Existing Home Sales Advanced for the First Time In Five Months

Seasonally adjusted existing home sales increased 1.3% from the previous month in July to an annual rate of 3.95 million units, the National Association of Realtors said Thursday. 

Home sales increased for the first time in five months but declined 2.5% from a year ago. 

The supply of available homes edged higher in July with more sellers emerging. 

Homes available for sale at the end of July increased by 0.8% from June to 1.33 million and increased 19.8% from a year ago, or the equivalent of 4.0 months' supply at the current monthly sales pace.

"Despite the modest gain, home sales are still sluggish," said NAR Chief Economist Lawrence Yun. "But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."

Home prices continued to move higher; even when more homes were listed for sale, the median sale price increased 4.2% to $422,600, an annual increase in price for the 13th consecutive month. 

Sales in the Northeast increased the most by 4.3% and were flat in the Midwest; they rose 1.4% in the West and 1.1% in the South. 

Median price increased the most in the Northeast, rising 8.3% to $505,100, in the West by 3.4% to $629,500, in the South by 2.3% to $372,500, and in the Midwest by 4.5% to $321,500. 

U.S. Movers: Advance Auto Parts, Agilent Technologies, Nordson, Synopsys, Zoom Video

Agilent Technologies jumped 1.8% to $142.28, and the laboratory supply company reported higher-than-expected fiscal third quarter results. 

Revenue in the quarter increased to $1.58 billion, and adjusted earnings per share rose to $1.32, ahead of expectations of at least $1.25. 

Nordson Corp. gained 0.4% to $248.67, and the adhesive company reported better-than-expected fiscal third quarter results. 

Advance Auto Parts dropped 16.7% to $51.53, and the auto parts retailer reported weaker-than-expected second-quarter earnings. 

The company also lowered its annual earnings per share outlook to between $2.0 and $2.50 from the previous estimate of between $3.75 and $4.25. 

Zoom Video Communications soared 11.7%, and the company reported better-than-expected second-quarter earnings and lifted its annual outlook. 

Revenue increased to $1.16 billion, and earnings per share rose to $1.39. 

Looking ahead, for the third quarter, the company anticipates adjusted earnings per share between $1.29 and $1.31, ahead of the consensus of $1.24. 

The company estimated full-year adjusted earnings per share between $5.29 and $5.32, ahead of market expectations of $5.05.

Rate-cut Hopes Reinforced After Fed Minutes Signaled Optimism

Stocks traded higher, and benchmark indexes are set to extend weekly gains for the third week in a row as market sentiment recovers. 

The S&P500 index and the Nasdaq Composite edged higher, and investors confirmed the rate-cut expectations after the latest policy meeting minutes showed policymakers are ready to cut rates if ongoing economic data and inflation trends are supportive. 

Inflation has fallen from a peak of nearly 9% to closer to 3% over the last eighteen months, but prices are still rising faster than the 2% target rate set by the Federal Reserve policymakers. 

Kansas City Federal Reserve President Jeffrey Schmid said that the time to lower the interest rate may be closer than expected, but inflation is still ahead of the Fed's 2% target rate. 

Schmid stressed that current interest rates are "restrictive, but they are not overly restrictive." 

“I still believe quite strongly that we really need to turn this inflation number towards 2%. It has to be sustainable. 

Having the labor market cool some is helping that, but there’s still more work to do,” Schmid told CNBC in a live interview from the Fed’s annual retreat in Jackson Hole, Wyoming. 

Initial jobless claims for the week ending on August 17 increased to 232,000, an increase of 4,000 from the previous week, the Labor Department reported Thursday. 

Continuing claims advanced by 4,000 to 1.863 million in the previous week, as long-term claims data lags by one week and is at its highest level since November 27, 2021. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.01% to 5,620.68, the Nasdaq Composite fell 0.1% to 17,909.30, and the Russell 2000 index fell 0.4% to 2,161.25. 

The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes increased to 3.84%, and 30-year Treasury bonds inched higher to 4.11%.

WTI crude oil increased $0.32 to $72.32 a barrel, and natural gas prices edged down 3 cents to $2.13 a thermal unit.

Gold fell by $11.33 to $2,501.31 an ounce, and silver increased by $0.01 to $29.32.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 101.31.

U.S. Stock Movers

Agilent Technologies jumped 1.8% to $142.28, and the laboratory supply company reported higher-than-expected fiscal third quarter results. 

Revenue in the quarter increased to $1.58 billion, and adjusted earnings per share rose to $1.32, ahead of expectations of at least $1.25. 

Nordson Corp. gained 0.4% to $248.67, and the adhesive company reported better-than-expected fiscal third quarter results. 

Advance Auto Parts dropped 16.7% to $51.53, and the auto parts retailer reported weaker-than-expected second-quarter earnings. 

The company also lowered its annual earnings per share outlook to between $2.0 and $2.50 from the previous estimate of between $3.75 and $4.25. 

Zoom Video Communications soared 11.7%, and the company reported better-than-expected second-quarter earnings and lifted its annual outlook. 

Revenue increased to $1.16 billion, and earnings per share rose to $1.39. 

