Market Update
NY Report Monday
Barry Adams
08 Sep, 2025
New York City
Wall Street indexes advanced on Monday as investors prepared to review two inflation reports this week.
The S&P 500 index edged up 0.2% and the tech-heavy Nasdaq Composite advanced 0.3%, and hey hovered near record highs.
Last week, benchmark indexes trimmed weekly gains on Friday after the August's payroll report confirmed rapidly cooling labor market.
The latest dismal U.S. jobs report confirmed the weakening trend in place since May is likely to persist for the rest of 2025 amid erratic U.S. trade policy and fast-changing labor market conditions.
August's nonfarm payroll data confirmed that the labor market is rapidly cooling amid an environment of sustained uncertainty created by constantly changing U.S. trade policy.
Increasingly, businesses of all sizes are feeling the negative effects of the sharp escalation in import taxes imposed by the Trump administration.
The Trump administration's stated main objective in escalating tariff rates was to expand the manufacturing sector and create new jobs.
Instead, higher tariffs are forcing manufacturing businesses to slow down activities, fire employees, and pass on higher prices to their customers.
The August month's payroll data confirmed that the employee base in the manufacturing sector shrank for the fourth consecutive month, with no end in sight.
Week Ahead
In the week ahead, U.S. investors are awaiting the release of two key inflation reports.
The overall consumer inflation in August is expected to inch higher to 2.9%, and the core inflation rate is likely to stay at 3%.
Moreover, August's producer price inflation is expected to advance 0.3% from the previous month.
The two inflation reports could provide additional supporting evidence for the Federal Reserve to begin its rate cut campaign as early as September 18 following the policy meeting.
On the earnings front, investors are looking forward to results from Oracle, Adobe, Chewy, Casey's General, Daktronics, Value Line, Dakronics, and Designer Brands.
U.S. Stock Movers
EchoStar Corp. jumped 24% to $83.40 after the company said it has agreed to sell its wireless spectrum licenses to SpaceX for $17 billion.
In addition, he wireless communication company entered into a long-term agreement with SpaceX, which allows the company to sell SpaceX's Starlink Direct services to its Boost Mobile subscribers.
According to the preliminary agreement, SpaceX agreed to pay up to $8.5 billion in cash and up to $8.5 billion in stock.
Stock Movers: The Children’s Place, Broadcom, Lululemon Athletica
Scott Peters
05 Sep, 2025
New York City
The Children’s Place, Inc., jumped 6.6% to $5.80 despite the children’s apparel and accessories retailer’s net income swinging to a loss in the latest quarter ending on August 2.
Consolidated revenue decreased 6.8% to $298 million from $319 million, adjusted net income swung to a loss of $3.4 million from a profit of $3.9 million, and adjusted diluted earnings per share swung to a loss of 15 cents from a profit of 30 cents a year ago.
Comparable retail sales fell 4.7% in the quarter, with the company attributing the decline to a challenging macroeconomic environment and tariff-related uncertainty, which dampened consumer sentiment and impacted both physical and online sales.
During the second quarter, the company opened one store and closed two, ending the period with 494 locations, down from 515 stores at the end of the same quarter last year.
“The tariff environment remains unpredictable. Based on the current environment, we are projecting approximately $20 million to $25 million in additional tariff and duty expenses for fiscal year 2025.
However, we believe we are well-positioned to manage these impacts, having plans to mitigate approximately 80% of the effects of these tariffs through a range of strategic initiatives," said Muhammad Umair, President and Interim Chief Executive Officer.
Lululemon Athletica Inc. plunged 19% to $167.77 after the athleisure retailer reported a slight increase in revenue and a marginal decline in net income in the second quarter ending on August 3.
Consolidated revenue edged higher to $2.5 billion from $2.4 billion, net income declined to $370.9 million from $392.9 million, and diluted earnings per share fell to $3.10 from $3.15 a year ago.
During the second quarter, Lululemon returned a total of $278.5 million to shareholders through repurchases of 1.1 million shares.
The company added 14 net new company-operated stores during the second quarter, ending with 784 stores.
Overall comparable sales increased 1%; in the Americas, comparable sales declined 4%, or 3% on a constant dollar basis, offset by an international comparable sales increase of 15%, or 13% on a constant dollar basis.
Lululemon guided third-quarter revenue to be between $2.47 billion and $2.50 billion, and diluted earnings per share between $2.18 and $2.23.
The company estimated diluted earnings per share between $12.77 and $12.97 and full-year revenue between $10.85 billion and $11.0 billion.
"While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution," said Calvin McDonald, Chief Executive Officer.
"In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance, driven predominantly by our U.S. business.
We are also navigating industry-wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full-year outlook," said Meghan Frank, Chief Financial Officer.
