Market Update
Earnings Dominated Wall Street Trading On Wednesday
Barry Adams
06 Aug, 2025
New York City
U.S. investors reacted to the latest batch of earnings as corporate results piled up on Wednesday.
The S&P 500 index edged up 0.1%, and the tech-focused Nasdaq Composite advanced 0.2%, as investors reviewed quarterly updates from Uber Technologies, Disney, and McDonald's.
Investor sentiment has remained cautiously optimistic this week, supported by a steady flow of positive earnings, despite the ongoing Trump administration's tariff chaos.
The sharp escalation of tariffs on goods has slowly started filtering down to consumers, as automakers, apparel retailers, farm equipment markers, and electronic chip and device makers struggle to adjust to high import taxes.
Donald Trump threatened to increase import tax on pharmaceuticals to as high as 250% and announce new tariffs on India in the next 24 hours.
Moreover, the constantly changing tariff rules and rates are weighing on businesses, as corporations delay investments and avoid making critical investment decisions in the face of economic uncertainty rooted in the Trump administration's lack of stable policies.
U.S. Stock Movers
Uber Technologies advanced 1.5% to $90.70, and the ridesharing company reported mixed quarterly results.
In the second quarter, the company earned 63 cents on revenue of $12.65 billion, and the company announced a $20 billion stock repurchase program.
Walt Disney Company declined 2.5% to $115.20 after the company reported mixed quarterly results.
Revenue in the fiscal third quarter rose 2% to $23.7 billion, and operating income advanced 8% to $4.6 billion.
In the quarter, the company added 2.6 million net new subscribers, with essentially all growth coming from international markets.
The company revised higher its adjusted earnings per share estimate for the full year to $5.85 from $5.75 released in the previous quarter.
ESPN, the company's sports network, is set to release its full-featured streaming service in the coming weeks.
Advanced Micro Devices Inc. dropped 5.6% to $165.18 after the advanced chipmaker reported a weaker-than-expected profit of 48 cents on revenue of $7.69 billion.
McDonald's Corp. jumped 3.8% to $310.10, and the fast food restaurant chain's quarterly results surpassed market expectations.
The global chain reported adjusted earnings per share of $3.19 on revenue of $6.84 billion.
Stock Movers: Arista Networks, AMD, Marriott, McDonald's
Scott Peters
06 Aug, 2025
New York City
Arista Networks Inc. jumped 12.6% to $132.99 after the computer networking company reported a 30% increase in net income in the June quarter.
Revenue increased to $2.2 billion from $1.7 billion, net income jumped to $888.8 billion from $665.4 million, and diluted earnings per share rose to 70 cents from 52 cents a year ago.
For the six-month period, revenue advanced to $4.2 billion from $3.2 billion, net income soared to $1.7 billion from $1.3 billion, and diluted earnings per share edged higher to $1.34 from $1.02 a year ago.
During the second quarter, the company repurchased $983 million of its common stock during the quarter as part of its stock repurchase program.
The company guided net sales in the next quarter to approximately $2.25 billion compared to $2.2 billion a quarter earlier, respectively.
The company expects to deliver a non-GAAP gross margin of approximately 64% and a non-GAAP operating margin of approximately 47% for the third quarter.
Chantelle Breithaupt, Arista’s CFO, said, "Non-GAAP operating income crossed $1 billion for the first time at Arista, highlighting the strength of our business model and the momentum of customer demand across our portfolio.
Our ability to scale efficiently while maintaining financial discipline continues to deliver value for our shareholders."
Advanced Micro Devices Inc. dropped 6.2% to $100.32 despite the advanced semiconductor chip company reporting more than a threefold jump in earnings in the second quarter.
Revenue increased to $4.6 billion from $3 billion, net income jumped to $872 million from $265 million, and diluted earnings per share rose to 54 cents from 16 cents a year ago.
For the six-month period, revenue climbed to $8.3 billion from $5.9 billion, net income soared to $1.5 billion from $388 million, and diluted earnings per share advanced to 97 cents from 24 cents a year ago.
