Hot news

• The Federal Reserve kept interest rates high for longer, and it probably wasn't as bad as the market thought

Industry insiders pointed out that looking back at history, high interest rates do not necessarily mean bad things for the US stock market and the country's economy. It makes no sense for high interest rates to cause a recession. By contrast, the Federal Reserve keeps interest rates too low for too long, which is more likely to lead to a crisis. For example, it spawned the internet bubble and subprime mortgage crisis. Before the COVID-19 outbreak, the Federal Reserve's benchmark fund interest rate was only 1%. In other words, the recent major recessions were instead a crisis created by a period of low interest rates.

• J.P. Morgan's trading department says the time is ripe for further increases in US stocks

A J.P. Morgan Chase indicator is sending a loud signal to buy US stocks. A team led by Andrew Tyler, head of US market intelligence at J.P. Morgan Chase, said in a report on Wednesday that the bank's US tactical position index, which measures clients' risk exposure to US stocks, has reached a level indicating that the S&P 500 index is attractive. The report said that after a similar four-week position adjustment, the S&P 500 index usually rose by about 3% over the next 20 days.

• Another wave of record-breaking US bond auctions! 5-year demand is fatigued

On Wednesday local time, the US Treasury auctioned off 70 billion US dollars of 5-year treasury bonds. The results of this auction were clearly worse than the 2-year US bond auction this Tuesday, which was shorter. The $70 billion auction was an increase of $3 billion over last month's $67 billion, the highest amount of US debt ever recorded for that period. In this auction, the final interest rate spread, which reflects weak demand, was 0.4 basis points. The bid multiplier declined, and overseas demand was lackluster.

• The yen fell below the key level of 155, analysts say this increased the risk of intervention

The yen fell below 155 yen against the US dollar for the first time in more than 30 years, increasing the risk of reaching a critical level that could enable Japan to enter the market. On Wednesday, the yen depreciated 0.2% to an intraday low of 155.17 points. This is the first time since June 1990 that the yen has broken 155 points against the US dollar. As of 12:41 p.m. New York time, the yen had declined somewhat and traded around 155.09. Win Thin, head of global market strategy at Brown Brothers Harriman, said that regardless of the level, the risk of intervention is still very high.

Resumption of US stock trading

• S&P indicated a surprise rise. Tesla's results surged by more than 12% after the market, and Meta plummeted after the market

The three major US stock indexes collectively opened higher for three consecutive days. In the end, only the Dow closed down 0.11% of the three indices. The S&P 500 Index rose 0.02%, and the Nasdaq Composite Index rose 0.1%.

Among the “Big Seven” of technology, Apple rose 1.27%, Microsoft rose 0.37%, Amazon fell 1.64%, META fell 0.52%, Google-A rose 0.55%, Tesla rose 12.06%, and Nvidia fell 3.33%. As of press time, Meta dropped more than 15% after the market.

The Nasdaq China Golden Dragon Index rose 1.05% on Wednesday. Alibaba rose 2.92%, Tencent ADR rose 3.23%, JD rose 2.61%, NIO rose 3.49%, and Ideal Auto fell 3.79%.

• Meta Q1 revenue growth rate was the fastest in three years, but the outlook was poor. The sharp increase in AI spending scared the market and plummeted by nearly 15% after the market

$Meta Platforms (META.US)$Both revenue and profit for the first quarter were higher than expected, and core advertising revenue growth accelerated. However, revenue for the second quarter is expected to be 36.5 billion to 39 billion US dollars, and the mid-range is weaker than market expectations. The metaverse sector still has a huge quarterly loss of nearly 3.9 billion US dollars. The highlight of the financial report is that AI is driving advertising growth, but investing in AI has also greatly increased its capital expenditure expectations this year. As of press time, the stock is down nearly 15%

• Tesla soared by double digits after the earnings report! Investment banks are slightly cautious when shareholders are raving

On Wednesday EST,$Tesla (TSLA.US)$The stock price opened high. By the close, the stock had risen more than 12% to $162.13. Musk showed the ride-hailing process to be integrated into Tesla products at the performance conference and announced that new models will be released early, and that the robot taxi network it is developing is also progressing very well. However, many investment banks still chose to lower their target price for Tesla. UBS cut it from $160 to $147, which is already lower than the current stock price; the “long-term majority” Wedbush also lowered it from $300 to $275.

