Market Update
Positive Earnings Support Weekly Advances In Europe, Investors Look for Details of US-UK Trade Deal
Bridgette Randall
09 May, 2025
London
European markets extended weekly gains on Friday as investors reviewed the latest batch of positive earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced amid optimism about the corporate earnings outlook.
IAG, the parent company of British Airways, reiterated its full-year outlook and cited strong demand for its premium travel services.
In addition, the Trump administration announced a "trade deal" has been struck with the UK but failed to provide details of import tax levels, scope of goods covered by the tariff program, and timetable.
After a week of choppy trading, benchmark indexes in Frankfurt advanced 1.7%, in Paris rose 0.3%, and in London edged up 0.7%.
Europe Indexes and Yields
The DAX index increased by 0.6% to 23,500.47, the CAC-40 index edged higher by 0.7% to 7,746.59, and the FTSE 100 index advanced 0.4% to 8,562.13.
The yield on 10-year German bonds inched higher to 2.57%, French bonds increased to 3.27%, the UK gilts moved up to 4.59%, and Italian bonds edged higher to 3.62%.
The euro increased to $1.12; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 83.04 Swiss cents.
Brent crude increased $0.52 to $63.36 a barrel, and the Dutch TTF natural gas was higher by €0.09 to €35.72 per MWh.
Europe Movers
Krones AG rose 3.8% to €139.60, and the packaging and bottling machine maker reported a 15% jump in profit in the first quarter.
Sonova Holding AG jumped 3.5% to CHF 259.40, and the Switzerland-based hearing care product maker estimated higher sales and earnings in the fiscal year 2026.
Commerzbank AG advanced 2% to €24.80 after the German bank reported a record quarterly profit.
International Consolidated Airlines Group soared 3.4% to 300.10 pence, and the parent company of British Airways and Iberia Airlines reported better-than-expected results in the first quarter and reiterated its full-year outlook, citing strong demand for its premium services.
Revenue in the first quarter increased 9.6%, and operating profit before exceptional items increased by €130 million to €198 million, and lower fuel prices offset the other cost increases.
In addition, the company said it ordered 71 new wide-body aircraft.
U.S. Movers: Cloudflare, Expedia, HubSpot, MercadoLibre, Shopify, Trade Desk
Scott Peters
09 May, 2025
New York City
Shopify Inc. eased 0.4% to $93.61 after the Canada-based e-commerce company reported first-quarter 2025 results.
Revenue edged up to $2.36 billion from $1.86 billion, net loss expanded to $682 million from a loss of $273 million, and diluted loss per share widened to 53 cents from a loss of 21 cents a year ago.
The company said free cash flow came in at $363 million, compared to $232 million a year earlier.
Shopify guided second-quarter revenue to grow at a mid-twenties percentage rate from $2.0 billion a year ago and free cash flow margin to be in the mid-teens, similar to the first quarter of 2025.
During the first quarter, operating income jumped to $203 million from $86 million, and net income excluding the impact of equity investments rose to $226 million from $144 million a year ago.
MercadoLibre Inc. advanced 6.5% to $2,420 after the Argentinian e-commerce and financial services company reported first-quarter 2025 results.
Revenue jumped to $5.93 billion from $4.33 billion, net income edged up to $494 million from $344 million, and diluted earnings per share rose to $9.74 from $6.78 a year ago.
The company said total payment volume in the quarter rose 43% to $58.3 billion and gross merchandise volume increased 17% to $13.3 billion from a year earlier.
Cloudflare Inc. surged 8.4% to $134.70 after the cybersecurity and network services provider reported higher sales in the first quarter of 2025.
Revenue increased to $479.09 million from $378.60 million, net loss widened to $38.45 million from a loss of $35.54 million, and diluted loss per share expanded to 11 cents from a loss of 10 cents a year ago.
The company guided second-quarter revenue to be between $500.0 million and $501.0 million, compared to $401.0 million in 2024; non-GAAP income between $62.5 million and $63.5 million, compared to $69.5 million; and non-GAAP net income per share of 18 cents, compared to 20 cents in the prior year.
For the full year, Cloudflare estimated revenue to be between $2.090 billion and $2.094 billion, compared to $1.67 billion in 2024; non-GAAP income from operations between $272.0 million and $276.0 million, compared to $230.1 million; and non-GAAP net income per share between 79 cents and 80 cents, compared to 75 cents a year ago.
HubSpot Inc. dropped 5.3% to $625.05 after the customer service software provider reported first-quarter 2025 results.
