Asian shares advance ahead of Trump's deadline for imposing higher tariffs on Chinese goods
Markets in Japan and Thailand were closed for holidays.
The Hang Seng in Hong Kong edged 0.2% higher to 24,908.37, while the Shanghai Composite index gained 0.5% to 3,653.50.
Triple digit tariffs imposed by Trump and Beijing were paused for 90 days in May to allow time for talks.
Tuesday is the deadline for extending that truce. The last round of negotiations, held last month in Stockholm, ended without a clear word from Trump on whether the deadline would be extended for another 90 days.
Elsewhere in Asia, Australia's S&P/ASX 200 rose 0.3% to 8,831.40, while the Kospi in South Korea was nearly unchanged, at 3,210.76.
On Friday, the S&P 500 rose 0.8% to 6,389.45, just shy of its record high. The Dow Jones Industrial Average added 0.5% to 44,175.61, and the Nasdaq rose 1% to finish at 21,450.02.
Technology companies, with their hefty stock values, did much of the heavy lifting for the market. Nvidia rose 1.1% and Apple gained 4.2%.
Gilead Sciences jumped 8.3% for one of the market's biggest gains after reporting financial results that easily beat analysts' forecasts, while also raising its earnings forecast for the year. Expedia Group rose 4.1% after also reporting encouraging financial results.
They are among the final big batch of companies within the S&P 500 to report mostly strong financial results for the second quarter. Still, many have warned that current tariffs could cut into their profits.
Elsewhere in the market, entertainment giant Paramount Skydance slid 10.5% a day after the company was created by the closing of an $8 billion merger of Skydance and Paramount. Shares in rival Warner Bros. Discovery sank 8%.
Investors will get more insight this week on U.S. inflation at both the consumer and wholesale levels and on retail sales.
Trump's trade war and its potential impact on the U.S. economy and on the Federal Reserve's interest rate policy are a focus after the U.S. began imposing higher import taxes on dozens of countries last Thursday.
The Fed's last decision to hold interest rates steady included two votes to lower interest rates. Its next meeting is in September, and Wall Street is overwhelmingly betting that the central bank will cut interest rates by a quarter of a percentage point after signals have pointed to a weaking of the economy.
Both are key concerns for the Fed, which has been trying to cool inflation down to its target rate of 2% while also fulfilling its 'full employment' mandate.
Lower interest rates can give the economy and investment prices a boost, though the downside is that they can also push inflation higher. Concerns about inflation reheating could be overshadowed by worries about a weakening employment market.
In other dealings early Monday, U.S. benchmark crude oil shed 38 cents to $63.50 per barrel. Brent crude, the international standard, declined 31 cents to $66.28 per barrel.
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Russia decree opens door for Exxon return to Sakhalin-1 project
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Yahoo
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Stock market today: Dow, S&P 500, Nasdaq notch weekly wins as slew of data muddies rate-cut path
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Monthly retail sales jumped 0.5% in July, marking the second monthly gain in a row, as consumer spending steadied following a dramatic drop earlier in the year. Hoffmann-Burchardi noted the downside risks in the labor market are likely to outweigh inflation concerns, as economic activity slows further in the second half of the year. "We expect the Fed to bring its policy rate 100 basis points lower in the months to come, reducing returns on cash," she added. Why Goldman Sach says the 'Goldilocks' stock market may get hit Yahoo Finance's Francisco Velasquez reports: Read more here. UnitedHealth stock pops on Buffett's Berkshire share purchase UnitedHealth Group's (UNH) stock rallied on Friday following the revelation that Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B) purchased 5 million shares last quarter. The more than 10% jump in shares of the healthcare insurance giant helped lift the Dow Jones Industrial Average (^DJI) into green territory, as the rest of the major averages dropped. UnitedHealth has suffered multiple setbacks in the past couple of years. With earnings misses piling on top of that, the stock has been under constant pressure and is down more than 45% year to date. Read more here. IPO market surges in August with companies 'striking while the iron is hot' The IPO market is on fire this summer, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Opendoor shares pops in wake of CEO exit amid meme-fueled stock surge Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. 