Market Update
Japan Indexes Halt 3-Day Slide, Services Growth Revised Lower In May
Akira Ito
04 Jun, 2025
Tokyo
Stocks in Tokyo halted a three-day slide following a rise in overnight trading in New York.
Investor optimism was fueled by a tech stock rally in New York in overnight trading and cautious optimism expressed by the Bank of Japan Governor.
Governor Kazuo Ueda reiterated the central bank's commitment to raise rates if economic data support the move and inflation targets are reached.
Ueda said Japan's economy is in moderate recovery, driven by strong corporate earnings and business sentiment, despite some persistent weakness.
The Japanese yen traded at 144.13 against the U.S. dollar as investors debated the Bank of Japan's next move.
The au Jibun Bank Japan Services PMI was revised higher to 51.0 in May from the preliminary estimate of 50.8 but still lower than 52.4 in April.
The service sector expanded for the second consecutive month, but the pace of expansion slowed amid U.S. tariff uncertainty.
Business outlook improved to a three-month high from the four-year low in April amid hopes of improving demand conditions.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 1% to 37,806.68, and the broader Topix index increased 0.7% to 2,789.52.
Semiconductor equipment makers led gainers in Tokyo trading.
Tokyo Electron increased 0.5% to ¥22,515.0, Advantest Corp gained 2.2% to ¥7,433.0, and Disco Corp. added 1% to ¥32,640.0.
China Stocks Move Higher Amid Global Shift Away from U.S. Stocks
Li Chen
04 Jun, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced amid hopes of de-escalation in trade tensions between the U.S. and China.
The Hang Seng index gained 0.7%, and the mainland-focused CSI 300 index edged up 0.3%, following the market advance in overnight trading in New York.
Stock market indexes in New York approached record highs reached earlier in the year following labor data confirming resilient market conditions.
Moreover, investors are hoping that a potential call between the leaders of the U.S. and China could smooth trade negotiations, as both parties ramped up accusations of violation of verbal agreements reached in Geneva, Switzerland, last month.
China Indexes and Stocks
The Hang Seng index added 0.7% to 23,680.73, and the CSI 300 index increased 0.3% to 3,871.88.
Electric vehicle makers advanced after the government released a program to facilitate sales in the rural area.
BYD gained 1.6% to HK $407.20, Li Auto added 0.8% to $117.40, and Geely Automobile Holdings Ltd. increased 2.4% to HK $18.26.
Ping An Insurance declined 1.5% to HK $45.80 after the company announced its plans to sell convertible bonds worth $1.5 billion, or HK $11.8 billion.
The bond sale is likely to dilute the insurance company's earnings per share in the near future.
Xiaomi Corp. saw a 1.6% increase to $54.10 following the CEO's announcement that the company expects its electric vehicle unit to turn profitable this year.
The company's electric vehicle revenue in the first quarter surged to 18.1 billion yuan from 18.4 million yuan a year ago, and a loss of 500 million yuan, according to the company's filing with the exchange.
China Stocks Move Higher Amid Global Shift Away from U.S. Stocks
Li Chen
04 Jun, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced amid hopes of de-escalation in trade tensions between the U.S. and China.
The Hang Seng index gained 0.7%, and the mainland-focused CSI 300 index edged up 0.3%, following the market advance in overnight trading in New York.
Stock market indexes in New York approached record highs reached earlier in the year following labor data confirming resilient market conditions.
Moreover, investors are hoping that a potential call between the leaders of the U.S. and China could smooth trade negotiations, as both parties ramped up accusations of violation of verbal agreements reached in Geneva, Switzerland, last month.
China Indexes and Stocks
The Hang Seng index added 0.7% to 23,680.73, and the CSI 300 index increased 0.3% to 3,871.88.
Electric vehicle makers advanced after the government released a program to facilitate sales in the rural area.
BYD gained 1.6% to HK $407.20, Li Auto added 0.8% to $117.40, and Geely Automobile Holdings Ltd. increased 2.4% to HK $18.26.
Ping An Insurance declined 1.5% to HK $45.80 after the company announced its plans to sell convertible bonds worth $1.5 billion, or HK $11.8 billion.
The bond sale is likely to dilute the insurance company's earnings per share in the near future.
Xiaomi Corp. saw a 1.6% increase to $54.10 following the CEO's announcement that the company expects its electric vehicle unit to turn profitable this year.
The company's electric vehicle revenue in the first quarter surged to 18.1 billion yuan from 18.4 million yuan a year ago, and a loss of 500 million yuan, according to the company's filing with the exchange.
U.S. Movers: Dollar General, Ollie's Bargain Outlet, Signet Jewelers
Scott Peters
03 Jun, 2025
New York City
Dollar General Corp. surged 10.7% to $107.60 after the discount retailer lifted its annual outlook.
Net sales in the fiscal first quarter ending on May 2 increased to $10.43 billion from $9.91 billion, net income jumped to $391.9 million from $363.3 million, and diluted earnings per share rose to $1.78 from $1.65 a year ago.
Same-store sales increased 2.4% in the quarter, and cash flows from operations edged up 27.6% to $847.2 million.
The company announced a quarterly cash dividend of 59 cents per share, payable on July 22 to shareholders on record on July 8.
As of May 2, total merchandise inventories, at cost, were $6.6 billion compared to $6.9 billion a year ago, a decrease of 7% on an average per-store basis.
The company guided fiscal 2025 net sales to increase between 3.7% and 4.7%, compared to $40.6 billion a year ago, and same-store sales to grow between 1.5% and 2.5%, higher than the previous estimate of 1.2% to 2.2%.
Dollar General also expects full-year diluted earnings per share to range between $5.20 and $5.80, compared to $5.11 a year earlier.
Ollie's Bargain Outlet Holdings Inc. eased 2.6% to $108.99 after the discount retailer reported first-quarter 2025 results.
Net sales jumped to $576.77 million from $508.82 million, net income edged up to $47.56 million from $46.34 million, and diluted earnings per share rose to 77 cents from 75 cents a year ago.
Comparable store sales increased 2.6% on top of 3% growth in the previous year, and the company opened 25 new stores, compared to four new stores in the same quarter last year.
The company said Ollie’s Army loyalty members increased 9.2% to more than 15.5 million in the quarter.
The discount retailer guided full-year net sales to range between $2.58 billion and $2.60 billion, compared to $2.27 billion a year earlier, and higher than the previous forecast.
The company also expects full-year comparable store sales to increase between 1.4% and 2.2%, higher than the previous estimate of 1% to 2%.
The retailer said full-year adjusted net income is estimated to be between $225 million and $232 million, or $3.65 to $3.75 per diluted share, compared to $202.4 million, or $3.28 per diluted share, a year ago.
The company plans to open 75 new stores in fiscal 2025.
Signet Jewelers Ltd. soared 17.6% to $78.60 after the diamond jewelry retailer reported better than expected fiscal first-quarter 2026 results.
Sales increased to $1.54 billion from $1.51 billion, net income swung to a profit of $33.5 million from a loss of $40.1 million, and diluted earnings per share were 78 cents, compared to a loss of 90 cents a year ago.
Same-store sales jumped 2.5% from a year earlier.
The company has announced a quarterly cash dividend of 32 cents per share for the second quarter, payable on August 22 to shareholders on record on July 25.
During the first quarter, the company repurchased approximately 2.1 million shares for $117.4 million, and subsequent to quarter end, it has repurchased approximately 235,000 additional shares for $15 million through June 2.
The company has nearly $600 million in share repurchase authorization remaining.
The jewelry retailer guided second-quarter sales to range between $1.47 billion and $1.51 billion, compared to $1.49 billion a year ago, and same-store sales to be between negative 1.5% and up 1%.
The company also estimated adjusted operating income in the second quarter to range between $53 million and $73 million, compared to $68.6 million a year earlier.
For the full year, the company estimated sales to be between $6.57 billion and $6.80 billion, compared to $6.70 billion a year earlier, and same-store sales to be between negative 2% and up 1.5%.
Adjusted operating income for the full year is expected to range between $430 million and $510 million, compared to $498.1 million a year ago.
U.S. Movers: Dollar General, Ollie's Bargain Outlet, Signet Jewelers
Scott Peters
03 Jun, 2025
New York City
Dollar General Corp. surged 10.7% to $107.60 after the discount retailer lifted its annual outlo
Net sales increased to $10.43 billion from $9.91 billion, net income jumped to $391.9 million from $363.3 million, and diluted earnings per share rose to $1.78 from $1.65 a year ago.
