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Major US Indexes Fall on Wednesday

U.S. stocks were in the red on Wednesday as the yield on the two-year Treasury note was higher than the 10-year not. An inversion in the yield curve is a signal of recession. The Dow Jones Industrial Average lost 3.05% to 25,479, the S&P 500 index declined 2.93% to 2,840 and the Nasdaq Composite Index retreated 3.02% to 7,773.

Shares of Huya Inc. (NYSE:HUYA) gained almost 0.5% after announcing second-quarter results.

The Chinese broadcasting company posted earnings of 11 cents per share on $292.9 mllion in revenue, reflecting 93.7% growth from the prior-year quarter. The company beat earnings estimates by 3 cents and revenue expectations by $41.32 million.

"In this quarter, revenue achieved year-over-year growth of 93.6%, crossing the RMB2 billion mark for the first time, further demonstrating our ability to boost user engagement and monetize the diversified content genres over Huya's platform," CEO Rongjie Dong said. "Looking ahead, we will remain dedicated to strengthening our leadership in China game live streaming industry and enhancing our presence across the globe."

Live streaming revenues grew 93.7% from the prior-year quarter to 1.9 billion yuan ($270.4 million) due to an increase in the number of paying users on Huya's platform as well as the average spending per user.

The gross profit more than doubled to 335.7 million yuan from 166.4 million yuan in the year-ago quarter. The gross margin was 16.7%, 70 basis points higher than 16% in the same period of 2018, principally as a result of technology innovation and economies of scale. Further, the operating income was 67.7 million yuan compared with an operating loss of 17.3 million yuan.

Looking ahead the third quarter of 2019, the company expects total net revenue to be between 2.12 billion yuan and 2.2 billion yuan.

During the quarter ended June 30, Jim Simons (Trades, Portfolio)' Renaissance Technologies and Howard Marks (Trades, Portfolio) established positions in the stock.


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Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 fell 1.42%, France's CAC 40 tumbled 2.08%, Germany's Dax plummeted 2.19% and Spain's IBEX 35 retreated 1.98%.

In Asia, Japan's Nikkei 225 gained 0.98%, India's BSE Sensex rose 0.96%, Hong Kong's Hang Seng swelled 0.08% and China's Shanghai Composite advanced 0.42%.

Disclosure: The author holds no positions in any stocks mentioned.

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This article first appeared on GuruFocus.