Market Update
European Markets Turn Lower Amid U.S. Fiscal Outlook Worries
Bridgette Randall
22 May, 2025
London
European markets faced renewed selling pressure amid a worsening U.S. fiscal debt outlook, a weakening dollar, and rising interest rates.
Benchmark indexes in Frankfurt, Paris, Milan, and London declined more than 0.6% as concerns over the U.S. fiscal debt rattled global markets.
In overnight trading on Wall Street, the S&P 500 index and the Nasdaq Composite dropped more than 1%, the worst decline in over five weeks, amid deteriorating U.S. fiscal outlook, rising debt levels, and higher interest rates.
Moreover, the yield on 30-year U.S. Treasury bonds advanced to 5.09% amid fears that the latest U.S. budget would add between $3 trillion and $5 trillion over the next 10 years.
The U.S. fiscal debt in the current fiscal year ending in September is on track to surpass $38 trillion, or about 100% of gross domestic product, and the federal deficit is estimated to hover above 7% of GDP.
Amid the "sell U.S. assets" narrative, investors are trimming exposures to U.S. stocks and bonds, and investors are shifting their allocation to European bonds.
The U.S.'s safe-haven status has been tarnished since the launch of unilateral tariffs on all imports by the U.S. president.
Moreover, Europe is attracting interest from global investors amid its issuance of debt to finance its infrastructure development and rearmament.
Nations and corporations raised more than one trillion euros in the year to May 20; despite global trade tensions, investors appeared to be ready to finance Europe's debt boom.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 23,906.17, the CAC-40 index edged lower 0.9% to 7,839.96, and the FTSE 100 index declined 0.6% to 8,731.50.
The yield on 10-year German bonds inched higher to 2.66%, French bonds increased to 3.34%, UK gilts moved up to 4.78%, and Italian bonds edged higher to 3.67%.
The euro decreased to $1.13; the British pound was higher at $1.34; and the U.S. dollar was lower and traded at 82.48 Swiss cents.
Brent crude decreased $0.64 to $64.27 a barrel, and the Dutch TTF natural gas was higher by €0.54 to €37.06 per MWh.
Europe Stock Movers
Assicurazioni Generali SpA rose 0.7% to €33.08 after Italy's largest insurance company reported better-than-expected profit in the first quarter.
easyJet plc declined 3.5% to 545.20 pence after the discount airline reported wider-than-expected losses in the first half, but the company reiterated its annual outlook.
Stock Movers: Nirlon, Stove Kraft, Power Finance, Trident, GMM, Star Cement, Oil India, Geojit Financial
Arun Goswami
22 May, 2025
Mumbai
Nirlon Ltd. declined 0.8% to ₹531.15 despite the real estate company reporting a slight increase in revenue and net income in the latest quarter.
Consolidated revenue in the March quarter increased to ₹160.7 crore from ₹154.4 crore, and after-tax profit rose to ₹53.5 crore from ₹51.2 crore, and diluted earnings per share soared to ₹5.94 from ₹5.68 a year ago.
For the fiscal year 2025, revenue advanced to ₹645 crore from ₹607.4 crore, after-tax profit inched higher to ₹218.2 crore from ₹205.6 crore, and diluted earnings per share edged higher to ₹24.21 from ₹22.81 a year ago.
The company's board recommended a final dividend of ₹11 per share.
Stove Kraft Ltd. fell 3.5% to ₹576.90 despite the domestic appliance maker reporting a 42% declined in profit in the fiscal fourth quarter.
Consolidated revenue in the March quarter inched down to ₹314.2 crore from ₹324.7 crore, and after-tax profit declined to ₹1.5 crore from ₹2.6 crore, and diluted earnings per share fell to 44 paise from 80 paise a year ago.
For the fiscal year 2025, revenue edged higher to ₹1,450.2 crore from ₹1,364.3 crore, after-tax profit increased to ₹38.5 crore from ₹34.1 crore, and diluted earnings per share soared to ₹11.64 from ₹10.30 a year ago.
The company's board recommended a final dividend of ₹3 per share.
Power Finance Corporation decreased 2% to ₹404.25 after the power sector financial services provider reported a 10.6% rise in net income in the latest quarter.
Consolidated revenue in the March quarter advanced to ₹29,285.4 crore from ₹24,176.3 crore, and after-tax profit inched higher to ₹8,357.9 crore from ₹7,556.4 crore, and diluted earnings per share rose to ₹19.14 from ₹17.04 a year ago.
For the fiscal year 2025, revenue edged higher to ₹1,06,598.7 crore from ₹91,174.9 crore, after-tax profit soared to ₹30,514.4 crore from ₹26,461.2 crore, and diluted earnings per share increased to ₹69.67 from ₹59.9 a year ago.
The company's board recommended a final dividend of ₹2.05 per share.
Trident Ltd. decreased 1.5% to ₹32.98 despite the home textiles and yarn manufacturer reporting a two-fold jump in earnings in the March quarter.
Consolidated revenue in the March quarter edged up to ₹1,883.3 crore from ₹1,700.4 crore, and after-tax profit inched higher to ₹133.4 crore from ₹59 crore, and diluted earnings per share rose to 25 paise from 11 paise a year ago.
For the fiscal year 2025, revenue edged higher to ₹7,047.2 crore from ₹6,866 crore, after-tax profit increased to ₹370.7 crore from ₹349.9 crore, and diluted earnings per share soared to 73 paise from 69 paise a year ago.
The company's board declared an interim dividend of 50 paise per share.
