Market Update
China Indexes Traded at Multi-Year Highs Amid Rising Prospects of U.S. Trade Deal
Li Chen
24 Jul, 2025
Hong Kong
Stock market indexes in China and Hong Kong extended gains, and they traded near 40-month highs amid improving sentiment for trade agreements.
The Hang Seng index increased 0.6%, and the mainland-focused CSI 300 index gained 0.5%, as investors hoped that the U.S.-China trade agreement is more likely as early as this week.
The U.S. and Japan agreed to a revised trade framework that will increase import duties on Japanese goods to 12.5% from the current 2.5%.
However, no start date for the revised tariffs has been set.
Meanwhile, the U.S. president and Japan promoted the trade agreement as "the largest deal," but the new proposed tariffs significantly put additional burden on international trade.
The Trump administration had threatened 25% tariffs on Japanese goods starting August 1, but as in the past, the U.S. president always backed down from his initial bold threats.
China Indexes and Stocks
Stocks advanced following gains in overnight trading in New York, after the U.S. president claimed a trade agreement with Japan and signaled progress in talks with the European Union.
The Hang Seng index advanced 0.6% to 25,688.87, and the mainland-focused CSI 300 index added 0.5% to 4,138.47.
Electric vehicle makers advanced in the hopes that the U.S.-China agreement is more likely ahead of the deadline next week.
Li Auto Inc. increased 0.5% to HK $120.10, BYD Class H advanced 0.4% to ¥123.50, and Xpeng Inc. gained HK $76.10.
SMIC jumped 4% to HK $50.70, SenseTime Group inched up a fraction to HK $1.60, and Xiaomi Corp. edged down 0.1% to HK $58.40.
U.S. Movers: Coca-Cola Company, General Motors, Lockheed Martin, Hilton Hotels, Texas Instruments
Scott Peters
23 Jul, 2025
New York City
Coca-Cola Company jumped 1% to $69.34 after the beverage maker’s revenue increased 1% to $12.5 billion from $12.38 billion, net income soared 58% to $3.8 billion from $2.41 billion, and earnings per diluted share rose 58% to 88 cents from 56 cents a year ago.
The beverage company lifted its annual comparable earnings per share estimate to an increase of 3% to $2.88, or comparable currency-neutral earnings growth of 8%.
The company's comparable earnings per share estimate includes a 5% currency headwind and the impact of hedged positions.
Lockheed Martin dropped 8% to $423.42 after the aerospace and defense company's quarterly results fell short of market expectations.
General Motors Company declined 1.8% to $52.25, and the vehicle maker reported better-than-expected quarterly results.
Revenue in the second quarter declined 1.8% to $47.1 billion from $47.9 billion, net income dropped 35.1% to $1.9 billion from $2.9 billion, and diluted earnings per share dropped 25% to $1.91 from $2.55.
The net income includes $1.1 billion in tariff-linked expenses, and the company retained its annual tariff expenses between $4.0 billion and $5.0 billion.
The company retained its adjusted earnings per share outlook of between $8.25 and $10.0.
Hilton Worldwide Holdings Inc. declined 1.6% to $270.10 despite the hotel operator reporting an increase in revenue and earnings in the second quarter ended in June.
Consolidated revenue in the quarter inched higher to $745 million from $689 million, net income increased to $442 million from $422 million, and diluted earnings per share rose to $1.84 from $1.67 a year ago.
For the six-month period, revenue advanced to $1.3 billion from $1.2 billion, net income soared to $742 million from $690 million, and diluted earnings per share edged higher to $3.07 from $2.71 a year ago.
During the second quarter, Hilton returned a total of $791 million to shareholders through share repurchases and dividends, including the repurchase of 3.2 million shares of common stock.
Year-to-date capital returned $1.88 billion through July.
Hilton guided full-year net income to be between $1.6 billion and $1.7 billion. diluted earnings per share between $6.82 and $6.99. Capital return is projected to be approximately $3.3 billion.
Hilton guided third-quarter net income to be between $453 million and $467 million. diluted earnings per share between $1.89 and $1.95.
Texas Instruments Inc. dropped 12.4% to $188.22 after the semiconductor company reported a second quarter ending in June.
Revenue increased 16% to $4.4 billion from $3.8 billion, net income jumped 15% to $1.3 billion from $1.1 billion, and earnings per share rose 16% to $1.41 from $1.22 a year ago.
The company guided third-quarter revenue between $4.45 billion and $4.80 billion, compared to $4.4 billion, and diluted earnings per share between $1.36 and $1.60, compared to $1.41 a quarter earlier, respectively.