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"It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Chip stocks fall as Trump says semiconductor tariffs coming as soon as next week Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' Read more here. US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Stocks notch second week of wins as economic data casts doubts on Fed's next move Stocks closed the session mixed on Friday, but the major averages managed to notch a second straight week of gains. The benchmark S&P 500 (^GSPC) fell 0.3%, retreating from its record, while the tech-heavy Nasdaq Composite (^IXIC) also closed the session down 0.4%. The Dow Jones Industrial Average (^DJI) gained slightly as shares of UnitedHealth Group (UNH) surged. Rate cut uncertainty permeated the market over the past two sessions following Thursday's hotter-than-expected monthly producer price index (PPI) print. US consumer sentiment deteriorated in August, falling for the first time in four months. Meanwhile, retail sales jumped 0.5% in July, showing consumer spending had steadied following a dramatic drop earlier in the year. Stocks closed the session mixed on Friday, but the major averages managed to notch a second straight week of gains. The benchmark S&P 500 (^GSPC) fell 0.3%, retreating from its record, while the tech-heavy Nasdaq Composite (^IXIC) also closed the session down 0.4%. The Dow Jones Industrial Average (^DJI) gained slightly as shares of UnitedHealth Group (UNH) surged. Rate cut uncertainty permeated the market over the past two sessions following Thursday's hotter-than-expected monthly producer price index (PPI) print. US consumer sentiment deteriorated in August, falling for the first time in four months. Meanwhile, retail sales jumped 0.5% in July, showing consumer spending had steadied following a dramatic drop earlier in the year. Trump and Putin greet each other in Alaska for start of summit on Ukraine President Trump and Russian President Vladimir Putin greeted each other in Alaska as a summit centered around the Ukraine war began. Trump wants Russia and Ukraine to end the war. Earlier this week the president said their would be 'severe consequences' if Moscow did not end the conflict following the summit. Investors are eying the meeting for clues on how the outcome could steer markets. President Trump and Russian President Vladimir Putin greeted each other in Alaska as a summit centered around the Ukraine war began. Trump wants Russia and Ukraine to end the war. Earlier this week the president said their would be 'severe consequences' if Moscow did not end the conflict following the summit. Investors are eying the meeting for clues on how the outcome could steer markets. Dow on pace for record close, S&P and Nasdaq set to notch weekly wins Stock were poised to close the session mixed, but the Dow Jones Industrial Average (^DJI) could notch its first record high of the year. The benchmark S&P 500 (^GSPC) traded below its record close, while the tech-heavy Nasdaq Composite (^IXIC) also fell below the flatline. All three major averages were on pace to end the week with gains. Among the S&P 500 sectors, Healthcare (XLV) stocks outperformed, along with Communications Services (XLC), and Consumer Discretionary (XLY). Stock were poised to close the session mixed, but the Dow Jones Industrial Average (^DJI) could notch its first record high of the year. The benchmark S&P 500 (^GSPC) traded below its record close, while the tech-heavy Nasdaq Composite (^IXIC) also fell below the flatline. All three major averages were on pace to end the week with gains. Among the S&P 500 sectors, Healthcare (XLV) stocks outperformed, along with Communications Services (XLC), and Consumer Discretionary (XLY). UBS: Put excess cash to work amid higher inflation UBS strategists say the US hasn't seen the last of rising inflation, following this week's hotter-than-expected PPI print, but investors should put their money to work as a Fed cut in September is still the likely outcome. 'We expect overall inflation to continue on a gradual upward trend as businesses pass along their higher costs, but we also believe slowing shelter inflation and pushback from increasingly stretched consumers should help offset some of the tariff impact on price pressures," Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management said in a note on Friday. Monthly retail sales jumped 0.5% in July, marking the second monthly gain in a row, as consumer spending steadied following a dramatic drop earlier in the year. Hoffmann-Burchardi noted the downside risks in the labor market are likely to outweigh inflation concerns, as economic activity slows further in the second half of the year. "We expect the Fed to bring its policy rate 100 basis points lower in the months to come, reducing returns on cash," she added. UBS strategists say the US hasn't seen the last of rising inflation, following this week's hotter-than-expected PPI print, but investors should put their money to work as a Fed cut in September is still the likely outcome. 