Hot news

• Lincoln's speech on China Policy: the United States is determined to avoid a "new cold war" with China.

Us Secretary of State Abraham Lincoln delivered a speech on China policy at George Washington University. In his speech, Lincoln said that the United States is determined to avoid a "new cold war" with China. "We do not seek to prevent China from playing its role as a great power, nor does it prevent China-or any country-from developing its economy or promoting the interests of its people," he said. But at the same time, he declared that the United States would defend the so-called "global order, including international law and agreements," which would "enable all countries, including the United States and China, to coexist and cooperate."

• New York Fed survey: us consumers expect inflation shocks to pass

According to a report released by the Federal Reserve Bank of New York on Thursday, most American consumers still believe that the current inflation shock is only temporary and that price increases will be low and stable in the long run. This suggests that consumers expect the recent price spike to cool down over time, the researchers said. "while short-term inflation expectations continue to rise, medium-term inflation expectations seem to have reached a plateau in the past few months, while long-term inflation expectations remain fairly stable," the researchers wrote in a blog post.

• Us mortgage rates fell to 5.1%, the biggest drop since April 2020

Mortgage lender Freddie Mac said in a statement on May 26 local time that the average interest rate on a 30-year loan fell to 5.10% from 5.25% last week, the biggest drop since April 2020. However, interest rates are still well above the 3.11 per cent at the end of last year. Although mortgage rates have fallen this week, the rapid rise in the past four months has begun to have an impact on demand. Sales of new homes have fallen to their lowest level since the outbreak, according to government data released this week. Second-hand housing transactions are also falling.

• Well-known investor Kyle Bass: the Fed needs to cut interest rates in 2023 because the economy will stagflate

Kyle Bass, chief investment officer of Hayman Capital, said in an interview that the Fed will eventually experience economic stagflation and will have to cut interest rates, preferably in 2023, and that he does not expect the Fed to raise interest rates by much more than 200bp this time. He also said that because of "bad policies for decades", the market will see a rise in food and energy prices as the economy cools, and a slight recession is expected by the end of this year or early next year. Referring to the minutes of yesterday's meeting, Bass pointed out that Fed researchers still expect the economy to grow by 2.8 per cent in 2022, which means that after GDP shrinks in the first quarter, the growth rate will need to reach 4 per cent to meet the target.

• Bank of America: the Fed may suspend interest rate hikes later, meaning medium-and long-term yields are peaking

Bank of America Corporation said the latest policy comments from Fed officials provided traders with an opportunity to bet on a moratorium on interest rate hikes after July. Ralph Axel and Bruno Braizinha said in the report that the speeches of Cleveland Fed President Loretta Mester and Atlanta Fed President Raphael Bostic over the past two weeks raised awareness that financial market conditions could prompt the Fed to slow or even stop raising interest rates in September. This has had an impact on overnight index swaps and five-year interest rates. "We believe that market expectations of a pause in Fed tightening are likely to rise in the next two months, and if that happens, medium-and long-term yields may have peaked," they wrote.

• Xiao Mo: us stock investors may stay on the sidelines this summer

JPMorgan Chase & Co analyst Gabriela Santos predicted on Thursday that investors are likely to take a wait-and-see attitude this summer, watching inflation and economic development before increasing their stock positions. Us stocks have fallen sharply since the start of the year, creating the potential for long-term gains, she says, but stocks have become so expensive by the end of 2021 that many investors do not think they have fallen enough to create a strong entry point.

• If you fall, copy the bottom to save the market! Institutions: retail investors have been buying

Vanda Research, a research firm that tracks US retail trading flows, said on Wednesday that retail investors continued to buy bargain-hunting despite a sharp drop in the value of their portfolios, helping the S & P; avoid further losses in recent trading days. The company said net inflows from retail investors into the US stock market were near an all-time high, with an average daily inflow of $1.3 billion on a three-month basis. At the same time, their portfolios shrank by an average of 32%, the worst performance for retail investors since the company began tracking data in 2014.

• The red light flashes in the crude oil futures market! The widening price gap indicates that supply will be tighter in summer.

As summer approaches in the northern hemisphere, with demand showing few signs of slowing and inventories falling, the crude oil futures market flashes red lights, suggesting that supply will be extremely tight. In the US, the spread between recent-month contracts and contracts for delivery a month later widened to nearly $3 a barrel as supplies from its largest warehouses returned to a downward trend. Similar spreads for Brent, the international benchmark, are also widening, rising to $3.20 on Thursday, the largest since the end of March. Rising crude oil prices and record fuel prices have raised concerns about inflation.

• Putin said he was willing to facilitate grain exports on the condition that the West lift sanctions against Russia.

In a phone call with Italian Prime Minister Draghi on Thursday local time, Russian President Vladimir Putin said he is willing to promote food and fertilizer exports, but only if sanctions against Russia are lifted. However, Putin did not say whether he was referring to Russian exports or Ukrainian exports stopped by the country's blockade of Ukrainian ports.