Operating income swung to a loss of $134 million from a profit of $269 million. Operating expenses soared 23% to $3.2 billion from $2.6 billion.
Operating cash flow climbed nearly three-and-a-half-fold to $2 billion from $593 million, while free cash flow jumped more than two-and-a-half-fold to $1.2 billion from $439 million a year ago.
During the second quarter, the company returned $478 million to its shareholders through share repurchases.
Marriott International surged 0.2% to $259.72 after the hotel chain operator reported an increase in revenue and earnings in the latest quarter.
Revenue increased to $6.7 billion from $6.4 billion, net income inched lower to $763 million from $772 million, and diluted earnings per share rose to $2.78 from $2.69 a year ago.
During the second quarter, the company returned $700 million to shareholders through the repurchase of 2.8 million shares of common stock.
In the year-to-date to July 30, the company has returned approximately $2.1 billion to shareholders through dividends and share repurchases.
The company added roughly 17,300 net rooms during the quarter, an increase of 4.7% from a year ago.
At the end of the quarter, Marriott's worldwide development pipeline reached a new record, totaling approximately 3,900 properties and over 590,000 rooms.
McDonald’s Corp. jumped 2.5% to $306.11 after the fast-food restaurant chain reported a muted increase in sales and earnings in the latest quarter.
Revenue increased to $6.8 billion from $6.4 billion, net income inched higher to $2.2 billion from $2 billion, and diluted earnings per share rose to $3.14 from $2.80 a year ago.
For the six-month period, revenue advanced to $12.8 billion from $12.6 billion, net income edged up to $4.1 billion from $4 billion, and diluted earnings per share inched higher to $5.74 from $5.46 a year ago.
The company reported a 3.8% annual increase in global comparable sales, supported by a 2.5% growth in U.S. comparable sales during the same period.
Stock Movers: Arista Networks, AMD, Marriott
Scott Peters
06 Aug, 2025
New York City
Arista Networks Inc. jumped 12.6% to $132.99 after the computer networking company reported a 30% increase in net income in the June quarter.
Revenue increased to $2.2 billion from $1.7 billion, net income jumped to $888.8 billion from $665.4 million, and diluted earnings per share rose to 70 cents from 52 cents a year ago.
For the six-month period, revenue advanced to $4.2 billion from $3.2 billion, net income soared to $1.7 billion from $1.3 billion, and diluted earnings per share edged higher to $1.34 from $1.02 a year ago.
During the second quarter, the company repurchased $983 million of its common stock during the quarter as part of its stock repurchase program.
The company guided net sales in the next quarter to approximately $2.25 billion compared to $2.2 billion a quarter earlier, respectively.
The company expects to deliver a non-GAAP gross margin of approximately 64% and a non-GAAP operating margin of approximately 47% for the third quarter.
Chantelle Breithaupt, Arista’s CFO, said, "Non-GAAP operating income crossed $1 billion for the first time at Arista, highlighting the strength of our business model and the momentum of customer demand across our portfolio.
Our ability to scale efficiently while maintaining financial discipline continues to deliver value for our shareholders."
Advanced Micro Devices Inc. dropped 6.2% to $100.32 despite the advanced semiconductor chip company reporting more than a threefold jump in earnings in the second quarter.
Revenue increased to $4.6 billion from $3 billion, net income jumped to $872 million from $265 million, and diluted earnings per share rose to 54 cents from 16 cents a year ago.
For the six-month period, revenue climbed to $8.3 billion from $5.9 billion, net income soared to $1.5 billion from $388 million, and diluted earnings per share advanced to 97 cents from 24 cents a year ago.
Operating income swung to a loss of $134 million from a profit of $269 million. Operating expenses soared 23% to $3.2 billion from $2.6 billion.
Operating cash flow climbed nearly three-and-a-half-fold to $2 billion from $593 million, while free cash flow jumped more than two-and-a-half-fold to $1.2 billion from $439 million a year ago.
During the second quarter, the company returned $478 million to its shareholders through share repurchases.
Marriott International surged 0.2% to $259.72 after the hotel chain operator reported an increase in revenue and earnings in the latest quarter.