Looking ahead, for the third quarter, the company anticipates adjusted earnings per share between $1.29 and $1.31, ahead of the consensus of $1.24. 

The company estimated full-year adjusted earnings per share between $5.29 and $5.32, ahead of market expectations of $5.05.

Europe Movers: Aegon, Deutsche Bank, CTS Eventim, JD Sports, Oil Explorers, Swiss Re

The Euro Area private sector activities showed a surprising strength in August after the service sector continued to expand, overshadowing the two years of weakness in manufacturing. 

The DAX index increased by 0.3% to 18,497.62; the CAC-40 index rose by 0.2% to 7,539.73; and the FTSE 100 index advanced by 0.2% to 8,297.19. 

The yield on 10-year German bonds edged higher to 2.23%, French bonds inched down to 2.93%, the UK gilts edged higher to 3.94%, and Italian bonds inched up to 3.59%.

Swiss Re rose 3.5% to CHF 114.75, and the reinsurance company reported an increase in earnings in the first half and confirmed its annual outlook. 

Aegon decreased 5.8% to €5.47, and the Dutch insurance company reported a drop in its key operating profits and cash flow metrics. 

CTS Eventim AG added 7.5% to €88.70 after the German ticketing company lifted its annual outlook. 

Deutsche Bank gained 3.2% to €14.45 after the German bank settled with over 80% of plaintiffs in Postbank AG litigation. 

JD Sports Fashion PLC jumped 7.6% to 139.20 pence after the UK-based athleticwear retailer reported organic second quarter sales improved because of the strength in the U.S. and Europe. 

Oil exploration companies fell after crude oil prices fell for the fifth session in a row amid China's demand growth worries. 

BP plc decreased 1% to 425.88 pence, Shell PLC dropped 0.9% to 2,693.50, and TotalEnergies fell 0.7% to €61.71. 

Euro Area Business Activities Unexpectedly Expanded Despite Weaknesses In Germany

European markets inched higher on Thursday as private sector activities expanded for the sixth month in a row in August. 

Benchmark indexes in London, Paris, and Frankfurt edged higher after the strength in the service sector overshadowed the continued weakness in manufacturing. 

Private sector business activities showed surprising strength after a four-month high increase in the service sector to offset the two-year decline in manufacturing. 

The HCOB Eurozone Composite PMI increased to 51.2 in August from 50.2 in July, and private sector activities expanded for the sixth month in a row, S&P Global reported Thursday. 

The index for service activities rose to 53.3 from 51.9, and the index for manufacturing activities decreased to 45.6 from 45.8 in the previous month. 

Any reading above 50 indicates expansion, and any reading below 50 shows contraction. 

However, Germany's private sector economy remained in contraction, according to a separate report released by S&P Global. 

HCOB Flash Composite PMI decreased to 48.5 in August from 49.1 in July after manufacturing activities continued to shrink and service sector activity growth slowed. 

Negotiated wage growth slowed to 3.55% in the second quarter following the 4.74% increase in the first quarter, primarily because of the weakness in Germany, according to the data released by the European Central Bank. 

The slowdown of wage growth in the largest economy in the eurozone could prompt policymakers to lower rates in September, alleviating concerns that rising labor costs would fuel inflation. 

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,497.62; the CAC-40 index rose by 0.2% to 7,539.73; and the FTSE 100 index advanced by 0.2% to 8,297.19. 

The yield on 10-year German bonds edged higher to 2.23%, French bonds inched down to 2.93%, the UK gilts edged higher to 3.94%, and Italian bonds inched up to 3.59%.

The euro edged down to $1.12; the British pound inched higher to $1.31; and the U.S. dollar weakened to 85.15 Swiss cents.

Brent crude increased $0.37 to $76.42 a barrel, and the Dutch TTF natural gas rose by €0.02 to €37.23 per MWh.

Europe Stock Movers

Swiss Re rose 3.5% to CHF 114.75, and the reinsurance company reported an increase in earnings in the first half and confirmed its annual outlook. 

Aegon decreased 5.8% to €5.47, and the Dutch insurance company reported a drop in its key operating profits and cash flow metrics. 

CTS Eventim AG added 7.5% to €88.70 after the German ticketing company lifted its annual outlook. 

Deutsche Bank gained 3.2% to €14.45 after the German bank settled with over 80% of plaintiffs in Postbank AG litigation. 

JD Sports Fashion PLC jumped 7.6% to 139.20 pence after the UK-based athleticwear retailer reported organic second quarter sales improved because of the strength in the U.S. and Europe. 

Oil exploration companies fell after crude oil prices fell for the fifth session in a row amid China's demand growth worries. 

BP plc decreased 1% to 425.88 pence, Shell PLC dropped 0.9% to 2,693.50, and TotalEnergies fell 0.7% to €61.71. 

Japan Stocks Rebounded After Service Sector Expanded Seventh Consecutive Month

Stocks in Tokyo advanced as investors latest update on private sector activities, and the yen retained its upward bias. 

The Nikkei 225 stock average gained 0.5%, the Topix inched higher by 0.1%, and the yen traded at 145.35 against the U.S. dollar. 

Stocks opened higher in Tokyo after the latest minutes of the meeting from the U.S. Federal Reserve showed policymakers are open to a rate cut at the next meeting if economic data support such a move. 

The dovish minutes supported the broader market sentiment in New York, and positive earnings from leading retailers Target Corp., TJX, and Macy's also contributed to the market's strength. 

Closer to home, Japan's service sector expanded for the seventh month in a row in August, indicating a strong demand for private sector business services, and the manufacturing sector contracted for the sixth month in a row. 

The au Jibun Service Purchasing Managers' Index increased to 54.0 in August from the revised 53.7 in July, and the au Jibun Manufacturing PMI edged higher to 49.5 from a four-month low of 49.1 in July. 

The monthly surveys were released by S&P Global on Thursday. 

Japan Stock Movers 

The Nikkei 225 stock average added 0.5% to 38,145.86, and the Topix index rose 0.1% to 2,668.61. 

Technology stocks, financial stocks, retailers, and diversified conglomerates were among the most actively traded stocks on Thursday. 

Advantest, Tokyo Electron, Shin-Etsu Chemical, Lasertec, and SoftBank advanced between 1% and 4%. 

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial fell between 1% and 2%, but China Bank declined more than 3%. 

Mitsubishi Corp. increased 0.3% to ¥3,027.0, Marubeni decreased 0.3% to ¥2,456.0, and Itochu Corp. jumped 0.5% to ¥7,127.0. 

Mercari jumped 7.5% to ¥2,377.0, IHI Corp. added 5.9% to ¥5,891.0, Chugai Pharmaceutical gained 3.9% to ¥7,114.0, and Sumitomo Pharma jumped 6.7% to ¥652.0. 

Hong Kong Stocks Rebound After Positive Earnings from AIA and Xiaomi

Stocks in Shanghai and Hong Kong advanced in subdued trading as investors reacted to positive earnings from leading companies. 

The Hang Seng index added 0.5%, and the CSI 300 index edged up a fraction. 

Market sentiment was positive after AIA and Xiaomi reported earnings ahead of market expectations. but residential property developers turned lower after Kaisa Group Holding reported weak results. 

Investors also took note of the Federal Reserve policymakers supporting a rate cut at the next meeting in September if economic data support such a move, as the latest minutes of the meeting showed on Wednesday. 

Despite the rebound in the Hang Seng index after a two-day sell-off, investor enthusiasm was muted amid a weakening macroeconomic backdrop. 

China Stock Movers 

The Hang Seng index increased 0.5% to 17,488.74, and the CSI 300 index inched up 0.05% to 3,323.36. 

Xiaomi jumped 8.1% to HK $18.94, and the smartphone and electric vehicle maker reported that second-quarter revenue soared 32% to 88.9 billion yuan, or $12.4 billion, and net income jumped 38.3% to 5.1 billion yuan. 

Smart handset unit sales soared 28% to 42.2 million units, and the business division's revenue increased 27.1% to 46.5 billion yuan. 

The company' delivered 27,307 SU7 electric vehicles, with the EV unit generating revenue of 6.4 billion yuan and a net loss of 1.8 billion yuan. 

The company lost an average of 65,900 yuan per car sold in the June quarter, and the company said it plans to sell 100,000 vehicles by November and expand its retail store network to 100 from the current 87 in 30 cities. 

AIA Group gained 4.9% to HK$53.95, and the insurance company sold more insurance policies in mainland China. 

The value of new business, a measure of revenue, increased 25% to $2.46 billion, and net income soared 52% to $3.31 billion, or 29.53 U.S. cents. 

The value of new business in mainland China rose 36% to $782 million, and in Hong Kong, it advanced 26% to $858 million. 

Mainland residents continued to buy insurance policies issued in Hong Kong to take advantage of stable currency and diversify investment returns amid a weak outlook for the yuan. 

The Chinese yuan has lost about 12% of its value against the U.S. dollar over the last two years. 

The company also increased its interim dividend by 5.2% to 44.50 HK cents. 

India Movers: India Grid Trust, IREDA, Kilburn Engineering, P&G Health, Zen Technologies

Stocks advanced, the rupee struggled near record lows, and bond yields held steady. 

Crude oil prices dropped to 2024 lows amid a weak demand outlook in China, and gold traded near a record high as major central banks prepared to lower rates in September. 

The Sensex index increased by 0.2% to 81,037.76, and the Nifty index rose 0.2% to 24,811.85. 

On the Mumbai stock exchange, 97 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.85%, and the Indian rupee weakened to 83.92 against the U.S. dollar.

India Grid Trust declined 0.5% to ₹135.24, and the KKR affiliate plans to sell a 17.3% stake in the power transmission company with a floor price of ₹132 per share. 

India Renewable Energy Development Agency jumped 5.2% to ₹251.60, and the company board is scheduled to meet on August 29 to discuss a secondary offering plan to raise as much as ₹4,500 crore. 

Zen Technologies declined 1.8% to ₹1,749.90, and the company plans to launch a secondary offering of ₹1,000 crore with a floor price of ₹1,685.15 per share. 

Kilburn Engineering jumped 2% to ₹489.50, and the company plans to acquire Monga Strayfield, a radio frequency heating and drying equipment maker, for ₹123 crore. 

Procter & Gamble Health decreased 2.1% to ₹5,258.80, and the company reported a decline in revenue and earnings in the June quarter. 

Revenue decreased 5.7% to ₹283.9 crore, and net income dropped 43.7% to ₹16.8 crore from ₹29.8 crore a year ago, after the company booked a one-time charge of ₹20.2 crore.

The company also declared a final dividend of ₹60 per share. 

U.S. Stocks Bounce Around Flatline After Sharp Downward Revision In Job Growth

Stocks traded higher on Wall Street as investors looked forward to the release of the latest policy meeting and reviewed the latest nonfarm payroll revisions. 

The S&P 500 index and the Nasdaq Composite traded around the flatline, and investors are looking for clues about the possible rate cut in September. 

The U.S. economy created fewer jobs than previously reported for the year ending in Match 2024, the Bureau of Labor Statistics noted in its annual benchmark revisions released Wednesday. 

The job market added 818,000 fewer jobs in the period, indicating that actual job growth was 30% less than previously estimated 2.9 million over the one-year period ending in March 2024. 

In the year to March 2024, the U.S. economy still added just over 2 million jobs, but clearly the job market is not as strong as it was previously thought to be. 

The largest downward revision was in the professional and business services sector, where job growth was downwardly revised by 358,000, followed by the leisure and hospitality sector with a revision of 150,000 jobs. 

However, private education and health services saw an upward revision of 87,000, transportation and warehousing by 56,400, and other services by 21,000.

Moreover, investors also awaited comments from Fed Chair Jerome Powell at the annual gathering of central bankers in Jackson Hole, Wyoming. 

Market indexes over the last two weeks have rebounded sharply from the near 10% losses earlier in the month after the U.S. economy added fewer than expected jobs in July, setting off the fears of an unexpected economic slowdown. 

Market sentiment recovered after retail sales, jobless claims, and inflation data were ahead of expectations, calming market anxieties and setting aside the worries of a slowdown. 

Stocks are resting in today's session after market indexes halted an 8-day rally on Tuesday, the longest stretch of gains since late 2023. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,609.98, the Nasdaq Composite rose 0.2% to 17,858.98, and the Russell 2000 index rose 0.9% to 2,154.80. 

The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 3.81%, and 30-year Treasury bonds inched higher to 4.08%.

WTI crude oil increased $0.71 to $72.47 a barrel, and natural gas prices edged down 5 cents to $2.14 a thermal unit.

Gold fell by $4.53 to $2,508.03 an ounce, and silver increased by $0.05 to $29.50.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 101.21.

U.S. Stock Movers

Toll Brothers increased 1.1% to $135.0, and the luxury home builder reported higher-than-expected fiscal third quarter results and lifted its estimate of home deliveries for the year. 

Keysight Technologies jumped 11.5% to $155.69, and the test equipment manufacturing company reported better-than-expected results in the latest quarter and lifted its outlook for the current quarter. 

Macy's Inc. decreased 8.5% to $16.24, and the department store operator reported better-than-expected adjusted earnings. 

However, the retailer lowered its annual sales outlook to between $22.1 billion and $22.4 billion from the previous estimate between $22.3 billion and $22.9 billion. 

The company also guided comparable sales to shrink between 0.5% and 2.0%, compared to the previous estimate of a fall between 1.0% and 1.5%. 

Target Corp. jumped 15% to $166.51, and the retailer reported better-than-expected second quarter results. 

Revenue increased 2.7% to $25.4 billion from $24.8 billion, net income advanced 42.8% to $1.2 billion from $835 million, and diluted earnings per share rose 42.4% to $2.57 from $1.80 a year ago. 

The company guided comparable store sales increase in the third quarter to rise between zero and 2.0%, and GAAP and adjusted earnings per share between $2.10 and $2.40. 

Target said it repurchased $155 million of its shares in the second quarter, retiring 1.1 million shares of common stock at an average price of $145.94. 

The company paid dividends of $509 million in the second quarter, compared with $499 million last year, an increase of 1.9% in the dividend per share.

As of the end of the quarter, the company had approximately $9.5 billion available under the repurchase program authorized by its Board of Directors in August 2021.

Arch Resources Inc. jumped 6.5% to $135.0, and the company said it plans to merge with Consol Energy to form a new company, Core Natural Resources. 

Consol Energy jumped 7.2% to $102.33. 

The combined company is expected to have annual revenue of $5.7 billion and a coal production capacity of 101 million tons, with an export potential of 25 million tons. 

Core National, after the merger, would operate 11 mines in six states, and the combination is expected to generate cost and operational synergy between $110 million and $140 million within six to 18 months following the close of the transaction, primarily from the logistics optimization. 

European Markets Extend Weekly Gains, Euro Hovers Near 8-month High 

Major stock markets across Europe advanced and extended gains for the third week in a row and erased losses booked earlier in the month. 

Benchmark indexes in London, Paris, and Frankfurt inched higher amid optimism that central banks in Europe and in the U.S. are ready to cut interest rates next month. 

The rate-cut expectations have bolstered market sentiment over the last two weeks following a string of positive updates on inflation in Europe and improving retail sales, labor market, and inflation indicators in the U.S. 

Natural gas prices weakened slightly after gas storage levels reached 90% capacity as Norway prepares for heavy maintenance over the next few weeks. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,451.75; the CAC-40 index rose by 0.5% to 7,524.72; and the FTSE 100 index advanced by 0.1% to 8,283.43. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.94%, the UK gilts edged higher to 3.92%, and Italian bonds inched up to 3.59%.

The euro edged down to $1.11; the British pound inched higher to $1.30; and the U.S. dollar weakened to 85.49 Swiss cents.

Brent crude decreased $0.39 to $76.88 a barrel, and the Dutch TTF natural gas rose by €0.90 to €37.21 per MWh.

Europe Stock Movers

Mining companies in London advanced after aluminum futures in Shanghai rose to a five-week high amid tight supplies. 

Glencore increased 1.1% to 414.51 pence, Anglo American jumped 2% to 2,291.0 pence, and Antofagasta added 1.5% to 1,908.0 pence. 

Barratt Developments decreased 0.5% to 546.40 pence after the UK's Competition and Markets Authority signaled its willingness to accept measures proposed by the company and Redrow to alleviate local competition concerns. 

Costain Group PLC jumped 5.1% to 99.40 pence, and the UK-based construction and engineering company announced strong first-half results and a stock repurchase plan of £10 million. 

Alcon AG decreased 1.8% to CHF 81.18 after the Swiss pharmaceutical and medical device company for eyecare reported weaker-than-expected second quarter results. 

Tokyo Indexes Trimmed Weekly Gains

A stronger yen and tech weakness in New York dragged down market indexes in Tokyo in Wednesday's trading. 

The Nikkei 225 decreased 0.3%, and the broader Topix index dropped 0.2% after the yen resumed its upward move. 

The yen traded as high as 149.96 against the U.S. dollar, and market indexes turned lower because stronger yen contributes to the weakness in corporate earnings. 

Market sentiment was also weak after investors turned cautious on Wall Street and halted the 8-day rally amid worries about the high valuation of artificial intelligence-linked stocks. 

Japan's Trade Deficit Soared In July 

On the economic front, Japan's trade deficit soared in July after imports soared and exports rose at a slower pace, according to data from the Ministry of Finance. 

Exports rose 10.3% from a year ago to 9.6 trillion yen, accelerated from a 5.4% increase in the previous month, and rose for the eighth month in a row amid weakness in the yen, driving demand for machinery and semiconductor equipment. 

Imports soared 16.6% to 10.2 trillion from 8.7 trillion a year ago, resulting in a trade deficit increase of ninefold to 621.8 billion yen from 61.3 billion yen. 

Trade deficit with China increased 80% to 638.5 billion yen, and the surplus with the U.S. declined 9% to 768.6 billion yen. 

Trade deficit with Western Europe soared sixfold to 206.3 billion yen after exports declined 2% to 1.1 trillion yen and imports rose 13.7% to 1.3 trillion yen. 

Japan Stock Movers 

The Nikkei 225 stock average decreased 0.3% to 37,970.84, and the Topix index fell 0.2% to 2,664.49. 

Tech stocks led the decliners in Tokyo trading following losses in overnight trading in New York. 

Advantest, Disco Corp., Lasetec, SoftBank, and Tokyo Electron fell between 2% and 4%. 

Financial stocks also participated in the market selloff, with leading banks and insurance companies losing more than 1%. 

Sumitomo Mitsui, Mitsubishi UFJ, and Mizuho Financial declined between 0.4% and 1.7%. 

Dai-ichi Life declined 2.5% to ¥4,059.0, Tokio Marine Holdings dropped 1.9% to ¥5,474.0, and MS&AD eased 0.7% to ¥3,343.0. 

Seven & I Holdings jumped 3% to ¥2,044.50, and Canada's retail giant Alimentation Couche-Tard offered to buy the company for $38 billion. 

Tokyo-based Seven & I Holdings, which owns the 7-Eleven chain, said it has formed a special committee to review the offer. 

Foreign Investor Exodus Adds to Selling Pressure in Hong Kong 

Stocks in Shanghai and Hong Kong accelerated their declines amid weakening economic backdrops and a lack of earnings growth catalysts. 

The Hang Seng index plunged 1% and wiped out this week's gains, and the CSI 300 index declined 0.2%. 

The latest selloff was sparked by a weakness in tech stocks after a Bloomberg News report suggested that Walmart is looking to sell its stake in the online platform JD.com and increase its investment in its operations. 

The tech stocks turned lower following the Walmart news and added to the growing exodus of foreign investors from Chinese stocks trading in Hong Kong. 

China, the second-largest economy in the world, is undergoing deep structural changes, weakening consumer confidence, and residential property market malaise that shows no signs of ending. 

Increasingly, foreign investors are losing patience with Chinese markets amid a lack of consistent policy support and a weak earnings growth outlook. 

While foreign investors are significantly cutting their exposure to Chinese stocks, in particular tech stocks, domestic investors are searching for undervalued companies with stock buyback plans. 

So far in the year, stock buybacks in Hong Kong have surged 30%, and to a record high of HK $164.8 billion, or $21.2 billion, according to data provider Hang Seng Indexes Company. 

China Stock Movers 

The Hang Seng index decreased 1% to 17,329.24 and the CSI 300 index dropped 0.2% to 3,327.69. 

Alibaba Group declined 1.2% to HK $79.45, Baidu decreased 2% to HK $84.85, Xiaomi fell 1.2% to HK $17.46, and Kuaishou Technology plunged 10.5% to HK $39.80. 

Sunny Optical Technology advanced 8.5% to HK $49.50, and the optical lens and camera module maker reported better-than-expected earnings. 

Revenue in the first half increased 32.1% to 18.8 billion yuan from 14.3 billion yuan, and profit attributable to shareholders soared 147% to 1.1 billion yuan from 459.4 million yuan a year ago. 

Diluted earnings per share jumped to 99.1 yuan from 39.95 yuan a year ago. 

Despite today's bounce, Sunny Optical stock has collapsed over the three years from a high of HK $252.60. 

Hong Kong Exchanges and Clearing Ltd. decreased 1.9% to HK $227.40 despite the company reporting increase in profit for the first time in three quarters. 

Revenue in the June quarter increased 8% from a year ago to HK $5.4 billion and net income advanced to 9% to HK $3.16 billion, following a rebound in initial public offering and in trading activities. 

U.S. Movers: Arch Resources, Consol Energy, Keysight Technologies, Macy's, Target Corp., Toll Brothers

Toll Brothers increased 1.1% to $135.0, and the luxury home builder reported higher-than-expected fiscal third quarter results and lifted its estimate of home deliveries for the year. 

Keysight Technologies jumped 11.5% to $155.69, and the test equipment manufacturing company reported better-than-expected results in the latest quarter and lifted its outlook for the current quarter. 

Macy's Inc. decreased 8.5% to $16.24, and the department store operator reported better-than-expected adjusted earnings. 

However, the retailer lowered its annual sales outlook to between $22.1 billion and $22.4 billion from the previous estimate between $22.3 billion and $22.9 billion. 

The company also guided comparable sales to shrink between 0.5% and 2.0%, compared to the previous estimate of a fall between 1.0% and 1.5%. 

Target Corp. jumped 15% to $166.51, and the retailer reported better-than-expected second quarter results. 

Revenue increased 2.7% to $25.4 billion from $24.8 billion, net income advanced 42.8% to $1.2 billion from $835 million, and diluted earnings per share rose 42.4% to $2.57 from $1.80 a year ago. 

The company guided comparable store sales increase in the third quarter to rise between zero and 2.0%, and GAAP and adjusted earnings per share between $2.10 and $2.40. 

Target said it repurchased $155 million of its shares in the second quarter, retiring 1.1 million shares of common stock at an average price of $145.94. 

The company paid dividends of $509 million in the second quarter, compared with $499 million last year, an increase of 1.9% in the dividend per share.

As of the end of the quarter, the company had approximately $9.5 billion available under the repurchase program authorized by its Board of Directors in August 2021.

Arch Resources Inc. jumped 6.5% to $135.0, and the company said it plans to merge with Consol Energy to form a new company, Core Natural Resources. 

Consol Energy jumped 7.2% to $102.33. 

The combined company is expected to have annual revenue of $5.7 billion and a coal production capacity of 101 million tons, with an export potential of 25 million tons. 

Core National, after the merger, would operate 11 mines in six states, and the combination is expected to generate cost and operational synergy between $110 million and $140 million within six to 18 months following the close of the transaction, primarily from the logistics optimization. 

U.S. Major Averages On Hold Ahead of Fed Minutes

Stocks were little changed in early trading on Wall Street as investors looked forward to the release of the latest policy meeting. 

The S&P 500 index and the Nasdaq Composite traded around the flatline, and investors are looking for clues about the possible rate cut in September. 

Moreover, investors also awaited comments from Fed Chair Jerome Powell at the annual gathering of central bankers in Jackson Hole, Wyoming. 

Market indexes over the last two weeks have rebounded sharply from the near 10% losses earlier in the month after the U.S. economy added fewer than expected jobs in July, setting off the fears of an unexpected economic slowdown. 

Market sentiment recovered after retail sales, jobless claims, and inflation data were ahead of expectations, calming market anxieties and setting aside the worries of a slowdown. 

Stocks are resting in today's session after market indexes halted an 8-day rally on Tuesday, the longest stretch of gains since late 2023. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,608.94, the Nasdaq Composite rose 0.1% to 17,842.28, and the Russell 2000 index fell 1.2% to 2,142.17. 

The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 3.81%, and 30-year Treasury bonds inched higher to 4.08%.

WTI crude oil increased $0.17 to $73.34 a barrel, and natural gas prices edged up 1 cent to $2.20 a thermal unit.

Gold fell by $2.52 to $2,510.94 an ounce, and silver increased by $0.18 to $29.62.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 101.47.