Revenue edged up to $714.14 million from $617.41 million, net income swung to a loss of $21.79 million from a profit of $5.93 million, and diluted earnings per share swung to a loss of 42 cents from a profit of 12 cents a year ago.
The company authorized a share repurchase program for up to $500.0 million over a period of up to 12 months.
HubSpot guided second-quarter revenue to be between $738.0 million and $740.0 million, compared to $637.2 million in 2024; non-GAAP operating income between $124.0 million and $125.0 million, compared to $109.3 million; and non-GAAP net income per share between $2.10 and $2.12, compared to $1.94 in the prior year.
For the full year, the company estimated revenue to be between $3.036 billion and $3.044 billion, compared to $2.63 billion in 2024; non-GAAP operating income between $558.0 million and $562.0 million, compared to $460.2 million; and non-GAAP net income per common share between $9.29 and $9.37, compared to $8.12 a year ago.
Trade Desk Inc. advanced 10.9% to $66.42 after the advertising technology company reported sharply higher sales in the first quarter of 2025.
Revenue jumped to $616.02 million from $491.25 million, net income climbed to $50.68 million from $31.66 million, and diluted earnings per share rose to 10 cents from 6 cents a year ago.
The company said Warner Bros. Discovery has recently integrated its OpenPath product to drive more direct, transparent, and efficient demand to its news properties.
During the quarter, TradeDesk used $386 million of cash to repurchase shares, and as of March 31, the company had $631 million available under authorization.
The company estimated second-quarter revenue to be at least $682 million, compared to $585 million in 2024, and adjusted EBITDA of approximately $259 million, compared to $242 million a year ago.
Expedia Inc. plunged 7.4% to $156.50 after the travel technology company released first-quarter 2025 results.
Revenue edged up to $2.99 billion from $2.89 billion, net loss widened to $200 million from a loss of $135 million, and diluted loss per share expanded to $1.56 from a loss of 99 cents a year ago.
The company repurchased approximately 1.7 million shares for $330 million during the quarter and paid a quarterly dividend of 40 cents per share on March 27.
“We posted first quarter bookings and revenue within our guidance range despite weaker than expected demand in the US,” the company said in a release to investors.
The number of booked room nights increased 6% in the quarter to 107.7 million from 101.2 million a year earlier.
Expedia guided second-quarter and full-year gross bookings to increase between 2% and 4% from a year ago, and the company also expects second-quarter revenue to grow between 3% and 5% and full-year revenue to increase by 2% to 4% from the same period in 2024.
U.S. Movers: Cloudflare, Expedia, HubSpot, MercadoLibre, Shopify, Trade Desk
Scott Peters
09 May, 2025
New York City
Shopify Inc. eased 0.4% to $93.61 after the Canada-based e-commerce company reported first-quarter 2025 results.
Revenue edged up to $2.36 billion from $1.86 billion, net loss expanded to $682 million from a loss of $273 million, and diluted loss per share widened to 53 cents from a loss of 21 cents a year ago.
The company said free cash flow came in at $363 million, compared to $232 million a year earlier.
Shopify guided second-quarter revenue to grow at a mid-twenties percentage rate from $2.0 billion a year ago and free cash flow margin to be in the mid-teens, similar to the first quarter of 2025.
During the first quarter, operating income jumped to $203 million from $86 million, and net income excluding the impact of equity investments rose to $226 million from $144 million a year ago.
MercadoLibre Inc. advanced 6.5% to $2,420 after the Argentinian e-commerce and financial services company reported first-quarter 2025 results.
Revenue jumped to $5.93 billion from $4.33 billion, net income edged up to $494 million from $344 million, and diluted earnings per share rose to $9.74 from $6.78 a year ago.
The company said total payment volume in the quarter rose 43% to $58.3 billion and gross merchandise volume increased 17% to $13.3 billion from a year earlier.
Cloudflare Inc. surged 8.4% to $134.70 after the cybersecurity and network services provider reported higher sales in the first quarter of 2025.
Revenue increased to $479.09 million from $378.60 million, net loss widened to $38.45 million from a loss of $35.54 million, and diluted loss per share expanded to 11 cents from a loss of 10 cents a year ago.
The company guided second-quarter revenue to be between $500.0 million and $501.0 million, compared to $401.0 million in 2024; non-GAAP income between $62.5 million and $63.5 million, compared to $69.5 million; and non-GAAP net income per share of 18 cents, compared to 20 cents in the prior year.
For the full year, Cloudflare estimated revenue to be between $2.090 billion and $2.094 billion, compared to $1.67 billion in 2024; non-GAAP income from operations between $272.0 million and $276.0 million, compared to $230.1 million; and non-GAAP net income per share between 79 cents and 80 cents, compared to 75 cents a year ago.
