Market Update
Broadening of Inflation from Food to Household Goods Restrain Consumer Spending, Wall Street Stocks Struggle to Advance
Barry Adams
19 Aug, 2025
New York City
Stock market indexes on Wall Street meandered as investors prepared to review quarterly results from big-box retailers.
The S&P 500 index decreased 0.1%, the Nasdaq Composite fell 0.4%, and the benchmark indexes hovered near record highs.
Investor sentiment has remained upbeat amid a steady stream of positive earnings from tech and industrial companies and better-than-expected news on the inflation front.
The sharp escalation in U.S. tariffs to close to 19% in August from 3% last year has kept investors on edge and stoked fears of a gradual increase in retail prices in the months ahead.
Retailers are expected to pass over higher prices to consumers in a steady fashion so as to not invite threats from the White House.
In addition, wholesale prices of food soared more than 11% in July, according to the producer price index report released last week by the U.S. government.
The wholesale report confirmed that the sharp shrinkage in the migrant labor force and the surge in duties on food imports have contributed to the rise in food prices, contrasting the messaging from the Trump administration.
Mixed New Housing Construction Data In July
New home construction in July showed a mixed picture as home builders struggled to adjust to frequent changes in the U.S. trade policy.
Seasonally adjusted authorized housing permits in July were 1.354 million, a 5.7% decline from the revised 1.436 million a year ago and 2.8% lower than the revised June rate of 1.393 million.
The seasonally adjusted housing starts annual rate was 1.428 million, an increase of 12.9% from 1.265 million and 5.2% above the revised rate of 1.358 million.
Across the country, starts in the Midwest soared 33.3% to 252,000, and in the South, they advanced 19.2% to 833,000, offsetting the contractions in the West of 27.5% to 232,000 and in the Northeast of 11.6% to 111,000.
The housing completions annual rate in July was 1.415 million, a sharp decline of 13.5% from the 1.635 million rate a year ago and 6% higher than the revised rate of 1.335 million in the previous month.
U.S. Stock Movers
Palo Alto Networks Inc. rose 4.9% to $184.80 after the cybersecurity company reported better-than-expected quarterly results and issued a higher-than-expected outlook for the current quarter and full fiscal year.
Consolidated revenue in the fiscal fourth quarter ending in July increased to $2.5 billion from $2.2 billion, net income dropped to $253.8 million from $357.7 million, and diluted earnings per share fell to 36 paise from 51 paise a year ago.
Palo Alto guided fiscal 2026 first-quarter revenue to rise by 15% to between $2.45 billion and $2.47 billion and diluted non-GAAP earnings per share to between $0.88 and $0.90, using 709 million to 712 million shares outstanding.
A few weeks ago, the company agreed to acquire Israel-based identity security provider CyberArk for $25 billion, the company's largest acquisition.
Freightos Ltd. declined 0.6% to $3.59 after the digital freight booking and logistics platform provider reported a 32% increase in revenue, and net loss shrank in the latest quarter.
Consolidated revenue in the June quarter advanced to $7.4 million from $5.6 million, net loss shrank to $4.3 million from $5.3 million, and diluted loss per share shrank to 9 cents from 11 cents a year ago.
Freightos guided third-quarter revenue to be between $7.6 million and $7.7 million and adjusted EBITDA to be between $2.6 million and $2.5 million.
Intel Corporation increased 5.7% to $25.02, and Japan-based SoftBank Group agreed to acquire a 2% stake in the company for $2 billion.
SoftBank agreed to pay $23 a share, according to a joint statement released by the two companies.
The U.S. federal government may take as much as its 10% stake in the company, after a meeting between the U.S. president and the company's chief executive, Lip-bu Tan.
Home Depot Inc. increased 1.6% to $401.10, and the do-it-yourself retailer reported weaker-than-expected second-quarter results.
The retailer reported same-store sales increased 1%, after falling 3.3% in the period a year ago and declining 2% in the period two years ago.
Nexstar Media Group jumped 7.3% to $221.50, and the company agreed to acquire its smaller rival Tegna Inc. for $22 a share, or $3.54 billion.