U.S. Stock Movers

Toll Brothers increased 1.1% to $135.0, and the luxury home builder reported higher-than-expected fiscal third quarter results and lifted its estimate of home deliveries for the year. 

Keysight Technologies jumped 11.5% to $155.69, and the test equipment manufacturing company reported better-than-expected results in the latest quarter and lifted its outlook for the current quarter. 

Macy's Inc. decreased 8.5% to $16.24, and the department store operator reported better-than-expected adjusted earnings. 

However, the retailer lowered its annual sales outlook to between $22.1 billion and $22.4 billion from the previous estimate between $22.3 billion and $22.9 billion. 

The company also guided comparable sales to shrink between 0.5% and 2.0%, compared to the previous estimate of a fall between 1.0% and 1.5%. 

Target Corp. jumped 15% to $166.51, and the retailer reported better-than-expected second quarter results. 

Revenue increased 2.7% to $25.4 billion from $24.8 billion, net income advanced 42.8% to $1.2 billion from $835 million, and diluted earnings per share rose 42.4% to $2.57 from $1.80 a year ago. 

The company guided comparable store sales increase in the third quarter to rise between zero and 2.0%, and GAAP and adjusted earnings per share between $2.10 and $2.40. 

Target said it repurchased $155 million of its shares in the second quarter, retiring 1.1 million shares of common stock at an average price of $145.94. 

The company paid dividends of $509 million in the second quarter, compared with $499 million last year, an increase of 1.9% in the dividend per share.

As of the end of the quarter, the company had approximately $9.5 billion available under the repurchase program authorized by its Board of Directors in August 2021.

Arch Resources Inc. jumped 6.5% to $135.0, and the company said it plans to merge with Consol Energy to form a new company, Core Natural Resources. 

Consol Energy jumped 7.2% to $102.33. 

The combined company is expected to have annual revenue of $5.7 billion and a coal production capacity of 101 million tons, with an export potential of 25 million tons. 

Core National, after the merger, would operate 11 mines in six states, and the combination is expected to generate cost and operational synergy between $110 million and $140 million within six to 18 months following the close of the transaction, primarily from the logistics optimization. 

Europe Movers: Alcon, Barratt Developments, Costain Group, Mining Stocks

European markets traded higher, the euro strengthened to an eight-month high, and bond yields dipped to the levels last seen in January. 

The DAX index increased by 0.5% to 18,443.66; the CAC-40 index rose by 0.4% to 7,518.40; and the FTSE 100 index advanced by 0.2% to 8,287.88. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.94%, the UK gilts edged higher to 3.92%, and Italian bonds inched up to 3.59%.

Mining companies in London advanced after aluminum futures in Shanghai rose to a five-week high amid tight supplies. 

Glencore increased 1.1% to 414.51 pence, Anglo American jumped 2% to 2,291.0 pence, and Antofagasta added 1.5% to 1,908.0 pence. 

Barratt Developments decreased 0.5% to 546.40 pence after the UK's Competition and Markets Authority signaled its willingness to accept measures proposed by the company and Redrow to alleviate local competition concerns. 

Costain Group PLC jumped 5.1% to 99.40 pence, and the UK-based construction and engineering company announced strong first-half results and a stock repurchase plan of £10 million. 

Alcon AG decreased 1.8% to CHF 81.18 after the Swiss pharmaceutical and medical device company for eyecare reported weaker-than-expected second quarter results. 

European Markets Extend Weekly Gains, Euro Hovers Near 8-month High

Major stock markets across Europe advanced and extended gains for the third week in a row and erased losses booked earlier in the month. 

Benchmark indexes in London, Paris, and Frankfurt inched higher amid optimism that central banks in Europe and in the U.S. are ready to cut interest rates next month. 

The rate-cut expectations have bolstered market sentiment over the last two weeks following a string of positive updates on inflation in Europe and improving retail sales, labor market, and inflation indicators in the U.S. 

Natural gas prices weakened slightly after gas storage levels reached 90% capacity as Norway prepares for heavy maintenance over the next few weeks. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,443.66; the CAC-40 index rose by 0.4% to 7,518.40; and the FTSE 100 index advanced by 0.2% to 8,287.88. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.94%, the UK gilts edged higher to 3.92%, and Italian bonds inched up to 3.59%.

The euro edged down to $1.11; the British pound inched higher to $1.30; and the U.S. dollar weakened to 85.49 Swiss cents.

Brent crude decreased $0.23 to $77.48 a barrel, and the Dutch TTF natural gas rose by €0.54 to €37.58 per MWh.

Europe Stock Movers

Mining companies in London advanced after aluminum futures in Shanghai rose to a five-week high amid tight supplies. 

Glencore increased 1.1% to 414.51 pence, Anglo American jumped 2% to 2,291.0 pence, and Antofagasta added 1.5% to 1,908.0 pence. 

Barratt Developments decreased 0.5% to 546.40 pence after the UK's Competition and Markets Authority signaled its willingness to accept measures proposed by the company and Redrow to alleviate local competition concerns. 

Costain Group PLC jumped 5.1% to 99.40 pence, and the UK-based construction and engineering company announced strong first-half results and a stock repurchase plan of £10 million. 