GMM Pfaudler Ltd. dropped 7.4% to ₹1,172.20 after the corrosion-resistant technologies provider's net income swung to a loss latest quarter.
Consolidated revenue increased to ₹801.9 crore from ₹751.3 crore, net income swung to a loss of ₹27.94 crore from a profit of ₹25.27 crore, and diluted income per share swung to a loss of ₹6 from a profit of ₹6.15 a year ago.
For the fiscal year 2025, revenue edged higher to ₹3,229 crore from ₹3,466.5 crore, after-tax profit edged down to ₹49.2 crore from ₹170.7 crore, and diluted earnings per share fell to ₹11.78 from ₹39.02 a year ago.
The company's board recommended a final dividend of ₹1 per share.
Star Cement Limited declined 2.4% to ₹225.55 despite the cement manufacturer reporting a 42% rise in profit in the fiscal fourth quarter.
Consolidated revenue in the March quarter advanced to ₹1,057.1 crore from ₹921.4 crore, and after-tax profit inched higher to ₹123.1 crore from ₹87.7 crore, and diluted earnings per share rose to ₹3.05 from ₹2.17 a year ago.
For the fiscal year 2025, revenue edged higher to ₹3,174 crore from ₹2,937.1 crore, after-tax profit fell to ₹168.8 crore from ₹295.1 crore, and diluted earnings per share decreased to ₹4.18 from ₹7.30 a year ago.
Oil India Ltd. decreased 3.9% to ₹410, and the crude oil and natural gas company reported a 36% decrease in quarterly profit from a year ago.
Consolidated revenue in the March quarter decreased to ₹9,970.1 crore from ₹10,375.1 crore, after-tax profit dropped to ₹1,497 crore from ₹2,332.9 crore, and diluted earnings per share declined to ₹8.05 from ₹13.16 a year ago.
For the fiscal year 2025, revenue edged higher to ₹37,830 crore from ₹37,646.5 crore, after-tax profit increased to ₹7,039.6 crore from ₹6,980.5 crore, and diluted earnings per share rose to ₹40.27 from ₹38.95 a year ago.
The company's board recommended a final dividend of ₹1.5 per share.
Geojit Financial Services Ltd. advanced 1.7% to ₹88.02 despite the financial products and service provider reporting a 38% decline in quarterly profit.
Consolidated revenue in the March quarter decreased to ₹177.5 crore from ₹208.6 crore, and after-tax profit declined to ₹32.2 crore from ₹51.9 crore, and diluted earnings per share fell to ₹1.12 from ₹1.90 a year ago.
For the fiscal year 2025, revenue edged higher to ₹749.3 crore from ₹624 crore, after-tax profit increased to ₹172.5 crore from ₹149.4 crore, and diluted earnings per share soared to ₹6.17 from ₹5.45 a year ago.
The company's board recommended a final dividend of ₹1.50 per share.
Stock Movers: Nirlon, Stove Kraft, Power Finance, Trident, GMM, Star Cement, Oil India, Geojit Financial
Arun Goswami
22 May, 2025
Mumbai
Nirlon Ltd. declined 0.8% to ₹531.15 despite the real estate company reporting a slight increase in revenue and net income in the latest quarter.
Consolidated revenue in the March quarter increased to ₹160.7 crore from ₹154.4 crore, and after-tax profit rose to ₹53.5 crore from ₹51.2 crore, and diluted earnings per share soared to ₹5.94 from ₹5.68 a year ago.
For the fiscal year 2025, revenue advanced to ₹645 crore from ₹607.4 crore, after-tax profit inched higher to ₹218.2 crore from ₹205.6 crore, and diluted earnings per share edged higher to ₹24.21 from ₹22.81 a year ago.
The company's board recommended a final dividend of ₹11 per share.
Stove Kraft Ltd. fell 3.5% to ₹576.90 despite the domestic appliance maker reporting a 42% declined in profit in the fiscal fourth quarter.
Consolidated revenue in the March quarter inched down to ₹314.2 crore from ₹324.7 crore, and after-tax profit declined to ₹1.5 crore from ₹2.6 crore, and diluted earnings per share fell to 44 paise from 80 paise a year ago.
For the fiscal year 2025, revenue edged higher to ₹1,450.2 crore from ₹1,364.3 crore, after-tax profit increased to ₹38.5 crore from ₹34.1 crore, and diluted earnings per share soared to ₹11.64 from ₹10.30 a year ago.
The company's board recommended a final dividend of ₹3 per share.
Power Finance Corporation decreased 2% to ₹404.25 after the power sector financial services provider reported a 10.6% rise in net income in the latest quarter.
Consolidated revenue in the March quarter advanced to ₹29,285.4 crore from ₹24,176.3 crore, and after-tax profit inched higher to ₹8,357.9 crore from ₹7,556.4 crore, and diluted earnings per share rose to ₹19.14 from ₹17.04 a year ago.
For the fiscal year 2025, revenue edged higher to ₹1,06,598.7 crore from ₹91,174.9 crore, after-tax profit soared to ₹30,514.4 crore from ₹26,461.2 crore, and diluted earnings per share increased to ₹69.67 from ₹59.9 a year ago.
The company's board recommended a final dividend of ₹2.05 per share.
Trident Ltd. decreased 1.5% to ₹32.98 despite the home textiles and yarn manufacturer reporting a two-fold jump in earnings in the March quarter.
Consolidated revenue in the March quarter edged up to ₹1,883.3 crore from ₹1,700.4 crore, and after-tax profit inched higher to ₹133.4 crore from ₹59 crore, and diluted earnings per share rose to 25 paise from 11 paise a year ago.