During the same quarter, the company also paid $4.9 billion in dividends to its shareholders.
The Board of Directors of the company announced a $1.36 cash dividend per share for the third quarter of 2025.
CoStar Group Inc. jumped 6.3% to $90.64 after the technology provider to the property investors reported second-quarter 2025 results.
Consolidated revenue in the quarter inched higher to $781 million from $678 million, net income dropped to $6 million from $19 million, and diluted earnings per share decreased to 1 cent from 5 cents a year ago.
CoStar guided full-year revenue to be between $3.135 billion and $3.155 billion and diluted earnings per share between 76 cents and 80 cents a year earlier, respectively.
The company estimated third-quarter revenue between $800 million and $805 million and diluted earnings per share to be between 15 cents and 17 cents for the third quarter of 2025.
U.S. Movers: Coca-Cola Company, General Motors, Lockheed Martin, Hilton Hotels, Texas Instruments
Scott Peters
23 Jul, 2025
New York City
Coca-Cola Company jumped 1% to $69.34 after the beverage maker’s revenue increased 1% to $12.5 billion from $12.38 billion, net income soared 58% to $3.8 billion from $2.41 billion, and earnings per diluted share rose 58% to 88 cents from 56 cents a year ago.
The beverage company lifted its annual comparable earnings per share estimate to an increase of 3% to $2.88, or comparable currency-neutral earnings growth of 8%.
The company's comparable earnings per share estimate includes a 5% currency headwind and the impact of hedged positions.
Lockheed Martin dropped 8% to $423.42 after the aerospace and defense company's quarterly results fell short of market expectations.
General Motors Company declined 1.8% to $52.25, and the vehicle maker reported better-than-expected quarterly results.
Revenue in the second quarter declined 1.8% to $47.1 billion from $47.9 billion, net income dropped 35.1% to $1.9 billion from $2.9 billion, and diluted earnings per share dropped 25% to $1.91 from $2.55.
The net income includes $1.1 billion in tariff-linked expenses, and the company retained its annual tariff expenses between $4.0 billion and $5.0 billion.
The company retained its adjusted earnings per share outlook of between $8.25 and $10.0.
Hilton Worldwide Holdings Inc. declined 1.6% to $270.10 despite the hotel operator reporting an increase in revenue and earnings in the second quarter ended in June.
Consolidated revenue in the quarter inched higher to $745 million from $689 million, net income increased to $442 million from $422 million, and diluted earnings per share rose to $1.84 from $1.67 a year ago.
For the six-month period, revenue advanced to $1.3 billion from $1.2 billion, net income soared to $742 million from $690 million, and diluted earnings per share edged higher to $3.07 from $2.71 a year ago.
During the second quarter, Hilton returned a total of $791 million to shareholders through share repurchases and dividends, including the repurchase of 3.2 million shares of common stock.
Year-to-date capital returned $1.88 billion through July.
Hilton guided full-year net income to be between $1.6 billion and $1.7 billion. diluted earnings per share between $6.82 and $6.99. Capital return is projected to be approximately $3.3 billion.
Hilton guided third-quarter net income to be between $453 million and $467 million. diluted earnings per share between $1.89 and $1.95.
Texas Instruments Inc. dropped 12.4% to $188.22 after the semiconductor company reported a second quarter ending in June.
Revenue increased 16% to $4.4 billion from $3.8 billion, net income jumped 15% to $1.3 billion from $1.1 billion, and earnings per share rose 16% to $1.41 from $1.22 a year ago.
The company guided third-quarter revenue between $4.45 billion and $4.80 billion, compared to $4.4 billion, and diluted earnings per share between $1.36 and $1.60, compared to $1.41 a quarter earlier, respectively.
During the same quarter, the company also paid $4.9 billion in dividends to its shareholders.
The Board of Directors of the company announced a $1.36 cash dividend per share for the third quarter of 2025.
CoStar Group Inc. jumped 6.3% to $90.64 after the real estate platform operator reported second-quarter 2025 results.
Consolidated revenue in the quarter increased 15% to $781 million from $678 million, net income dropped to $6 million from $19 million, and diluted earnings per share decreased to 1 cent from 5 cents a year ago.
Adjusted earnings per share were 17 cents, and new bookings soared 65% from the previous quarter to $93 million, driven by strong bookings increase on Apartments.com site.
CoStar guided full-year revenue to be between $3.135 billion and $3.155 billion and diluted earnings per share between 76 cents and 80 cents a year earlier, respectively.
