China Tuesday

China and Hong Kong stocks wavered as investors remained focused on earnings results and economic data. 

The Hang Seng index edged up 0.1%, and the CSI 300 index advanced 0.5% in lackluster trading as the U.S. and China confirmed the extension of trade tariff deadline.  

The U.S. president extended the deadline by 90 days to November 10, citing progress in talks, but Chinese negotiators in Beijing confirmed that two sides remain far apart. 

China is also bracing for an additional "punitive tariff" of 25% for its continued import of Russian oil, in addition to tariffs that average about 50% on goods shipments to the U.S. 

On the economic front, the National Bureau of Statistics is scheduled to release retail sales and fixed-asset investments and 

China Indexes and Stocks 

The Hang Seng index edged up 0.1% to 24,911.45, and the CSI 300 index gained 0.5% to 4,143.85. 

Wall Street Flirt with New Highs Despite Looming Tariff-Driven Inflation and Earnings Compression

Wall Street indexes hovered near record highs as investors overlooked tariff-driven increases in costs for corporations. 

The S&P 500 index increased 0.1%, and the Nasdaq Composite advanced 0.3%, as investors awaited the release of the consumer price inflation report on Tuesday and the producer price inflation report on Thursday.

July's consumer price inflation is likely to accelerate to a five-month high of 2.8%, and core inflation is to reach 3.0%. Moreover, producer price inflation is expected to accelerate, as businesses and importers pass on higher tariffs to consumers. 

On the earnings front, investors are looking forward to the release of quarterly results from Applied Materials, Cisco Systems, Deere & Company, Advance Auto Parts, Brinker International, and McGraw Hill. 

Friday marked the start of Trump's tariffs, and investors are increasingly worried that goods price inflation will elevate inflation, forcing the Fed to keep rates higher for longer. 

Despite the repeated and forceful claims by Donald Trump about his success in striking trade deals and its positive impact on the U.S. economy, investors remain skeptical about the largest increase in import taxes in a century on American families and businesses. 

Moreover, the Trump administration has struggled to finalize even one agreement, and most announced deals are "trade frameworks" with few verifiable details.

U.S. Treasury Secretary Scott Bessant agreed in an interview with MSNBC Morning Joe show that tariffs are paid by the "U.S. importers," and they could be passed on to customers. 

This is the first public admission by the Trump administration official that tariffs are import taxes and ultimately hurt the American families and businesses. 

The Republican Party, which touts itself as a party friendly to businesses, free trade, and low taxes, has managed to increase taxes for all Americans, kill thousands of small businesses, and shrink global free trade.

Moreover, at least 200,000 small businesses are likely to fold in 2025 following the Trump administration's erratic trade policy and sharp escalation in tariffs on goods from Mexico, China, Canada, Japan, and Brazil.

While Donald Trump is touting that high tariffs will bring more manufacturing jobs, at least 415,000 jobs are unfilled in the sector as of June, according to a report by the National Association of Manufacturers. 

U.S. Stock Movers 

AMD and Nvidia declined after the two companies agreed to sell part of their chip sales to the U.S. Treasury in exchange for an export license to China.

AMD and Nvidia agreed to pay a 15% export fee for the sale of MI 308 chips and H2O chips, respectively. 

Advanced Micro Devices decreased 1.7% to $172.76, and Nvidia dropped 0.6% to $181.67. 

Wall Street Flirt with New Highs Despite Looming Tariff-Driven Inflation and Earnings Compression

Wall Street indexes hovered near record highs as investors overlooked tariff-driven increases in costs for corporations. 

The S&P 500 index increased 0.1%, and the Nasdaq Composite advanced 0.3%, as investors awaited the release of the consumer price inflation report on Tuesday and the producer price inflation report on Thursday.

July's consumer price inflation is likely to accelerate to a five-month high of 2.8%, and core inflation is to reach 3.0%. Moreover, producer price inflation is expected to accelerate, as businesses and importers pass on higher tariffs to consumers. 

On the earnings front, investors are looking forward to the release of quarterly results from Applied Materials, Cisco Systems, Deere & Company, Advance Auto Parts, Brinker International, and McGraw Hill. 

Friday marked the start of Trump's tariffs, and investors are increasingly worried that goods price inflation will elevate inflation, forcing the Fed to keep rates higher for longer. 

Despite the repeated and forceful claims by Donald Trump about his success in striking trade deals and its positive impact on the U.S. economy, investors remain skeptical about the largest increase in import taxes in a century on American families and businesses. 

Moreover, the Trump administration has struggled to finalize even one agreement, and most announced deals are "trade frameworks" with few verifiable details.

U.S. Treasury Secretary Scott Bessant agreed in an interview with MSNBC Morning Joe show that tariffs are paid by the "U.S. importers," and they could be passed on to customers. 

This is the first public admission by the Trump administration official that tariffs are import taxes and ultimately hurt the American families and businesses. 

The Republican Party, which touts itself as a party friendly to businesses, free trade, and low taxes, has managed to increase taxes for all Americans, kill thousands of small businesses, and shrink global free trade.