'We expect overall inflation to continue on a gradual upward trend as businesses pass along their higher costs, but we also believe slowing shelter inflation and pushback from increasingly stretched consumers should help offset some of the tariff impact on price pressures," Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management said in a note on Friday. Monthly retail sales jumped 0.5% in July, marking the second monthly gain in a row, as consumer spending steadied following a dramatic drop earlier in the year. Hoffmann-Burchardi noted the downside risks in the labor market are likely to outweigh inflation concerns, as economic activity slows further in the second half of the year. "We expect the Fed to bring its policy rate 100 basis points lower in the months to come, reducing returns on cash," she added. Why Goldman Sach says the 'Goldilocks' stock market may get hit Yahoo Finance's Francisco Velasquez reports: Read more here. Yahoo Finance's Francisco Velasquez reports: Read more here. UnitedHealth stock pops on Buffett's Berkshire share purchase UnitedHealth Group's (UNH) stock rallied on Friday following the revelation that Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B) purchased 5 million shares last quarter. The more than 10% jump in shares of the healthcare insurance giant helped lift the Dow Jones Industrial Average (^DJI) into green territory, as the rest of the major averages dropped. UnitedHealth has suffered multiple setbacks in the past couple of years. With earnings misses piling on top of that, the stock has been under constant pressure and is down more than 45% year to date. Read more here. UnitedHealth Group's (UNH) stock rallied on Friday following the revelation that Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B) purchased 5 million shares last quarter. The more than 10% jump in shares of the healthcare insurance giant helped lift the Dow Jones Industrial Average (^DJI) into green territory, as the rest of the major averages dropped. UnitedHealth has suffered multiple setbacks in the past couple of years. With earnings misses piling on top of that, the stock has been under constant pressure and is down more than 45% year to date. Read more here. IPO market surges in August with companies 'striking while the iron is hot' The IPO market is on fire this summer, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. The IPO market is on fire this summer, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Opendoor shares pops in wake of CEO exit amid meme-fueled stock surge Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Chip stocks fall as Trump says semiconductor tariffs coming as soon as next week Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' Read more here. US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' Read more here. US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Dollar Falls on Weaker US Consumer Sentiment
The dollar index (DXY00) on Friday fell by -0.41%, undercut by Friday's weaker-than-expected US consumer sentiment report. The dollar also suffered from underlying foreign investor concern about the possibility of a politically-driven US monetary policy after US Treasury Secretary Bessent on Wednesday appeared to give the Fed marching orders on how much to cut interest rates. The dollar fell on Friday despite a +4 bp rise in the 10-year T-note yield, which supported the dollar's interest rate differentials. The markets on Friday were awaiting the outcome of the Trump-Putin summit on Friday afternoon. The outcome could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security. More News from Barchart Dollar Sees Support from Strong US PPI Report Dollar Sees Support from Strong US PPI Report Dollar Undercut by Decline in US Consumer Sentiment Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Friday's headline US retail sales report was slightly weaker than market expectations, but there was an upward revision for June, leaving the report roughly neutral for the markets. The markets welcomed the report amidst worries about how US retail spending will hold up with a weaker labor market and consumer uncertainty about inflation and the economic outlook. July US retail sales rose +0.5% m/m, slightly weaker than market expectations of +0.6%, although June was revised higher to +0.9% from +0.6%. July retail sales