• How does July CPI affect Fed rate cut speculation?
• How does Walmart's profit outlook affect its stock?
• How does JD.com’s profit growth impact its market position?
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IN THE HEADLINES
July CPI Rises as Expected, Housing Costs Drive Fed Rate Cut Speculation
In July, inflation rose as expected, primarily driven by increased housing costs, according to the Labor Department's report. The consumer price index (CPI) increased by 0.2% for the month, bringing the annual inflation rate to 2.9%. Core CPI, excluding food and energy, also rose by 0.2% monthly, with an annual rate of 3.2%, both in line with expectations. Shelter costs accounted for 90% of the overall inflation rise. While some categories, such as automotive prices, showed deflation, auto insurance and shelter costs remained stubbornly high. The report suggests that the Federal Reserve may consider an interest rate cut in September, though the exact timing and pace remain uncertain. Read more
Walmart Stock Surges as Revenue and Profit Outlook Lifted
Walmart reported a strong second quarter, with earnings per share rising 10% to 67 cents, exceeding analyst expectations of 65 cents. Revenue grew nearly 5% to $169.34 billion, slightly surpassing projections. Although earnings growth slowed compared to Q1, Walmart raised its full-year earnings guidance. Shares surged 6.5% in premarket trading, signaling a potential breakout. Analysts remain optimistic about Walmart's long-term prospects, highlighting opportunities in e-commerce profitability, private label growth, and higher-margin services. Read more
JD.com’s Second-Quarter Profit Nearly Doubled as Revenue Edged Higher
JD.com reported a stronger-than-expected 73.7% rise in second-quarter profits, driven by a low-price strategy that attracted cost-conscious shoppers despite a challenging economic environment in China. The company's U.S.-listed shares rose over 4% following the report. Revenue growth was modest at 1.2%, slightly below estimates. JD.com, along with rivals like Alibaba, has focused on discounts and affordable goods as competition intensifies amid a sluggish post-COVID recovery. CEO Sandy Xu reaffirmed the company's commitment to low prices. Read more
TradeUP TIDBITS
Mortgage Refinancing Surges 35% in One Week as Interest Rates Hit Lowest Level in Over a Year
The average rate for 30-year fixed-rate mortgages slightly dropped to 6.54%, while refinance applications surged 35% from the previous week and 118% year-over-year. Despite high home prices and low supply influencing homebuyers' decisions, the drop in interest rates has spurred a significant increase in refinancing activity.
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This week's topic is: Do recent CPI, PPI, and employment reports boost your confidence in the US economy?
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