Revenue increased to $6.7 billion from $6.4 billion, net income inched higher to $728 million from $716 million, and diluted earnings per share fell to $2.78 from $2.69 a year ago.
For the fiscal year 2025, revenue advanced to $13 billion from $12.4 billion, net income soared to $1.37 billion from $1.33 billion, and diluted earnings per share edged higher to $5.17 from $4.62 a year ago.
During the second quarter, the company returned $700 million to shareholders through the repurchase of 2.8 million shares of common stock.
In the year-to-date to July 30, the company has returned approximately $2.1 billion to shareholders through dividends and share repurchases.
The company added roughly 17,300 net rooms during the quarter, an increase of 4.7% from a year ago.
At the end of the quarter, Marriott's worldwide development pipeline reached a new record, totaling approximately 3,900 properties and over 590,000 rooms.
Japan Stocks Extended 2-Day Rally, Real Wages Declined 1.3% In June
Akira Ito
06 Aug, 2025
Tokyo
Stock market indexes in Tokyo advanced for the second consecutive day amid ongoing uncertainty linked to the U.S. trade policy.
The Nikkei 225 Stock Average increased 0.8%, and the broader Topix index advanced 1%, as investors overlooked brewing trade backlash between Japan and the U.S.
Japan's trade negotiator Ryosei Akazawa plans to press the Trump administration to not impose tariffs on automobiles and pharmaceuticals.
Moreover, Trump threatened to impose additional tariffs on India but signaled that his administration is closer to an agreement with China.
Donald Trump has been highly unreliable, and his previous claims and assertions about trade deals have been proven to be misleading or just outright false.
The so-called "trade deals" trumpeted by Trump with Japan, Vietnam, the U.K., and the European Union are nothing beyond a framework, lack details, and the terms of the deal could not be confirmed.
Japan's Real Wages Declined for 6th Consecutive Month In June
Japan's real wages decreased for the sixth consecutive month in June as inflation outpaced pay gains.
Nominal wages, or average total monthly cash earnings including base and overtime pay per worker, increased 2.5% to 511,250 yen, or $3,500, the Ministry of Health, Labor and Welfare said.
Nominal wages rose for the 42nd consecutive month, but the inflation used to calculate real wages increased to 3.8%, keeping the real wage growth in negative territory.
Of the total pay, base pay and other earnings increased 2.1% to 270,244 yen, after leading Japanese companies agreed to increase wages by more than 5% for the second consecutive year.
Real wages in June decreased 1.3% from a year ago, after higher food prices stoked overall inflation.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.6% to 40,771.50, and the broader Topix advanced 1% to 2,964.97.
Defense and heavy engineering industry-related stocks advanced amid expectations of higher government spending.
Mitsubishi Heavy Industries Ltd. gained 4.8% to ¥3,927.0, IHI Corp. decreased 1.2% to ¥17,140.0, and Kawasaki Heavy Industries declined 0.3% to ¥11,100.0.
Japan Stocks Extended 2-Day Rally, Real Wages Declined 1.3% In June
Akira Ito
06 Aug, 2025
Tokyo
Stock market indexes in Tokyo advanced for the second consecutive day amid ongoing uncertainty linked to the U.S. trade policy.
The Nikkei 225 Stock Average increased 0.8%, and the broader Topix index advanced 1%, as investors overlooked brewing trade backlash between Japan and the U.S.
Japan's trade negotiator Ryosei Akazawa plans to press the Trump administration to not impose tariffs on automobiles and pharmaceuticals.
Moreover, Trump threatened to impose additional tariffs on India but signaled that his administration is closer to an agreement with China.
Donald Trump has been highly unreliable, and his previous claims and assertions about trade deals have been proven to be misleading or just outright false.
The so-called "trade deals" trumpeted by Trump with Japan, Vietnam, the U.K., and the European Union are nothing beyond a framework, lack details, and the terms of the deal could not be confirmed.
Japan's Real Wages Declined for 6th Consecutive Month In June
Japan's real wages decreased for the sixth consecutive month in June as inflation outpaced pay gains.