Tegna advanced 4.4% to $21.07 after the announcement of the deal.
Broadening of Inflation from Food to Household Goods Restrain Consumer Spending, Wall Street Stocks Struggle to Advance
Barry Adams
19 Aug, 2025
New York City
Stock market indexes on Wall Street meandered as investors prepared to review quarterly results from big-box retailers.
The S&P 500 index decreased 0.1%, the Nasdaq Composite fell 0.4%, and the benchmark indexes hovered near record highs.
Investor sentiment has remained positive amid a steady stream of positive earnings from tech and industrial companies and better-than-expected news on the inflation front.
The sharp escalation in U.S. tariffs to close to 19% in August from 3% last year has kept investors on edge and stoked fears of a gradual increase in retail prices in the months ahead.
Retailers are expected to pass over higher prices to consumers in a steady fashion so as to not invite threats from the White House.
In addition, wholesale prices of food soared more than 11% in July, according to the producer price index report released last week by the U.S. government.
The wholesale report confirmed that the sharp shrinkage in the migrant labor force and the surge in duties on food imports have contributed to the rise in food prices, contrasting the messaging from the Trump administration.
Mixed New Housing Construction Data In July
New home construction in July showed a mixed picture as home builders struggled to adjust to frequent changes in the U.S. trade policy.
Seasonally adjusted authorized housing permits in July were 1.354 million, a 5.7% decline from the revised 1.436 million a year ago and 2.8% lower than the revised June rate of 1.393 million.
The seasonally adjusted housing starts annual rate was 1.428 million, an increase of 12.9% from 1.265 million and 5.2% above the revised rate of 1.358 million.
Across the country, starts in the Midwest soared 33.3% to 252,000, and in the South, they advanced 19.2% to 833,000, offsetting the contractions in the West of 27.5% to 232,000 and in the Northeast of 11.6% to 111,000.
The housing completions annual rate in July was 1.415 million, a sharp decline of 13.5% from the 1.635 million rate a year ago and 6% higher than the revised rate of 1.335 million in the previous month.
U.S. Stock Movers
Palo Alto Networks Inc. rose 4.9% to $184.80 after the cybersecurity company reported better-than-expected quarterly results and issued a higher-than-expected outlook for the current quarter and full fiscal year.
Consolidated revenue in the fiscal fourth quarter ending in July increased to $2.5 billion from $2.2 billion, net income dropped to $253.8 million from $357.7 million, and diluted earnings per share fell to 36 paise from 51 paise a year ago.
Palo Alto guided fiscal 2026 first-quarter revenue to rise by 15% to between $2.45 billion and $2.47 billion and diluted non-GAAP earnings per share to between $0.88 and $0.90, using 709 million to 712 million shares outstanding.
A few weeks ago, the company agreed to acquire Israel-based identity security provider CyberArk for $25 billion, the company's largest acquisition.
Freightos Ltd. declined 0.6% to $3.59 after the digital freight booking and logistics platform provider reported a 32% increase in revenue, and net loss shrank in the latest quarter.
Consolidated revenue in the June quarter advanced to $7.4 million from $5.6 million, net loss shrank to $4.3 million from $5.3 million, and diluted loss per share shrank to 9 cents from 11 cents a year ago.
Freightos guided third-quarter revenue to be between $7.6 million and $7.7 million and adjusted EBITDA to be between $2.6 million and $2.5 million.
Intel Corporation increased 5.7% to $25.02, and Japan-based SoftBank Group agreed to acquire a 2% stake in the company for $2 billion.
SoftBank agreed to pay $23 a share, according to a joint statement released by the two companies.
The U.S. federal government may take as much as its 10% stake in the company, after a meeting between the U.S. president and the company's chief executive, Lip-bu Tan.
Home Depot Inc. increased 1.6% to $401.10, and the do-it-yourself retailer reported weaker-than-expected second-quarter results.
The retailer reported same-store sales increased 1%, after falling 3.3% in the period a year ago and declining 2% in the period two years ago.
Nexstar Media Group jumped 7.3% to $221.50, and the company agreed to acquire its smaller rival Tegna Inc. for $22 a share, or $3.54 billion.