Moreover, at least 200,000 small businesses are likely to fold in 2025 following the Trump administration's erratic trade policy and sharp escalation in tariffs on goods from Mexico, China, Canada, Japan, and Brazil.

While Donald Trump is touting that high tariffs will bring more manufacturing jobs, at least 415,000 jobs are unfilled in the sector as of June, according to a report by the National Association of Manufacturers. 

U.S. Stock Movers 

AMD and Nvidia declined after the two companies agreed to sell part of their chip sales to the U.S. Treasury in exchange for an export license to China.

AMD and Nvidia agreed to pay a 15% export fee for the sale of MI 308 chips and H2O chips, respectively. 

Advanced Micro Devices decreased 1.7% to $172.76, and Nvidia dropped 0.6% to $181.67. 

Stock Movers: Datadog, Expedia, GoDaddy, Trade Desk

Datadog fell 4% to $130.91 after the monitoring and security platform provider reported a 98% drop in quarterly profit from a year ago.

Consolidated revenue in the June quarter increased to $826.8 million from $645.3 billion, net income dropped to $2.6 million from $43.8 million, and diluted earnings per share fell to 1 cent from 12 cents a year ago.

The company guided third-quarter revenue between $847 million and $851 million, compared to $826 million; non-GAAP operating income between $176 million and $180 million; and non-GAAP earnings per share between 44 cents and 46 cents, respectively.

The company guided full-year revenue between $3.3 billion and $3.3 billion; non-GAAP operating income between $684 million and $694 million; and non-GAAP net income per share between $1.80 and $1.83 a year earlier, respectively.

Expedia Inc. jumped 4.1% to $195.26 after the online travel booking platform operator reported more than a two-and-a-half-fold jump in earnings in the second quarter. 

Consolidated revenue in the June quarter inched higher to $3.7 billion from $3.6 billion, net income climbed to $322 million from $125 million, and diluted earnings per share soared to $2.48 from 96 paisa a year ago.

During the second quarter, Expedia returned a total of $627 million to shareholders through share repurchases and dividends, including the repurchase of 3.8 million shares in the second quarter and 5.6 million shares for $957 million for the first half of 2025. 

For the second quarter of 2025, the company’s Board of Directors declared a cash dividend of $0.40 per share payable on September 18.

The company estimated third-quarter revenue to rise between 4% and 6%, driven by the increase in gross bookings to between 5% and 7%. 

GoDaddy Inc. plunged 11.25% to $133.35 despite the domain registrar reporting a 37% increase in net income in the fiscal second quarter.

Consolidated revenue in the June quarter edged higher to $1.21 billion from $1.12 billion, net income advanced to $199.9 million from $146.3 million, and diluted earnings per share rose to $1.41 from $1.01 a year ago.

Year-to-date through August 6, GoDaddy returned approximately $906 million to shareholders through the repurchase of 5.2 million shares of common stock at an average price of $174.42 per share.

The company guided revenue in the third quarter to range between $1.22 billion and $1.24 billion. and full-year revenue to be between $4.89 billion and $4.94 billion, an increase of 7%, respectively. 

Trade Desk Inc. dropped 38.6% to $54.23 despite the advertising technology company reporting a slight increase in revenue and net income in the latest quarter.

Consolidated revenue in the June quarter increased to $694 million from $585 million, net income inched higher to $90 billion from $85 billion, and diluted earnings per share rose to 18 cents from 17 cents a year ago.

During the second quarter, the company repurchased $261 million of its Class A common stock, and as of June 30, $375 million remained available under the share repurchase program.

For the third quarter, the company estimated revenue of "at least $717 million" and anticipates adjusted EBITDA of approximately $277 million.

Stock Movers: Datadog, Expedia, GoDaddy, Trade Desk

Datadog fell 4% to $130.91 after the monitoring and security platform provider reported a 98% drop in quarterly profit from a year ago.

Consolidated revenue in the June quarter increased to $826.8 million from $645.3 billion, net income dropped to $2.6 million from $43.8 million, and diluted earnings per share fell to 1 cent from 12 cents a year ago.

The company guided third-quarter revenue between $847 million and $851 million, compared to $826 million; non-GAAP operating income between $176 million and $180 million; and non-GAAP earnings per share between 44 cents and 46 cents, respectively.

The company guided full-year revenue between $3.3 billion and $3.3 billion; non-GAAP operating income between $684 million and $694 million; and non-GAAP net income per share between $1.80 and $1.83 a year earlier, respectively.

Expedia Inc. jumped 4.1% to $195.26 after the online travel booking platform operator reported more than a two-and-a-half-fold jump in earnings in the second quarter. 

Consolidated revenue in the June quarter inched higher to $3.7 billion from $3.6 billion, net income climbed to $322 million from $125 million, and diluted earnings per share soared to $2.48 from 96 paisa a year ago.

During the second quarter, Expedia returned a total of $627 million to shareholders through share repurchases and dividends, including the repurchase of 3.8 million shares in the second quarter and 5.6 million shares for $957 million for the first half of 2025. 

For the second quarter of 2025, the company’s Board of Directors declared a cash dividend of $0.40 per share payable on September 18.