Nominal wages, or average total monthly cash earnings including base and overtime pay per worker, increased 2.5% to 511,250 yen, or $3,500, the Ministry of Health, Labor and Welfare said.
Nominal wages rose for the 42nd consecutive month, but the inflation used to calculate real wages increased to 3.8%, keeping the real wage growth in negative territory.
Of the total pay, base pay and other earnings increased 2.1% to 270,244 yen, after leading Japanese companies agreed to increase wages by more than 5% for the second consecutive year.
Real wages in June decreased 1.3% from a year ago, after higher food prices stoked overall inflation.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.6% to 40,771.50, and the broader Topix advanced 1% to 2,964.97.
Defense and heavy engineering industry-related stocks advanced amid expectations of higher government spending.
Mitsubishi Heavy Industries Ltd. gained 4.8% to ¥3,927.0, IHI Corp. decreased 1.2% to ¥17,140.0, and Kawasaki Heavy Industries declined 0.3% to ¥11,100.0.
Hong Kong Stocks Lacked Direction Ahead of Exports and Inflation Reports
Li Chen
06 Aug, 2025
Hong Kong
Investors remained cautiously upbeat ahead of the release of corporate results and international trade data.
The Hang Seng index and the CSI 300 index edged up 0.2%, and investors awaited the release of consumer and producer price inflation reports over the weekend.
In a busy week of earnings, market sentiment has remained positive as leading financial companies, food and beverage companies, and healthcare providers gained investor attention amid macroeconomic uncertainties.
China's producer price deflation is expected to extend to the 34th consecutive month in July, as prices are likely to fall by 3.5%.
The National Bureau of Statistics is scheduled to release its monthly inflation reports over the weekend.
Despite the chaos in U.S. trade policy, China's exports are estimated to rise at least 4% in July, as the NBS data is likely to show on Thursday.
China Indexes and Stocks
The Hang Seng index added 0.2% to 24,942.81, and the mainland-focused CSI 300 index edged up 0.1% to 4,110.68.
Electric vehicle makers led decliners for the second consecutive week amid worries of persistent price wars.
Li Auto Inc. decreased 3.9% to HK $98.85, BYD dropped 1% to HK $109.90, and Xpeng Inc. edged up 1.1% to HK $75.80.
BYD Electronic International advanced 6.2% to HK $37.60, and China Shenhua Energy gained 3.4% to HK $36.74.
Hong Kong Stocks Lacked Direction Ahead of Exports and Inflation Reports
Li Chen
06 Aug, 2025
Hong Kong
Investors remained cautiously upbeat ahead of the release of corporate results and international trade data.
The Hang Seng index and the CSI 300 index edged up 0.2%, and investors awaited the release of consumer and producer price inflation reports over the weekend.
In a busy week of earnings, market sentiment has remained positive as leading financial companies, food and beverage companies, and healthcare providers gained investor attention amid macroeconomic uncertainties.
China's producer price deflation is expected to extend to the 34th consecutive month in July, as prices are likely to fall by 3.5%.
The National Bureau of Statistics is scheduled to release its monthly inflation reports over the weekend.
Despite the chaos in U.S. trade policy, China's exports are estimated to rise at least 4% in July, as the NBS data is likely to show on Thursday.
China Indexes and Stocks
The Hang Seng index added 0.2% to 24,942.81, and the mainland-focused CSI 300 index edged up 0.1% to 4,110.68.
Electric vehicle makers led decliners for the second consecutive week amid worries of persistent price wars.
Li Auto Inc. decreased 3.9% to HK $98.85, BYD dropped 1% to HK $109.90, and Xpeng Inc. edged up 1.1% to HK $75.80.
BYD Electronic International advanced 6.2% to HK $37.60, and China Shenhua Energy gained 3.4% to HK $36.74.
Investors Return to Increase Risk Exposure Amid Earnings and Rate-Cut Optimism
Barry Adams
05 Aug, 2025
New York City
Stocks wavered in early trading on Tuesday as investors reviewed the fresh batch of results.