ex-autos rose +0.3% m/m, in line with market expectations and down from June's revised +0.8% (preliminary +0.5%). The University of Michigan's preliminary-Aug US consumer sentiment index fell by -3.1 points to 58.6, which was weaker than expectations for a slight +0.3 point increase to 62.0. The survey showed that US consumer expectations for inflation rose to +4.9% over the next year and to an annual +3.9% for the next 5-10 years. The survey also found that 58% of consumers plan to cut spending due to inflation. July US import prices rose +0.4% m/m, which was stronger than expectations of +0.1%. On a year-on-year basis, July US import prices strengthened to -0.2% from a revised -0.5% y/y in June. July US import prices ex-petroleum rose +0.3% m/m versus June's revised -0.2% (preliminary unchanged). Friday's July US industrial production report of -0.1% m/m was slightly weaker than expectations of unchanged, although June was revised upward to +0.4% m/m from +0.3%. July manufacturing production was unchanged m/m, matching market expectations, while July was revised higher to +0.3% from +0.1%. The Aug Empire manufacturing index of 11.9 was substantially stronger than market expectations of zero and was up from July's 5.5. Chicago Fed President Austan Goolsbee on Friday delivered mildly hawkish remarks, stating that he would like to see at least one more inflation report to ensure that persistent inflation pressures aren't emerging. He expressed concern about the high service inflation data in the July CPI report, but noted the importance of not placing too much weight on a single month's data. The markets on Friday continued to adjust to the inflation outlook following Thursday's hawkish PPI report. The July final-demand PPI surged to +3.3% y/y (nominal) and +3.7% y/y (core). The PPI report suggested that the markets were overly optimistic about Tuesday's CPI report and that companies are passing through tariffs at the wholesale level at a higher pace than earlier thought. Following the report, the markets erased any hopes of a -50 bp rate cut at the Fed's September meeting and pulled back expectations for a -25 bp rate cut to the 93% area from 100% before the report. Weak Chinese economic reports on Thursday night were negative for the global economic growth outlook. China's economy is weakening due to US tariffs and the Chinese government's attempt to crack down on excessive competition that has driven prices to loss-making levels in some industries. China's July retail sales report of +3.7% y/y was weaker than expectations of +4.6% and down from June's +4.8%. China's July industrial production report of +5.7% y/y was weaker than expectations of +6.0% and was down from June's +6.8%. China's July jobless rate rose to 5.2% from June's +5.0% and was higher than expectations. China's July property investment fell -12.0% ytd y/y from -11.2% in June and was weaker than expectations of -11.4%. Regarding tariffs, President Trump on Friday said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips. In other recent tariff news, Mr. Trump on Tuesday extended the tariff truce with China for another 90 days until November. Mr. Trump announced last Wednesday that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. Last Tuesday, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 85% at the September 16-17 FOMC meeting and at 40% for a second -25 bp rate cut at the following meeting on October 28-29. EUR/USD (^EURUSD) rose +0.47% on dollar weakness. The euro had some underlying support from hopes of some progress on ending the Russia-Ukraine war at Friday's Trump-Putin summit. Swaps are pricing in a 5% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) fell -0.56% due to weakness in the dollar. The yen saw some underlying support after US Treasury Secretary Bessent earlier this week said the Bank of Japan is falling behind the curve in addressing inflation and that he expects a rate hike. However, the yen continues to be undercut by concern that US tariff policies will harm the Japanese economy. December gold (GCZ25) on Friday closed down -0.60 (-0.02%), and September silver (SIU25) closed down -0.094 (-0.25%). Gold prices fell Friday as the market trimmed expectations for a -25 bp rate cut by the Fed in September to 85% from 93%. Silver saw weakness on concern about industrial metals demand after Friday's weaker-than-expected US consumer sentiment index and Chinese economic data. Gold continues to have safe-haven support related to US tariffs and geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a 2-year high on Tuesday, and silver holdings in ETFs reached a 3-year high on Thursday. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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