- Asian Shares Post Modest Gains Before US Payrolls: Markets Wrap
sian shares edged up in the leadup to US jobs data, after stocks hit another record following Donald Trump’s
announcement of a trade deal with Vietnam. A regional equity gauge rose 0.3% after the S&P 500 closed at
another record high Wednesday. News of the trade deal boosted Nike Inc. and some supply-chain exporter
stocks amid hopes the accord will avert a potential supply-chain catastrophe. The dollar held its losses,
hovering around three-year lows. Treasuries edged up modestly Thursday. Yields rose in the prior session
following heavy selling in the UK, where concerns about Chancellor of the Exchequer Rachel Reeves’ future
reignited questions over the nation’s fiscal position. In Japan, 10-year bonds declined ahead of a closely
watched auction of 30-year sovereign notes at 12:35 p.m. in Tokyo. - S&P 500 closes at another record on Wednesday after Trump announces Vietnam-U.S. deal
The S&P 500 rose on Wednesday after President Donald Trump announced a U.S.-Vietnam trade deal.
However, a new report showing private payrolls surprisingly decreased in June, which raised concerns over the
state of the U.S. economy. The broad market index gained 0.47% and closed at 6,227.42. The S&P 500 scored
a fresh all-time intraday high and closed at a record. The Nasdaq Composite advanced 0.94% and posted a
record close of 20,393.13. The Dow Jones Industrial Average slipped 10.52 points, or 0.02%, and ended at
44,484.42. - Oil falls on signs of weak U.S. demand ahead of key jobs report
Oil prices eased on Thursday, reversing gains from the previous session, on concerns over weak U.S. demand
after government data showed a surprise build in inventories in the world’s biggest crude consumer.
Brent crude futures fell 24 cents, or 0.35%, to $68.87 a barrel by 0044 GMT after gaining 3% on Wednesday.
U.S. West Texas Intermediate crude fell 24 cents, or 0.36%, to $67.21 a barrel after climbing 3.1% previously.
The U.S. Energy Information Administration said on Wednesday domestic crude inventories rose by 3.8 million
barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million
barrels. Gasoline demand dropped to 8.6 million barrels per day, prompting concerns about consumption in
the peak U.S. summer driving season. Both benchmarks gained on Wednesday after Iran enacted a
law suspending cooperation with the U.N. nuclear watchdog, raising concerns the lingering dispute over the
Middle East producer’s nuclear program may once again devolve into armed conflict. - Gold eases as investors await US payroll data for Fed policy clues
Gold fell on Thursday as investors held back from making significant bets, awaiting the U.S. payroll data later
in the day for insights into the Federal Reserve’s policy direction. Spot gold lost 0.3% to $3,346.47 per ounce,
as of 0211 GMT, while U.S. gold futures edged down 0.1% to $3,357.20. Gold appears to be consolidating at
present within $3,320 to $3,360 range, with the market adopting a wait-and-see approach ahead of U.S. Non
Farm Payroll and ISM Services PMI data, rather than taking significant positions, OANDA senior market analyst
Kelvin Wong said. Spot silver fell 0.6% to $36.37 per ounce. - The private sector lost 33,000 jobs in June, badly missing expectations for a 100,000 increase, ADP says
Private sector hiring unexpectedly contracted in June, payrolls processing firm ADP said Wednesday, in a
possible sign that the economy may not be as sturdy that investors believed as they bid the S&P 500 back up
to record territory to end the month. Private payrolls lost 33,000 jobs in the June, the ADP report showed.