HubSpot Inc. dropped 5.3% to $625.05 after the customer service software provider reported first-quarter 2025 results.
Revenue edged up to $714.14 million from $617.41 million, net income swung to a loss of $21.79 million from a profit of $5.93 million, and diluted earnings per share swung to a loss of 42 cents from a profit of 12 cents a year ago.
The company authorized a share repurchase program for up to $500.0 million over a period of up to 12 months.
HubSpot guided second-quarter revenue to be between $738.0 million and $740.0 million, compared to $637.2 million in 2024; non-GAAP operating income between $124.0 million and $125.0 million, compared to $109.3 million; and non-GAAP net income per share between $2.10 and $2.12, compared to $1.94 in the prior year.
For the full year, the company estimated revenue to be between $3.036 billion and $3.044 billion, compared to $2.63 billion in 2024; non-GAAP operating income between $558.0 million and $562.0 million, compared to $460.2 million; and non-GAAP net income per common share between $9.29 and $9.37, compared to $8.12 a year ago.
Trade Desk Inc. advanced 10.9% to $66.42 after the advertising technology company reported sharply higher sales in the first quarter of 2025.
Revenue jumped to $616.02 million from $491.25 million, net income climbed to $50.68 million from $31.66 million, and diluted earnings per share rose to 10 cents from 6 cents a year ago.
The company said Warner Bros. Discovery has recently integrated its OpenPath product to drive more direct, transparent, and efficient demand to its news properties.
During the quarter, TradeDesk used $386 million of cash to repurchase shares, and as of March 31, the company had $631 million available under authorization.
The company estimated second-quarter revenue to be at least $682 million, compared to $585 million in 2024, and adjusted EBITDA of approximately $259 million, compared to $242 million a year ago.
Expedia Inc. plunged 7.4% to $156.50 after the travel technology company released first-quarter 2025 results.
Revenue edged up to $2.99 billion from $2.89 billion, net loss widened to $200 million from a loss of $135 million, and diluted loss per share expanded to $1.56 from a loss of 99 cents a year ago.
The company repurchased approximately 1.7 million shares for $330 million during the quarter and paid a quarterly dividend of 40 cents per share on March 27.
“We posted first quarter bookings and revenue within our guidance range despite weaker than expected demand in the US,” the company said in a release to investors.
The number of booked room nights increased 6% in the quarter to 107.7 million from 101.2 million a year earlier.
Expedia guided second-quarter and full-year gross bookings to increase between 2% and 4% from a year ago, and the company also expects second-quarter revenue to grow between 3% and 5% and full-year revenue to increase by 2% to 4% from the same period in 2024.
Europe Movers: Amadeus IT, Rheinmetall, Securitas
Inga Muller
09 May, 2025
Frankfurt
Securitas AB plunged 6.4% to 139.55 krona after the Swedish security services provider reported first-quarter 2025 results.
Total sales increased to SEK 39.61 billion from SEK 39.26 billion, operating income climbed to SEK 2.52 billion from SEK 2.36 billion, and earnings per share jumped to SEK 2.29 from SEK 1.84 a year ago.
“The business optimization program initiated at the start of the year is on track to achieve SEK 200 million in annualized savings by the end of 2025,” the company said in a release to investors.
Rheinmetall AG surged 2.7% to €1,677.50 after the German vehicle and defense company reported first-quarter 2025 results.
Sales edged up to €2.30 billion from €1.58 billion, earnings after taxes jumped to €84 million from €48 million, and diluted earnings per share rose to €1.91 from €1.10 a year ago.
The company guided full-year sales to grow between 25% and 30%, compared to €9.75 billion in 2024, with all its business segments expected to register double-digit growth in 2025.
Amadeus IT Group SA dropped 3.8% to €67.62 after the Spanish travel-related software provider reported first-quarter 2025 results.
Revenue climbed 9.1% to €1.63 billion from €1.50 billion, profit edged up 13.3% to €355.3 million from €313.6 million, and diluted earnings per share rose 13.3% to 79 cents from 70 cents a year ago.
The company guided full-year revenue at constant currency to be between €6.60 billion and €6.84 billion, an increase of 7.4% to 11.4% from €6.14 billion in the prior year.
Full-year EBITDA is estimated to be between €2.46 billion and €2.58 billion, an increase of 5.7% to 11.0% from €2.33 billion a year earlier.
