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Wednesday, May 28

Recent economic data from France indicates a mixed recovery, with household consumption rising by 0.3% in April after previous declines but still falling short of expectations. Additionally, producer prices have continued to decline sharply for the third consecutive month, reflecting ongoing deflationary pressures within the economy.

In Germany, unemployment has unexpectedly risen significantly as job vacancies decrease amid weakening labor demand; this adds pressure on policymakers trying to stabilize Europe's largest economy following two years of contraction. The steady unemployment rate at its highest since September 2020 suggests challenges ahead despite prior worker shortages.

Market sentiment is also influenced by upcoming U.S. events including key releases such as ISM PMIs and CPI leading up to an FOMC meeting scheduled for June 18 that may shape future monetary policy decisions amidst concerns over fiscal sustainability and inflation dynamics affecting both domestic growth prospects and global trade relations.

iShares MSCI Japan ETF (EWJ) [-1.6%]
The iShares MSCI Japan ETF (EWJ) has seen a decline of 1.6% since Tuesday, influenced by recent developments in the Japanese bond market. An auction of 40-year Japanese government bonds experienced its lowest demand since July, with the bid-to-cover ratio dropping significantly. This trend may be affecting broader investor sentiment. Additionally, the performance of the ETF's holdings has been under pressure, with notable declines in key stocks such as Toyota Motor Corporation and MUFG. The move in USD/JPY also contributed negatively to the ETF's performance. Meanwhile, social media discussions highlighted significant upward movements in stock markets across various regions, including Japan, but did not specifically correlate these trends with EWJ's recent price action. The iShares iBoxx $ High Yield Corporate Bond ETF has also declined slightly, suggesting a broader market sentiment that could be impacting EWJ.

iShares MSCI Germany ETF (EWG) [-0.9%, -8.7M]
Germany's unemployment figures for May showed a notable increase of 34,000, surpassing the estimated 12,000, while the unemployment rate remained unchanged at 6.3%. This data, released within the last five hours, reflects ongoing challenges in the German economy. In the iShares MSCI Germany ETF (EWG), the EUR/USD currency pair contributed negatively to performance, dropping by 0.24%. Key holdings such as SAP and Deutsche Bank also experienced declines, with SAP down significantly and contributing negatively to the ETF's overall performance. Additionally, the GBP/USD currency pair declined by 0.35%, which may further influence EWG given their historical correlation.

OKTA | -11.6% | -2.2B
Okta Inc | Internet Services & Infrastructure
Okta, Inc. reported its fiscal Q1 results, revealing adjusted earnings of 0.86 per share, exceeding the consensus estimate of 0.77. Revenue reached 688 million, surpassing the anticipated 680.25 million. Despite these strong figures, the company provided a conservative full-year revenue forecast of 2.85 billion to 2.86 billion, falling short of analysts' expectations of 3.15 billion. Following the announcement, Okta's stock experienced a significant decline of approximately 11%. Analysts reacted with price target adjustments; Barclays reduced its target from 135 to 120, while Stifel maintained a buy rating but lowered its target from 130 to 120. Social media discussions reflected disappointment over future growth forecasts, despite positive Q1 performance indicators, contributing to the sharp price movement.

DKS | +3.4% | +497.1M
DICK'S Sporting Goods Inc | Other Specialty Retail
DICK'S Sporting Goods Inc. reported first-quarter results, achieving record sales of 3.175 billion, exceeding the consensus estimate of 3.130 billion. The adjusted earnings per share (EPS) was 3.37, surpassing the estimate of 3.22. Comparable sales grew by 4.5%, marking the fifth consecutive quarter of growth above 4%. The company reaffirmed its fiscal year 2025 guidance, projecting net sales between 13.6 billion and 13.9 billion, with an EPS range of 13.80 to 14.40. Social media discussions highlighted the adjusted EPS figure and revenue, emphasizing the CEO's remarks on strong momentum and execution. Additionally, DICK'S announced plans to acquire Foot Locker to enhance its position in the sports retail market.

KC | -3.6% | -1.7B
Kingsoft Cloud Holdings Ltd | Internet Services & Infrastructure
Kingsoft Cloud Holdings Ltd reported first-quarter earnings per American Depositary Share (EPADS) of $(0.11), falling short of the estimated $(0.09). The company achieved total sales of $271.47 million, marking an increase from $245.93 million year-over-year. The quarterly net loss was reported at RMB 316.1 million, with total revenues reaching RMB 1,970.0 million. These results were disclosed approximately 24 hours ago. In related developments, the KCS team completed the 59th burn of KCS for May 2025, reducing the total supply to 142,502,999.85 KCS. Additionally, the AUD/USD currency pair experienced a decline of 0.16%, which may be relevant to the recent price movement of Kingsoft Cloud Holdings Ltd.

M | +3.8% | +131.6M
Macy's Inc | Broadline Retail
Macy's Inc. reported its first quarter 2025 results, with adjusted earnings per share of $0.16, surpassing the consensus estimate of $0.14. Revenue for the quarter reached $4.6 billion, exceeding expectations of $4.5 billion, although it reflects a decline from $4.85 billion year-over-year. The company reaffirmed its fiscal 2025 net sales guidance at $21 billion to $21.4 billion, compared to the FactSet estimate of $21.03 billion. However, Macy's lowered its adjusted EPS outlook for fiscal 2025 to a range of $1.60 to $2.00, down from previous guidance of $2.05 to $2.25, aligning with analyst expectations of $1.92. The CEO noted that while the company's strategy is progressing, challenges such as tariff pressures and cautious consumer spending are impacting performance.

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