Hot news

• New York Federal Reserve Chairman: The Federal Reserve will eventually cut interest rates

New York Federal Reserve Chairman and Federal Reserve FOMC Permanent Voting Committee Williams said that the data may fluctuate up and down in an unpredictable manner; the decision to cut interest rates will be made based on overall data; but in the end, the Federal Reserve will cut interest rates. He also said that the reduction in the Federal Reserve's balance sheet is progressing smoothly; consumers are still spending; the GDP growth rate is expected to be 2%-2.5% this year; real wages are improving.

• Richmond Federal Reserve Chairman: The current interest rate level can reduce inflation to 2%

Richmond Federal Reserve Chairman and this year's voting commissioner Barkin said that the inflation data since 2024 is disappointing, but optimistically it is expected that the current monetary policy will reduce US inflation to 2%. He believes that the impact of high interest rates has not yet been fully demonstrated. Time will tell whether the FOMC monetary policy restrictions are effective. He pointed out that the labor market is strong, which provides time for the Federal Reserve to gain confidence that inflation will be lowered sustainably before cutting interest rates.

• New York Federal Reserve: One-year housing price increases are expected to accelerate again

According to the latest US consumer housing expectations survey report released by the New York Federal Reserve, the one-year housing price increase is expected to accelerate again, and the expectations of US tenants about the possibility of owning a home have reached a record low.

• Citadel founder Griffin still expects the Fed to cut interest rates this year

Citadel founder Ken Griffin said that if the Federal Reserve chooses to stay on hold in September, then it may cut interest rates in December. He expects to cut interest rates this year, although the Federal Reserve has always called for caution. Griffin warned in March that the Federal Reserve should cut interest rates slowly to avoid having to take a sharp turn in policy after that.

• Morgan Stanley strategist: It is recommended to bet on defensive stocks amidst fluctuations in US stocks

The team led by Morgan Stanley strategist Michael Wilson said that “mixed” information from key US economic data and the ensuing stock market fluctuations meant that investors should buy defensive sectors such as consumer necessities. After the employment data released last Friday showed that the labor market is cooling down, the April inflation data to be released later will provide new insights into the US economy.

Some traders see the latest employment data as a sign that the Federal Reserve can start cutting interest rates as early as September. The team believes that the US economy is still likely to have a soft landing or so-called “no landing,” that is, growth remains resilient while interest rates remain high.

• Komo strategist Kolanovic: The market's profit expectations for US stock companies in 2024 are too high

Marko Kolanovic, a strategist at J.P. Morgan Chase, pointed out that the market's expectations for double-digit profit growth for S&P 500 companies this year are too high because US companies may face the challenge of rising interest rates. “The consensus expectations for this year's earnings seem too optimistic,” the bank's chief market strategist wrote in a research report to clients on Monday. He said analysts' predictions meant that S&P 500 earnings from the first quarter to the fourth quarter would increase by 17%, and achieving this feat would require high revenue growth or significant expansion. “We're skeptical of both,” Kolanovic said.

• Bernstein reaffirms optimism that Bitcoin will return to $150,000 next year

Bitcoin recently dropped to $57,000. Bernstein's senior analyst Gautam Chhugani and analyst Mahika Sapra mentioned in a report co-authored: “Investors asked if we changed our expectations for Bitcoin to reach $150,000 and whether the price adjustments after the halving event affected our expectations. If there is an impact, then our view of Bitcoin is only more optimistic.” They expect Bitcoin's price to rise 137% from current levels.

• Hamas leaders announce agreement to cease-fire plan

The leader of the Palestinian Islamic Resistance Movement (Hamas) told the media on the evening of May 6 local time that Hamas had informed the mediators and agreed to the cease-fire plan they provided. An IDF spokesman told local media that Israel is considering Hamas's response to the cease-fire proposal and any method that might facilitate the release of those detained. However, according to reports, Israel's wartime cabinet unanimously decided to continue military action against Rafah after holding meetings and consultations.