Tegna advanced 4.4% to $21.07 after the announcement of the deal.
Stock Movers: Palo Alto, Freightos
Scott Peters
19 Aug, 2025
New York City
Palo Alto Networks Inc. rose 4.9% to $184.80 after the cybersecurity company reported a slight increase in revenue and a 29% decrease in profit in the latest quarter.
Consolidated revenue in the fiscal fourth quarter ending in July increased to $2.5 billion from $2.2 billion, net income dropped to $253.8 million from $357.7 million, and diluted earnings per share fell to 36 paise from 51 paise a year ago.
Palo Alto guided fiscal 2026 first quarter revenue to rise by 15% to between $2.45 billion and $2.47 billion, and diluted non-GAAP earnings per share between $0.88 and $0.90, using 709 million to 712 million shares outstanding.
Palo Alto guided full-year revenue to rise 14% to between $10.47 billion and $10.52 billion, and diluted non-GAAP earnings per share between $3.75 and $3.85, using 710 million to 716 million shares outstanding.
Freightos Ltd. declined 0.6% to $3.59 after the digital freight booking and logistics platform provider reported a 32% increase in revenue, and net loss shrank in the latest quarter.
Consolidated revenue in the June quarter advanced to $7.4 million from $5.6 million, net loss shrank to $4.3 million from $5.3 million, and diluted loss per share shrank to 9 cents from 11 cents a year ago.
Freightos guided third-quarter revenue to be between $7.6 million and $7.7 million, and adjusted EBITDA to be between $2.6 million and $2.5 million.
The booking platform operator estimated full-year revenue to be between $29.5 million and $30.0 million and adjusted EBITDA between $10.9 million and $10.5 million.
Compared to a year ago, the processed transactions rose 26% to a record high of 397,000 transactions, with Gross Booking Value jumping 56% to $317 million and revenue rising 32% to $7.4 million, driven by new carrier additions, Shipsta integration, and improved customs services.
Stock Movers: Palo Alto, Freightos
Scott Peters
19 Aug, 2025
New York City
Palo Alto Networks Inc. rose 4.9% to $184.80 after the cybersecurity company reported a slight increase in revenue and a 29% decrease in profit in the latest quarter.
Consolidated revenue in the fiscal fourth quarter ending in July increased to $2.5 billion from $2.2 billion, net income dropped to $253.8 million from $357.7 million, and diluted earnings per share fell to 36 paise from 51 paise a year ago.
Palo Alto guided fiscal 2026 first quarter revenue to rise by 15% to between $2.45 billion and $2.47 billion, and diluted non-GAAP earnings per share between $0.88 and $0.90, using 709 million to 712 million shares outstanding.
Palo Alto guided full-year revenue to rise 14% to between $10.47 billion and $10.52 billion, and diluted non-GAAP earnings per share between $3.75 and $3.85, using 710 million to 716 million shares outstanding.
Freightos Ltd. declined 0.6% to $3.59 after the digital freight booking and logistics platform provider reported a 32% increase in revenue and marginal decline in profit in the latest quarter.
Consolidated revenue in the June quarter advanced to $7.4 million from $5.6 million, net income edged down to $0.559 million from $0.567 million, and diluted earnings per share inched lower to 9 cents from 11 cents a year ago.
Freightos guided third-quarter revenue to be between $7.6 million and $7.7 million and adjusted EBITDA to be between $2.6 million and $2.5 million a quarter earlier, respectively.
The booking platform operator estimated full-year revenue to be between $29.5 million and $30.0 million and adjusted EBITDA between $10.9 million and $10.5 million a year earlier, respectively.
Compared to a year ago, the processed transactions rose 26% to a record high of 397,000 transactions, with Gross Booking Value jumping 56% to $317 million and revenue rising 32% to $7.4 million, driven by new carrier additions, Shipsta integration, and improved customs services.
Japan's Indexes Turned Down from Record Highs Amid Rate Path Worry and Geopolitical Uncertainties
Akira Ito
19 Aug, 2025
Tokyo
Japan's market indexes edged lower from record highs reached on Monday, and skeptical investors reviewed the possible Russia-Ukraine settlement.
The Nikkei 225 Stock Average decreased 0.1%, and the broader Topix edged up 0.1%, as investors debated the future rate path in Japan.
Investors are widely anticipating the Bank of Japan to raise rates at least by 25 basis points before the end of 2025.
In addition, investors are looking for a possible rate cut by the U.S. Federal Reserve following the next policy meeting in September.
The Japanese yen held firm, and the bond yields edged slightly higher as investors worried that the rising domestic inflation may force the Bank of Japan to raise rates sooner than previously expected.
The Japanese yen traded at 147.64 against the U.S. dollar, and the yield on 10-year Japanese government bonds edged up a fraction to 1.596%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.1% to 43,655.01, and the broader Topix inched higher 0.1% to 3,124.12.
SoftBank Group decreased 3.7% to ¥16,085.0, and the company said it plans to invest $2 billion in the troubled chipmaker Intel.
Sanrio Co. Ltd. dropped 9.7% to ¥7,838.0, Fujikura Ltd. decreased 2.3% to ¥12,025.0, and Nintendo Co. Ltd. fell 2.3% to ¥14,270.0.
Nippon Yusen KK added 0.3% to ¥5,204.0, Mitsui OSK Lines Ltd. gained 0.2% to ¥4,901.0, and Kawasaki Kisen Kaisha Ltd. added 1.2% to ¥2,241.0.
Japan's Indexes Turned Down from Record Highs Amid Rate Path Worry and Geopolitical Uncertainties
Akira Ito
19 Aug, 2025
Tokyo
Japan's market indexes edged lower from record highs reached on Monday, and skeptical investors reviewed the possible Russia-Ukraine settlement.
The Nikkei 225 Stock Average decreased 0.1%, and the broader Topix edged up 0.1%, as investors debated the future rate path in Japan.
Investors are widely anticipating the Bank of Japan to raise rates at least by 25 basis points before the end of 2025.
In addition, investors are looking for a possible rate cut by the U.S. Federal Reserve following the next policy meeting in September.
The Japanese yen held firm, and the bond yields edged slightly higher as investors worried that the rising domestic inflation may force the Bank of Japan to raise rates sooner than previously expected.
The Japanese yen traded at 147.64 against the U.S. dollar, and the yield on 10-year Japanese government bonds edged up a fraction to 1.596%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.1% to 43,655.01, and the broader Topix inched higher 0.1% to 3,124.12.
SoftBank Group decreased 3.7% to ¥16,085.0, and the company said it plans to invest $2 billion in the troubled chipmaker Intel.
Sanrio Co. Ltd. dropped 9.7% to ¥7,838.0, Fujikura Ltd. decreased 2.3% to ¥12,025.0, and Nintendo Co. Ltd. fell 2.3% to ¥14,270.0.
Nippon Yusen KK added 0.3% to ¥5,204.0, Mitsui OSK Lines Ltd. gained 0.2% to ¥4,901.0, and Kawasaki Kisen Kaisha Ltd. added 1.2% to ¥2,241.0.
China Indexes Hover at Multi-Year Highs as Domestic and Foreign Investors Chase Returns
Li Chen
19 Aug, 2025
Hong Kong
Benchmark indexes in China and Hong Kong advanced and extended recent gains to multi-year highs as investors increased allocation to riskier assets and chased returns.
The Hang Seng index gained 0.2% and advanced this year's gain to 28.6%, and the CSI 300 index increased 0.1% and extended 2025's rise to 11.1%.
Steady flows from state-controlled domestic institutions were compounded by rising flows from foreign investors and individual investors.
Individual investors have been increasing their stock allocation amid low returns in fixed-income investments and persistent weakness in the property market.
The liquidity-driven rally is also supported by the belief that China's GDP will meet the government target of 5% and the broader economy will sustain its momentum because the rising exports to the Global South will offset the faltering shipments to the U.S.
China Indexes and Stocks
The Hang Seng index added 0.2% to 25,224.97, and the CSI index advanced 0.1% to 4,244.97.
Telecom and consumer stocks led gainers in Shanghai and Shenzhen trading.