Europe Movers: Amadeus IT, Rheinmetall, Securitas
Inga Muller
09 May, 2025
Frankfurt
Securitas AB plunged 6.4% to 139.55 krona after the Swedish security services provider reported first-quarter 2025 results.
Total sales increased to SEK 39.61 billion from SEK 39.26 billion, operating income climbed to SEK 2.52 billion from SEK 2.36 billion, and earnings per share jumped to SEK 2.29 from SEK 1.84 a year ago.
“The business optimization program initiated at the start of the year is on track to achieve SEK 200 million in annualized savings by the end of 2025,” the company said in a release to investors.
Rheinmetall AG surged 2.7% to €1,677.50 after the German vehicle and defense company reported first-quarter 2025 results.
Sales edged up to €2.30 billion from €1.58 billion, earnings after taxes jumped to €84 million from €48 million, and diluted earnings per share rose to €1.91 from €1.10 a year ago.
The company guided full-year sales to grow between 25% and 30%, compared to €9.75 billion in 2024, with all its business segments expected to register double-digit growth in 2025.
Amadeus IT Group SA dropped 3.8% to €67.62 after the Spanish travel-related software provider reported first-quarter 2025 results.
Revenue climbed 9.1% to €1.63 billion from €1.50 billion, profit edged up 13.3% to €355.3 million from €313.6 million, and diluted earnings per share rose 13.3% to 79 cents from 70 cents a year ago.
The company guided full-year revenue at constant currency to be between €6.60 billion and €6.84 billion, an increase of 7.4% to 11.4% from €6.14 billion in the prior year.
Full-year EBITDA is estimated to be between €2.46 billion and €2.58 billion, an increase of 5.7% to 11.0% from €2.33 billion a year earlier.
Japan's Real Household Spending Decline Second Consecutive Year, Shipping Companies Estimate Sharp Plunge In Profit
Akira Ito
09 May, 2025
Tokyo
Japan's market indexes advanced in Friday's trading and extended weekly gains following a key economic report on personal spending and real wages.
The Nikkei 225 Stock Average gained more than 1%, and the broader Topix advanced nearly 1.5%, and indexes traded near six-week highs.
Japan's nominal cash earnings in March increased at a slower pace of 2.1% from the revised 2.7% increase in February, according to the latest data available from the Statistics Bureau of Japan.
Nominal wages per worker, including base and overtime payments, increased 2.1% to 308,572 yen, according to a report by the Ministry of Health, Labor, and Welfare.
Real wages, after adjusting for inflation, declined 2.0% from a year ago, denting the consumer's appetite.
Japan's household spending in March rose 2.1% from a year ago in real terms to 339,232 yen, driven by higher electric bills and a rise in tuition fees for private universities.
The two separate reports calculated real wage and spending data by adjusting nominal figures with the consumer price inflation of 4.1% in March, lower than the 4.3% rate in February.
Investors remained skeptical about the trade deal between the U.S. and UK, as few details were available after the White House announcement.
About 3% of the U.S.'s total imports arrive from the U.K., and the average tariffs paid by the U.S. importers amount to less than 2%.
However, the U.S. president claimed that the UK's imports would be slapped with higher tariffs of 10%, and the Trump administration agreed to drop the proposed 25% tariffs on British steel and aluminum to zero.
For now, the U.S. proposed to limit tariffs to 10% on the first 100,000 automobiles imported from the U.K., and the U.S. is the top destination for British passenger cars worth about £9 billion.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.6% to 37,516.70, and the broader Topix index gained 1.4% to 2,735.39.
Japan's three leading shipping companies traded down after they estimated a sharp decline in earnings in the current fiscal year.
The shipping companies confirmed that the Trump administration's tariffs are having negative impacts on shipping volume and freight rates.
Net income at Nippon Yusen is likely to fall 47.7% to 250 billion yen, at Kawasaki Kisen Kaisha to plunge 67.3% to 100 billion yen, and at Mitsui O.S.K. Lines to shrink by 60% to 170 billion yen.
Nippon Yusen decreased 1.1% to ¥4,838.0, Kawasaki Kisen Kaisha dropped 0.7% to ¥1,999.50, and Mitsui O.S.K. Lines rose 1% to ¥4,629.0.
Japan's Real Household Spending Declined Second Consecutive Year, Shipping Companies Estimate Sharp Plunge In Profit
Akira Ito
09 May, 2025
Tokyo
Japan's market indexes advanced in Friday's trading and extended weekly gains following a key economic report on personal spending and real wages.
The Nikkei 225 Stock Average gained more than 1%, and the broader Topix advanced nearly 1.5%, and indexes traded near six-week highs.