For the fiscal year 2025, revenue edged higher to ₹7,047.2 crore from ₹6,866 crore, after-tax profit increased to ₹370.7 crore from ₹349.9 crore, and diluted earnings per share soared to 73 paise from 69 paise a year ago.
The company's board declared an interim dividend of 50 paise per share.
GMM Pfaudler Ltd. dropped 7.4% to ₹1,172.20 after the corrosion-resistant technologies provider's net income swung to a loss latest quarter.
Consolidated revenue increased to ₹801.9 crore from ₹751.3 crore, net income swung to a loss of ₹27.94 crore from a profit of ₹25.27 crore, and diluted income per share swung to a loss of ₹6 from a profit of ₹6.15 a year ago.
For the fiscal year 2025, revenue edged higher to ₹3,229 crore from ₹3,466.5 crore, after-tax profit edged down to ₹49.2 crore from ₹170.7 crore, and diluted earnings per share fell to ₹11.78 from ₹39.02 a year ago.
The company's board recommended a final dividend of ₹1 per share.
Star Cement Limited declined 2.4% to ₹225.55 despite the cement manufacturer reporting a 42% rise in profit in the fiscal fourth quarter.
Consolidated revenue in the March quarter advanced to ₹1,057.1 crore from ₹921.4 crore, and after-tax profit inched higher to ₹123.1 crore from ₹87.7 crore, and diluted earnings per share rose to ₹3.05 from ₹2.17 a year ago.
For the fiscal year 2025, revenue edged higher to ₹3,174 crore from ₹2,937.1 crore, after-tax profit fell to ₹168.8 crore from ₹295.1 crore, and diluted earnings per share decreased to ₹4.18 from ₹7.30 a year ago.
Oil India Ltd. decreased 3.9% to ₹410, and the crude oil and natural gas company reported a 36% decrease in quarterly profit from a year ago.
Consolidated revenue in the March quarter decreased to ₹9,970.1 crore from ₹10,375.1 crore, after-tax profit dropped to ₹1,497 crore from ₹2,332.9 crore, and diluted earnings per share declined to ₹8.05 from ₹13.16 a year ago.
For the fiscal year 2025, revenue edged higher to ₹37,830 crore from ₹37,646.5 crore, after-tax profit increased to ₹7,039.6 crore from ₹6,980.5 crore, and diluted earnings per share rose to ₹40.27 from ₹38.95 a year ago.
The company's board recommended a final dividend of ₹1.5 per share.
Geojit Financial Services Ltd. advanced 1.7% to ₹88.02 despite the financial products and service provider reporting a 38% decline in quarterly profit.
Consolidated revenue in the March quarter decreased to ₹177.5 crore from ₹208.6 crore, and after-tax profit declined to ₹32.2 crore from ₹51.9 crore, and diluted earnings per share fell to ₹1.12 from ₹1.90 a year ago.
For the fiscal year 2025, revenue edged higher to ₹749.3 crore from ₹624 crore, after-tax profit increased to ₹172.5 crore from ₹149.4 crore, and diluted earnings per share soared to ₹6.17 from ₹5.45 a year ago.
The company's board recommended a final dividend of ₹1.50 per share.
Japan's Machinery Orders Soared In March, Business Activities Growth Remained Subdued In April
Akira Ito
22 May, 2025
Tokyo
Japan's stock market indexes fell in choppy trading and extended two-week losses, tracking the market decline on Wall Street.
The Nikkei 225 Stock Average decreased 1%, and the broader Topix index declined 0.9%, and manufacturing activities remained in contraction for the twelfth month in a row in April.
The au Jibun Bank Japan Manufacturing PMI edged higher to 49.0 from 48.7 in March, according to the latest data published by S&P Global.
The decline in activities was the softest since February amid a milder pace of declines in exports and new orders.
Japan's service sector expanded for the second consecutive month in April, but the pace of increase slowed, according to a separate report published by S&P Global.
The au Jibun Bank Japan Services PMI edged down to 50.8 in April from 52.4 in March amid weakening client demand and uncertainty over the future trade environment.
Japan's core machinery orders, which excludes orders for ships and electric power companies, unexpectedly soared in March amid strong demand across both manufacturing and non-manufacturing sectors.
Core machinery orders jumped 13% from the previous month and advanced 8.4% from a year ago to 1.01 trillion yen, reaching a two-decade high.
Core machinery orders are volatile but are a key forward-looking indicator for capital spending over the next two to three quarters.
Manufacturing orders advanced 8% to ¥459.3 billion, while non-manufacturing orders jumped 9.6% to ¥534 billion, according to a report released by the Cabinet Office.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1% to 36,890.83, and the broader Topix index declined 0.9% to 2,709.44.
Advantest Corp. declined 3.2% to ¥6,784.0, Tokyo Electron dropped 2.4% to ¥22,680.0, and Disco Corp. fell 0.7% to ¥33,400.0.
Marubeni Corp. fell 1.6% to ¥2,761.0, Itochu Corp. declined 2.1% to ¥7,444.0, and Sumitomo Corp. decreased 1.6% to ¥3,681.0.
Japan's Machinery Orders Soared In March, Business Activities Growth Remained Subdued In April
Akira Ito
22 May, 2025
Tokyo
Japan's stock market indexes fell in choppy trading and extended two-week losses, tracking the market decline on Wall Street.
The Nikkei 225 Stock Average decreased 1%, and the broader Topix index declined 0.9%, and manufacturing activities remained in contraction for the twelfth month in a row in April.