Nongfu Spring Co. Ltd edged up 0.9% to HK $46.82, China Foods Ltd. increased 0.2% to HK $3.35, and Mixue Group fell 0.8% to HK $451.40.
China Unicom Hong Kong decreased 0.6% to HK $10.18, China Mobile Ltd. declined 0.7% to HK $88.35, and China Telecom Corp. fell 2% to HK $6.27.
China Indexes Hover at Multi-Year Highs as Domestic and Foreign Investors Chase Returns
Li Chen
19 Aug, 2025
Hong Kong
Benchmark indexes in China and Hong Kong advanced and extended recent gains to multi-year highs as investors increased allocation to riskier assets and chased returns.
The Hang Seng index gained 0.2% and advanced this year's gain to 28.6%, and the CSI 300 index increased 0.1% and extended 2025's rise to 11.1%.
Steady flows from state-controlled domestic institutions were compounded by rising flows from foreign investors and individual investors.
Individual investors have been increasing their stock allocation amid low returns in fixed-income investments and persistent weakness in the property market.
The liquidity-driven rally is also supported by the belief that China's GDP will meet the government target of 5% and the broader economy will sustain its momentum because the rising exports to the Global South will offset the faltering shipments to the U.S.
China Indexes and Stocks
The Hang Seng index added 0.2% to 25,224.97, and the CSI index advanced 0.1% to 4,244.97.
Telecom and consumer stocks led gainers in Shanghai and Shenzhen trading.
Nongfu Spring Co. Ltd edged up 0.9% to HK $46.82, China Foods Ltd. increased 0.2% to HK $3.35, and Mixue Group fell 0.8% to HK $451.40.
China Unicom Hong Kong decreased 0.6% to HK $10.18, China Mobile Ltd. declined 0.7% to HK $88.35, and China Telecom Corp. fell 2% to HK $6.27.
U.S. and World Markets Hover Near Record Highs Amid a Growing List of Worries
Barry Adams
18 Aug, 2025
New York City
Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks.
The S&P 500 index and the Nasdaq Composite decreased 0.1%, but they hovered near record highs amid earnings optimism and receding worries about tariff-linked inflation.
Last week, two inflation reports showed that importers, wholesalers, and retailers are still not passing over higher import duties to consumers, but that could change in the months ahead.
The U.S. Customs and Border Protection processed $307 billion in imports, identified $30.4 billion in duties, and collected $140.8 billion between January and July.
In July, the Department of Treasury collected $29.6 billion in "customs and excise taxes," compared to $8.9 billion the same month a year ago.
In 2024, customs and excise revenue totaled $98 billion, according to the data available from the U.S. Department of Treasury.
While $29 billion is a huge increase compared to a year ago, it pales compared to $725 billion in retail and food services sales in July.
In the week ahead, U.S. investors will review comments from the Fed Chair, Powell, at a gathering of central bankers.
Moreover, building permits, housing starts, completions, and existing home sales data are set to be released this week.
On the earnings front, Walmart, Target, Home Depot, Lowe’s, TJX Companies, Analog Devices, and Salesforce are scheduled to release their earnings.
Crude oil prices traded around $63 a barrel, and gold edged up 0.2% to $3,342.25 an ounce amid ongoing uncertainty linked to the U.S.-China trade negotiations.
Moreover, the much ballyhooed Trump-Russia summit in Alaska failed to deliver an agreement, despite the U.S. president claiming more than fifty times that he can end the war in Europe in a day.
Global investors are increasingly worried about the reliability of the U.S. economic data and the unpredictable and erratic Trump administration's interference in global trade and the domestic economy.
Despite better-than-expected quarterly results, global investors are worried that the U.S. financial markets are likely to behave more like emerging markets, where the government actions dominate normal business operations.
Donald Trump has persistently pressured Fed Chair Powell to lower interest rates, demanded Intel fire its chief executive, asked Goldman Sachs to replace its chief economist, and taken a cut from the sale of advanced chips to China.
In addition, Trump fired the head of the U.S. Bureau of Labor Statistics, undermining the credibility of the U.S. economic data.
