Market Update
NY WEDNESDAY
Barry Adams
26 Aug, 2025
New York City
Wall Street indexes extended recent losses, and investors soured after the U.S. president ramped up his attacks on the Federal Reserve.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite dropped 0.3% amid growing realization that Donald Trump is looking to compromise the U.S. Federal Reserve's independence.
Earlier in the month, Trump fired the U.S. Bureau of Labor Statistics chief because the latest nonfarm payrolls data revisions highlighted the negative impact his administration's policy on the labor market.
The Trump's action to remove the head of one of the key data collection agency raises questions about the future credibility of the U.S. data under his administration.
The 10-year Treasury yield inched higher to 4.28% after Fed Chair Jerome Powell clarified that rate cuts next month are possible but not certain.
On the economic front, U.S. monthly durable goods orders declined for the second consecutive month in July, but the pace of decline slowed from the previous month.
Durable goods orders
U.S. Stock Movers
EchoStar Corp. soared 70% to $51.01 after the company agreed to sell its spectrum licenses for $23 billion to A&T.
Japan Indexes Struggled to Gain Traction Amid U.S. Trade Policy and Rate Path Worries
Akira Ito
26 Aug, 2025
Tokyo
Japan's stock market indexes traded in a tight range with a downward bias for the second session in a row in cautious trading.
Trade tensions resurfaced after the U.S. president threatened sky-high additional tariffs on Chinese goods if China failed to export rare-earth magnets.
Moreover, the constantly shifting U.S. trade policy and lack of agreements with Mexico, Canada, and India are also weighing on the global market sentiment.
Closer to home, investors are awaiting the release of industrial output, retail sales, and consumer confidence data later in the week.
Market sentiment in Tokyo turned cautious after the U.S. Fed Chair Jerome Powell clarified that rate cuts are possible but not certain next month.
The uncertainty about the U.S. rate path dominated the market sentiment, and the Japanese yen traded at 147.74 against the U.S. dollar, and the yield on 10-year Japanese government bonds hovered at 1.62%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 42,435.37, and the Topix dropped 1% to 3,077.86.
Tokyo Electron decreased 0.4% to ¥20,150.0, Advantest Corp. fell 0.7%, and Lasertec Corp. dropped 2% to ¥15,665.0.
Seven & I Holdings fell 1.3% to ¥1,970.50, Aeon Co. Ltd. dropped 0.7% to ¥5,432.0, and Fast Retailing decreased 1.6% to ¥47,740.0.
Toyota Motor Corp. decreased 1.3% to ¥2,902.50, Honda Motor Corp. fell 1.7% to ¥1,667.0, and Nissan Motor Co. Ltd. declined 6% to ¥341.50.
Japan Indexes Struggled to Gain Traction Amid U.S. Trade Policy and Rate Path Worries
Akira Ito
26 Aug, 2025
Tokyo
Japan's stock market indexes traded in a tight range with a downward bias for the second session in a row in cautious trading.
Trade tensions resurfaced after the U.S. president threatened sky-high additional tariffs on Chinese goods if China failed to export rare-earth magnets.
Moreover, the constantly shifting U.S. trade policy and lack of agreements with Mexico, Canada, and India are also weighing on the global market sentiment.
Closer to home, investors are awaiting the release of industrial output, retail sales, and consumer confidence data later in the week.
Market sentiment in Tokyo turned cautious after the U.S. Fed Chair Jerome Powell clarified that rate cuts are possible but not certain next month.
The uncertainty about the U.S. rate path dominated the market sentiment, and the Japanese yen traded at 147.74 against the U.S. dollar, and the yield on 10-year Japanese government bonds hovered at 1.62%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 42,435.37, and the Topix dropped 1% to 3,077.86.
Tokyo Electron decreased 0.4% to ¥20,150.0, Advantest Corp. fell 0.7%, and Lasertec Corp. dropped 2% to ¥15,665.0.
Seven & I Holdings fell 1.3% to ¥1,970.50, Aeon Co. Ltd. dropped 0.7% to ¥5,432.0, and Fast Retailing decreased 1.6% to ¥47,740.0.
