lower, easing pressure on stocks.
The Nikkei 225 Stock Average inched higher 0.3%, and the Topix index edged up 0.4% to 2,781.55, following gains in overnight trading in New York.
The S&P 500 index jumped 2%, and the Nasdaq Composite advanced 2.5% after investors returned from a three-day weekend in recognition of Memorial Day.
Japan's government bond yields edged slightly higher, snapping a three-day losing streak after the Bank of Japan Governor Kazuo Ueda addressed parliament.
Japan's 10-year government bond yield hovered near 1.5% after a local report suggested that the Ministry of Finance is considering paring back the issuance of super-long bonds to stem the rising yields.
The move came after last week's 20-year government bond auction drew the weakest interest in more than a decade, and anxieties remained high for the upcoming 40-year government bond auction.
The yield on the 20-year bond traded at 2.41% and the 40-year bond at 3.32%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.3% to 37,867.16, and the broader Topix index added 0.4% to 2,781.55.
Technology, financial, retail, and consumer-focused stocks led market gainers in Tokyo.
Advantest Corp. edged up 0.3% to ¥7,235.0, Disco Corp. declined 0.3% to ¥33,710.0, and Tokyo Electron inched higher 0.3% to ¥23,280.0.
Seven & I Holdings inched up 0.3% to ¥2,168.50, Fast Retailing Co. declined 0.2% to ¥47,210.0, Takashimaya Co. Ltd. edged higher 0.4% to ¥1,162.50, and Isetan Mitsukoshi advanced 1.6% to ¥2,202.50.
China Indexes Lack Momentum, PDD and Xiaomi Diverge After Results
Li Chen
28 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong lacked direction amid a flood of mixed corporate earnings.
The Hang Seng index declined 0.5%, and the CSI 300 index inched up a fraction, and investors reacted to results from PDD, Xiaomi, and Kuaishou Technology.
Market sentiment remained cautious amid a lack of visible earnings growth, weak consumer sentiment, and a protracted property market slump, compounded by trade tensions with the U.S.
Despite the recent return of foreign investors, leading manufacturing stocks are likely to struggle amid rising capital expenditure and weakening margins.
Moreover, manufacturing companies are diversifying away from the U.S., which will further dampen operating margins, negatively impacting stock prices.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,263.13, and the mainland-focused CSI 300 index edged up 0.1% to 3,843.51.
PDD Holding dropped 13.6% to $102.98 in New York trading, and the parent company of Temu and Pinduoduo reported a 47% decline in earnings as sales faltered.
E-commerce platform operators traded down after PDD Holdings said margins are likely to weaken amid rising competition.
Alibaba Group Holding decreased 1.7% to HK $115.80, Meituan dropped 1.4% to HK $130.40, and JD.com Inc. eased 1.3% to HK $126.80.
Kuaishou Technology advanced 5.2% to HK $51.20, and the short-video platform operator's first-quarter revenue surpassed market expectations.
Xiaomi Corp. added 2.3% to HK $52.35, and the smartphone and electric vehicle maker reported record first-quarter revenue and earnings.
Revenue increased to 111.29 billion yuan, and net income advanced to 10.29 billion yuan, as the average selling price for the company's smartphone inched up to 1,211 yuan.
The company's revenue and profit growth has been powered by the shift to premium smartphones and electric vehicles.
China Indexes Lack Momentum, PDD and Xiaomi Diverge After Results
Li Chen
28 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong lacked direction amid a flood of mixed corporate earnings.
The Hang Seng index declined 0.5%, and the CSI 300 index inched up a fraction, and investors reacted to results from PDD, Xiaomi, and Kuaishou Technology.
Market sentiment remained cautious amid a lack of visible earnings growth, weak consumer sentiment, and a protracted property market slump, compounded by trade tensions with the U.S.
Despite the recent return of foreign investors, leading manufacturing stocks are likely to struggle amid rising capital expenditure and weakening margins.
Moreover, manufacturing companies are diversifying away from the U.S., which will further dampen operating margins, negatively impacting stock prices.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,263.13, and the mainland-focused CSI 300 index edged up 0.1% to 3,843.51.
PDD Holding dropped 13.6% to $102.98 in New York trading, and the parent company of Temu and Pinduoduo reported a 47% decline in earnings as sales faltered.
E-commerce platform operators traded down after PDD Holdings said margins are likely to weaken amid rising competition.
Alibaba Group Holding decreased 1.7% to HK $115.80, Meituan dropped 1.4% to HK $130.40, and JD.com Inc. eased 1.3% to HK $126.80.
Kuaishou Technology advanced 5.2% to HK $51.20, and the short-video platform operator's first-quarter revenue surpassed market expectations.
Xiaomi Corp. added 2.3% to HK $52.35, and the smartphone and electric vehicle maker reported record first-quarter revenue and earnings.
Revenue increased to 111.29 billion yuan, and net income advanced to 10.29 billion yuan, as the average selling price for the company's smartphone inched up to 1,211 yuan.
The company's revenue and profit growth has been powered by the shift to premium smartphones and electric vehicles.
Europe Movers: Lundberg
Inga Muller
27 May, 2025
Frankfurt
Lundberg AB inched up 0.1% to 501 krona after the Swedish investment company reported first-quarter 2025 results.
Net sales climbed to SEK 8.27 billion from SEK 7.98 billion, net profit declined to SEK 3.15 billion from SEK 4.33 billion, and earnings per share fell to SEK 12.71 from SEK 17.44 a year ago.
On March 31, net asset value after deferred tax amounted to SEK 140.0 billion, compared with SEK 137.6 billion on December 31, 2024, and the corresponding values on May 23 were SEK 138.1 billion.
Total assets at the end of the first quarter increased to SEK 230.31 billion from SEK 222.12 billion a year ago.
Europe Movers: Lundberg
Inga Muller
27 May, 2025
Frankfurt
Lundberg AB inched up 0.1% to 501 krona after the Swedish investment company reported first-quarter 2025 results.
Net sales climbed to SEK 8.27 billion from SEK 7.98 billion, net profit declined to SEK 3.15 billion from SEK 4.33 billion, and earnings per share fell to SEK 12.71 from SEK 17.44 a year ago.
On March 31, net asset value after deferred tax amounted to SEK 140.0 billion, compared with SEK 137.6 billion on December 31, 2024, and the corresponding values on May 23 were SEK 138.1 billion.
Total assets at the end of the first quarter increased to SEK 230.31 billion from SEK 222.12 billion a year ago.
Bulls In Charge On Wall Street Amid Yet Another Trump Flip-flop
Barry Adams
27 May, 2025
New York City
Wall Street indexes advanced in early trading as investors returned from a three-day weekend amid ongoing trade tensions ignited by the U.S. president.
Donald Trump paused the threatened, but not imposed, 50% tariff on the European Union by about a week to July 9.
Market sentiment remained positive despite twin worries of a sharp rise in import taxes and a deteriorating financial position after the passage of the latest tax-and-spend bill by the U.S. House.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2%, as investors await a barrage of earnings later in the week.
Nvidia, Dell Technologies, Salesforce.com, Marvell Technologies, HP, Macy's, Costco, Foot Locker, and Burlington Stores are among several companies scheduled to release their results.
On the economic front, investors are awaiting the release of GDP growth data and a consumer confidence update later this week.
New orders for manufactured durable goods in April, down following four consecutive monthly increases, decreased 6.3% to $19.9 billion from $296.3 billion in the previous month, the U.S. Census Bureau announced today.
This followed a 7.6% March increase; excluding transportation, new orders rose 0.2%, and excluding defense, new orders declined 7.5%.
New order flow decline was mainly driven by the start of the tariff and softer demand for goods following front-loading orders in the previous month.
Transportation equipment orders plunged 17.1% to $98.8 billion, mainly on non-defense aircraft and parts orders declining by 51.5% to $18.1 billion, and capital goods orders falling by 14.6% to $101.4 billion.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 1.2% to 5,871.05, the Nasdaq Composite edged up 1.4% to 19,009.62, and the Russell 2000 index advanced 1.0% to 2,061.91.
The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 4.47%, and 30-year Treasury bonds declined to 4.98%.
WTI crude oil decreased $0.57 to $60.95 a barrel, and natural gas prices edged higher by $0.04 to $3.31 a thermal unit.
Gold decreased by $51.41 to 3,294.89 an ounce, and silver edged down by $0.37 to $33.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.12 to 99.23 and traded at the lowest level since April 2022.
U.S. Stock Movers
Salesforce Inc. advanced 0.9% to $275.44 after the company agreed to acquire cloud data management company Informatica for $8 billion.
Informatica increased 5.8% to $23.83 after the announcement of the deal.
PDD Holdings declined 17.5% to $98.60 after the parent company of China-based Temu reported weaker-than-expected quarterly results.