Broadcom Inc. fell 0.7% to $332.41 despite the provider of semiconductor and infrastructure software solutions’ net income swinging to a profit from a year ago in the fiscal third quarter.
Consolidated revenue inched higher to $15.95 billion from $13.07 billion, net income swung to a profit of $4.14 billion from a loss of $1.88 billion, and diluted earnings per share rose to an income of 85 cents from a loss of 40 cents a year ago.
The company's board declared a cash dividend of $0.59 per share, payable on September 30 to shareholders on record on September 22.
During the third quarter, Broadcom returned $2.8 billion to shareholders through cash dividends.
The company estimated fiscal fourth-quarter revenue of approximately $17.4 billion and adjusted EBITDA to be approximately 67% of projected revenue.
"Broadcom achieved record third-quarter revenue, driven by continued strength in custom AI accelerators, networking, and VMware," said Hock Tan, president and chief executive officer.
AI revenue in Q3 grew 63% year-over-year to $5.2 billion.
We expect this growth to accelerate further in the fourth quarter, with AI semiconductor revenue projected to reach $6.2 billion—marking eleven consecutive quarters of growth, as our customers continue to invest aggressively.”
Stock Movers: The Children’s Place, Broadcom, Lululemon Athletica
Scott Peters
05 Sep, 2025
New York City
The Children’s Place, Inc. jumped 6.6% to $5.80 despite the children’s apparel and accessories retailer’s net income swinging to a loss in the latest quarter ending on August 2.
Consolidated revenue decreased 6.8% to $298 million from $319 million, adjusted net income swung to a loss of $3.4 million from a profit of $3.9 million, and adjusted diluted earnings per share swung to a loss of 15 cents from a profit of 30 cents a year ago.
Comparable retail sales fell 4.7% in the quarter, with the company attributing the decline to a challenging macroeconomic environment and tariff-related uncertainty, which dampened consumer sentiment and impacted both physical and online sales.
During the second quarter, the company opened one store and closed two, ending the period with 494 locations, down from 515 stores at the end of the same quarter last year.
“The tariff environment remains unpredictable. Based on the current environment, we are projecting approximately $20 million to $25 million in additional tariff and duty expenses for fiscal year 2025.
However, we believe we are well-positioned to manage these impacts, having plans to mitigate approximately 80% of the effects of these tariffs through a range of strategic initiatives," Muhammad Umair, President and Interim Chief Executive Officer.
Lululemon Athletica Inc. plunged 19% to $167.77 after the athleisure retailer reported a slight increase in revenue and a marginal decline in net income in the second quarter ending on August 3.
Consolidated revenue edged higher to $2.5 billion from $2.4 billion, net income declined to $370.9 million from $392.9 million, and diluted earnings per share fell to $3.10 from $3.15 a year ago.
During the second quarter, Lululemon returned a total of $278.5 million to shareholders through repurchases of 1.1 million shares.
The company added 14 net new company-operated stores during the second quarter, ending with 784 stores.
Overall comparable sales increased 1%, in the Americas, comparable sales declined 4%, or 3% on a constant dollar basis offset by international comparable sales increase of 15%, or 13% on a constant dollar basis.
Lululemon guided third-quarter revenue to be between $2.47 billion and $2.50 billion, and diluted earnings per share between $2.18 and $2.23.
The company estimated diluted earnings per share between $12.77 and $12.97, Lululemon on full-year revenue between $10.85 billion and $11.0 billion.
"While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution," said Calvin McDonald, Chief Executive Officer.
"In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance, driven predominantly by our U.S. business.
We are also navigating industry-wide challenges, including higher tariff rates. In light of these dynamics, we are revising our full-year outlook," said Meghan Frank, Chief Financial Officer.
https://corporate.lululemon.com/media/press-releases/2025/09-04-2025-210520895
Broadcom Inc. fell 0.7% to $332.41 despite the provider of semiconductor and infrastructure software solutions’ net income swinging to a profit from a year ago in the third quarter.
Consolidated revenue inched higher to $15.95 billion from $13.07 billion, net income swung to a profit of $4.14 billion from a loss of $1.88 billion, and diluted earnings per share rose to an income of 85 cents from a loss of 40 cents a year ago.
The company board declared a cash dividend of $0.59 per share, payable on September 30, 2025, on record on September 22.
During the third quarter, Broadcom returned $2.8 billion to shareholders through cash dividends.
The company expects fourth-quarter revenue of approximately $17.4 billion and adjusted EBITDA to be approximately 67% of projected revenue.
Hock Tan, President and CEO of Broadcom Inc., said, “Broadcom achieved record third-quarter revenue, driven by continued strength in custom AI accelerators, networking, and VMware. AI revenue in Q3 grew 63% year-over-year to $5.2 billion. We expect this growth to accelerate further in the fourth quarter, with AI semiconductor revenue projected to reach $6.2 billion—marking eleven consecutive quarters of growth, as our customers continue to invest aggressively.”