Toyota Motor Corp. decreased 1.3% to ¥2,902.50, Honda Motor Corp. fell 1.7% to ¥1,667.0, and Nissan Motor Co. Ltd. declined 6% to ¥341.50.
Stock Movers: Heico Corp
Scott Peters
25 Aug, 2025
New York City
Heico Corp gained 1.6% to $310.20 after the aircraft parts and electronic components maker reported a 30% rise in its earnings in the fiscal third quarter ending on July 31.
Consolidated revenue advanced to $1.15 billion from $992.24 million, net income soared to $177.3 billion from $136.6 billion, and diluted earnings per share rose to $1.26 from 97 cents a year ago.
Operating income increased to $265.0 million from $216.4 million, and EBITDA jumped to $316.4 million from $261.4 million a year earlier.
"These results are highlighted by consistently strong organic net sales growth across the Flight Support Group's product lines and impressive double-digit organic net sales growth for the Electronic Technologies Group's other electronics and space products," said co-CEOs Eric A. Mendelson and Victor H. Mendelson.
Flight Support Group’s record third-quarter results were driven by strong growth in the aerospace aftermarket, with operating income increasing 29% and net sales rising 18% from a year ago, reflecting continued end-market strength.
The Flight Support Group's net sales increased 18% to a record $802.7 million from $681.6 million, and operating income increased 29% to a record $198.3 million from $153.6 million a year ago, respectively.
Stock Movers: Heico Corp
Scott Peters
25 Aug, 2025
New York City
Heico Corp gained 1.6% to $310.20 after the aircraft parts and electronic components maker reported a 30% rise in its earnings in the fiscal third quarter ending on July 31.
Consolidated revenue advanced to $1.15 billion from $992.24 million, net income soared to $177.3 billion from $136.6 billion, and diluted earnings per share rose to $1.26 from 97 cents a year ago.
Operating income increased to $265.0 million from $216.4 million, and EBITDA jumped to $316.4 million from $261.4 million a year earlier.
"These results are highlighted by consistently strong organic net sales growth across the Flight Support Group's product lines and impressive double-digit organic net sales growth for the Electronic Technologies Group's other electronics and space products," said co-CEOs Eric A. Mendelson and Victor H. Mendelson.
Flight Support Group’s record third-quarter results were driven by strong growth in the aerospace aftermarket, with operating income increasing 29% and net sales rising 18% from a year ago, reflecting continued end-market strength.
The Flight Support Group's net sales increased 18% to a record $802.7 million from $681.6 million, and operating income increased 29% to a record $198.3 million from $153.6 million a year ago, respectively.
China Stocks Face Headwinds Ahead of Earnings Reports and Uncertain U.S. Trade Policy
Li Chen
26 Aug, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds as investors reassessed the interest rate outlook and awaited an update on U.S.-China trade talks.
The Hang Seng index decreased 0.1%, and the CSI 300 index dropped 0.2%, and investors turned cautious ahead of the flood of earnings announcements this week.
Haidilao International declined about 2% after the restaurant chain operator reported a downturn in revenue and earnings amid market challenges.
Later in the week, investors are awaiting quarterly results from PetroChina, Nongfu Spring, Meituan, Ping An Insurance, Midea Group, ANTA Sports, Mixue Group, Air China Cargo, CNOOC, Air China, CITIC, Cosco Holding, and China Galaxy Securities.
The U.S.-China trade talks also appear to have stalled, as both sides struggle to find common ground and avoid the U.S.-imposed sky-high tariffs.
Chinese negotiators have little incentive to give in to the U.S. demands, and the world's largest economy has reduced its reliance on direct exports to the U.S. over the last ten years.
China's exports to South America, the ASEAN region, Mexico, and the Middle East have soared since 2016, enabling the Chinese trade negotiators to push back against the U.S.'s high tariffs.
Moreover, investors lowered expectations for U.S. rate cuts after the U.S. Fed Chair Jerome Powell clarified that the rate action is likely but not certain.
China Indexes and Stocks
The Hang Seng Index decreased 0.1% to 25,799.82, and the mainland-focused CI 300 Index declined 0.2% to 4,464.85.
Haidilao International decreased 1.8% to HK $14.60 after the hot pot restaurant chain operator reported a decline in operating revenue and net income in the first half.
Revenue fell 3.7%, and net income dropped 13.7% amid heightened competition and challenging market conditions.
The company declared an interim dividend of 33.8 HK cents payable on October 15 to shareholders on record on September 11.
China Stocks Face Headwinds Ahead of Earnings Reports and Uncertain U.S. Trade Policy
Li Chen
26 Aug, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds as investors reassessed the interest rate outlook and awaited an update on U.S.-China trade talks.
The Hang Seng index decreased 0.1%, and the CSI 300 index dropped 0.2%, and investors turned cautious ahead of the flood of earnings announcements this week.
Haidilao International declined about 2% after the restaurant chain operator reported a downturn in revenue and earnings amid market challenges.
Later in the week, investors are awaiting quarterly results from PetroChina, Nongfu Spring, Meituan, Ping An Insurance, Midea Group, ANTA Sports, Mixue Group, Air China Cargo, CNOOC, Air China, CITIC, Cosco Holding, and China Galaxy Securities.
The U.S.-China trade talks also appear to have stalled, as both sides struggle to find common ground and avoid the U.S.-imposed sky-high tariffs.
Chinese negotiators have little incentive to give in to the U.S. demands, and the world's largest economy has reduced its reliance on direct exports to the U.S. over the last ten years.
China's exports to South America, the ASEAN region, Mexico, and the Middle East have soared since 2016, enabling the Chinese trade negotiators to push back against the U.S.'s high tariffs.
Moreover, investors lowered expectations for U.S. rate cuts after the U.S. Fed Chair Jerome Powell clarified that the rate action is likely but not certain.
China Indexes and Stocks
The Hang Seng Index decreased 0.1% to 25,799.82, and the mainland-focused CI 300 Index declined 0.2% to 4,464.85.
Haidilao International decreased 1.8% to HK $14.60 after the hot pot restaurant chain operator reported a decline in operating revenue and net income in the first half.
Revenue fell 3.7%, and net income dropped 13.7% amid heightened competition and challenging market conditions.
The company declared an interim dividend of 33.8 HK cents payable on October 15 to shareholders on record on September 11.
Wall Street Indexes Wavered On Monday, Keurig Dr Pepper to Buy JDE Peet for $18 Billion
Barry Adams
25 Aug, 2025
New York City
Wall Street indexes hovered near record highs on Monday, and artificial intelligence technology-related stocks remained in focus ahead of Nvidia's earnings.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.3% after they advanced 1% and 2%, respectively.
Wall Street indexes rebounded last Friday and trimmed weekly losses after Fed Chairman Powell signaled a possible rate cut in September.
Benchmark indexes jumped as much as 2%, but a possible 25-basis-point rate cut is not likely to cure the fast-cooling labor market and record-high economic uncertainty induced by Trump tariffs.
Small businesses in logistics, retail, and manufacturing activities are going out of business in record numbers.
Moreover, farmers are forced out of their land in Kansas, Nebraska, Iowa, and Montana following the ending of the USAID program and China switching to sourcing from South America amid constant U.S. tariff threats.
Prices for corn and soybeans are at multi-year lows, and the rising costs of farming inputs are exacerbating the situation throughout the Midwest.
In addition, the U.S. Immigration and Customs Enforcement crackdown is keeping migrant workers away from farms, forcing many farmers to let the crop rot, as Americans show little interest in rushing to take up the newly available farm jobs.
Last week, Walmart, Target, Home Depot, Lowe's, Ross Stores, and T.J. Maxx indicated that the sharp jump in import duties is increasing the cost of goods.
On the economic front, this week investors are awaiting the release of the second estimate of the economic growth in the second quarter.
Friday's personal income and outlays are expected to show an increase in July, and the core PCE price index is estimated to rise 0.3% monthly, confirming elevated inflationary forces.
Moreover, durable goods orders are likely to show a contraction in July, but orders excluding volatile transportation and defense are expected to be steady.
On the earnings front, investors are awaiting quarterly results from Nvidia, and analysts are likely to raise the target price after the release of earnings.
In addition, Abercrombie & Fitch, Williams-Sonoma, Urban Outfitters, Burlington Northern, Best Buy, and Dick's Sporting Goods are set to release their quarterly results.
In addition, HEICO, MongoDB, Okta, Autodesk, Marvell Technology, HP, and PVH Corp. are scheduled to release their quarterly results this week.
U.S. Stock Movers
Keurig Dr Pepper Inc declined 7.5% to $32.50, and the beverage company agreed to acquire the Netherlands-based JDE Peet for €15.4 billion, or $18.5 billion.
After the merger, the company plans to list two separate businesses—a soft drink company and a coffee group.
Keurig Dr Pepper agreed to pay shareholders of JDE Peet's €31.85, or about $37.28, per share.
JDE Peet's global brand portfolio includes Douwe Egberts, Kenco and Peet’s Coffee, Maxwell House, Grand Mere, Prima, and Caboclo.
Wall Street Indexes Wavered On Monday, Keurig Dr Pepper to Buy JDE Peet for $18 Billion
Barry Adams
25 Aug, 2025
New York City
Wall Street indexes hovered near record highs on Monday, and artificial intelligence technology-related stocks remained in focus ahead of Nvidia's earnings.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.3% after they advanced 1% and 2%, respectively.
Wall Street indexes rebounded last Friday and trimmed weekly losses after Fed Chairman Powell signaled a possible rate cut in September.
Benchmark indexes jumped as much as 2%, but a possible 25-basis-point rate cut is not likely to cure the fast-cooling labor market and record-high economic uncertainty induced by Trump tariffs.
Small businesses in logistics, retail, and manufacturing activities are going out of business in record numbers.
Moreover, farmers are forced out of their land in Kansas, Nebraska, Iowa, and Montana following the ending of the USAID program and China switching to sourcing from South America amid constant U.S. tariff threats.
Prices for corn and soybeans are at multi-year lows, and the rising costs of farming inputs are exacerbating the situation throughout the Midwest.
In addition, the U.S. Immigration and Customs Enforcement crackdown is keeping migrant workers away from farms, forcing many farmers to let the crop rot, as Americans show little interest in rushing to take up the newly available farm jobs.
Last week, Walmart, Target, Home Depot, Lowe's, Ross Stores, and T.J. Maxx indicated that the sharp jump in import duties is increasing the cost of goods.
On the economic front, this week investors are awaiting the release of the second estimate of the economic growth in the second quarter.
Friday's personal income and outlays are expected to show an increase in July, and the core PCE price index is estimated to rise 0.3% monthly, confirming elevated inflationary forces.
Moreover, durable goods orders are likely to show a contraction in July, but orders excluding volatile transportation and defense are expected to be steady.
On the earnings front, investors are awaiting quarterly results from Nvidia, and analysts are likely to raise the target price after the release of earnings.
In addition, Abercrombie & Fitch, Williams-Sonoma, Urban Outfitters, Burlington Northern, Best Buy, and Dick's Sporting Goods are set to release their quarterly results.
In addition, HEICO, MongoDB, Okta, Autodesk, Marvell Technology, HP, and PVH Corp. are scheduled to release their quarterly results this week.
U.S. Stock Movers
Keurig Dr Pepper Inc declined 7.5% to $32.50, and the beverage company agreed to acquire the Netherlands-based JDE Peet for €15.4 billion, or $18.5 billion.
After the merger, the company plans to list two separate businesses—a soft drink company and a coffee group.
Keurig Dr Pepper agreed to pay shareholders of JDE Peet's €31.85, or about $37.28, per share.
JDE Peet's global brand portfolio includes Douwe Egberts, Kenco and Peet’s Coffee, Maxwell House, Grand Mere, Prima, and Caboclo.