The au Jibun Bank Japan Manufacturing PMI edged higher to 49.0 from 48.7 in March, according to the latest data published by S&P Global.
The decline in activities was the softest since February amid a milder pace of declines in exports and new orders.
Japan's service sector expanded for the second consecutive month in April, but the pace of increase slowed, according to a separate report published by S&P Global.
The au Jibun Bank Japan Services PMI edged down to 50.8 in April from 52.4 in March amid weakening client demand and uncertainty over the future trade environment.
Japan's core machinery orders, which excludes orders for ships and electric power companies, unexpectedly soared in March amid strong demand across both manufacturing and non-manufacturing sectors.
Core machinery orders jumped 13% from the previous month and advanced 8.4% from a year ago to 1.01 trillion yen, reaching a two-decade high.
Core machinery orders are volatile but are a key forward-looking indicator for capital spending over the next two to three quarters.
Manufacturing orders advanced 8% to ¥459.3 billion, while non-manufacturing orders jumped 9.6% to ¥534 billion, according to a report released by the Cabinet Office.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1% to 36,890.83, and the broader Topix index declined 0.9% to 2,709.44.
Advantest Corp. declined 3.2% to ¥6,784.0, Tokyo Electron dropped 2.4% to ¥22,680.0, and Disco Corp. fell 0.7% to ¥33,400.0.
Marubeni Corp. fell 1.6% to ¥2,761.0, Itochu Corp. declined 2.1% to ¥7,444.0, and Sumitomo Corp. decreased 1.6% to ¥3,681.0.
China Stocks Trade In Tight Range Amid Lack of Investor Enthusiasm
Li Chen
22 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong meandered amid a lack of imminent catalysts as investors shifted their focus to corporate earnings and the economy's health.
The Hang Seng Index declined by 0.6%, while the CSI 300 index increased by 0.3%, as investors debated the mixed economic updates from April that were released earlier this week.
China's new home prices continued to soften for nearly two years, despite a raft of measures by the central bank and policymakers.
In addition, retail sales growth was weaker than expected as consumers avoided making large-item purchases amid weakening confidence and a dire job market outlook.
Market participants remained amid a batch of mixed earnings, and the weakening domestic economic backdrop and uncertain U.S. trade policy added to investor caution.
China Indexes and Stocks
The Hang Seng Index decreased 0.6% to 23,695.88, and the mainland-focused CSI 300 index edged up 0.2%.
Baidu Inc. declined 3.3% to HK $83.30, and the search engine operator reported strong quarterly results, but the company's advertising revenue outlook fell short of some investors' expectations.
Revenue in the March quarter increased 3% to 32 billion yuan, and profit jumped 42% to 7.7 billion yuan, driven by a surge in its robotaxi and artificial intelligence-driven cloud service businesses.
China Stocks Trade In Tight Range Amid Lack of Investor Enthusiasm
Li Chen
22 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong meandered amid a lack of imminent catalysts as investors shifted their focus to corporate earnings and the economy's health.
The Hang Seng Index declined by 0.6%, while the CSI 300 index increased by 0.3%, as investors debated the mixed economic updates from April that were released earlier this week.
China's new home prices continued to soften for nearly two years, despite a raft of measures by the central bank and policymakers.
In addition, retail sales growth was weaker than expected as consumers avoided making large-item purchases amid weakening confidence and a dire job market outlook.
Market participants remained amid a batch of mixed earnings, and the weakening domestic economic backdrop and uncertain U.S. trade policy added to investor caution.
China Indexes and Stocks
The Hang Seng Index decreased 0.6% to 23,695.88, and the mainland-focused CSI 300 index edged up 0.2%.
Baidu Inc. declined 3.3% to HK $83.30, and the search engine operator reported strong quarterly results, but the company's advertising revenue outlook fell short of some investors' expectations.
Revenue in the March quarter increased 3% to 32 billion yuan, and profit jumped 42% to 7.7 billion yuan, driven by a surge in its robotaxi and artificial intelligence-driven cloud service businesses.
Republican Party Sponsored Budget Breaks "Revenue Neutral" Pledge, Treasuries Extend Selloff
Barry Adams
21 May, 2025
New York City
Wall Street indexes faced headwinds after yields on Treasuries advanced, as traders monitored progress on the latest U.S. budget proposal.
The S&P 500 index decreased 0.5%, and the Nasdaq Composite declined 0.6%, and investors fear that the Republican Party's pledge to be fiscally responsible with the nation's finances is just a slogan.
The latest proposal in the U.S. House of Representatives is likely to cut several programs for low-income and unemployed people and divert the savings to pass on as tax cuts to the wealthy.
Moreover, the budget is likely to expand the federal government debt by at least $3 trillion over the next ten years, breaking the Republican Party's promise to only approve spending cuts that are revenue neutral.
In addition, Donald Trump repeatedly stressed while campaigning during the presidential election that his administration would lower prices at stores, end the Russia-Ukraine war in one day, and wipe off the entire federal government debt by the end of his second term.
Wall Street indexes have rebounded from the lows in early April, and the S&P 500 index has erased losses of nearly 20% to rise above the flatline after the Trump administration was forced to pause sky-high import taxes for 90 days.
Despite the market's sharp and speedy rebound, trade-related uncertainties are likely to resurface as the U.S. and its key trading partners are far from an agreement.
Small manufacturing companies and retailers are likely to face the highest hurdles after the Trump tariffs go into effect as early as August, which could lead to higher prices at stores, fewer choices, and more bankruptcies.