The company estimated third-quarter revenue between $800 million and $805 million and diluted earnings per share to be between 15 cents and 17 cents for the third quarter of 2025.
Stock Movers: MSCI, D.R. Horton, Domino's Pizza
Scott Peters
22 Jul, 2025
New York City
MSCI Inc. dropped 4.1% to $555.54 after the custom index and financial data analytics company reported financial results for the second quarter ending in June.
Revenue surged 9.1% to $777.7 million from $707.9 million, net income soared 13.5% to $303.6 million from $266.8 million, and diluted earnings per share rose 16.3% to $3.92 from $3.37 a year ago.
For the six-month period, revenue advanced 9.4% to $1.5 billion from $1.3 billion, net income gained 13% to $592.2 million from $522.7 million, and diluted earnings per share edged higher to 15.8%, or $7.63, from $6.59 a year ago.
Total operating expenses were $347.4 million, up 6.8%. and operating income was $425.2 million, up 11.1%.
Operating income margin in the second quarter of 2025 was 55.0%, compared to 54.0% in the second quarter of 2024.
In the second quarter, the MSCI repurchased 250,818 shares for a total of $131.2 million, at an average price of $523.20.
During the same quarter, MSCI also paid $139.3 million in dividends to its shareholders.
For the third quarter of 2025, the company’s Board of Directors declared a cash dividend of $1.80 per share.
D.R. Horton Inc. jumped 13.4% to $148.8 despite the home builder reporting a decline in revenue and earnings in the second quarter.
Revenue decreased to $9.2 billion from $10 billion, net income dropped to $1 billion from $1.3 billion, and diluted earnings per share edged down to $3.36 from $4.10 a year ago.
For the nine-month period, revenue declined to $24.5 billion from $26.8 billion, net income fell to $2.7 billion from $3.5 billion, and diluted earnings per share inched lower to $8.53 from $10.43 a year ago.
The company repurchased 9.7 million shares of its common stock for $1.2 billion and paid $122.4 million in cash dividends to shareholders.
The company estimated total consolidated revenue to range between $33.7 billion and $34.2 billion for fiscal 2025, and guided share repurchases to total between $4.2 billion and $4.4 billion during the fiscal year.
The company also intends to return approximately $500 million to shareholders through dividend payments.
Domino's Pizza Inc. increased 6.5% to $468.76, after the company delivered better-than-expected sales growth in the second quarter.
Total revenues increased 4.3% to $1.14 billion from $1.09 billion, net income decreased 7.7% to $131 million from $142 million, and diluted earnings per share declined 5.5% to $3.81 from $4.03 a year ago.
Global retail sales rose 5.6%, driven by a 5.1% increase in U.S. stores and 6.0% in international sales.
U.S. same-store sales advanced 3.4%, and international same-store sales rose 2.4%, as U.S. consumers switched to value offerings and avoided expensive dining-out options because of growing macroeconomic uncertainties.
The company announced a quarterly cash dividend of $1.74 per share to shareholders on record on September 15 to be paid on September 30.
Stock Movers: MSCI, D.R. Horton, Domino's Pizza
Scott Peters
22 Jul, 2025
New York City
MSCI Inc. dropped 4.1% to $555.54 after the custom index and financial data analytics company reported financial results for the second quarter ending in June.
Revenue surged 9.1% to $777.7 million from $707.9 million, net income soared 13.5% to $303.6 million from $266.8 million, and diluted earnings per share rose 16.3% to $3.92 from $3.37 a year ago.
For the six-month period, revenue advanced 9.4% to $1.5 billion from $1.3 billion, net income gained 13% to $592.2 million from $522.7 million, and diluted earnings per share edged higher to 15.8%, or $7.63, from $6.59 a year ago.
Total operating expenses were $347.4 million, up 6.8%. and operating income was $425.2 million, up 11.1%.
Operating income margin in the second quarter of 2025 was 55.0%, compared to 54.0% in the second quarter of 2024.
In the second quarter, the MSCI repurchased 250,818 shares for a total of $131.2 million, at an average price of $523.20.
During the same quarter, MSCI also paid $139.3 million in dividends to its shareholders.
For the third quarter of 2025, the company’s Board of Directors declared a cash dividend of $1.80 per share.
D.R. Horton Inc. jumped 13.4% to $148.8 despite the home builder reporting a decline in revenue and earnings in the second quarter.
Revenue decreased to $9.2 billion from $10 billion, net income dropped to $1 billion from $1.3 billion, and diluted earnings per share edged down to $3.36 from $4.10 a year ago.
