Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Precious metals traded higher across the board after the U.S. Treasury’s intervention to curb long-term yields produced little to no effect, while broader equity markets showed muted reaction, leaving the S&P 500 down slightly and the Nasdaq 100 flat. U.S. Treasury Secretary Scott Bessent announced he will hold a press conference on Monday to detail next steps regarding Iran, noting that the Treasury remains prepared to expand buybacks of higher-cost debt. Gold prices gained 1.22% as the U.S. Dollar retreated, driving the Rand to trade near R16.05 per dollar—its strongest level since late February this year.
Walmart Inc (WMT)
Walmart announced its Q2 earnings, and despite beating expectations and raising full-year guidance, investors dumped the stock due to a decelerating Q3 sales growth outlook (3.0%–3.75%) and flat expected Q3 earnings growth. As market participants view the retailer as the clearest real-time gauge of U.S. consumer behavior, these results indicate that consumers are increasingly stretched by sticky inflation and rising gas prices, slowing their spending to its weakest pace in six years. This signals a cooling real economy that could rule out further Fed rate hikes, while raising the risk of broader economic stagnation.
Alibaba Group Holding Ltd (BABA)
Despite missing broader consensus estimates, Alibaba’s Cloud Intelligence Group saw external cloud revenue surge 45% year-over-year—its fastest growth pace in 22 quarters—driven by enterprise AI deployments. Shares initially dipped between 2.6% and 4.0% in pre-market trading, but the stock quickly recovered as Wall Street analysts pointed to accelerating cloud momentum and AI infrastructure upside to justify absorbing near-term margin pressure.
Local Stocks
PGM and Gold Stocks
Harmony Gold Mining Co. Ltd released a trading statement this morning, with guidance coming in line with and slightly above consensus estimates. Harmony opened the session at R365.86. Broader Platinum Group Metal (PGM) and gold stocks capitalized on the rally in underlying metal prices, opening significantly higher and continuing to build on gains throughout the morning—including Harmony Gold Mining Co. Ltd (+8%), Gold Fields Ltd (+6%), and Sibanye-Stillwater Ltd (+8%).
From left to right: Sibanye Stillwater Ltd, Gold Fields Ltd and Harmony Gold Mining Co. Ltd.
Earnings & Economic Data
Pre-Market Earnings
BJ’s Wholesale Club Holdings (BJ)
BJ’s Wholesale Club Holdings operates a chain of membership-only warehouse clubs along the Eastern United States, selling discounted groceries, general merchandise, household essentials, and gasoline.
KE Holdings (BEKE)
KE Holdings operates the largest integrated online and offline platform in China for housing transactions and services, matching buyers and renters with property listings and brokerage networks.
Economic Data
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