Japan's nominal cash earnings in March increased at a slower pace of 2.1% from the revised 2.7% increase in February, according to the latest data available from the Statistics Bureau of Japan.
Nominal wages per worker, including base and overtime payments, increased 2.1% to 308,572 yen, according to a report by the Ministry of Health, Labor, and Welfare.
Real wages, after adjusting for inflation, declined 2.0% from a year ago, denting the consumer's appetite.
Japan's household spending in March rose 2.1% from a year ago in real terms to 339,232 yen, driven by higher electric bills and a rise in tuition fees for private universities.
The two separate reports calculated real wage and spending data by adjusting nominal figures with the consumer price inflation of 4.1% in March, lower than the 4.3% rate in February.
Investors remained skeptical about the trade deal between the U.S. and UK, as few details were available after the White House announcement.
About 3% of the U.S.'s total imports arrive from the U.K., and the average tariffs paid by the U.S. importers amount to less than 2%.
However, the U.S. president claimed that the UK's imports would be slapped with higher tariffs of 10%, and the Trump administration agreed to drop the proposed 25% tariffs on British steel and aluminum to zero.
For now, the U.S. proposed to limit tariffs to 10% on the first 100,000 automobiles imported from the U.K., and the U.S. is the top destination for British passenger cars worth about £9 billion.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.6% to 37,516.70, and the broader Topix index gained 1.4% to 2,735.39.
Japan's three leading shipping companies traded down after they estimated a sharp decline in earnings in the current fiscal year.
The shipping companies confirmed that the Trump administration's tariffs are having negative impacts on shipping volume and freight rates.
Net income at Nippon Yusen is likely to fall 47.7% to 250 billion yen, at Kawasaki Kisen Kaisha to plunge 67.3% to 100 billion yen, and at Mitsui O.S.K. Lines to shrink by 60% to 170 billion yen.
Nippon Yusen decreased 1.1% to ¥4,838.0, Kawasaki Kisen Kaisha dropped 0.7% to ¥1,999.50, and Mitsui O.S.K. Lines rose 1% to ¥4,629.0.
China Indexes Trimmed Weekly Gains Amid Low Expectations On US Trade Talks
Li Chen
09 May, 2025
Hong Kong
Stocks in China and Hong Kong headed lower on Friday and extended weekly gains ahead of US-China trade talks.
The Hang Seng index inched down a fraction, and the CSI 300 index declined 0.2%, and investors booked profit, halting a six-day rally.
Chinese Vice-Premier He Lifeng and U.S. Secretary Scot Bessent are scheduled to start trade talks in Switzerland this weekend.
Despite the Trump administration's repeated denials, the U.S. requested China to hold talks and de-escalate self-imposed sky-high tariffs on imports from China.
The U.S. president announced a "trade deal" with the U.K., but the announcement lacked details and specific levels of duties on goods and services.
Investors largely ignored the vague deal with the UK, and talks with China are likely to yield few results, just as talks with Japan ended inconclusively after two rounds of talks.
Over the week, the Hang Seng index gained 2.7%, and the CSI 300 advanced 1.8% after the People's Bank of China and the China Securities Regulatory Commission announced measures to shore up consumer confidence and stabilize financial markets.
China Indexes and Stocks
The Hang Seng index edged down to 22,775.72, and the CSI index decreased 0.2% to 3,843.98.
Alibaba Group Holding increased 1.2% to HK $122.90, Tencent Holdings decreased 0.6% to $495.0, and Baidu Inc. declined 1% to HK $84.10.
China Indexes Trimmed Weekly Gains Amid Low Expectations On US Trade Talks
Li Chen
09 May, 2025
Hong Kong
Stocks in China and Hong Kong headed lower on Friday and extended weekly gains ahead of US-China trade talks.
The Hang Seng index inched down a fraction, and the CSI 300 index declined 0.2%, and investors booked profit, halting a six-day rally.
Chinese Vice-Premier He Lifeng and U.S. Secretary Scot Bessent are scheduled to start trade talks in Switzerland this weekend.
Despite the Trump administration's repeated denials, the U.S. requested China to hold talks and de-escalate self-imposed sky-high tariffs on imports from China.
The U.S. president announced a "trade deal" with the U.K., but the announcement lacked details and specific levels of duties on goods and services.
Investors largely ignored the vague deal with the UK, and talks with China are likely to yield few results, just as talks with Japan ended inconclusively after two rounds of talks.
Over the week, the Hang Seng index gained 2.7%, and the CSI 300 advanced 1.8% after the People's Bank of China and the China Securities Regulatory Commission announced measures to shore up consumer confidence and stabilize financial markets.