Households seeking deals on cheaper goods from abroad are likely to find fewer choices and higher prices, as direct shipments to consumers from China will be taxed, but retail chain stores will be spared from those taxes.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.5% to 5,910.96, the Nasdaq Composite edged down 0.3% to 19,083.61, and the Russell 2000 index declined 0.9% to 2,085.15.
The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes increased to 4.54%, and 30-year Treasury bonds advanced to 5.03%.
WTI crude oil increased $0.78 to $62.81 a barrel, and natural gas prices edged lower by $0.02 to $3.40 a thermal unit.
Gold increased by $16.09 to 3,306.50 an ounce, and silver edged up by $0.09 to $33.17.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.50 to 99.62 and traded at the lowest level since April 2022.
U.S. Stock Movers
Target Corp. declined 2.2% to $93.50, and the big-box retailer reported weak quarterly results and lowered its annual outlook.
In the quarter, the retailer earned $1.04 billion, or $2.27 per share, compared to $942 million, or $2.03 per share, a year ago.
Revenue eased to $23.85 billion from $24.53 billion a year ago, and transactions across stores and online fell 2.4% from a year ago.
Target estimated annual sales to decline in low single digits compared to the previous estimate of an increase of 1%.
Lowe's Companies jumped 1.8% to $235.37 after the home improvement retailer reported better-than-expected first-quarter results.
Revenue in the quarter eased to $20.9 billion from $21.4 billion, and comparable sales in the quarter decreased 1.7%.
Toll Brothers Inc. increased 5.5% to $108.41 after the luxury homebuilder's earnings were ahead of market expectations.
Revenue edged down to $2.74 billion from $2.84 billion, net income fell to $352.45 million from $481.62 million, and diluted earnings per share slipped to $3.50 from $4.55 a year ago.
The company delivered between 2,800 and 3,000 homes during the quarter, and the average price per home ranged between $965,000 and $985,000.
Palo Alto Networks dropped 5.2% to $183.90 after the cybersecurity company's forward-looking outlook fell short of market expectations.
The company guided fourth-quarter revenue to be between $2.49 billion and $2.51 billion, compared to $2.19 billion, and diluted earnings per share between 87 cents and 89 cents, compared to $1.51 a year ago, respectively.
Take-Two Interactive Software dropped 4% to $227.95 after the video game developer proposed to raise $1 billion through a stock offering.
Republican Party Sponsored Budget Breaks "Revenue Neutral" Pledge, Treasuries Extend Selloff
Barry Adams
21 May, 2025
New York City
Wall Street indexes faced headwinds after yields on Treasuries advanced, as traders monitored progress on the latest U.S. budget proposal.
The S&P 500 index decreased 0.5%, and the Nasdaq Composite declined 0.6%, and investors fear that the Republican Party's pledge to be fiscally responsible with the nation's finances is just a slogan.
The latest proposal in the U.S. House of Representatives is likely to cut several programs for low-income and unemployed people and divert the savings to pass on as tax cuts to the wealthy.
Moreover, the budget is likely to expand the federal government debt by at least $3 trillion over the next ten years, breaking the Republican Party's promise to only approve spending cuts that are revenue neutral.
In addition, Donald Trump repeatedly stressed while campaigning during the presidential election that his administration would lower prices at stores, end the Russia-Ukraine war in one day, and wipe off the entire federal government debt by the end of his second term.
Wall Street indexes have rebounded from the lows in early April, and the S&P 500 index has erased losses of nearly 20% to rise above the flatline after the Trump administration was forced to pause sky-high import taxes for 90 days.
Despite the market's sharp and speedy rebound, trade-related uncertainties are likely to resurface as the U.S. and its key trading partners are far from an agreement.
Small manufacturing companies and retailers are likely to face the highest hurdles after the Trump tariffs go into effect as early as August, which could lead to higher prices at stores, fewer choices, and more bankruptcies.
Households seeking deals on cheaper goods from abroad are likely to find fewer choices and higher prices, as direct shipments to consumers from China will be taxed, but retail chain stores will be spared from those taxes.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.5% to 5,910.96, the Nasdaq Composite edged down 0.3% to 19,083.61, and the Russell 2000 index declined 0.9% to 2,085.15.
The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes increased to 4.54%, and 30-year Treasury bonds advanced to 5.03%.
WTI crude oil increased $0.78 to $62.81 a barrel, and natural gas prices edged lower by $0.02 to $3.40 a thermal unit.
Gold increased by $16.09 to 3,306.50 an ounce, and silver edged up by $0.09 to $33.17.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.50 to 99.62 and traded at the lowest level since April 2022.
U.S. Stock Movers
Target Corp. declined 2.2% to $93.50, and the big-box retailer reported weak quarterly results and lowered its annual outlook.
In the quarter, the retailer earned $1.04 billion, or $2.27 per share, compared to $942 million, or $2.03 per share, a year ago.
Revenue eased to $23.85 billion from $24.53 billion a year ago, and transactions across stores and online fell 2.4% from a year ago.
Target estimated annual sales to decline in low single digits compared to the previous estimate of an increase of 1%.
Lowe's Companies jumped 1.8% to $235.37 after the home improvement retailer reported better-than-expected first-quarter results.
Revenue in the quarter eased to $20.9 billion from $21.4 billion, and comparable sales in the quarter decreased 1.7%.
Toll Brothers Inc. increased 5.5% to $108.41 after the luxury homebuilder's earnings were ahead of market expectations.
Revenue edged down to $2.74 billion from $2.84 billion, net income fell to $352.45 million from $481.62 million, and diluted earnings per share slipped to $3.50 from $4.55 a year ago.
The company delivered between 2,800 and 3,000 homes during the quarter, and the average price per home ranged between $965,000 and $985,000.
Palo Alto Networks dropped 5.2% to $183.90 after the cybersecurity company's forward-looking outlook fell short of market expectations.
The company guided fourth-quarter revenue to be between $2.49 billion and $2.51 billion, compared to $2.19 billion, and diluted earnings per share between 87 cents and 89 cents, compared to $1.51 a year ago, respectively.
Take-Two Interactive Software dropped 4% to $227.95 after the video game developer proposed to raise $1 billion through a stock offering.
Europe Movers: Currys, JD Sports, Marks & Spencer
Inga Muller
21 May, 2025
Frankfurt
Marks & Spencer dropped 3.2% to 356.00 pence after the British diversified retailer reported fiscal 2025 results.
Revenue increased to £13.82 billion from £13.04 billion, net income edged down to £295.7 million from £431.2 million, and diluted earnings per share fell to 14.0 pence from 20.8 pence a year ago.
The full-year dividend was 3.6 pence per share, an increase of 20% from 3.0 pence a year earlier.
The company announced a final dividend of 2.6 pence per share payable on July 4.
In addition, the company revealed that the recent cyberattack could negatively impact operating profit by £300 million.
Currys plc inched up 0.1% to 125.30 pence after the retailer of technology products and services released its trading update for the fiscal year ending in May.
Comparable store sales jumped 2%, driven by a significant growth in free cash flow year-over-year.
Same-store sales in the U.K. and Ireland climbed by 4% in the year, while in the Nordics region they were breakeven.
The company estimated full-year adjusted pre-tax profit to be around £162 million, revised higher from £160 million and representing a 37% increase over the previous year.
JD Sports Fashion Plc. plunged 8.1% to 85.44 pence after the UK-based specialty retailer reported weaker-than-expected fiscal year results, but the company reiterated its annual outlook.
Revenue climbed to £11.46 billion from £10.40 billion, profit declined to £490 million from £539 million, and diluted earnings per share fell to 9.50 pence from 10.45 pence a year ago.
Same-store sales increased by 0.3% in the year, as sales edged up in Europe and North America, while they fell in the UK and the Asia Pacific region.
Sales in retail stores surged to £9.08 billion from £7.96 billion, while online sales dropped to £2.25 billion from £2.35 billion a year earlier.
All three segments of footwear, apparel, and accessories recorded an increase in sales, supported by the acquisitions of Hibbett and Courir in July and November, respectively.
The company proposed a dividend of 67 pence a share, compared to 60 pence in 2024, payable on July 11 to shareholders on record on June 13.
The specialty retailer guided first-quarter 2026 organic sales growth of 3.1% and a comparable sales decline of 2%.
Europe Movers: Currys, Marks & Spencer
Inga Muller
21 May, 2025
Frankfurt
Marks & Spencer dropped 3.2% to 356.00 pence after the British diversified retailer reported fiscal 2025 results.
Revenue increased to £13.82 billion from £13.04 billion, net income edged down to £295.7 million from £431.2 million, and diluted earnings per share fell to 14.0 pence from 20.8 pence a year ago.
The full-year dividend was 3.6 pence per share, an increase of 20% from 3.0 pence a year earlier.
The company announced a final dividend of 2.6 pence per share payable on July 4.
In addition, the company revealed that the recent cyberattack could negatively impact operating profit by £300 million.
Currys plc inched up 0.1% to 125.30 pence after the retailer of technology products and services released its trading update for the fiscal year ending in May.
Comparable store sales jumped 2%, driven by a significant growth in free cash flow year-over-year.
Same-store sales in the U.K. and Ireland climbed by 4% in the year, while in the Nordics region they were breakeven.
The company estimated full-year adjusted pre-tax profit to be around £162 million, revised higher from £160 million and representing a 37% increase over the previous year.
Europe's Debt Boom Raises Є1 Trillion, Surpassing Previous Record In 2024
Bridgette Randall
21 May, 2025
Frankfurt
Stock market indexes in Europe traded below the flatline as investors awaited an update on U.S. trade talks.
Benchmark indexes in Frankfurt, Paris, Milan, and London headed lower following the worries about the stalled trade talks, rising government debts, and concerns about the upcoming earnings.
Governments in Germany and Italy ramped up their bond offerings in May, and a total of one trillion euros of debt was raised by May 20, surpassing the previous 2024 record by nine days.
The German government's bond offering was oversubscribed by 3.56 times, as the largest economy in the eurozone accelerated its infrastructure and defense spending.
In the first four months of 2025, eurozone nations sold €600 billion of bonds, led by €156 billion in debt offerings by Italy.
The brisk bond market offering came despite rising geopolitical uncertainties and the U.S. trade policy turbulence, and tighter yield spreads showed rising confidence among investors.
The annual consumer price inflation in the UK accelerated to 3.5% in April, the highest since January 2024, from 2.6% in March, the Office for National Statistics reported Wednesday.
The rise in inflation was driven by the rebound in energy prices after the government removed the price cap, tempered by a modest slowdown in housing rent to an annual pace of 6.2% from 7.2% in March.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 23,965.71, the CAC-40 index edged lower 0.4% to 7,910.18, and the FTSE 100 index declined 0.1% to 8,768.02.
The yield on 10-year German bonds inched higher to 2.62%, French bonds increased to 3.28%, UK gilts moved up to 4.74%, and Italian bonds edged higher to 3.62%.