Farmers in Nebraska, Iowa, Kansas, and Tennessee are feeling the burden of the stalled trade negotiations between the U.S. and China and DOGE's killing of the U.S. AID program.
Soybean and corn prices are hovering 50% below the peak prices in April 2022, as China looks to Brazil and Argentina for agriculture imports.
Nebraska and Iowa tied for the real GDP decline of 6.1% in the first quarter of 2025, according to a report released by the U.S. Bureau of Economic Analysis.
The Trump administration's constant threats and erratic trade policy have forced China to ramp up its import of wheat, soybeans, and corn starting as early as September.
Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks.
U.S. Stock Movers
Tesla Inc. decreased 0.6% to $328.70 after the U.K.-based The Times reported that the electric vehicle maker has been forced to offer up to a 40% discount to car leasing companies.
Chief executive Elon Musk has warned that the company's sales could face a few "rough quarters" amid a declining trend in sales in Europe.
U.S. and World Markets Hover Near Record Highs Amid a Growing List of Worries
Barry Adams
18 Aug, 2025
New York City
Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks.
The S&P 500 index and the Nasdaq Composite decreased 0.1%, but they hovered near record highs amid earnings optimism and receding worries about tariff-linked inflation.
Last week, two inflation reports showed that importers, wholesalers, and retailers are still not passing over higher import duties to consumers, but that could change in the months ahead.
The U.S. Customs and Border Protection processed $307 billion in imports, identified $30.4 billion in duties, and collected $140.8 billion between January and July.
In July, the Department of Treasury collected $29.6 billion in "customs and excise taxes," compared to $8.9 billion the same month a year ago.
In 2024, customs and excise revenue totaled $98 billion, according to the data available from the U.S. Department of Treasury.
While $29 billion is a huge increase compared to a year ago, it pales compared to $725 billion in retail and food services sales in July.
In the week ahead, U.S. investors will review comments from the Fed Chair, Powell, at a gathering of central bankers.
Moreover, building permits, housing starts, completions, and existing home sales data are set to be released this week.
On the earnings front, Walmart, Target, Home Depot, Lowe’s, TJX Companies, Analog Devices, and Salesforce are scheduled to release their earnings.
Crude oil prices traded around $63 a barrel, and gold edged up 0.2% to $3,342.25 an ounce amid ongoing uncertainty linked to the U.S.-China trade negotiations.
Moreover, the much ballyhooed Trump-Russia summit in Alaska failed to deliver an agreement, despite the U.S. president claiming more than fifty times that he can end the war in Europe in a day.
Global investors are increasingly worried about the reliability of the U.S. economic data and the unpredictable and erratic Trump administration's interference in global trade and the domestic economy.
Despite better-than-expected quarterly results, global investors are worried that the U.S. financial markets are likely to behave more like emerging markets, where the government actions dominate normal business operations.
Donald Trump has persistently pressured Fed Chair Powell to lower interest rates, demanded Intel fire its chief executive, asked Goldman Sachs to replace its chief economist, and taken a cut from the sale of advanced chips to China.
In addition, Trump fired the head of the U.S. Bureau of Labor Statistics, undermining the credibility of the U.S. economic data.
Farmers in Nebraska, Iowa, Kansas, and Tennessee are feeling the burden of the stalled trade negotiations between the U.S. and China and DOGE's killing of the U.S. AID program.
Soybean and corn prices are hovering 50% below the peak prices in April 2022, as China looks to Brazil and Argentina for agriculture imports.
Nebraska and Iowa tied for the real GDP decline of 6.1% in the first quarter of 2025, according to a report released by the U.S. Bureau of Economic Analysis.
The Trump administration's constant threats and erratic trade policy have forced China to ramp up its import of wheat, soybeans, and corn starting as early as September.
Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks.
U.S. Stock Movers
Tesla Inc. decreased 0.6% to $328.70 after the U.K.-based The Times reported that the electric vehicle maker has been forced to offer up to a 40% discount to car leasing companies.
Chief executive Elon Musk has warned that the company's sales could face a few "rough quarters" amid a declining trend in sales in Europe.