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Saudi Shares End Week Lower; National Building and Marketing Ticks Up

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The Tadawul All Share Index closed out the week 0.20% in the red on Thursday as investors kept their attention on the Iranian-Qatari talks regarding the US-Iran conflict.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani will visit Iran in a bid to mediate the US-Iran talks, as well as de-escalate the conflict between the two nations.

In other news, market watchers also tuned in to the latest economic releases of the US and their potential effect on the US Federal Reserve's next rate moves.

"Core PCE, the Federal Reserve's preferred inflation gauge, printed in line with expectations at 0.2% month-on-month and 3.3% year-on-year, suggesting disinflation remains on track but at a frustratingly gradual pace. Headline PCE came in slightly firmer at 0.2% MoM and 3.7% YoY, prompting a small hawkish repricing in the USD curve," ING said in a note. "Overall, we remain reasonably confident in our call for the Fed to hold on 16 September and, by extension, in a weaker dollar. That said, the next three weeks may need to bring a more convincing combination of data and Fedspeak before markets move closer to a hold outcome."

Back at home and on the corporate front, MSGA Investment Co. (SASE:9655) shares declined 0.83% as its MSGA Al-Oula Real Estate Development unit entered into a nonbinding memorandum of understanding with Riyadh Holding to look into potential deals to develop a land plot in the Al Mahdiyah district.

Meanwhile, Wajd Life Trading (SASE:9647) and National Building & Marketing Co. (SASE:9510) reported higher attributable net profit and revenue for the six months ended June 30. Shares of Wajd Life closed 1.64% lower, while National Building shares were 8.67% higher.

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Update: US Equity Indexes Slip After Fed's Preferred Inflation Gauge Accelerates in July

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes slipped while most government bond yields edged up after the Federal Reserve's preferred inflation gauge swung higher in July.The Dow Jones Industrial Average fell 0.2% to 53,463.88, the S&P 500 edged less than 0.1% lower to 7,675.70, and the Nasdaq Composite declined less than 0.1% to 26,130.20. Industrials topped gainers while health, communication services and consumer discretionary led decliners.The headline personal consumption expenditure price index rose 0.2%, following a 0.1% slide in June, the Bureau of Economic Analysis reported Wednesday. That's above the consensus for a 0.1% gain in a Bloomberg-compiled survey, keeping the annual headline rate at 3.7%, which also exceeded the expected 3.6% print. The Fed's preferred core measure, which excludes food and energy, climbed 0.2% in July, as expected. That's faster than the June print of 0.1%. The annual core gauge held steady at 3.3%, as projected.Most US Treasury yields rose, with the 10-year yield up one basis point to 4.65%.The probability of the Federal Reserve extending its policy pause to December stood at 27% late Wednesday, according to the FedWatch tool, almost unchanged from a day ago. Currently, there is a 45% chance of interest rates moving up by 25 basis points to a 3.75% to 4% target rate by December and a 24% likelihood of the fed funds rate being raised by 50 basis points to 4% to 4.25% by the end of this year.On Tuesday, Boston Fed President Susan Collins said the central bank may have to tighten its monetary policy soon, unless inflation continues to cool.US gross domestic product rose 1.5% in Q2, unrevised from the advance estimate released last month, as expected in a survey compiled by Bloomberg. GDP climbed 2.1% in Q1. New orders for US durable goods advanced 1.1% in July, up from 0.5% in June, versus expectations for 0.5% in a survey compiled by Bloomberg.In geopolitical news, the Iranian military said it reached a revenue-sharing deal with Oman on the Strait of Hormuz, Bloomberg reported. "Agreements have been reached regarding each country's share of the strait's waters as well as Iran and Oman's share of its revenues," Bloomberg cited the Islamic Revolutionary Guard Corps' spokesman Hossein Mohebbi on the state-run Sepah News agency.However, Reuters cited the IRGC as saying the strait would not open unless the US met Tehran's conditions under an interim ceasefire agreement that was struck in June before unravelling. Those conditions include an end to the US blockade on Iranian ports, compensation and removal of sanctions, the news outlet said."We have our own tools, and we also know the game," Iran's Economy Minister Ali Madanizadeh said while referring to Tehran's experience circumventing US sanctions, according to a report from Al Jazeera, a Middle Eastern broadcaster. Tehran could potentially "go on the offensive" and was confident that many countries would effectively reject US President Donald Trump's threats to cut off all links with Iran, he added.The front-month US West Texas Intermediate crude oil contract retreated 0.7% to $81.82 per barrel, and global benchmark North Sea Brent declined 1.4% to $87.38 per barrel.In company news, Truist downgraded Nike (NKE) to hold from buy while adjusting its price target to $42 from $47. Shares of the sports footwear and apparel retailer were down 2.3%.Meta Platforms (META) has agreed to pay up to $16.68 billion to resolve claims brought by several US states that the tech giant used its platforms to "ensnare" youth and teens, according to a federal court filing.