The euro increased to $1.13; the British pound was higher at $1.34; and the U.S. dollar was lower and traded at 82.40 Swiss cents.
Brent crude increased $0.64 to $66.02 a barrel, and the Dutch TTF natural gas was higher by €0.45 to €37.45 per MWh.
Europe Movers
JD Sports Fashion Plc declined 6.3% to 87.12 pence after the UK-based specialty retailer reported a decline in underlying revenue in the latest period.
Infineon Technologies AG increased 1.4% to €34.37 after the Germany-based company collaborated with Nvidia to deliver a new power delivery architecture for AI data centers.
Marks & Spencer Group plc decreased 1.5% to 361.90 pence after the company revealed that the recent cyberattack could negatively impact operating profit by £300 million.
Julius Baer Gruppe AG dropped 5.4% to CHF 54.38 after the Switzerland-based bank and asset management company reported its second asset write-down in eighteen months.
The company announced a write-down of CHF 130 million, or about $156 million, following a CHF 586 million write-down in its credit portfolio earlier last year.
"While the review is ongoing, based on our findings to date, we do not expect to uncover additional material idiosyncratic risks that could lead to significant credit losses," said the recently appointed chief executive, Stefan Bollinger.
Europe's Debt Boom Raises Є1 Trillion, Surpassing Previous Record In 2024
Bridgette Randall
21 May, 2025
Frankfurt
Stock market indexes in Europe traded below the flatline as investors awaited an update on U.S. trade talks.
Benchmark indexes in Frankfurt, Paris, Milan, and London headed lower following the worries about the stalled trade talks, rising government debts, and concerns about the upcoming earnings.
Governments in Germany and Italy ramped up their bond offerings in May, and a total of one trillion euros of debt was raised by May 20, surpassing the previous 2024 record by nine days.
The German government's bond offering was oversubscribed by 3.56 times, as the largest economy in the eurozone accelerated its infrastructure and defense spending.
In the first four months of 2025, eurozone nations sold €600 billion of bonds, led by €156 billion in debt offerings by Italy.
The brisk bond market offering came despite rising geopolitical uncertainties and the U.S. trade policy turbulence, and tighter yield spreads showed rising confidence among investors.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 23,965.71, the CAC-40 index edged lower 0.4% to 7,910.18, and the FTSE 100 index declined 0.1% to 8,768.02.
The yield on 10-year German bonds inched higher to 2.62%, French bonds increased to 3.28%, UK gilts moved up to 4.74%, and Italian bonds edged higher to 3.62%.
The euro increased to $1.13; the British pound was higher at $1.34; and the U.S. dollar was lower and traded at 82.40 Swiss cents.
Brent crude increased $0.64 to $66.02 a barrel, and the Dutch TTF natural gas was higher by €0.45 to €37.45 per MWh.
Europe Movers
JD Sports Fashion Plc declined 6.3% to 87.12 pence after the UK-based specialty retailer reported a decline in underlying revenue in the latest period.
Infineon Technologies AG increased 1.4% to €34.37 after the Germany-based company collaborated with Nvidia to deliver a new power delivery architecture for AI data centers.
Marks & Spencer Group plc decreased 1.5% to 361.90 pence after the company revealed that the recent cyberattack could negatively impact operating profit by £300 million.
Julius Baer Gruppe AG dropped 5.4% to CHF 54.38 after the Switzerland-based bank and asset management company reported its second asset write-down in eighteen months.
The company announced a write-down of CHF 130 million, or about $156 million, following a CHF 586 million write-down in its credit portfolio earlier last year.
"While the review is ongoing, based on our findings to date, we do not expect to uncover additional material idiosyncratic risks that could lead to significant credit losses," said the recently appointed chief executive, Stefan Bollinger.
U.S. Movers: Freightos, Home Depot, Hovnanian Enterprises, Palo Alto Networks, Toll Brothers
Scott Peters
21 May, 2025
New York City
Palo Alto Networks Inc. dropped 3.9% to $186.81 after the cybersecurity company reported third-quarter 2025 results.
Revenue jumped to $2.29 billion from $1.98 billion, net income declined to $262.1 million from $278.8 million, and diluted earnings per share edged down to 79 cents from $1.32 a year ago.
The company guided fourth-quarter revenue to be between $2.49 billion and $2.51 billion, compared to $2.19 billion, and diluted earnings per share between 87 cents and 89 cents, compared to $1.51 a year ago, respectively.
For the full year, the company estimated revenue to be between $9.17 billion and $9.19 billion, compared to $8.03 billion, and diluted earnings per share between $3.26 and $3.28, compared to $5.67 a year earlier, respectively.
Home Depot Inc. eased 0.01% to $377.00 after the home improvement retailer reported first-quarter 2025 results.
Net sales jumped 9.4% to $39.86 billion from $36.42 billion, net earnings dropped 4.6% to $3.43 billion from $3.60 billion, and diluted earnings per share fell 5% to $3.45 from $3.63 a year ago.
The company reaffirmed its guidance for fiscal 2025 for a total sales growth of approximately 2.8%, compared to $159.5 billion in 2024, and a comparable sales increase of 1%.
Home Depot expects full-year diluted earnings per share to decline 3% from $14.91 a year ago.
Toll Brothers Inc. surged 5.1% to $109.81 despite the luxury home builder reporting a decline in earnings and revenue in the second quarter.
Revenue edged down to $2.74 billion from $2.84 billion, net income fell to $352.45 million from $481.62 million, and diluted earnings per share slipped to $3.50 from $4.55 a year ago.
The company delivered between 2,800 and 3,000 homes during the quarter, and the average price per home ranged between $965,000 and $985,000.