Alcon AG decreased 1.8% to CHF 81.18 after the Swiss pharmaceutical and medical device company for eyecare reported weaker-than-expected second quarter results. 

Tokyo Indexes Trimmed Weekly Gains, Japan's Trade Deficit Soared In July

A stronger yen and tech weakness in New York dragged down market indexes in Tokyo in Wednesday's trading. 

The Nikkei 225 decreased 0.3%, and the broader Topix index dropped 0.2% after the yen resumed its upward move. 

The yen traded as high as 149.96 against the U.S. dollar, and market indexes turned lower because stronger yen contributes to the weakness in corporate earnings. 

Market sentiment was also weak after investors turned cautious on Wall Street and halted the 8-day rally amid worries about the high valuation of artificial intelligence-linked stocks. 

On the economic front, Japan's trade deficit soared in July after imports soared and exports rose at a slower pace, according to data from the Ministry of Finance. 

Exports rose 10.3% from a year ago to 9.6 trillion yen, accelerated from a 5.4% increase in the previous month, and rose for the eighth month in a row amid weakness in the yen, driving demand for machinery and semiconductor equipment. 

Imports soared 16.6% to 10.2 trillion from 8.7 trillion a year ago, resulting in a trade deficit increase of ninefold to 621.8 billion yen from 61.3 billion yen. 

Trade deficit with China increased 80% to 638.5 billion yen, and the surplus with the U.S. declined 9% to 768.6 billion yen. 

Trade deficit with Western Europe soared sixfold to 206.3 billion yen after exports declined 2% to 1.1 trillion yen and imports rose 13.7% to 1.3 trillion yen. 

Japan Stock Movers 

The Nikkei 225 stock average decreased 0.3% to 37,970.84, and the Topix index fell 0.2% to 2,664.49. 

Tech stocks led the decliners in Tokyo trading following losses in overnight trading in New York. 

Advantest, Disco Corp., Lasetec, SoftBank, and Tokyo Electron fell between 2% and 4%. 

Financial stocks also participated in the market selloff, with leading banks and insurance companies losing more than 1%. 

Sumitomo Mitsui, Mitsubishi UFJ, and Mizuho Financial declined between 0.4% and 1.7%. 

Dai-ichi Life declined 2.5% to ¥4,059.0, Tokio Marine Holdings dropped 1.9% to ¥5,474.0, and MS&AD eased 0.7% to ¥3,343.0. 

Seven & I Holdings jumped 3% to ¥2,044.50, and Canada's retail giant Alimentation Couche-Tard offered to buy the company for $38 billion. 

Tokyo-based Seven & I Holdings, which owns the 7-Eleven chain, said it has formed a special committee to review the offer. 

Foreign Investor Exodus Adds to Selling Pressure in Hong Kong

Stocks in Shanghai and Hong Kong accelerated their declines amid weakening economic backdrops and a lack of earnings growth catalysts. 

The Hang Seng index plunged 1% and wiped out this week's gains, and the CSI 300 index declined 0.2%. 

The latest selloff was sparked by a weakness in tech stocks after a Bloomberg News report suggested that Walmart is looking to sell its stake in the online platform JD.com and increase its investment in its operations. 

The tech stocks turned lower following the Walmart news and added to the growing exodus of foreign investors from Chinese stocks trading in Hong Kong. 

China, the second-largest economy in the world, is undergoing deep structural changes, weakening consumer confidence, and residential property market malaise that shows no signs of ending. 

Increasingly, foreign investors are losing patience with Chinese markets amid a lack of consistent policy support and a weak earnings growth outlook. 

While foreign investors are significantly cutting their exposure to Chinese stocks, in particular tech stocks, domestic investors are searching for undervalued companies with stock buyback plans. 

So far in the year, stock buybacks in Hong Kong have surged 30%, and to a record high of HK $164.8 billion, or $21.2 billion, according to data provider Hang Seng Indexes Company. 

China Stock Movers 

The Hang Seng index decreased 1% to 17,329.24 and the CSI 300 index dropped 0.2% to 3,327.69. 

Alibaba Group declined 1.2% to HK $79.45, Baidu decreased 2% to HK $84.85, Xiaomi fell 1.2% to HK $17.46, and Kuaishou Technology plunged 10.5% to HK $39.80. 

Sunny Optical Technology advanced 8.5% to HK $49.50, and the optical lens and camera module maker reported better-than-expected earnings. 

Revenue in the first half increased 32.1% to 18.8 billion yuan from 14.3 billion yuan, and profit attributable to shareholders soared 147% to 1.1 billion yuan from 459.4 million yuan a year ago. 

Diluted earnings per share jumped to 99.1 yuan from 39.95 yuan a year ago. 

Despite today's bounce, Sunny Optical stock has collapsed over the three years from a high of HK $252.60. 

Hong Kong Exchanges and Clearing Ltd. decreased 1.9% to HK $227.40 despite the company reporting increase in profit for the first time in three quarters. 

Revenue in the June quarter increased 8% from a year ago to HK $5.4 billion and net income advanced to 9% to HK $3.16 billion, following a rebound in initial public offering and in trading activities.