Economists polled by Dow Jones forecast an increase of 100,000 for the month. The May job growth figure was
revised even lower to just 29,000 jobs added from 37,000. - US Reaches Vietnam Trade Deal With 20% Import Tariff, Trump Says
President Donald Trump said he had reached a trade deal with Vietnam following weeks of intense diplomacy
between the nations and ahead of a deadline next week that would have seen higher tariffs imposed on the
country’s imports. A 20% tariff will be placed on Vietnamese exports to the US, with a 40% levy on any goods
deemed to be transshipped through the country, Trump said in a social-media post on Wednesday. Trump said
that Vietnam had agreed to drop all levies on US imports. - U.S. lifts chip software curbs on China amid trade truce
U.S. chip software maker Synopsys said that the U.S. government has rescinded its export restrictions on chip
design software to China. Its rival, Cadence, also confirmed the reversal and was “restoring access to our
software and technology to affected customers.” The U.S. had reportedly told several chip design software
companies on May 23 that they were required to obtain licenses. - European renewables stocks rally after a US excise tax seen as an existential threat to the solar and wind
industry was stripped from the Senate GOP tax megabill that passed the chamber in a tie-breaking vote
Tuesday. A Goldman Sachs index of renewables trades at a fresh 2021 high
Goldman’s renewables index rises as much as 1.5%. Among individual names, Vestas jumps over 8%, Orsted is
up 5.5%, Nordex gains 1.9%, EDP Renovaveis rises 3.2% and SMA Solar is up 7.6%. US renewables also closed
higher in New York on Tuesday, with Sunrun Inc. jumping more than 10%, Enphase Energy Inc. gaining about
3% and SolarEdge Technologies Inc. up about 7%. However, while the tax fell away, some clean electricity credit
provisions still include significantly shorter phaseouts; senators softened the edges of others. - Intel shares fall as much as 5.8% after Reuters reported CEO Lip-Bu Tan is exploring a potential strategy
shift in its foundry business that would entail no longer marketing certain chipmaking technology to external
customers, citing people familiar
Such a move would likely result in a charge that could total hundreds of millions of dollars or more, Reuters
said, citing analysts. Intel declined to comment to Reuters on “hypothetical scenarios or market speculation”.
US ADRs of TSMC, the world’s biggest contract chip manufacturer, are up as much as 3.1%. - Constellation Brands shares rise as much as 3.7%, the most intraday since April 9, amid views that the
first-quarter beer sales were not as bad as feared, while reiterated guidance was better than investors
expected. Overall, the report was a mixed bag as the company continues to weather the storm of weakening
end markets and poor macro data, analysts add. The conference call is schedule to begin at 10:30 am ET
FIRST QUARTER RESULTS: Comparable EPS $3.22 vs. $3.57 y/y, estimate $3.32 (Bloomberg Consensus);
Comparable net sales $2.52 billion, +0.6% y/y, estimate $2.55 billion; Beer net sales $2.23 billion, estimate
$2.25 billion; Wine and spirits net sales $280.5 million, estimate $291.2 million; Comparable operating profit
$810 million, -12% y/y, estimate $838.4 million; Beer operating income $873.4 million, -5.4% y/y, estimate
$890.2 million; Wine & Spirits operating loss $6.00 million vs. profit $59.7 million y/y, estimate profit $7.68
million; Beer shipment volume -3.3%, estimate -2.74%; Beer depletion volume -2.6%, estimate -2.47%; Wine
and Spirits depletion volume -8.1%, estimate -6.38%; Wine and Spirits shipment volume -30.4%, estimate
18.8%. 2026 YEAR FORECAST: Still sees capital expenditure about $1.2 billion, estimate $1.2 billion; Still sees
comparable EPS $12.60 to $12.90, estimate $12.68; Still sees Enterprise net sales growth -2% to 1%; Still sees
Beer net sales growth 0% to 3%; Still sees Wine and spirits net sales change -17% to -20%; Still sees operating
cash flow $2.7 billion to $2.8 billion, estimate $2.71 billion; Still sees free cash flow $1.5 billion to $1.6 billion,
estimate $1.55 billion. - Nike recovery underway, analyst expects company to continue to dominate long-term
Nike is on the path to recovery and poised to maintain its leadership in athletic apparel and footwear, according
to a new note from Argus. The firm upgraded the stock to Buy from Hold in a note to clients on Tuesday, setting
a price target of $85. “We believe a recovery is underway,” said the firm, citing the company’s efforts to clear
excess inventory in the second half of fiscal 2025. “Most of the company’s products are up-to-date and
attracting customers,” they added. Argus highlighted Nike’s improved pricing strategy through its e-commerce
channel and noted ongoing supply chain adjustments. “Nike plans to reduce its imports from China to the high
single-digits, compared to a mid-teens level previously,” the report stated. Despite competitive pressures, the
long-term view remains bullish. “We expect Nike (NYSE:NKE) to continue to dominate the athletic apparel and
footwear markets,” Argus wrote. The firm pointed to Nike’s strong positioning in premium footwear,
supported by “marketing strength and endorsements from famous athletes.”
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