China Indexes and Stocks
The Hang Seng index edged down to 22,775.72, and the CSI index decreased 0.2% to 3,843.98.
Alibaba Group Holding increased 1.2% to HK $122.90, Tencent Holdings decreased 0.6% to $495.0, and Baidu Inc. declined 1% to HK $84.10.
U.S. Stocks Advanced Amid Skepticism About Trade Deal Claims
Barry Adams
08 May, 2025
New York City
U.S. market indexes advanced for the second consecutive day amid claims of progress on trade agreements. and positive earnings.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4% as investors bid up artificial intelligence-linked semiconductor stocks.
However, gains on Wall Street were muted after the Federal Reserve announced its rate decisions on Wednesday and issued cautious comments.
The Federal Reserve held the fed funds rate range between 4.25% and 4.50% and decided to take a wait-and-see approach on the proposed tariffs by the Trump administration.
At a press conference after the rate decisions, Fed Chair Jerome Powell ruled out the preemptive rate cut to soften the impact of sky-high import taxes announced by the Trump administration and supported by the Republican Congress.
If the proposed tariffs were implemented, they could slow down U.S. economic growth, reignite inflation, and elevate long-term unemployment, added Powell.
Investors have been holding out for swift progress on US-China tariff discussions in Switzerland amid a sharp slowdown in container ship bookings.
US-China trade talks are likely to show little progress, as the Trump administration has still not set priorities and a demand list. Moreover, China has lined up suppliers in Brazil, Argentina, and Peru for its agricultural product imports.
Investors remained skeptical about the proposed US-UK comprehensive trade deal, which is short on details and long on future promises.
However, the base tariff rate of 10% on the goods imported from the U.K. will remain in place.
Container shipping companies in China are signaling a sharp decline of 60% in bookings for container shipments compared to June departures, as many factories in China are experiencing order cancelations from U.S. importers.
The makers of consumer goods in Ningbo, Dongguan, Suzhou, and Shenzhen have started laying off manufacturing staff and curtailed business operations to only three days a week, according to several companies interviewed by Ticker.com.
So far, the impact of higher tariffs on four key trading partners—Mexico, Canada, Japan, and China—has not been felt by U.S. consumers, employees, and logistics companies.
U.S. weekly jobless claims for the week ending May 3 declined 13,000 to 228,000, according to the latest update from the U.S. Department of Labor.
The continuing claims, tracking longer-term jobless claims, which runs one week behind, also eased 29,000 to 1.88 million.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.6% to 5,663.03, the Nasdaq Composite edged up 0.8% to 17,877.05, and the Russell 2000 index advanced 1.4% to 2,011.41.
The yield on 2-year Treasury notes edged higher to 3.82%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.78%.
WTI crude oil increased $1.13 to $59.20 a barrel, and natural gas prices edged higher by $0.02 to $3.64 a thermal unit.
Gold decreased by $13.78 to 3,363.24 an ounce, and silver edged up by $0.07 to $32.52.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.33 to 99.94, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Arm Holdings PLC decreased 7.8% to $114.40 after the advanced chip designer estimated fiscal first quarter adjusted earnings per share between 30 cents and 38 cents, sharply lower than market expectation of at least 43 cents.
AppLovin Corp. surged 13% to $343.03, and the mobile game developer studio and platform operator reported better-than-expected quarterly results.
Moreover, the company said it has agreed to sell its mobile gaming business to Tripledot Studios for about $400 million in cash and a 20% equity stake in the company.
Skyworks Solutions declined 2.5% to $65.30 despite the semiconductor company reporting better-than-expected quarterly earnings and forecasting upbeat earnings for the fiscal third quarter.
U.S. Stocks Advanced Amid Skepticism About Trade Deal Claims
Barry Adams
08 May, 2025
New York City
U.S. market indexes advanced for the second consecutive day amid claims of progress on trade agreements. and positive earnings.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4% as investors bid up artificial intelligence-linked semiconductor stocks.
However, gains on Wall Street were muted after the Federal Reserve announced its rate decisions on Wednesday and issued cautious comments.
The Federal Reserve held the fed funds rate range between 4.25% and 4.50% and decided to take a wait-and-see approach on the proposed tariffs by the Trump administration.
At a press conference after the rate decisions, Fed Chair Jerome Powell ruled out the preemptive rate cut to soften the impact of sky-high import taxes announced by the Trump administration and supported by the Republican Congress.
If the proposed tariffs were implemented, they could slow down U.S. economic growth, reignite inflation, and elevate long-term unemployment, added Powell.
Investors have been holding out for swift progress on US-China tariff discussions in Switzerland amid a sharp slowdown in container ship bookings.
US-China trade talks are likely to show little progress, as the Trump administration has still not set priorities and a demand list. Moreover, China has lined up suppliers in Brazil, Argentina, and Peru for its agricultural product imports.
Investors remained skeptical about the proposed US-UK comprehensive trade deal, which is short on details and long on future promises.
However, the base tariff rate of 10% on the goods imported from the U.K. will remain in place.
Container shipping companies in China are signaling a sharp decline of 60% in bookings for container shipments compared to June departures, as many factories in China are experiencing order cancelations from U.S. importers.
The makers of consumer goods in Ningbo, Dongguan, Suzhou, and Shenzhen have started laying off manufacturing staff and curtailed business operations to only three days a week, according to several companies interviewed by Ticker.com.
So far, the impact of higher tariffs on four key trading partners—Mexico, Canada, Japan, and China—has not been felt by U.S. consumers, employees, and logistics companies.
U.S. weekly jobless claims for the week ending May 3 declined 13,000 to 228,000, according to the latest update from the U.S. Department of Labor.
The continuing claims, tracking longer-term jobless claims, which runs one week behind, also eased 29,000 to 1.88 million.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.6% to 5,663.03, the Nasdaq Composite edged up 0.8% to 17,877.05, and the Russell 2000 index advanced 1.4% to 2,011.41.
The yield on 2-year Treasury notes edged higher to 3.82%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.78%.
WTI crude oil increased $1.13 to $59.20 a barrel, and natural gas prices edged higher by $0.02 to $3.64 a thermal unit.
Gold decreased by $13.78 to 3,363.24 an ounce, and silver edged up by $0.07 to $32.52.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.33 to 99.94, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Arm Holdings PLC decreased 7.8% to $114.40 after the advanced chip designer estimated fiscal first quarter adjusted earnings per share between 30 cents and 38 cents, sharply lower than market expectation of at least 43 cents.
AppLovin Corp. surged 13% to $343.03, and the mobile game developer studio and platform operator reported better-than-expected quarterly results.
Moreover, the company said it has agreed to sell its mobile gaming business to Tripledot Studios for about $400 million in cash and a 20% equity stake in the company.
Skyworks Solutions declined 2.5% to $65.30 despite the semiconductor company reporting better-than-expected quarterly earnings and forecasting upbeat earnings for the fiscal third quarter.
Sweden and Norway Hold Rates Steady, Germany's Trade Surplus Stays Surplus
Bridgette Randall
08 May, 2025
Frankfurt
European markets advanced as investors awaited bank rate decisions and the fresh batch of earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London traded higher amid optimism about corporate earnings and possible de-escalation of trade tensions with the U.S.
Sweden's Riksbank left its policy rate at 2.25%, citing a sharp shift in U.S. trade policy and a high level of uncertainty surrounding trade negotiations with the U.S.
The Bank of England is widely anticipated to lower its Bank Rate by 25 basis points to 4.25%, and the Norges Bank left its policy rate at 4.5% and signaled possible cuts later in the year.
“The committee has decided to keep the policy rate unchanged. Inflation is still above target.
If the policy rate is lowered prematurely, prices may continue to rise rapidly,” said Norges Bank's Deputy Governor Pål Longva.
On Wednesday, the U.S. Federal Reserve held steady its rate range between 4.25% and 4.50%, and Fed Chair Jerome Powell ruled out the preemptive rate cut to soften the impact of the Trump administration's tariffs.
Stable German Trade Surplus In March
Germany's seasonally and calendar-adjusted exports and imports advanced from the previous month and a year ago, and the trade surplus was stable, the Federal Statistical Office reported Thursday.
Exports increased 2.3% to €133.2 billion, imports advanced 2.3% to €112.1 billion, resulting in a trade surplus of €21.1 billion.
Exports to the U.S., Germany's largest partner, increased 2.4% from the previous month to €14.6 billion; to China jumped 10.2% to €7.5 billion; and to the U.K. fell by 2.8% to €6.4 billion.
Imports from China rose 9.6% to €14.7 billion, from the U.S. advanced 7.9% to €8.1 billion, and from the U.K. decreased 5.8% to €3.2 billion.
In the first quarter, Germany's total exports edged up 0.9% from a year ago to €349.3 billion.
Europe Indexes and Yields
The DAX index increased by 0.8% to 23,298.20, the CAC-40 index edged higher by 0.4% to 7,656.70, and the FTSE 100 index advanced 0.1% to 8,569.65.