The company estimated third-quarter revenue to rise between 4% and 6%, driven by the increase in gross bookings to between 5% and 7%. 

GoDaddy Inc. plunged 11.25% to $133.35 despite the domain registrar reporting a 37% increase in net income in the fiscal second quarter.

Consolidated revenue in the June quarter edged higher to $1.21 billion from $1.12 billion, net income advanced to $199.9 million from $146.3 million, and diluted earnings per share rose to $1.41 from $1.01 a year ago.

Year-to-date through August 6, GoDaddy returned approximately $906 million to shareholders through the repurchase of 5.2 million shares of common stock at an average price of $174.42 per share.

The company guided revenue in the third quarter to range between $1.22 billion and $1.24 billion. and full-year revenue to be between $4.89 billion and $4.94 billion, an increase of 7%, respectively. 

Trade Desk Inc. dropped 38.6% to $54.23 despite the advertising technology company reporting a slight increase in revenue and net income in the latest quarter.

Consolidated revenue in the June quarter increased to $694 million from $585 million, net income inched higher to $90 billion from $85 billion, and diluted earnings per share rose to 18 cents from 17 cents a year ago.

During the second quarter, the company repurchased $261 million of its Class A common stock, and as of June 30, $375 million remained available under the share repurchase program.

For the third quarter, the company estimated revenue of "at least $717 million" and anticipates adjusted EBITDA of approximately $277 million.

Japan Monday

Japan Indexes and Stocks 

The Nikkei 225 Stock Average gained 

China's Deflation Trend Extends to 34th Month In July, Stocks Advanced Ahead of Tariff Deadline

In a busy week of earnings, economic data, and tariff deadlines, stocks wavered around the flatline. 

The Hang Seng index edged up 0.2%, and the CSI 300 index increased 0.6%, as investors reviewed the latest inflation updates. 

China's consumer price inflation was flat in July following a 0.1% rise in June, the National Bureau of Statistics reported on Saturday.

The producer price inflation declined 3.6% in July, matching the rate in the previous month, marking the 34th month of deflation. 

Wholesale prices continue to decline amid a lack of demand driven by the persistent malaise in the property market and weakening job market. 

Investor sentiment was cautious ahead of the U.S. tariff deadline on Tuesday, and market watchers fear that the U.S. may slap an additional 25% "punitive tariff" on China for its continued import of Russian oil. 

At present, the U.S. import duty averages 50% on Chinese goods and may incur additional duties of 25%. 

On Friday, China's statistical agency is set to release monthly updates on retail sales, industrial output, and fixed-asset investments 

This week, investors are awaiting the release of quarterly results from NetEase, JD.com, Tencent Holdings, and Galaxy Entertainment.

China Indexes and Stocks 

The Hang Seng index increased 0.2% to 24,906.74, and the CSI 300 index added 0.6% to 4,128.72. 

Lithium mining companies soared after CATL announced its plans to suspend mining operations at Jianxiawo mine for at least three months. 

Tianqi Lithium Corp. soared 15% to HK $47.2, and Ganfeng Lithium Group added 19.7% to HK $33.66. 

Ab&B Bio-Tech soared 160% to HK $33.62 after the Chinese vaccine maker priced its initial public offering at HK $12.90 per share. 

The mainland-based biotech company sold 33.44 million shares and raised gross proceeds of HK $431.4 million.

China's Deflation Trend Extends to 34th Month In July, Stocks Advanced Ahead of Tariff Deadline

In a busy week of earnings, economic data, and tariff deadlines, stocks wavered around the flatline. 

The Hang Seng index edged up 0.2%, and the CSI 300 index increased 0.6%, as investors reviewed the latest inflation updates. 

China's consumer price inflation was flat in July following a 0.1% rise in June, the National Bureau of Statistics reported on Saturday.

The producer price inflation declined 3.6% in July, matching the rate in the previous month, marking the 34th month of deflation. 

Wholesale prices continue to decline amid a lack of demand driven by the persistent malaise in the property market and weakening job market. 

Investor sentiment was cautious ahead of the U.S. tariff deadline on Tuesday, and market watchers fear that the U.S. may slap an additional 25% "punitive tariff" on China for its continued import of Russian oil. 

At present, the U.S. import duty averages 50% on Chinese goods and may incur additional duties of 25%. 

On Friday, China's statistical agency is set to release monthly updates on retail sales, industrial output, and fixed-asset investments 

This week, investors are awaiting the release of quarterly results from NetEase, JD.com, Tencent Holdings, and Galaxy Entertainment.

China Indexes and Stocks 

The Hang Seng index increased 0.2% to 24,906.74, and the CSI 300 index added 0.6% to 4,128.72. 

Lithium mining companies soared after CATL announced its plans to suspend mining operations at Jianxiawo mine for at least three months. 

Tianqi Lithium Corp. soared 15% to HK $47.2, and Ganfeng Lithium Group added 19.7% to HK $33.66. 

Ab&B Bio-Tech soared 160% to HK $33.62 after the Chinese vaccine maker priced its initial public offering at HK $12.90 per share. 

The mainland-based biotech company sold 33.44 million shares and raised gross proceeds of HK $431.4 million.