Hot news

• The initial value of the US PMI for April fell short of overall expectations. The manufacturing industry was only 49.9, and inflationary pressure was obvious

The initial value of the US PMI for April fell short of all expectations, and the market finally waited for bad news about the US economy. However, this is good news for the prospects of interest rate cuts. The US manufacturing PMI fell below the boom and bust line in April. The initial value was 49.9, the lowest level since December 2023. The service sector and overall PMI also fell short of expectations and pre-March values. Regarding the inflation issue that the market is paying close attention to, the April data confirmed this trend after the price increase accelerated in March.

• Traders have increased their bets that the Federal Reserve will not cut interest rates this year

As the economy shows resilience, progress on inflation has stalled, and policymakers have recently been hinting that they expect to keep interest rates high for a longer period of time, which has had a ripple effect on hedging tools. Traders in the US interest rate market have begun to bet that the Federal Reserve will not cut borrowing costs this year. Prior to the Federal Reserve's decision on May 1, traders established options positions linked to the secured overnight financing rate. The goal was for officials to keep interest rates stable after the December policy meeting. Some more aggressive bets also hedge against the possibility that the central bank will raise interest rates again in 2024.

• Citigroup economists think the Fed is likely to cut interest rates in June or July

It is still unclear whether the Federal Reserve will cut interest rates during 2024, causing many Wall Street analysts to adjust their market predictions. However, Citigroup strategists are still convinced that the Federal Reserve will cut interest rates as early as June or July. Citibank economist Veronica Clark believes that the Federal Reserve is studying some labor market data. Officials are worried that the US may be entering a weak labor market and want to prevent this from happening.

• Japanese media broadcast late at night! The Bank of Japan will focus on discussing the rapid depreciation of the yen

According to an overnight report by Nikkei News, Bank of Japan policymakers are expected to focus on discussing the impact of the rapid weakening of the yen on inflation, and speculation about the timing of the Bank of Japan's next rate hike is raging. Affected by this news, the dollar fell to an intraday low of 154.55 against the yen in the US market on Tuesday.

• SEC Delays Decision on Ethereum ETF Application

The US Securities and Exchange Commission (SEC) issued a notice to specify a longer period of time to decide on the Franklin Spot Ethereum ETF listing transaction proposal submitted by the Cboe BZX exchange.

Resumption of US stock trading

• The earnings season was favorable. The S&P and NASDAQ continued their gains, and Tesla surged more than 12% after the market

The US stock market continued to rebound overnight, with both the S&P and NASDAQ rising by more than 1%. By the close, the S&P 500 was up 1.2%, the NASDAQ was up 1.59%, and the Dow Jones Industrial Average was up 0.69%.

The “Big Seven” of technology joined forces to strengthen. Apple rose 0.64%, Microsoft rose 1.65%, Amazon 1.30%, META rose 2.98%, Google-A rose 1.27%, Tesla rose 1.85%, and Nvidia rose 3.65%. Notably, Tesla surged nearly 12% after the market.

The Nasdaq China Golden Dragon Index continued to rise 1.96% on Tuesday. Alibaba rose 2.59%, Baidu rose 1.02%, Pinduoduo rose 3.13%, JD rose 2.07%, NetEase fell 1.91%, and Xiaopeng Motor rose 2.87%.

• Tesla's earnings fell short of expectations across the board, but the accelerated push for “new affordable cars” boomed the market, rising nearly 12% after the market

Early Wednesday morning, Beijing time$Tesla (TSLA.US)$The latest Q1 earnings report was released. Most of the data in this financial report fell short of expectations, and delivery expectations for this year have not improved much. However, Tesla pointed out that the company has updated its future model lineup and brought forward the launch of the new models. The original announcement was that production would begin in the second half of 2025. As of press release, Tesla's stock price rose nearly 12% after the market.

• Tesla Unveils New Model 3 High-Performance Edition

Early Wednesday morning, Beijing time, Tesla released the new Model 3 high-performance version on the US official website, and began accepting pre-orders at the same time. Compared to the previous model 3 high-performance version, the new version has 32% more peak power, 16% more peak torque, and 5% less resistance.

According to Tesla's official website, the price of the new Model 3 high-performance version is $52.99 million (about 383,900 yuan), and the car's range is 296 miles (about 476 kilometers). In line with the US $7,500 electric vehicle subsidy policy, the current price of the Model 3 high-performance version in the US is even cheaper than the Model 3 long battery life version, which is not subsidized.

