Saudi Arabia's Industrial Output Drops in June Amid Mining, Oil Activity Slump

Saudi Arabia's industrial production index dropped on an annual basis in June, driven by lower mining and oil-related manufacturing activities, according to data from the General Authority for Statistics published Monday.

The 16.3% year-over-year decline in June extends the previous month's 18.7% contraction amid a 23.2% annual drop in oil activities. In contrast, non-oil activities were marginally up at 0.1%.

On a monthly basis, overall industrial production climbed 4.3%. Both major economic segments supported the rise, with oil activities growing by 4.6% and non-oil activities expanding by 3.7%.

For the mining and quarrying industry, output plummeted 27% year on year in June, while month-over-month activity rose by 5.1%.

On an annual basis, manufacturing activity fell 2.3%, dragged by drops in refined petroleum and chemical products. On the flip side, the sector was up 1.8% month-on-month, as petroleum and chemical manufacturing increased.

The sub-index for the utilities-related sectors posted positive results, with electricity, gas and air conditioning up 2.8% annually and water and waste management rising 6%. Month on month, electricity and gas surged by 25.4%, while water management gained 3.9%.

China's Consumer Inflation Cools to Six-Month Low in July as Factory-Gate Inflation Eases

China's consumer price index (CPI) rose 0.5% in July from a year earlier, the softest pace of increase in six months following a slowdown in factory-gate prices.The latest print missed the market consensus forecast of 0.8% tracked by Investing.com and compared with the 1% expansion in June.On a monthly basis, CPI fell 0.1%, easing from a 0.3% decline in June, according to data from the National Bureau of Statistics on Sunday.Core CPI, which strips out volatile food and energy prices, rose 0.9% year over year, also marking the weakest pace since January, when the index declined 0.8%.Food prices fell 1.5% year over year, with pork prices down 13.3%. On a monthly basis, pork prices edged up 4.1%, which NBS Chief Statistician Dong Lijuan attributed to hog production capacity controls and extreme heat and rainfall that pushed transport costs higher.Elsewhere, artificial intelligence drove prices of electronic products like tablets, computers and mobile phones higher in July versus the previous month, Dong added.Meanwhile, China's producer price index (PPI) rose 3.5% year over year in July, also marking a deceleration from the 4.1% rise in June. The reading was lower than the consensus forecast of 3.8% tracked by Investing.com.On a month-over-month basis, the PPI fell 0.7%, sharper than the 0.3% drop the previous month. Dong attributed the drop to a decline in the prices of petroleum product manufacturing and organic chemical raw material production.The latest data point to a further slowdown in economic activity in China, with manufacturing and services activity losing steam in July, according to the recent RatingDog Purchasing Managers' Index surveys published last week.Manufacturing activity growth moderated to a four-month low, while services activity expansion also eased to the slowest in 10 months in July.

Shanghai Composite^SZSE

Update: S&P 500 Hits Record High as Jobs Report Eases Rate Hike Bets

(Updates with market moves at the end of the day, and any other changes, if any.)The S&P 500 hit a new high on Friday amid diminishing bets for monetary policy tightening next month, as US stocks locked in their second consecutive weekly gains.The large-cap index rose 0.6% to 7,757.64, notching a new closing high for the second time this week. The Nasdaq Composite climbed 1.3% to 26,690.62, while the Dow Jones Industrial Average edged up 0.3% to 54,036.93. Most sectors were in the green, with materials on top, while energy led the laggards.The technology-heavy Nasdaq led the weekly gains, jumping 5.2%. The S&P 500 and the Dow advanced by 3.6% and 3%, respectively.US nonfarm payrolls fell by 23,000 last month, marking the first decline since February, the Bureau of Labor Statistics said Friday. The consensus was for an 80,000 increase in July, according to a Bloomberg-compiled survey.The unemployment rate fell to 4.1%, the lowest since June 2025 when it stood at the same level, while Wall Street expected an unchanged print of 4.2%."This morning's softer employment report helped to quiet the noise of a September rate hike," TD Economics said.The probability of the Federal Reserve raising its benchmark rate by a quarter percentage point next month eased to 42% on Friday from 55% on Thursday, according to the CME FedWatch tool. The odds that the central bank will maintain its policy jumped to 58% from 45%.US Treasury yields were lower, with the 10-year rate down 2.5 basis points at 4.65% and the two-year rate falling by 4.8 basis points to 4.2%."For the Fed, the uneven nature of employment conditions will likely serve to perpetuate the divide in expectations for policy as some advocate for action sooner than later while others continue to take a more cautious, wait-and-see approach," Stifel said.West Texas Intermediate crude oil was down 0.3% at $77.05 a barrel in Friday late-afternoon trade, while Brent eased 0.5% to $82.09. Both benchmarks were on track for their second consecutive weekly declines.Saudi Arabia, Turkey and Pakistan signed a mutual defense pact stipulating that an attack against one of them shall be regarded as an attack against all.The deal comes as Saudi is bracing for multiple attacks by Iraqi militias and Iran-backed Houthis, CNN reported, citing a Saudi official.In company news, Airbnb (ABNB) surged 17%, the biggest gain on the S&P 500. The vacation rental company's second-quarter results topped Wall Street's estimates amid strong demand trends.Trade Desk (TTD) slid 22%, the worst performer on the S&P 500, following stock rating downgrades from multiple brokerages, including Citigroup.Trade Desk released disappointing second-quarter results late Thursday, which, combined with its downbeat third-quarter outlook, indicate macro and structural issues amid growing competition, Wedbush Securities said.Cloudflare (NET) jumped 5.6% as the cloud services provider lifted its full-year outlook following better-than-expected second-quarter results.Spot gold advanced 2.4% to $4,342.59 per troy ounce, while silver jumped 3.6% to $63.83 per ounce.

Dow JonesNasdaq CompositeS&P 500$ABNB$NET$TTD

Ralph Lauren's Stock Set to Outperform Amid Earnings Beats, UBS Says

Ralph Lauren's (RL) stock should outperform expectations over the next 12 months as future earnings beats validate the luxury apparel maker's transformation, UBS Securities said in a note emailed Friday.The company reported better-than-expected fiscal first-quarter results Thursday, driven by revenue growth in Asia and North America. The company upgraded its full-year revenue guidance, expecting it to rise around 5% to 6% on a constant currency basis."Strengthening brand desirability across lifestyle categories, channels, and regions is translating into healthy, consistent, sustainable growth," Chief Executive Patrice Louvet said during an earnings conference call, according to a FactSet transcript.The market doesn't appreciate the "transformational changes" Ralph Lauren has made to its brand image, distribution model and cost structure over the past five years, UBS analysts Jay Sole and Mauricio Serna said.Positive earnings-per-share surprises should drive stock price outperformance over the next 12 months, Sole and Serna wrote."We think the stock looks inexpensive and see a favorable upside/downside skew," the duo said.The brokerage raised its price target on Ralph Lauren's stock to $520 from $511 and reiterated its buy rating. The company's stock was up 0.1% in late Friday afternoon trade and has gained 12% so far this year."(Ralph Lauren's) revenues and profits are expanding so fast, the company is able to beat Street expectations while also increasing investments in initiatives to fuel future growth," UBS added.The company has vowed to continue investing in its brand and products to create long-term value."We are staying on offense and remain committed to investing in our brand, our products, our experiences, and our capabilities to better serve and create lasting connections with our customers, while driving durable growth and long-term value creation," Chief Financial Officer Justin Picicci told analysts on the earnings conference call.Price: $395.91, Change: $+0.07, Percent Change: +0.02%

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