The yield on 10-year German bonds inched higher to 2.48%, French bonds decreased to 3.19%, UK gilts moved down to 4.45%, and Italian bonds edged lower to 3.54%.
The euro decreased to $1.13; the British pound was lower at $1.33; and the U.S. dollar was higher and traded at 82.77 Swiss cents.
Brent crude increased $0.21 to $61.33 a barrel, and the Dutch TTF natural gas was higher by €0.42 to €34.67 per MWh.
Europe Movers
Siemens Energy jumped 3.1% to €73.16, and the company raised its forecast after strong quarterly results.
The renewable energy also sold a 90% stake in its wind energy businesses in India and Sri Lanka to a private equity group, TPG.
Puma SE jumped 6.7% to €24.94, and the athletic footwear maker reported stable first-quarter results and reiterated its outlook despite the company lacking a chief executive officer.
InBev AB jumped 1.7% to €57.50, and the alcoholic beverage company reported results at the top end of its guidance, driven by a better-than-expected sales mix.
AP Moeller-Maersk AS decreased 1.4% to DKK 11,130.0, and the shipping and port terminal manager reported a rise in operating earnings in the first quarter and reiterated its annual outlook.
Sweden and Norway Hold Rates Steady, Germany's Trade Surplus Stays Surplus
Bridgette Randall
08 May, 2025
Frankfurt
European markets advanced as investors awaited bank rate decisions and the fresh batch of earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London traded higher amid optimism about corporate earnings and possible de-escalation of trade tensions with the U.S.
Sweden's Riksbank left its policy rate at 2.25%, citing a sharp shift in U.S. trade policy and a high level of uncertainty surrounding trade negotiations with the U.S.
The Bank of England is widely anticipated to lower its Bank Rate by 25 basis points to 4.25%, and the Norges Bank left its policy rate at 4.5% and signaled possible cuts later in the year.
“The committee has decided to keep the policy rate unchanged. Inflation is still above target.
If the policy rate is lowered prematurely, prices may continue to rise rapidly,” said Norges Bank's Deputy Governor Pål Longva.
On Wednesday, the U.S. Federal Reserve held steady its rate range between 4.25% and 4.50%, and Fed Chair Jerome Powell ruled out the preemptive rate cut to soften the impact of the Trump administration's tariffs.
Stable German Trade Surplus In March
Germany's seasonally and calendar-adjusted exports and imports advanced from the previous month and a year ago, and the trade surplus was stable, the Federal Statistical Office reported Thursday.
Exports increased 2.3% to €133.2 billion, imports advanced 2.3% to €112.1 billion, resulting in a trade surplus of €21.1 billion.
Exports to the U.S., Germany's largest partner, increased 2.4% from the previous month to €14.6 billion; to China jumped 10.2% to €7.5 billion; and to the U.K. fell by 2.8% to €6.4 billion.
Imports from China rose 9.6% to €14.7 billion, from the U.S. advanced 7.9% to €8.1 billion, and from the U.K. decreased 5.8% to €3.2 billion.
In the first quarter, Germany's total exports edged up 0.9% from a year ago to €349.3 billion.
Europe Indexes and Yields
The DAX index increased by 0.8% to 23,298.20, the CAC-40 index edged higher by 0.4% to 7,656.70, and the FTSE 100 index advanced 0.1% to 8,569.65.
The yield on 10-year German bonds inched higher to 2.48%, French bonds decreased to 3.19%, UK gilts moved down to 4.45%, and Italian bonds edged lower to 3.54%.
The euro decreased to $1.13; the British pound was lower at $1.33; and the U.S. dollar was higher and traded at 82.77 Swiss cents.
Brent crude increased $0.21 to $61.33 a barrel, and the Dutch TTF natural gas was higher by €0.42 to €34.67 per MWh.
Europe Movers
Siemens Energy jumped 3.1% to €73.16, and the company raised its forecast after strong quarterly results.
The renewable energy also sold a 90% stake in its wind energy businesses in India and Sri Lanka to a private equity group, TPG.
Puma SE jumped 6.7% to €24.94, and the athletic footwear maker reported stable first-quarter results and reiterated its outlook despite the company lacking a chief executive officer.
InBev AB jumped 1.7% to €57.50, and the alcoholic beverage company reported results at the top end of its guidance, driven by a better-than-expected sales mix.
AP Moeller-Maersk AS decreased 1.4% to DKK 11,130.0, and the shipping and port terminal manager reported a rise in operating earnings in the first quarter and reiterated its annual outlook.