Review of US stocks

• The three major indexes of US stocks rose across the board, and hot Chinese stocks rose sharply.

The three major indexes of US stocks rose across the board, with the Dow up 1.61%, the S & P 500 up 1.99% and the Nasdaq up 2.68%.

Large-scale technology stocks rose generally, Tesla, Inc. rose by more than 7%, Amazon.Com Inc by more than 4%, Apple Inc by 2%, Alphabet Inc-CL C and Microsoft Corp by more than 1%.

Hot Chinese stocks rose sharply, with Alibaba and Baidu, Inc. up more than 14%, NIO Inc., Pinduoduo and iQIYI, Inc. up more than 9%, Station B more than 8%, Li Auto Inc. and XPeng Inc. more than 7%, and JD.com more than 5%.

• Guo Mingyi: Apple Inc did not change the delivery plan of the new iPhone 14 series aircraft.

Guo Mingyi, an analyst at Tianfeng International, said on social media that since the outbreak was under control,$Apple Inc (AAPL.US) $There is no change in the delivery plan for the new iPhone 14 series aircraft. The development of iPhone 14 Max is behind schedule, but it is still under control, and vendors can work overtime to catch up. I think the challenge for the iPhone 14 series will come from the demand side, not the supply side.

• Zuckerberg: will invest heavily in meta-universe, but will burn a lot of money

Facebook Inc parent company$Meta Platforms (FB.US) $CEO Mark Zuckerberg said at his annual shareholders' meeting on Wednesday that he planned to invest heavily in the company's meta-cosmic ambitions, which would mean the company would lose "a lot" of money on the project over the next three to five years. Zuckerberg said that as people gradually build businesses that sell virtual goods and services, the immersive digital world of meta-universe will eventually make money from the creator's economy. At the same time, Meta is confident that its investment in Reels short video service will lead to revenue growth.

• Musk is accused of market manipulation after being sued by Twitter shareholders.

Twitter shareholders filed a class action lawsuit on Wednesday local time, saying Musk delayed the disclosure.$Twitter (TWTR.US) $He held shares and temporarily concealed his plans to become a member of the company's board in early April, thereby benefiting financially on suspicion of market manipulation in violation of California corporate law. Musk disclosed his stake in Twitter on April 4 and offered to buy the company for $44 billion, or $54.20 a share, ten days later. He took most of his holdings$Tesla, Inc. (TSLA.US) $The stock is used as collateral for the loan to finance the transaction. Twitter shares have fallen more than 12 per cent since Mr Musk's offer and Tesla, Inc. shares have fallen about 40 per cent.

• The United States plans to send more Pfizer Inc and COVID-19 to take oral medicine to prevent a new outbreak of the epidemic.

The United States government is taking steps to distribute$Pfizer Inc (PFE.US) $Oral anti-novel coronavirus drugs Paxlovid to detection and treatment sites to deal with a new round of outbreaks that may be due to this summer's tourism season. The first COVID-19 testing and treatment site supported by the US federal government will open in Rhode Island on May 26. if the test is positive, patients can get treatment on the spot. In the coming weeks, such outlets will gradually start trial operations in Massachusetts and New York City. As of press time, Pfizer fell 0.07% in after-hours trading.

• Boeing Co "Starliner" completes orbital flight test

$Boeing Co (BA.US) $The new passenger spaceship CST-100 Starliner returned to Earth on Wednesday and landed completely in the deserts of New Mexico with the help of parachutes and airbags. In addition, Ethiopian Airlines announced an order for five Boeing 777 freighters, which has not yet been confirmed on Boeing Co's website.

• Walt Disney Company executives investigated on suspicion of corruption

According to foreign media reports$Walt Disney Company (DIS.US) $Is being investigated for a suspected corruption case. Walt Disney Company executives met with officials in Anaheim, Calif., where Walt Disney Company's paradise is located, to try to influence public policy decisions, the FBI said. It is reported that Carrie Nocella, director of foreign affairs of Walt Disney Company, assisted in planning the meeting, but neither Walt Disney Company nor Nocella have been charged with illegal acts. A spokesman for Walt Disney Company said: "We believe that we have acted in full accordance with the law and are ready to assist in the investigation. "

• Dell Q1's adjusted revenue of $26.12 billion exceeded expectations, up more than 10% in after-hours trading

Dell reported after-hours earnings of $26.12 billion in the first quarter, with analysts expecting $25 billion, while EPS was $1.84 and analysts expected $1.40 in the first quarter. The company expects second-quarter revenue of $261-27.1 billion. As of press time, Dell's American stock is up more than 10% in after-hours trading.

• Q1 results exceeded expectations, Macy's rose nearly 20%!
  

$Macy's (M.US) $Revenue for the first quarter is $5.35 billion, expected to be $5.333 billion, net profit is $286 million, expected to be $252 million, and EPS is expected to be $0.98, expected to be 83 cents. Affected by the news, Macy's soared nearly 20%.

• Gap slashed profit guidance and its shares tumbled 13% in after-hours trading

American clothing retail chain$Gap Inc (GPS.US) $It became the latest US retailer to significantly downgrade its guidance, changing its EPS guidance for fiscal year 2022 from $1.85-$2.05 to 30-60 cents per share. Sonia Syngal, the company's chief executive, said that low-income customers are starting to feel inflationary pressure, which is also a target group for the Old Navy brand. Compared to sportswear and plush hoodies, these people have turned to party clothes and commuter clothes. As of press time, gap fell 13% in after-hours trading.

Yesterday's turnover of US stocks TOP20

The Prospect of Hong Kong City

• Tencent added more than HK $500m in North Water and bought nearly HK $500m in CNOOC.

On Thursday, May 26th, southbound funds bought a net HK $2.994 billion, the 14th consecutive net purchase. Tencent, CNOOC Limited and Yanzhou Mining Energy received a net purchase of HK $502 million, HK $471 million and HK $257 million respectively. Kingdee International Software Group ranks first in net sales, with a value of HK $88 million. China Mobile Limited has received net purchases for four consecutive trading days, totaling about HK $2.3636 billion.

• BABA: domestic business is affected by the epidemic and does not provide financial guidance

$BABA-SW (09988.HK) $/$BABA (BABA.US) $It was said at the results meeting that domestic business had been significantly affected by the resurgence of the epidemic in the mainland in March and that financial guidance for this year would not be provided given the risks and uncertainties posed by the uncontrollable and difficult to predict the epidemic. BABA stressed that as the group adjusts its operations in response to the changing economic and competitive environment, the company will continue to generate strong operating cash flow to maintain strategic flexibility. The company also said that only by ensuring the stability and smooth flow of the supply chain and logistics in an uncertain epidemic situation can business operate stably and consumer sentiment and willingness can be better restored.

• Baidu, Inc.: Jidu Automobile is expected to start accepting orders in the second half of the year.

May 26th$Baidu-SW (09888.HK) $/$Baidu, Inc. (BIDU.US) $Released its first-quarter results for 2022. The data show that the company's income during the reporting period was 28.411 billion yuan (RMB, the same below), and the net profit attributed to Baidu, Inc. under non-US GAAP was 3.879 billion yuan, exceeding market expectations. Baidu, Inc. CEO Li Yanhong said at the results meeting after the release of the results that Jidu Automobile will accept orders in the second half of this year and is expected to start delivering vehicles in 2023. Li Yanhong also revealed that in the first quarter of 2022, intelligent driving business ASD and in-vehicle infotainment system Xiaodu car OS, etc., received a total of 10 billion yuan in designated and signed projects, compared with more than 8 billion yuan in the previous quarter. In addition, Baidu, Inc. Yun's revenue in the first quarter was 3.9 billion yuan, contributing 70% to non-advertising revenue, but it is still at a loss.

• JD Logistics, Inc.: completed the issuance of 261 million shares to JD.com Science and Technology Group, raising a net fund of 4.411 billion yuan

$JD Logistics, Inc. (02618.HK) $It is announced that on March 25, 2022, the Company entered into the subscription Agreement with the substantial shareholder Jingdong Technology Group Corporation, whereby Jingdong Technology Group Corporation conditionally agreed to subscribe and the Company conditionally agreed to allot and issue 261.4 million subscription shares at a subscription price of HK $20.71 per subscription share (equivalent to a total subscription amount of approximately US $692 million or approximately RMB 4.411 billion). All the prerequisites for the subscription set out in the subscription Agreement have been met. As a result, the subscription was completed on 26 May 2022.

• HSBC Holdings PLC: buy back 754600 shares on May 26th

$HSBC Holdings PLC (00005.HK) $It was announced that on 26 May 2022, 754600 common shares of $0.50 each had been purchased from Merrill Lynch International for cancellation as part of the share buybacks disclosed in the announcement of May 3, 2022. On the same day, 142800 shares were purchased on the Hong Kong Stock Exchange at a volume-weighted average price of HK $48.3861 per share.

Focus today

Key words: us April Core PCE Price Index, Costco Wholesale Corp / Pinduoduo Financial report

Friday, May 27th, today ushered in heavy financial data--Us Core PCE Price Index annualized rate in April。

The US personal consumption expenditure (PCE) price index rose 6.6 per cent in March from a year earlier, up from 6.3 per cent in February and the fastest pace since 1982, according to data released by the US Commerce Department on April 29th. Meanwhile, the core personal consumption expenditure (PCE) price index, which excludes food and energy prices, rose 5.2 per cent in March from a year earlier. The US PCE price index for April will be released on May 27th and is expected to continue to rise sharply.

In terms of financial results, investors need to pay attention to US stocks.$Costco Wholesale Corp (COST.US) $、$Pinduoduo (PDD.US) $Donovan's financial report.

Niuniu morning reading:

Take risks, beyond reproach, but at the same time remember not to put all your eggs in one basket

-- Soros