• Apple will hold a spring press conference on May 7

Tuesday local time,$Apple (AAPL.US)$It was announced that a special online event will be held on May 7, local time, at which time new hardware products will be launched. According to previous market spoilers, in addition to the new Apple Pencil pictured on the invitation, the new iPad Pro, iPad Air, and Magic Keyboard are expected to debut.

• Guo Mingyi: Demand has declined sharply, and Apple will revise 2024 Vision Pro shipments

Well-known electronics industry analyst Guo Mingyi said on Tuesday that Apple has now downgraded the 2024 Vision Pro shipment volume to 400,000 units, which is far less than the current market consensus of 700,000 to 800,000 units. Apple cut orders before the Vision Pro was sold in markets other than the US, which also shows that demand in the US market fell sharply to an extent that exceeded expectations, causing Apple to view overseas market demand more conservatively.

• IBM is close to acquiring cloud software-based platform HashiCorp

According to media reports on Tuesday,$IBM Corp (IBM.US)$An agreement is close to being reached to acquire HashiCorp, a cloud-based software platform. HashiCorp, founded in 2012, is a cloud infrastructure automation company dedicated to providing open source tools and commercial products to help other cloud service providers achieve automation, security, and scalability in a cloud-native environment. As of the close of trading on Tuesday,$HashiCorp (HCP.US)$Up nearly 19%.

• Coca Cola buys $1.1 billion to buy Microsoft AI cloud services

Global soft drink leader$Coca-Cola (KO.US)$It was announced on Tuesday that the company and$Microsoft (MSFT.US)$A five-year strategic partnership was reached to spend $1.1 billion over the next 5 years to purchase and use Microsoft's cloud computing and artificial intelligence services. As a comparison, Coca Cola signed a 5-year cloud service and commercial software agreement with Microsoft in 2020. At the time, the package price was only 250 million US dollars.

• SoftBank will spend nearly 1 billion US dollars to lay out computing power infrastructure, aiming to develop a large model with trillion parameters

According to media reports, in order to provide the computing power required to train the model,$SoftBank Group (ADR) (SFTBY.US)$Investment expenses of 150 billion yen (about 960 million US dollars) have been added this year and next two years, and will increase from$NVIDIA (NVDA.US)$The department procures graphics processing units (GPUs) to provide its computing facilities with the digital computing capabilities needed to develop “world-class” generative artificial intelligence.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui added a warehouse of nearly HK$400 million to Tencent and the Hong Kong Stock Exchange to sell Meituan for nearly HK$500 million

On April 23 (Tuesday), Southbound made a net purchase of HK$2.34 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$HKEX (00388.HK)$,$TENCENT (00700.HK)$Received net purchases of HK$696 million, HK$392 million and HK$377 million respectively;

$HSBC HOLDINGS (00005.HK)$,$MEITUAN-W (03690.HK)$,$ZIJIN MINING (02899.HK)$Net sales were HK$562 million, HK$479 million and HK$339 million respectively.

• Tianqi Lithium issued a profit warning. It is estimated that the net loss range that shareholders should account for the first quarter is 3.6 billion yuan to 4.3 billion yuan, turning profit and loss over the same period last year

$TIANQI LITHIUM (09696.HK)$According to the announcement, the company's finance department made preliminary estimates according to Chinese corporate accounting standards. For the three months ending March 31, 2024, the (i) net loss range attributable to the company's shareholders was RMB 3.6 billion to RMB 4.3 billion (unaudited), while the net profit attributable to the company's shareholders during the same period last year was RMB 4.875 billion.

Today's attention

Keywords: crude oil; Hong Kong Stock Exchange; Meta Platforms

On Wednesday, in terms of economic data, the US weekly crude oil inventory, US durable goods order monthly rate, Australian CPI, and Canadian retail sales monthly rate will be announced today.

In terms of financial reports, in Hong Kong stocks$HKEX (00388.HK)$,$GWMOTOR (02333.HK)$Results will be announced today; in US stocks$New Oriental (EDU.US)$,$Boeing (BA.US)$Results will be announced in advance of the US stock market.$Meta Platforms (META.US)$The results will be announced after the US stock market.

In terms of new shares,$MOBVOI (02438.HK)$It will be listed on the Hong Kong stock market today.

Futubull Chen read:

I've always been unconcerned about the rise and fall of the market; I'm only concerned about whether there are companies in the market that meet my investment standards.
—Jim Rogers

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