Stock Market
As of Aug 20, U.S. stock index futures performed as follows: futures linked to the Dow Jones fell 0.73%, the Nasdaq 100 declined 0.80%, and the S&P 500 eased 0.53%. Higher long-bond yields and cautious positioning ahead of additional earnings kept risk appetite in check, with traders watching whether rising financing costs will temper the summer’s technology-led momentum.
Notable Stock Movers: COIN jumped 5.33% at $168.74 as renewed crypto enthusiasm lifted digital-asset platforms, while mining-services firm BMNR climbed 8%.
Memory-chip group SKHY added 1.71% at $158.83 after unveiling an employee stock-bonus plan and massive buyback. In contrast, retailer WMT fell 6.58% at $106.78 after a softer U.S. sales print, and graphics-chip leader NVDA slipped 0.36%.
Additional pressure came from semiconductors, where AMD lost 0.95% at $462.00 and INTC declined 1.24% at $91.65.
China-linked ADRs were mixed: e-commerce heavyweight BABA fell 5.66% at $121.60 and game publisher NTES retreated 3.43% at $122.88, while electric-vehicle maker LI edged up 0.94% at $12.83.
The contrasting moves highlight investor rotation toward growth themes such as crypto exposure and buyback stories, against profit-taking in consumer staples and legacy chipmakers.
Other Markets
• 10-year U.S. Treasury yield rose 1.01%, to 4.70%.
• U.S. Dollar Index fell 0.02% to 98.78.
• WTI crude oil futures rose 3.38% to 87.24 USD/barrel; COMEX gold futures fell 0.61% to 4517.70 USD/ounce.
Key News
1. Walmart lifted full-year guidance but posted slower U.S. same-store sales, sending shares down sharply in pre-market trade. Revenue grew 5.9% year on year and adjusted earnings beat forecasts, yet comparable sales rose just 2.6% versus higher expectations. Management now sees 4%–5% full-year net-sales growth, but margin concerns outweighed the upbeat outlook.
2. Meta Platforms is now one of Microsoft Azure’s largest AI customers, spending hundreds of millions of dollars annually on cloud model access. People familiar say Meta processes trillions of tokens weekly on Azure’s Foundry marketplace to accelerate generative-AI development. The alliance underscores deepening interdependence among Big Tech rivals in the race for computing scale.
3. Alibaba’s quarterly revenue rose 9% while operating profit dropped 57% amid heavier investment in cloud and AI, pressuring its U.S. shares. Adjusted EBITA fell 30% and net income slid 75%, though cloud revenue jumped 45%. The company repurchased $162 million in stock, signaling confidence despite margin headwinds.
4. NetEase reported 7.9% revenue growth but an 18.8% decline in net income as game launches and music-platform spending weighed on profitability. Management announced a modest dividend, yet investors focused on weaker earnings, sending the ADR lower in pre-market activity.
5. SK Hynix struck a preliminary wage deal to pay 60% of 2026 employee bonuses in shares and 40% in cash. The arrangement follows a pledge to repurchase and cancel 40 trillion won of stock and return over half of free cash flow to shareholders, aligning staff incentives with long-term equity performance.
6. Industry sources say Samsung Electronics is preparing a shareholder-return package that could top KRW150–160 trillion, including a large buyback and special dividend. The prospective plan far exceeds prior expectations and aims to boost shareholder value amid record free-cash-flow generation in memory and AI hardware.
7. The U.S. Treasury will expand its bond-buyback program next month to support liquidity in longer-dated Treasurys. By repurchasing more outstanding securities, the department seeks to smooth market functioning as elevated yields and looming corporate issuance strain investor demand.
8. U.S. officials said recent Iran-Oman negotiations over Strait of Hormuz transit arrangements have collapsed, heightening regional risk. The breakdown increases uncertainty about potential shipping fees and sanctions, keeping energy traders alert to any disruption in Gulf oil flows.
9. Uber launched Baidu’s Apollo Go driverless robotaxis on its Dubai platform under a multi-year partnership. Initial deployments feature RT6 vehicles operated by New Horizon Luxury Transport, with an in-app “Autonomous” option. The tie-up signals Uber’s intent to scale autonomous mobility services globally.
10. President Trump urged Congress to pass the CLARITY Act to establish a definitive U.S. regulatory framework for cryptocurrencies. The appeal, delivered at a White House gathering with industry leaders, fueled optimism for legislative progress and contributed to pre-market gains in crypto-linked equities.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data
Disclaimer: For informational purposes only; not investment advice.
