Good morning investors! The market fell yesterday as crypto took another sigh of relief.
Today we cover:
Jobless claims fall
Walmart falls after a beat
Alibaba fails to impress
📊 Economy and News
US Initial Jobless Claims Fall
US initial jobless claims fell 6,000 to 206,000 in the week ended August 15, below the 210,000 forecast. Claims remain near the low end of this year’s range, signaling limited layoffs even as hiring stays soft. The unemployment rate held at a low 4.1%.
Continuing claims rose to 1.799 million. Stable labor conditions and mild inflation could support the Fed holding rates steady in September.
Global hits:
Argentina’s economic activity rises 2.7% in June as Latin America growth to slow to 2.2% in 2026.
Canada industrial prices climb in July on energy gains.
India’s infrastructure output grows 5.4% in July.
Japan headline inflation rate hits highest this year as energy prices bite.
📈 Stocks
S&P 500 7,641.16 (-0.87%)
DJIA 52,759.21 (-1.32%)
NASDAQ 26,067.17 (-1.01%)
BRENT CRUDE 93.74 (+2.15%)
* Prices as of Aug 21st, 12:20 AM UTC
Walmart Falls After a Beat
Walmart beat Wall Street estimates on quarterly sales and raised its full-year outlook, driven by strong e-commerce growth and tariff refunds.
Revenue rose 5.9% in the fiscal second quarter, with global e-commerce sales up 23%. U.S. comparable sales grew 2.6% (below the 3.5% expected), partly offset by a 0.8% drag from health and wellness price caps. Shares still closed about 9% lower amid disappointment over comps and guidance.
For Q3, Walmart expects net sales growth of 3–3.75% and adjusted EPS of 62–64 cents. Full-year net sales guidance was raised to 4–5% (from 3.5–4.5%), with adjusted EPS of $2.80–$2.87 (from $2.75–$2.85).
Membership fee revenue jumped 17% companywide (Walmart+ net adds hit a Q2 high). Sam’s Club U.S. sales rose 8.8% to $25.7 billion, while global advertising revenue climbed 38%.
Alibaba reports: Alibaba shares fell about 5% after the Chinese tech giant reported a 75% drop in net income for the June quarter, as heavy AI spending weighed on profits.
Revenue rose 9% to 268.95 billion yuan ($38.3 billion), slightly above estimates, while cloud revenue surged 45% to 48.4 billion yuan. Capital expenditure jumped 75% to 67.7 billion yuan ($10 billion), driven by higher compute capacity and chip costs. Free cash flow turned deeply negative at 44.7 billion yuan.
AI-related product revenue posted triple-digit growth for the 12th straight quarter, CEO Eddie Wu said, as the company pushes its full-stack AI strategy. Alibaba’s U.S.-listed shares were down roughly 4.6–5% after the open.
Surprising: Crypto is up again and Bitcoin is trading at its highest levels since June thanks largely to a last-ditch push from the White House and crypto industry leaders to get the Clarity Act across the finish line in the coming weeks.
💵 Personal Finance
US National Debt Hits Record $40 Trillion
The US federal debt reached a grim $40 trillion milestone this week, according to the Treasury Department—a level that arrived years earlier than previously projected and is raising alarms about the nation’s long-term fiscal health.
The debt has climbed rapidly in recent years, adding $1 trillion in just the past five months. Interest payments are expected to exceed $1 trillion this fiscal year, now rivaling Medicare as the second-largest federal expense after Social Security. These costs have more than tripled in five years, crowding out other priorities and creating a self-reinforcing cycle of more borrowing.
Key drivers include an aging population boosting Social Security and Medicare spending, repeated tax cuts and spending packages (including under Trump and Biden), and pandemic relief bills. The government is already running a $1.8 trillion deficit for the first 10 months of the fiscal year.
Higher debt is pushing up Treasury yields—the 30-year yield hit its highest level since 2007—raising borrowing costs for consumers, businesses, and the government itself. Experts warn the trajectory leaves the US more vulnerable to future crises and risks further credit-rating pressure.
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