Dow JonesNasdaq CompositeS&P 500$META$NKE$NVDA
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Update: US Equity Indexes Slip as Investors Await Nvidia's Earnings After July's PCE Inflation Rate Accelerates

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes fell while most government bond yields rose after the Federal Reserve's preferred inflation gauge accelerated sequentially in July and as investors awaited AI bellwether Nvidia's (NVDA) quarterly earnings after the bell.The Nasdaq Composite declined 0.2% to 26,074.5, the Dow Jones Industrial Average fell 0.3% to 53,442.1 and the S&P 500 edged 0.1% lower to 7,670.6 after midday Wednesday. Industrials and energy topped gainers while consumer discretionary and communication services led decliners.In economic news, the headline personal consumption expenditure price index rose by 0.2%, following a 0.1% decline in June, the Bureau of Economic Analysis reported Wednesday. That's above the consensus for a 0.1% gain in a Bloomberg-compiled survey, keeping the annual headline rate at 3.7%, which also exceeded the expected 3.6% print.The Fed's preferred core measure, which excludes food and energy, climbed 0.2% in July, as expected. That's faster than the June print of 0.1%. The annual core gauge held steady at 3.3%, as projected.The probability of the Federal Reserve extending its policy pause to December stood at 28% by Wednesday afternoon, according to the FedWatch tool, almost unchanged from a day ago. Currently, there is a 45% chance of interest rates moving up by 25 basis points to a 3.75% to 4% target rate by December and a 24% likelihood of the fed funds rate being raised by 50 basis points to 4% to 4.25% by the end of this year.On Tuesday, Boston Fed President Susan Collins said the central bank may have to tighten its monetary policy soon, unless inflation continues to cool.Most US Treasury yields rose. The 10-year yield rose 2.5 basis points to 4.66% and the two-year climbed 2.2 basis points to 4.23%.US economic growth, measured by gross domestic product, rose by 1.5% in Q2, unrevised from the advance estimate released last month, as expected in a survey compiled by Bloomberg. GDP rose by 2.1% in Q1. New orders for US durable goods rose 1.1% in July, up from 0.5% in the previous month, compared with expectations of a smaller increase of 0.5% in a survey compiled by Bloomberg.In geopolitical news, the Iranian military said it reached a revenue-sharing deal with Oman on the Strait of Hormuz, Bloomberg reported."Agreements have been reached regarding each country's share of the strait's waters as well as Iran and Oman's share of its revenues," Bloomberg cited the Islamic Revolutionary Guard Corps' spokesman Hossein Mohebbi on Wednesday as telling the state-run Sepah News agency.Reuters cited the IRGC as saying the strait would not open unless the US met Tehran's conditions under an interim ceasefire agreement that was struck in June before unravelling. Those conditions include an end to the US blockade on Iranian ports, compensation and removal of sanctions, the news outlet said.The front-month US West Texas Intermediate crude oil contract gained 0.5% to $82.76 per barrel, and global benchmark North Sea Brent rose 0.1% to $88.68 per barrel.In company news, Truist downgraded Nike (NKE) to hold from buy while adjusting its price target to $42 from $47. Shares of the sports footwear and apparel retailer were down 2.1%, the Dow's steepest decline.Meta Platforms (META) has agreed to pay up to $16.68 billion to resolve claims brought by several US states that the tech giant used its platforms to "ensnare" youth and teens, according to a federal court filing.

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Asia Markets

Exchange-Traded Funds Fall as US Equities Decline After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were lower. Actively traded Invesco QQQ Trust (QQQ) eased 0.2%.US equity indexes fell while most government bond yields rose after the Federal Reserve's preferred inflation gauge accelerated sequentially in July and as investors awaited Nvidia's (NVDA) quarterly earnings post-bell.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose 0.2%; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) edged lower.The State Street SPDR S&P Semiconductor (XSD) was down 0.2%, while iShares Semiconductor (SOXX) slipped 0.1%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.4%.CommoditiesCrude oil gained 0.6%, and the United States Oil Fund (USO) added 1.8%. Natural gas rose 3.8%, and the United States Natural Gas Fund (UNG) was up 2.6%.Gold on Comex dipped 1%, and the State Street SPDR Gold Shares (GLD) shed 1.6%. Silver fell 1.1%, and iShares Silver Trust (SLV) eased 1.3%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) shed 0.1%. The Vanguard Consumer Staples ETF (VDC) fell 0.2%, while iShares Dow Jones US Consumer Goods (IYK) lost 0.1%.The State Street Consumer Discretionary Select Sector SPDR (XLY) fell 0.9%. VanEck Retail ETF (RTH) was down 0.6%, and the State Street SPDR S&P Retail (XRT) rose 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) dropped 0.8%. iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were also lower. IShares Biotechnology ETF (IBB) lost 0.3%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) gained 1%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 1.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) dipped 1.2%, ProShares Ether ETF (EETH) was down 0.5%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) dropped 1%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH