Market Update
NY Report Monday
Barry Adams
08 Sep, 2025
New York City
Wall Street indexes advanced on Monday as investors prepared to review two inflation reports this week.
The S&P 500 index edged up 0.2% and the tech-heavy Nasdaq Composite advanced 0.3%, and hey hovered near record highs.
Last week, benchmark indexes trimmed weekly gains on Friday after the August's payroll report confirmed rapidly cooling labor market.
The latest dismal U.S. jobs report confirmed the weakening trend in place since May is likely to persist for the rest of 2025 amid erratic U.S. trade policy and fast-changing labor market conditions.
August's nonfarm payroll data confirmed that the labor market is rapidly cooling amid an environment of sustained uncertainty created by constantly changing U.S. trade policy.
Increasingly, businesses of all sizes are feeling the negative effects of the sharp escalation in import taxes imposed by the Trump administration.
The Trump administration's stated main objective in escalating tariff rates was to expand the manufacturing sector and create new jobs.
Instead, higher tariffs are forcing manufacturing businesses to slow down activities, fire employees, and pass on higher prices to their customers.
The August month's payroll data confirmed that the employee base in the manufacturing sector shrank for the fourth consecutive month, with no end in sight.
Week Ahead
In the week ahead, U.S. investors are awaiting the release of two key inflation reports.
The overall consumer inflation in August is expected to inch higher to 2.9%, and the core inflation rate is likely to stay at 3%.
Moreover, August's producer price inflation is expected to advance 0.3% from the previous month.
The two inflation reports could provide additional supporting evidence for the Federal Reserve to begin its rate cut campaign as early as September 18 following the policy meeting.
On the earnings front, investors are looking forward to results from Oracle, Adobe, Chewy, Casey's General, Daktronics, Value Line, Dakronics, and Designer Brands.
U.S. Stock Movers
EchoStar Corp. jumped 24% to $83.40 after the company said it has agreed to sell its wireless spectrum licenses to SpaceX for $17 billion.
In addition, he wireless communication company entered into a long-term agreement with SpaceX, which allows the company to sell SpaceX's Starlink Direct services to its Boost Mobile subscribers.
According to the preliminary agreement, SpaceX agreed to pay up to $8.5 billion in cash and up to $8.5 billion in stock.
Stock Movers: The Children’s Place, Broadcom, Lululemon Athletica
Scott Peters
05 Sep, 2025
New York City
The Children’s Place, Inc., jumped 6.6% to $5.80 despite the children’s apparel and accessories retailer’s net income swinging to a loss in the latest quarter ending on August 2.
Consolidated revenue decreased 6.8% to $298 million from $319 million, adjusted net income swung to a loss of $3.4 million from a profit of $3.9 million, and adjusted diluted earnings per share swung to a loss of 15 cents from a profit of 30 cents a year ago.
Comparable retail sales fell 4.7% in the quarter, with the company attributing the decline to a challenging macroeconomic environment and tariff-related uncertainty, which dampened consumer sentiment and impacted both physical and online sales.
During the second quarter, the company opened one store and closed two, ending the period with 494 locations, down from 515 stores at the end of the same quarter last year.
“The tariff environment remains unpredictable. Based on the current environment, we are projecting approximately $20 million to $25 million in additional tariff and duty expenses for fiscal year 2025.
However, we believe we are well-positioned to manage these impacts, having plans to mitigate approximately 80% of the effects of these tariffs through a range of strategic initiatives," said Muhammad Umair, President and Interim Chief Executive Officer.
Lululemon Athletica Inc. plunged 19% to $167.77 after the athleisure retailer reported a slight increase in revenue and a marginal decline in net income in the second quarter ending on August 3.
Consolidated revenue edged higher to $2.5 billion from $2.4 billion, net income declined to $370.9 million from $392.9 million, and diluted earnings per share fell to $3.10 from $3.15 a year ago.
During the second quarter, Lululemon returned a total of $278.5 million to shareholders through repurchases of 1.1 million shares.
The company added 14 net new company-operated stores during the second quarter, ending with 784 stores.
Overall comparable sales increased 1%; in the Americas, comparable sales declined 4%, or 3% on a constant dollar basis, offset by an international comparable sales increase of 15%, or 13% on a constant dollar basis.
Lululemon guided third-quarter revenue to be between $2.47 billion and $2.50 billion, and diluted earnings per share between $2.18 and $2.23.
The company estimated diluted earnings per share between $12.77 and $12.97 and full-year revenue between $10.85 billion and $11.0 billion.
"While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution," said Calvin McDonald, Chief Executive Officer.
"In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance, driven predominantly by our U.S. business.
We are also navigating industry-wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full-year outlook," said Meghan Frank, Chief Financial Officer.
Broadcom Inc. fell 0.7% to $332.41 despite the provider of semiconductor and infrastructure software solutions’ net income swinging to a profit from a year ago in the fiscal third quarter.
Consolidated revenue inched higher to $15.95 billion from $13.07 billion, net income swung to a profit of $4.14 billion from a loss of $1.88 billion, and diluted earnings per share rose to an income of 85 cents from a loss of 40 cents a year ago.
The company's board declared a cash dividend of $0.59 per share, payable on September 30 to shareholders on record on September 22.
During the third quarter, Broadcom returned $2.8 billion to shareholders through cash dividends.
The company estimated fiscal fourth-quarter revenue of approximately $17.4 billion and adjusted EBITDA to be approximately 67% of projected revenue.
"Broadcom achieved record third-quarter revenue, driven by continued strength in custom AI accelerators, networking, and VMware," said Hock Tan, president and chief executive officer.
AI revenue in Q3 grew 63% year-over-year to $5.2 billion.
We expect this growth to accelerate further in the fourth quarter, with AI semiconductor revenue projected to reach $6.2 billion—marking eleven consecutive quarters of growth, as our customers continue to invest aggressively.”