Market Update
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.
Stock Movers: On Semiconductor, Wayfair
Scott Peters
05 Aug, 2025
New York City
Wayfair Inc. surged 7% to $73.51 after the online furniture retailer’s net income swung to a profit in the fiscal fourth quarter.
Consolidated revenue in the quarter inched up to $3.2 billion from $3.1 billion, net income swung to a profit of $15 million from a loss of $42 million, and diluted income per share swung to a profit of 11 cents from a loss of 34 cents a year ago.
The import tax imposed by the Trump administration on shipments from China and Asia and the expected surge in tariff rates from August 12 supported the rise in sales in the current quarter.
For the fiscal year 2025, revenue advanced to $6 billion from $5.8 billion, net loss dropped to $98 million from $290 million, and diluted losses per share dropped to 77 cents from $2.39 a year ago.
Active customers decreased by 4.5% to 21.0 million, and the last twelve-month net revenue per active customer increased by 5.9% to $572 a year earlier.
During the second quarter, orders per customer, measured as LTM orders divided by active customers, were 1.86 compared to 1.85 for the second quarter of 2024.
Net cash provided by operating activities was $273 million, and non-GAAP free cash flow was $230 million.
Orders delivered in the second quarter of both 2025 and 2024 were 10.0 million.
During the three and six months ended June 30, 2025, the company recorded a $6 million and $31 million gain on debt extinguishment upon repurchase of $80 million of 2025 Notes and $696 million of 2026 Notes, respectively.
ON Semiconductor fell 15% to 47.90 after the semiconductor manufacturer reporting a 50% plunge in quarterly profit from a year ago.
Revenue decreased to $1.4 billion from $1.7 billion, net income dropped to $170.3 million from $338.2 million, and diluted earnings per share fell to 41 cents from 78 cents a year ago.
For the fiscal year 2025, revenue fell to $2.9 billion from $3.6 billion, after-tax income swung to a loss of $313.5 million from a profit of $792.1 million, and diluted earnings per share swung to a loss of 76 cents from a profit of $1.82 a year ago.
The company said it returned over 100% of free cash flow year-to-date through share repurchases.
The company said cash from operations was $184.3 million and free cash flow was $106.1 million.
Stock Movers: On Semiconductor, Wayfair
Scott Peters
05 Aug, 2025
New York City
Wayfair Inc. surged 7% to $73.51 after the online furniture retailer’s net income swung to a profit in the fiscal fourth quarter.
Consolidated revenue in the quarter inched up to $3.2 billion from $3.1 billion, net income swung to a profit of $15 million from a loss of $42 million, and diluted income per share swung to a profit of 11 cents from a loss of 34 cents a year ago.
The import tax imposed by the Trump administration on shipments from China and Asia and the expected surge in tariff rates from August 12 supported the rise in sales in the current quarter.
For the fiscal year 2025, revenue advanced to $6 billion from $5.8 billion, net loss dropped to $98 million from $290 million, and diluted losses per share dropped to 77 cents from $2.39 a year ago.
Active customers decreased by 4.5% to 21.0 million, and the last twelve-month net revenue per active customer increased by 5.9% to $572 a year earlier.
During the second quarter, orders per customer, measured as LTM orders divided by active customers, were 1.86 compared to 1.85 for the second quarter of 2024.
Net cash provided by operating activities was $273 million, and non-GAAP free cash flow was $230 million.
Orders delivered in the second quarter of both 2025 and 2024 were 10.0 million.
During the three and six months ended June 30, 2025, the company recorded a $6 million and $31 million gain on debt extinguishment upon repurchase of $80 million of 2025 Notes and $696 million of 2026 Notes, respectively.
Stock Movers: Wayfair
Scott Peters
04 Aug, 2025
New York City
Wayfair Inc. surged 7% to $73.51 after the online furniture retailer’s net income swung to a profit in the fiscal fourth quarter.
Consolidated revenue in the quarter inched up to $3.2 billion from $3.1 billion, net income swung to a profit of $15 million from a loss of $42 million, and diluted income per share swung to a profit of 11 cents from a loss of 34 cents a year ago.
For the fiscal year 2025, revenue advanced to $6 billion from $5.8 billion, net loss dropped to $98 million from $290 million, and diluted losses per share dropped to 77 cents from $2.39 a year ago.
Active customers decreased by 4.5% to 21.0 million, and the last twelve month net revenue per active customer increased by 5.9% to $572 a year earlier.
During the second quarter, orders per customer, measured as LTM orders divided by active customers, were 1.86 compared to 1.85 for the second quarter of 2024.
Net cash provided by operating activities was $273 million, and non-GAAP free cash flow was $230 million.
Orders delivered in the second quarter of both 2025 and 2024 were 10.0 million.
During the three and six months ended June 30, 2025, the company recorded a $6 million and $31 million gain on debt extinguishment upon repurchase of $80 million of 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes, respectively.
Japan Indexes Closed Higher Tracking Gains On Wall Street
Akira Ito
05 Aug, 2025
Tokyo
Market sentiment in Tokyo recovered, reflecting gains on Wall Street in overnight trading.
The Nikkei 225 Stock Average gained 0.7%, and the broader Topix advanced 0.8% as investors reviewed minutes of the meeting in June.
The Bank of Japan's policymakers left the door open for possible rate hikes if trade tensions ease; however, the committee members consider the current rates appropriate amid lingering geopolitical uncertainty.
Investors are worried that the steady rise in domestic prices could fuel inflation further, forcing the Bank of Japan to raise rates faster than expected.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.7% to 40,550.51, and the broader Topix added 0.8% to 2,938.66.
Mitsubishi Heavy Industries Ltd. jumped 4.7% to ¥3,712.0 after the company won an A$10 billion, or $4.7 billion, navy contract from Australia.
The company's upgraded Mogami design for frigates was selected by Australia's national security committee over Germany's MEKO A-200 built by Thyssen Krupp.
The company plans to build the first three vessels in Japan, and the remaining ones are to be built in Western Australia, according to Australian Deputy Prime Minister Richard Marles.
Nintendo Co. Ltd. edged up 0.6% to ¥13,330.0 and extended recent gains after the company reported strong quarterly results following the sale of Switch 2 hitting 5.8 million units.
Despite the strong quarterly results, the company retained its fiscal year sales outlook of 1.9 trillion yen and operating profit of 320 billion yen, and Switch 2 sales of 15 million units.
Japan Indexes Closed Higher Tracking Gains On Wall Street
Akira Ito
05 Aug, 2025
Tokyo
Market sentiment in Tokyo recovered, reflecting gains on Wall Street in overnight trading.
The Nikkei 225 Stock Average gained 0.7%, and the broader Topix advanced 0.8% as investors reviewed minutes of the meeting in June.
The Bank of Japan's policymakers left the door open for possible rate hikes if trade tensions ease; however, the committee members consider the current rates appropriate amid lingering geopolitical uncertainty.
Investors are worried that the steady rise in domestic prices could fuel inflation further, forcing the Bank of Japan to raise rates faster than expected.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.7% to 40,550.51, and the broader Topix added 0.8% to 2,938.66.
Mitsubishi Heavy Industries Ltd. jumped 4.7% to ¥3,712.0 after the company won an A$10 billion, or $4.7 billion, navy contract from Australia.
The company's upgraded Mogami design for frigates was selected by Australia's national security committee over Germany's MEKO A-200 built by Thyssen Krupp.
The company plans to build the first three vessels in Japan, and the remaining ones are to be built in Western Australia, according to Australian Deputy Prime Minister Richard Marles.
Nintendo Co. Ltd. edged up 0.6% to ¥13,330.0 and extended recent gains after the company reported strong quarterly results following the sale of Switch 2 hitting 5.8 million units.
Despite the strong quarterly results, the company retained its fiscal year sales outlook of 1.9 trillion yen and operating profit of 320 billion yen, and Switch 2 sales of 15 million units.
China Stocks Staged Mild Rebound Ahead of Earnings and Rate-Cut Optimism
Li Chen
05 Aug, 2025
Hong Kong
Risk appetite rebounded in China and Hong Kong as investors looked forward to corporate results.
The Hang Seng index and the CSI 300 index gained about 0.4% as investors awaited the release of earnings from leading banks and electrical goods makers.
Traders are factoring in a rate cut after the U.S. policy meeting in September, amid growing evidence of weakening labor market conditions.
The U.S. economy added far fewer net new jobs in July, and additions were sharply revised lower for May and June.
The sharp scale-back in hiring confirmed that businesses are worried about the erratic trade policy of the Trump administration and a jump in import tax negatively affecting profitability.
The rate cut by the U.S. Federal Reserve in September could spur more investments in emerging markets, supporting stocks in China and Hong Kong.
Market indexes in Japan, India, South Korea, and Australia gained in Tuesday's trading, following a rebound in New York in the overnight trading.
China Indexes and Stocks
The Hang Seng index increased 0.3% to 24,807.0, and the CSI 300 index advanced 0.35% to 4,084.57.
Bank of China advanced 1.1% to HK $4.59, HSBC Holdings edged down 0.5% to HK $96.35, China Merchants Bank edged up 0.2% to $51.10, and ICBC advanced 1% to HK $51.10.
Techtronic Industries edged up 0.2% to HK $95.05, and China Mobile Ltd. edged down 0.1% to HK $85.45.
China Stocks Staged Mild Rebound Ahead of Earnings and Rate-Cut Optimism
Li Chen
05 Aug, 2025
Hong Kong
Risk appetite rebounded in China and Hong Kong as investors looked forward to corporate results.
The Hang Seng index and the CSI 300 index gained about 0.4% as investors awaited the release of earnings from leading banks and electrical goods makers.
Traders are factoring in a rate cut after the U.S. policy meeting in September, amid growing evidence of weakening labor market conditions.
The U.S. economy added far fewer net new jobs in July, and additions were sharply revised lower for May and June.
The sharp scale-back in hiring confirmed that businesses are worried about the erratic trade policy of the Trump administration and a jump in import tax negatively affecting profitability.
The rate cut by the U.S. Federal Reserve in September could spur more investments in emerging markets, supporting stocks in China and Hong Kong.
Market indexes in Japan, India, South Korea, and Australia gained in Tuesday's trading, following a rebound in New York in the overnight trading.
China Indexes and Stocks
The Hang Seng index increased 0.3% to 24,807.0, and the CSI 300 index advanced 0.35% to 4,084.57.
Bank of China advanced 1.1% to HK $4.59, HSBC Holdings edged down 0.5% to HK $96.35, China Merchants Bank edged up 0.2% to $51.10, and ICBC advanced 1% to HK $51.10.
Techtronic Industries edged up 0.2% to HK $95.05, and China Mobile Ltd. edged down 0.1% to HK $85.45.