For the nine-month period, revenue declined to $24.5 billion from $26.8 billion, net income fell to $2.7 billion from $3.5 billion, and diluted earnings per share inched lower to $8.53 from $10.43 a year ago.
The company repurchased 9.7 million shares of its common stock for $1.2 billion and paid $122.4 million in cash dividends to shareholders.
The company estimated total consolidated revenue to range between $33.7 billion and $34.2 billion for fiscal 2025, and guided share repurchases to total between $4.2 billion and $4.4 billion during the fiscal year.
The company also intends to return approximately $500 million to shareholders through dividend payments.
Domino's Pizza Inc. increased 6.5% to $468.76, after the company delivered better-than-expected sales growth in the second quarter.
Total revenues increased 4.3% to $1.14 billion from $1.09 billion, net income decreased 7.7% to $131 million from $142 million, and diluted earnings per share declined 5.5% to $3.81 from $4.03 a year ago.
Global retail sales rose 5.6%, driven by a 5.1% increase in U.S. stores and 6.0% in international sales.
U.S. same-store sales advanced 3.4%, and international same-store sales rose 2.4%, as U.S. consumers switched to value offerings and avoided expensive dining-out options because of growing macroeconomic uncertainties.
The company announced a quarterly cash dividend of $1.74 per share to shareholders on record on September 15 to be paid on September 30.
Wall Street Indexes Hovered at Record Highs Amid Uncertainties Linked to Trade and Fed's Independence
Barry Adams
22 Jul, 2025
New York City
Stocks turned lower after closing at new record highs in the previous session as investors reviewed the fresh batch of earnings.
The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite dropped 0.6% amid rising trade tensions.
The Trump administration is struggling to finalize trade agreements with key partners, including Canada, Mexico, Japan, the European Union, and China.
The constantly changing U.S. trade policy has frozen new investment in the U.S. and disrupted international trade.
Moreover, businesses are not sure of the level of tariffs on the imports when they arrive from foreign suppliers, adding another level of uncertainty.
Investor sentiment remained cautious amid ongoing efforts by the Trump administration to replace the Federal Reserve chairman and compromise the central bank's independence.
U.S. Stock Movers
The Coca-Cola Company decreased 1% to $69.34, and the beverage company reported better-than-expected results in the June quarter.
The beverage company lifted its annual comparable earnings per share estimate to an increase of 3% to $2.88, or comparable currency-neutral earnings growth of 8%.
The company's comparable earnings per share estimate includes a 5% currency headwind and includes the impact of hedged positions.
Lockheed Martin dropped 8% to $423.42 after the aerospace and defense company's quarterly results fell short of market expectations.
General Motors Company declined 1.8% to $52.25, and the vehicle maker reported better-than-expected quarterly results.
Revenue in the second quarter declined 1.8% to $47.1 billion from $47.9 billion, net income dropped 35.1% to $1.9 billion from $2.9 billion, and diluted earnings per share dropped 25% to $1.91 from $2.55.
The net income includes $1.1 billion in tariff-linked expenses, and the company retained its annual tariff expenses between $4.0 billion and $5.0 billion.
The company retained its adjusted earnings per share outlook to between $8.25 and $10.0.
Wall Street Indexes Hovered at Record Highs Amid Uncertainties Linked to Trade and Fed's Independence
Barry Adams
22 Jul, 2025
New York City
Stocks turned lower after closing at new record highs in the previous session as investors reviewed the fresh batch of earnings.
The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite dropped 0.6% amid rising trade tensions.
The Trump administration is struggling to finalize trade agreements with key partners, including Canada, Mexico, Japan, the European Union, and China.
The constantly changing U.S. trade policy has frozen new investment in the U.S. and disrupted international trade.
Moreover, businesses are not sure of the level of tariffs on the imports when they arrive from foreign suppliers, adding another level of uncertainty.
Investor sentiment remained cautious amid ongoing efforts by the Trump administration to replace the Federal Reserve chairman and compromise the central bank's independence.
U.S. Stock Movers
The Coca-Cola Company decreased 1% to $69.34, and the beverage company reported better-than-expected results in the June quarter.
The beverage company lifted its annual comparable earnings per share estimate to an increase of 3% to $2.88, or comparable currency-neutral earnings growth of 8%.
The company's comparable earnings per share estimate includes a 5% currency headwind and includes the impact of hedged positions.
Lockheed Martin dropped 8% to $423.42 after the aerospace and defense company's quarterly results fell short of market expectations.
General Motors Company declined 1.8% to $52.25, and the vehicle maker reported better-than-expected quarterly results.
