Macro Events & News
Markets closed the week marginally higher amid a light earnings slate and mixed economic data. Chinese ADRs were in focus, with Tencent Holdings (OTC:TCEHY) reporting strong gains in gaming and advertising, while JD.com (NASDAQ:JD) drew concern as heavy investment in food delivery pressured margins despite robust revenue growth.
Economic data drove sentiment last week. Tuesday’s CPI print came in line with expectations, boosting confidence in a September rate cut. That optimism was challenged by Thursday’s hotter-than-expected PPI, which jumped 0.9% versus a 0.2% forecast, reigniting inflation fears and pulling markets lower. Friday’s retail sales data helped restore some balance, showing a 0.5% increase for July alongside upward revisions to June, underscoring consumer resilience.
Trade developments were quieter. The U.S. and China extended their tariff truce for another 90 days while broader negotiations continue. Separately, President Trump’s meeting with Russian President Vladimir Putin produced little immediate news, but the administration’s warning that trading partners could face penalties if peace talks collapse remains an overhang.
The 10-year Treasury yield marched higher to 4.32% as auction activity was weak. The VIX was quiet finishing at 15.09.
All the major indexes were slightly higher this week: the Dow up 1.7%, the S&P 500 up 0.9%, and the Nasdaq up 0.8%.
Watchlist News
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Alibaba Group (NASDAQ:BABA) initially looked set to break out, pushing past $127 midweek on the back of Tencent’s strong earnings, softer CPI data supporting September rate-cut expectations, and an extension of the US-China trade truce. The move quickly unraveled, however, as hotter PPI data signaled inflation pressures returning and 13F filings revealed widespread trimming of China exposure by investment managers.
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Salesforce Inc (NYSE:CRM) rebounded in the latter half of the week after early declines sparked by downgrades from equity research firms Stifel and Mizuho. Momentum turned as 13F filings showed increased institutional interest, including activist fund Starboard boosting its stake, while equity research firm DA Davidson upgraded the name to Outperform.
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Tesla Inc (NASDAQ:TSLA) ended marginally higher despite a mixed news flow. Optimism came from job postings hinting at robotaxi expansion into New York City and Elon Musk’s warning to short sellers. Offsetting this were continued weakness in weekly China registrations and reports that rivals Lucid and Rivian faced delays securing emissions credits—a historically meaningful revenue stream for Tesla
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UnitedHealth Group (NYSE:UNH) gained support after 13F filings revealed fresh positions from several large investment managers, including Warren Buffett’s Berkshire Hathaway. Still, the data reflects holdings as of June 30—prior to their underwhelming Q2 results which may have changed their positions or convictions.