• iPhones are also showing a decline in the US

Just this week, a research agency pointed out$Apple (AAPL.US)$After sales of its iPhone fell 19% in the first quarter of this year, the US market research agency CIRP said in its latest blog that by the end of the first quarter of this year, the iPhone's share of new smartphone activations in the US had dropped to 33% from 40% in the same period last year. CIRP said that excluding the disturbances at the beginning of the epidemic, iPhones account for one-third, and Android phones account for two-thirds. The market share of iPhones has been rising steadily since then.

• Qualcomm releases Snapdragon X Plus chip to demonstrate notebook AI features

On Wednesday local time,$Qualcomm (QCOM.US)$A sub-flagship ARM architecture chip in the AI PC era, the Snapdragon X Plus chip, was launched. Judging from the specific parameters, the gap between the Snapdragon X Plus chip and the flagship chip is not too significant — compared with the 12-core Snapdragon X Elite, the number of cores in the Snapdragon X Plus chip has dropped to 10, and is completely consistent in terms of NPU specifications and process.

• Modena Announces Deepening Cooperation with OpenAI to Embed AI into the Entire Business Process

On Wednesday local time, a leading company in the mRNA industry$Moderna (MRNA.US)$The announcement stated that a partnership was reached with OpenAI to further automate all business processes throughout the company. The company revealed that up to now, Modena employees have created more than 750 customized versions of ChatGPT (GPTS) to address specific business processes, such as helping select the optimal dosage for clinical trials.

• Moody's downgraded Boeing's credit rating, one step away from “junk grade,” and Boeing's stock price dived

$Boeing (BA.US)$Accidents involving the 737 aircraft continued to occur, leading to a decline in production of this model, which dragged down Boeing's performance. Boeing's actual free cash flow could not reach the level previously anticipated by Moody's. As a result, Moody's downgraded Boeing's credit rating from Baa2 to Baa3, and gave a negative rating outlook. Boeing's stock price opened high and went low, and eventually closed down 2.87%.

• US Senate Health Committee Investigates Novo Nordisk GLP-1 Drug Pricing

US Senate Health, Education, Labor and Pensions Committee Chairman Bernie Sanders said on Wednesday that the committee is reviewing$Novo-Nordisk A/S (NVO.US)$Investigate the pricing. Sanders stressed that the price of GLP-1 drugs “must be lowered” so that consumers can buy them, and that the government does not go bankrupt because of reimbursing these drugs.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui added a warehouse of nearly HK$800 million and sold Meituan for more than HK$1.5 billion

On April 24 (Wednesday), Southbound made a net purchase of HK$1,995 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$HKEX (00388.HK)$,$CHINA MOBILE (00941.HK)$Received net purchases of HK$779 million, HK$736 million and HK$494 million respectively;

$MEITUAN-W (03690.HK)$,$HSBC HOLDINGS (00005.HK)$,$XIAOMI-W (01810.HK)$Net sales were HK$1,544 million, HK$564 million and HK$45.15 million respectively.

• Shang Tang: Class B shares will resume trading now

April 23$SENSETIME-W (00020.HK)$A technical exchange day event was held at AIDC in Lingang, Shanghai. Among them, the company launched the 600 billion parameter model “Nishi-Nisshin 5.0,” which greatly improved knowledge, mathematics, reasoning and coding skills, and comprehensively benchmarked GPT-4Turbo. The company has applied to the Stock Exchange to resume trading of Class B shares starting at 9:00 a.m. on April 25, 2024.

Today's attention

Keywords: GDP; unemployment benefits; CNOOC; Microsoft; Google

On Thursday, in terms of economic data, the preliminary value of the US Q1 real GDP annualized quarterly rate, the number of initial jobless claims in the US, and the monthly rate of the US existing housing contract sales index will be announced today.

In terms of financial reports,$CNOOC (00883.HK)$,$ZTE (00763.HK)$Hong Kong stock results will be announced after the market;$Microsoft (MSFT.US)$,$Alphabet-A (GOOGL.US)$,$Intel (INTC.US)$Results will be announced after the US stock market.

In terms of new shares,$Rubrik Inc. (RBRK.US)$,$Marex Group plc (MRX.US)$It will be listed on the US stock market today.

Futubull Chen read:

Cash flow is an important health indicator for any company.
—Philip Fisher

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