Japan's Prime Minister Ishiba Announced Resignation Amid LDP Discontent
Akira Ito
08 Sep, 2025
Tokyo
Japan's stock market indexes advanced on Monday and inched closer to record highs after Prime Minister Shigeru Ishiba announced his resignation over the weekend.
The Nikkei 225 Stock Average increased 1.4%, and the broader Topix advanced 0.9%.
Japan's prime minister, Ishiba, resigned over the weekend amid rising discontent over his leadership following the LDP's losses in the Upper House election.
Japan's second quarter GDP growth was revised higher to a monthly increase of 0.5% from the preliminary estimate of 0.3% growth, according to the latest update from the Cabinet Office.
Japan's economy expanded for the fifth quarter in a row, driven by stronger private consumption and a slight improvement in net international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 43,580.09, and the broader Topix advanced 0.9% to 3,133.92.
Tokyo Electron increased 1.9% to ¥20,630.0, Advantest Corp. gained 4.3% to ¥11,935.0, and Disco Corp. inched down 1.1% to ¥37,800.0.
Sanrio Co. Ltd. decreased 0.4% to ¥7,631.0, SoftBank Group advanced 2.7% to ¥15,955.0, and Mitsubishi Heavy Industries gained 3.2% to ¥3,721.0.
Japan's Prime Minister Ishiba Announced His Resignation Amid Growing Rift
Akira Ito
08 Sep, 2025
Tokyo
Japan's stock market indexes advanced on Monday and inched closer to record highs after Prime Minister Shigeru Ishiba announced his resignation over the weekend.
The Nikkei 225 Stock Average increased 1.4%, and the broader Topix advanced 0.9%.
Japan's prime minister, Ishiba, resigned over the weekend amid rising discontent over his leadership following the LDP's losses in the Upper House election.
Japan's second quarter GDP growth was revised higher to a monthly increase of 0.5% from the preliminary estimate of 0.3% growth, according to the latest update from the Cabinet Office.
Japan's economy expanded for the fifth quarter in a row, driven by stronger private consumption and a slight improvement in net international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 43,580.09, and the broader Topix advanced 0.9% to 3,133.92.
Tokyo Electron increased 1.9% to ¥20,630.0, Advantest Corp. gained 4.3% to ¥11,935.0, and Disco Corp. inched down 1.1% to ¥37,800.0.
Sanrio Co. Ltd. decreased 0.4% to ¥7,631.0, SoftBank Group advanced 2.7% to ¥15,955.0, and Mitsubishi Heavy Industries gained 3.2% to ¥3,721.0.
China's Exports Growth to ASEAN and EU Offset Shipment Weakness to U.S.
Li Chen
08 Sep, 2025
Hong Kong
Stocks in China and Hong Kong lacked direction after a week of sharp sell-offs, and investors reviewed the latest updates on international trade.
The Hang Seng index increased 0.4%, and the CSI 300 index edged up a fraction amid growing caution about future market gains.
In a busy week of economic data releases, investors are looking forward to the release of inflation data on Wednesday, which is likely to confirm the ongoing deflationary trend.
China's Goods Exports Growth Slowed In August
China's international trade continued to expand at a slower pace in August, and the trade surplus rose despite the U.S. tariff headwinds.
Exports increased 4.4% from a year ago to $321.8 billion, imports edged up 1.3% to $219.5 billion, and the trade surplus expanded to $102.3 billion, according to the customs data released on Monday.
Direct exports to the U.S. continue to decline at an accelerated pace following the sharp escalation in U.S. import duties, offset by the rising shipments to the ASEAN region, Latin America, and the European Union.
Goods shipments to the U.S. in August plunged 33.1% compared to 21.7% in July from a year ago, respectively.
However, shipments to Vietnam soared 31%, and shipments to ASEAN member nations jumped 22.5%, largely driven by the demand surge from the U.S. because of the new tariff regime.
Goods shipments to the European Union advanced 10.4% from a year ago in August after rising 9.4% in the previous month.
For the first eight months of 2025, China's goods exports increased 5.9% to $2.45 trillion, driven by the shipments to ASEAN countries increasing by 14.6%, to India by 12.8%, and to the European Union by 7.5%.
During the period, goods shipment to the U.S. fell 15.5% from a year ago.
The front-loading of exports to the U.S. and China's push to develop markets in other regions of the world amid a slowing domestic economy have been behind the resilience of overall goods exports in 2025.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,523.20, and the mainland-focused CSI 300 index added 0.1% to 4,462.79.
JD Logistics Ltd. advanced 2.4% to HK$13.41, JD.com increased 0.5% to HK$122.70, and Alibaba Group advanced 3.7% to HK$136.70.