Same-store sales increased 2.4% in the quarter, and cash flows from operations edged up 27.6% to $847.2 million.
The company announced a quarterly cash dividend of 59 cents per share, payable on July 22 to shareholders on record on July 8.
As of May 2, total merchandise inventories, at cost, were $6.6 billion compared to $6.9 billion a year ago, a decrease of 7% on an average per-store basis.
The company guided fiscal 2025 net sales to increase between 3.7% and 4.7%, compared to $40.6 billion a year ago, and same-store sales to grow between 1.5% and 2.5%, higher than the previous estimate of 1.2% to 2.2%.
Dollar General also expects full-year diluted earnings per share to range between $5.20 and $5.80, compared to $5.11 a year earlier.
Ollie's Bargain Outlet Holdings Inc. eased 2.6% to $108.99 after the discount retailer reported first-quarter 2025 results.
Net sales jumped to $576.77 million from $508.82 million, net income edged up to $47.56 million from $46.34 million, and diluted earnings per share rose to 77 cents from 75 cents a year ago.
Comparable store sales increased 2.6% on top of 3% growth in the previous year, and the company opened 25 new stores, compared to four new stores in the same quarter last year.
The company said Ollie’s Army loyalty members increased 9.2% to more than 15.5 million in the quarter.
The discount retailer guided full-year net sales to range between $2.58 billion and $2.60 billion, compared to $2.27 billion a year earlier, and higher than the previous forecast.
The company also expects full-year comparable store sales to increase between 1.4% and 2.2%, higher than the previous estimate of 1% to 2%.
The retailer said full-year adjusted net income is estimated to be between $225 million and $232 million, or $3.65 to $3.75 per diluted share, compared to $202.4 million, or $3.28 per diluted share, a year ago.
The company plans to open 75 new stores in fiscal 2025.
Signet Jewelers Ltd. soared 17.6% to $78.60 after the diamond jewelry retailer reported better than expected fiscal first-quarter 2026 results.
Sales increased to $1.54 billion from $1.51 billion, net income swung to a profit of $33.5 million from a loss of $40.1 million, and diluted earnings per share were 78 cents, compared to a loss of 90 cents a year ago.
Same-store sales jumped 2.5% from a year earlier.
The company has announced a quarterly cash dividend of 32 cents per share for the second quarter, payable on August 22 to shareholders on record on July 25.
During the first quarter, the company repurchased approximately 2.1 million shares for $117.4 million, and subsequent to quarter end, it has repurchased approximately 235,000 additional shares for $15 million through June 2.
The company has nearly $600 million in share repurchase authorization remaining.
The jewelry retailer guided second-quarter sales to range between $1.47 billion and $1.51 billion, compared to $1.49 billion a year ago, and same-store sales to be between negative 1.5% and up 1%.
The company also estimated adjusted operating income in the second quarter to range between $53 million and $73 million, compared to $68.6 million a year earlier.
For the full year, the company estimated sales to be between $6.57 billion and $6.80 billion, compared to $6.70 billion a year earlier, and same-store sales to be between negative 2% and up 1.5%.
Adjusted operating income for the full year is expected to range between $430 million and $510 million, compared to $498.1 million a year ago.
Stocks Brave Higher Amid Earnings Boost Expectation Driven by Tariff-Driven Price Increases
Barry Adams
03 Jun, 2025
New York City
Stocks wavered around the flatline amid elevated trade tensions and economic uncertainties.
The S&P 500 index edged up 0.1%, and the tech-heavy Nasdaq Composite inched higher by 0.5%. and investors overlooked brewing trade tensions with the European Union and China.
Despite elevated tensions, investors are holding out for stocks to scale higher, as companies are expected to increase prices more than the increase in cost of goods sold.
Retailers, industrial goods makers, automakers, and consumer goods makers are expected to raise prices starting this month, amid general expectations of higher prices rooted in Trump tariffs.
U.S. job openings in April increased by 191,000 to 7.391 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Meanwhile, both hires and total separations were little changed at 5.6 million and 5.3 million, respectively.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.1% to 5,940.86, the Nasdaq Composite edged up 0.3% to 19,294.10, and the Russell 2000 index advanced 0.1% to 2,072.49.
The yield on 2-year Treasury notes edged lower to 3.94%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds declined to 4.95%.
WTI crude oil increased by $0.42 to $62.94 a barrel, and natural gas prices edged lower by $0.03 to $3.67 a thermal unit.
Gold decreased by $36.45 to $3,345.03 an ounce, and silver edged down by $0.47 to $34.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.38 to 99.09 and traded at the lowest level since April 2022.
U.S. Stock Movers
Credo Technology Group soared 14.7% to $72.0 after the advanced connectivity solution provider reported better-than-expected non-GAAP earnings of 35 cents per share in the fiscal fourth quarter.
EchoStar declined 2.7% to $17.75 after the company disclosed that it will halt interest payments of $183 million on a series of debt instruments because of the regulatory uncertainty linked to the Federal Communications Commission.
Dollar General Corp. jumped 9.2% to $106.09, and the discount store chain operator reported better-than-expected first quarter revenue of $10.44 billion and earnings per share of $1.78.
The company also lifted its annual earnings outlook, assuming that the current tariff outlook will remain until mid-August.
Pegasystems rose 2.1% to $98.97, and the customer relation software developer lifted its adjusted annual earnings per share estimate to $3.94 from the previous estimate of $3.10.
The CRM software company also lifted its annual revenue estimate to $1.7 billion from $1.6 billion.
Hims & Hers Health rose 6.6% to $60.55, and the tele-health company said it plans to acquire the European tele-health platform operator Zava, increasing its current customer base by 1.5 million, or about 50%.
Constellation Energy soared 11.7% to $350.74 after the company struck a deal with Meta Inc. to sell 1.1 gigawatts of energy starting in 2027 from its nuclear power plant in Illinois.
Stocks Brave Higher Amid Earnings Boost Expectation Driven by Tariff-Driven Price Increases
Barry Adams
03 Jun, 2025
New York City
Stocks wavered around the flatline amid elevated trade tensions and economic uncertainties.
The S&P 500 index edged up 0.1%, and the tech-heavy Nasdaq Composite inched higher by 0.5%. and investors overlooked brewing trade tensions with the European Union and China.
Despite elevated tensions, investors are holding out for stocks to scale higher, as companies are expected to increase prices more than the increase in cost of goods sold.
Retailers, industrial goods makers, automakers, and consumer goods makers are expected to raise prices starting this month, amid general expectations of higher prices rooted in Trump tariffs.
U.S. job openings in April increased by 191,000 to 7.391 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Meanwhile, both hires and total separations were little changed at 5.6 million and 5.3 million, respectively.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.1% to 5,940.86, the Nasdaq Composite edged up 0.3% to 19,294.10, and the Russell 2000 index advanced 0.1% to 2,072.49.
The yield on 2-year Treasury notes edged lower to 3.94%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds declined to 4.95%.
WTI crude oil increased by $0.42 to $62.94 a barrel, and natural gas prices edged lower by $0.03 to $3.67 a thermal unit.
Gold decreased by $36.45 to $3,345.03 an ounce, and silver edged down by $0.47 to $34.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.38 to 99.09 and traded at the lowest level since April 2022.
U.S. Stock Movers
Credo Technology Group soared 14.7% to $72.0 after the advanced connectivity solution provider reported better-than-expected non-GAAP earnings of 35 cents per share in the fiscal fourth quarter.
EchoStar declined 2.7% to $17.75 after the company disclosed that it will halt interest payments of $183 million on a series of debt instruments because of the regulatory uncertainty linked to the Federal Communications Commission.
Dollar General Corp. jumped 9.2% to $106.09, and the discount store chain operator reported better-than-expected first quarter revenue of $10.44 billion and earnings per share of $1.78.
The company also lifted its annual earnings outlook, assuming that the current tariff outlook will remain until mid-August.
Pegasystems rose 2.1% to $98.97, and the customer relation software developer lifted its adjusted annual earnings per share estimate to $3.94 from the previous estimate of $3.10.
The CRM software company also lifted its annual revenue estimate to $1.7 billion from $1.6 billion.
Hims & Hers Health rose 6.6% to $60.55, and the tele-health company said it plans to acquire the European tele-health platform operator Zava, increasing its current customer base by 1.5 1.5million, or about 50%.
Constellation Energy soared 11.7% to $350.74 after the company struck a deal with Meta Inc. to sell 1.1 gigawatts of energy starting in 2027 from its nuclear power plant in Illinois.