Toll Brothers spent approximately $723.0 million on land to purchase 4,380 lots and ended the quarter with 421 selling communities, compared to 386 communities a year earlier.
During the quarter, the home builder repurchased approximately 1.6 million shares at an average price of $107.84 for a total of $177.4 million.
Hovnanian Enterprises Inc. soared 4.3% to $100.30 despite the home builder reporting sharply lower earnings in the second quarter.
Revenue edged down to $686.47 million from $708.38 million, net income slumped to $17.06 million from $48.17 million, and earnings per share fell to $2.64 from $7.12 a year ago.
The company acquired or put under option approximately 3,000 lots in 46 consolidated communities during the quarter, and as of April 30, the total controlled consolidated lots were 42,440, an increase of 15.2% from 36,841 lots at the end of the previous fiscal year’s second quarter.
Total quick-move-in homes as of April 30 were 1,073, a decline of 7.7% compared with 1,163 homes as of January 31.
Hovnanian repurchased 126,448 shares of its own stock during the second quarter at an average price of $96.68 per share for a total of $12.2 million.
The company guided third-quarter revenue to be between $750 million and $850 million, compared to $722.7 million, and adjusted EBITDA between $60 million and $70 million, compared to $131.01 million a year ago, respectively.
Freightos Ltd. eased 0.4% to $2.55 after the freight booking and payment portal operator reported first-quarter 2025 results.
Revenue jumped to $6.94 million from $5.35 million, net loss narrowed to $4.50 million from a loss of $4.62 million, and loss per share shrank to 9 cents from a loss of 10 cents a year ago.
The company guided second-quarter revenue to be between $7.0 million and $7.1 million, compared to $5.7 million, and full-year revenue between $29.0 million and $30.6 million, compared to $23.8 million a year earlier, respectively.
U.S. Movers: Freightos, Home Depot, Hovnanian Enterprises, Palo Alto Networks, Toll Brothers
Scott Peters
21 May, 2025
New York City
Palo Alto Networks Inc. dropped 3.9% to $186.81 after the cybersecurity company reported third-quarter 2025 results.
Revenue jumped to $2.29 billion from $1.98 billion, net income declined to $262.1 million from $278.8 million, and diluted earnings per share edged down to 79 cents from $1.32 a year ago.
The company guided fourth-quarter revenue to be between $2.49 billion and $2.51 billion, compared to $2.19 billion, and diluted earnings per share between 87 cents and 89 cents, compared to $1.51 a year ago, respectively.
For the full year, the company estimated revenue to be between $9.17 billion and $9.19 billion, compared to $8.03 billion, and diluted earnings per share between $3.26 and $3.28, compared to $5.67 a year earlier, respectively.
Home Depot Inc. eased 0.01% to $377.00 after the home improvement retailer reported first-quarter 2025 results.
Net sales jumped 9.4% to $39.86 billion from $36.42 billion, net earnings dropped 4.6% to $3.43 billion from $3.60 billion, and diluted earnings per share fell 5% to $3.45 from $3.63 a year ago.
The company reaffirmed its guidance for fiscal 2025 for a total sales growth of approximately 2.8%, compared to $159.5 billion in 2024, and a comparable sales increase of 1%.
Home Depot expects full-year diluted earnings per share to decline 3% from $14.91 a year ago.
Toll Brothers Inc. surged 5.1% to $109.81 despite the luxury home builder reporting a decline in earnings and revenue in the second quarter.
Revenue edged down to $2.74 billion from $2.84 billion, net income fell to $352.45 million from $481.62 million, and diluted earnings per share slipped to $3.50 from $4.55 a year ago.
The company delivered between 2,800 and 3,000 homes during the quarter, and the average price per home ranged between $965,000 and $985,000.
Toll Brothers spent approximately $723.0 million on land to purchase 4,380 lots and ended the quarter with 421 selling communities, compared to 386 communities a year earlier.
During the quarter, the home builder repurchased approximately 1.6 million shares at an average price of $107.84 for a total of $177.4 million.
Hovnanian Enterprises Inc. soared 4.3% to $100.30 despite the home builder reporting sharply lower earnings in the second quarter.
Revenue edged down to $686.47 million from $708.38 million, net income slumped to $17.06 million from $48.17 million, and earnings per share fell to $2.64 from $7.12 a year ago.
The company acquired or put under option approximately 3,000 lots in 46 consolidated communities during the quarter, and as of April 30, the total controlled consolidated lots were 42,440, an increase of 15.2% from 36,841 lots at the end of the previous fiscal year’s second quarter.
Total quick-move-in homes as of April 30 were 1,073, a decline of 7.7% compared with 1,163 homes as of January 31.
Hovnanian repurchased 126,448 shares of its own stock during the second quarter at an average price of $96.68 per share for a total of $12.2 million.
The company guided third-quarter revenue to be between $750 million and $850 million, compared to $722.7 million, and adjusted EBITDA between $60 million and $70 million, compared to $131.01 million a year ago, respectively.
Freightos Ltd. eased 0.4% to $2.55 after the freight booking and payment portal operator reported first-quarter 2025 results.
Revenue jumped to $6.94 million from $5.35 million, net loss narrowed to $4.50 million from a loss of $4.62 million, and loss per share shrank to 9 cents from a loss of 10 cents a year ago.
The company guided second-quarter revenue to be between $7.0 million and $7.1 million, compared to $5.7 million, and full-year revenue between $29.0 million and $30.6 million, compared to $23.8 million a year earlier, respectively.