Revenue in the second quarter declined 1.8% to $47.1 billion from $47.9 billion, net income dropped 35.1% to $1.9 billion from $2.9 billion, and diluted earnings per share dropped 25% to $1.91 from $2.55.
The net income includes $1.1 billion in tariff-linked expenses, and the company retained its annual tariff expenses between $4.0 billion and $5.0 billion.
The company retained its adjusted earnings per share outlook to between $8.25 and $10.0.
Japan's Indexes Closed Down and Reversed 1% Loss After Ruling Coalition's Election Losses
Akira Ito
22 Jul, 2025
Tokyo
Japan's stock market indexes traded higher as investors returned from a three-day holiday.
The Nikkei 225 Stock Average closed down 0.3%, the broader Topix declined 0.2%, and investors reassessed the results of the Upper House election.
Of the 125 seats contested, the Liberal Democratic Party-Komeito coalition won 47 seats, and the opposition and other parties won 78 seats.
Overall, of the 248 seats in the Upper House, the ruling coalition held 122 seats, and the opposition and others controlled 126 seats.
The ruling coalition's loss in the election was widely anticipated as voters focused on domestic issues amid a high cost of living and a surge in the price of the staple food rice.
For now, Prime Minister Shigeru Ishiba is likely to hold on to his position, despite the lower house election losses in October.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.3% to 39,713.03, and the Topix fell 0.2% to 2,830.47.
Softbank Group gained 1.7% to ¥11,415.0, and Fujikura Ltd. advanced 3.7% to ¥8,377.0.
Vehicle makers were in focus as trade negotiations are likely to accelerate ahead of the U.S. deadline of August 1.
Toyota Motor decreased 1.2% to ¥2,484.50, Honda Motor fell 1.7% to ¥1,484.50, and Nissan Motor eased 0.6% to ¥303.60.
Japan's Indexes Closed Down and Reversed 1% Loss After Ruling Coalition's Election Losses
Akira Ito
22 Jul, 2025
Tokyo
Japan's stock market indexes traded higher as investors returned from a three-day holiday.
The Nikkei 225 Stock Average closed down 0.3%, the broader Topix declined 0.2%, and investors reassessed the results of the Upper House election.
Of the 125 seats contested, the Liberal Democratic Party-Komeito coalition won 47 seats, and the opposition and other parties won 78 seats.
Overall, of the 248 seats in the Upper House, the ruling coalition held 122 seats, and the opposition and others controlled 126 seats.
The ruling coalition's loss in the election was widely anticipated as voters focused on domestic issues amid a high cost of living and a surge in the price of the staple food rice.
For now, Prime Minister Shigeru Ishiba is likely to hold on to his position, despite the lower house election losses in October.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.3% to 39,713.03, and the Topix fell 0.2% to 2,830.47.
Softbank Group gained 1.7% to ¥11,415.0, and Fujikura Ltd. advanced 3.7% to ¥8,377.0.
Vehicle makers were in focus as trade negotiations are likely to accelerate ahead of the U.S. deadline of August 1.
Toyota Motor decreased 1.2% to ¥2,484.50, Honda Motor fell 1.7% to ¥1,484.50, and Nissan Motor eased 0.6% to ¥303.60.
China Stocks Lacked Direction as Indexes Hover Near Three-Year Highs
Li Chen
22 Jul, 2025
Hong Kong
Stocks in China and Hong Kong lacked direction ahead of possible announcements after the Politburo meeting.
The Hang Seng index and the mainland-focused CSI 300 index wavered around the flatline, and benchmark indexes traded near three-year highs.
China's leaders are likely to focus on curbing "excessive" competition in solar panels, electric vehicles, and lithium batteries.
Solar panel makers are struggling with falling prices, lackluster growth in demand, and high tariffs in the U.S.
About 60 leading solar panel makers are likely to report large losses for the third year in a row, despite rising domestic and global sales.
Electric vehicle and lithium battery makers are facing stagnant sales amid intense price competition and a sharp rise in production capacity.
Moreover, investors are looking forward to possible stimulus measures to support residential properties as home prices retain a downward bias for the second consecutive year.
China Indexes and Stocks
The Hang Seng index edged up 0.01% to 24,991.34, and the mainland-focused CSI 300 index inched higher 0.2% to 4,095.28.
New Oriental Education & Technology Group decreased 4.4% to HK $37.05, but Kuaishou Technology gained 1.5% to HK $72.55.
Li Auto declined 2.4% to HK $119.90, BYD fell 2.4% to HK ¥118.0, and Xpeng eased 0.4% to $71.85.