The S&P 500 index edged up 0.3%, and the Nasdaq Composite gained 0.4%, as benchmark indexes attempted to extend the previous week's rally.
Investor confidence remains high despite the weak labor market report last week, amid solid earnings from leading technology companies.
Apple, Alphabet, Microsoft, Meta, Visa, and MasterCard reported better-than-expected quarterly results, but Amazon's outlook lagged expectations.
Pfizer and Palantir Technologies advanced after their quarterly results, but Caterpillar and Eaton Corporation declined following weak outlook.
Trump's import tax weighed on investor sentiment, as the U.S. president threatened to raise the tax to 250% on pharmaceutical products in an interview with CNBC on Tuesday.
The Trump administration has lost most of its credibility after the chaotic introduction of trade policy and constant flip-flops and misleading or outright false claims of "trade deals."
U.S. Stock Movers
Hims & Hers dropped 11.6% to $55.90 after the telehealth company reported weak quarterly results and issued a weaker-than-expected outlook.
The company guided third-quarter adjusted earnings to range between $60 million and $70 million, lower than the estimate of as much as $76 million according to some analysts.
Caterpillar Inc. inched up 0.3% to $434.80, and the farm and construction equipment company reported weaker-than-expected second-quarter earnings per share of $4.72.
Eaton Corporation PLC decreased 5% to $365.0 after the power management company's third-quarter outlook fell short of market expectations.
The company's guided adjusted third-quarter earnings per share ranged between $3.01 and $3.07.
The power management company earned $2.95 per share on $7.03 billion in revenue.
Palantir Technologies Inc. jumped 7% to $172.0 after the surveillance technology company reported strong quarterly results.
The defense and intelligence contractor for the U.S. government reported adjusted earnings of 16 cents per share on revenue of $1.0 billion.
Pfizer Inc. jumped 2.4% to $24.08 after the pharmaceutical company reported better-than-expected results in the second quarter.
Investors Return to Increase Risk Exposure Amid Earnings and Rate-Cut Optimism
Barry Adams
05 Aug, 2025
New York City
Stocks wavered in early trading on Tuesday as investors reviewed the fresh batch of results.
The S&P 500 index edged up 0.3%, and the Nasdaq Composite gained 0.4%, as benchmark indexes attempted to extend the previous week's rally.
Investor confidence remains high despite the weak labor market report last week, amid solid earnings from leading technology companies.
Apple, Alphabet, Microsoft, Meta, Visa, and MasterCard reported better-than-expected quarterly results, but Amazon's outlook lagged expectations.
Pfizer and Palantir Technologies advanced after their quarterly results, but Caterpillar and Eaton Corporation declined following weak outlook.
Trump's import tax weighed on investor sentiment, as the U.S. president threatened to raise the tax to 250% on pharmaceutical products in an interview with CNBC on Tuesday.
The Trump administration has lost most of its credibility after the chaotic introduction of trade policy and constant flip-flops and misleading or outright false claims of "trade deals."
U.S. Stock Movers
Hims & Hers dropped 11.6% to $55.90 after the telehealth company reported weak quarterly results and issued a weaker-than-expected outlook.
The company guided third-quarter adjusted earnings to range between $60 million and $70 million, lower than the estimate of as much as $76 million according to some analysts.
Caterpillar Inc. inched up 0.3% to $434.80, and the farm and construction equipment company reported weaker-than-expected second-quarter earnings per share of $4.72.
Eaton Corporation PLC decreased 5% to $365.0 after the power management company's third-quarter outlook fell short of market expectations.
The company's guided adjusted third-quarter earnings per share ranged between $3.01 and $3.07.
The power management company earned $2.95 per share on $7.03 billion in revenue.
Palantir Technologies Inc. jumped 7% to $172.0 after the surveillance technology company reported strong quarterly results.
The defense and intelligence contractor for the U.S. government reported adjusted earnings of 16 cents per share on revenue of $1.0 billion.
Pfizer Inc. jumped 2.4% to $24.08 after the pharmaceutical company reported better-than-expected results in the second quarter.