Resumption of US stock trading

• The NASDAQ rose more than 1%, S&P recorded the biggest three-day increase in nearly half a year, and Nvidia rose nearly 4%

Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, and Tesla, most of the tech giants “Seven Sisters” closed higher; however, Apple, which had surged last Friday, retreated. Tesla rose 3.5% in early trading and closed up nearly 2%, rising for three consecutive days.

Most of the popular Chinese securities fell. Ideal Auto was up about 7% at the beginning of the market, up 4.3%; at the beginning of the trading session, NIO had an increase of more than 8% and close to 2.2%; Xiaopeng Motor closed down 0.3%; Ehang Smart rose 7.6%, and Alibaba rose nearly 0.3%, while Pinduoduo and NetEase fell more than 1%, JD fell 0.5%, and Bilibili fell 0.4%.

• Microsoft is reportedly preparing to launch a new artificial intelligence language model to compete with Google and OpenAI

According to media reports, citing sources,$Microsoft (MSFT.US)$A new internal AI language model is being trained, which is “large enough to compete with Google and OpenAI's AI language models.” According to people familiar with the matter, the new model is known as “MAI-1” within Microsoft, and Mustafa Suleyman (Mustafa Suleyman), CEO of the company's AI division, is responsible. Suleiman is the co-founder of Google DeepMind and former CEO of AI startup Inflection. Microsoft closed up nearly 2%.

• News: Apple is developing artificial intelligence chips for servers

According to the Wall Street Journal, a source said,$Apple (AAPL.US)$An artificial intelligence chip for servers is being developed. The project code name is ACDC; the server chip will focus on running artificial intelligence models. Apple closed down nearly 1% and rose nearly 1% after the market.

• Tesla is reportedly starting a new round of layoffs

According to media reports,$Tesla (TSLA.US)$A new round of layoffs has begun. Employees in several departments, including software, services, and engineering, have already received relevant emails last weekend. Earlier, Tesla announced 10% global layoffs, and the company's overcharged team was laid off by more than 500 people. Tesla closed up nearly 2%.

• Palantir's revenue for the first fiscal quarter was higher than expected and the full-year revenue guidance was raised

Application software company$Palantir (PLTR.US)$Revenue for the first fiscal quarter was US$634 million, and analysts expected US$615.8 million; adjusted earnings per share for the first fiscal quarter were US$0.08, and analysts' expectations were US$0.079 million; annual revenue guidance was raised to US$2.68 billion to US$2.69 billion, and analysts' expectations were US$2.68 billion; revenue for the second fiscal quarter was estimated to be US$649 million to US$653 million, and analysts expected US$641.2 million. Palantir closed up more than 8%, but fell nearly 8% after the market.

• Intel forms Japanese chip manufacturing automation team

$Intel (INTC.US)$Technology will be developed in collaboration with 14 Japanese companies to automate “backstage” chip manufacturing processes such as packaging. The partnership will be led by Kunimasa Suzuki, President of Intel Japan. In the next few years, the Intel-led group will set up an experimental back-end production line in Japan with the goal of full automation.

• US FAA Investigates Boeing 787 Inspection Work and Potential Record Falsification

$Boeing (BA.US)$Facing a new investigation by the American Aviation Safety Supervisory Authority relating to the inspection of the company's 787 Dreamliner and whether employees may have falsified records. The US Federal Aviation Administration (FAA) said in an announcement that Boeing voluntarily informed the FAA in April that the company may not have completed the necessary checks on the work involving the connection between the 787 wing and the fuselage.

• Lucid's loss per share for the first fiscal quarter was higher than expected

Electric vehicle manufacturers$Lucid Group (LCID.US)$The first fiscal quarter lost $0.30 per share, and analysts expected a loss of $0.25 per share; revenue for the first fiscal quarter was US$172.7 million, and analysts expected US$158.9 million; adjusted EBITDA loss for the first fiscal quarter was US$598.4 million, and analysts expected a loss of US$505.1 million; 1967 vehicles were delivered in the first fiscal quarter, and analysts expected 1,698 vehicles; and the production of electric vehicles for the first fiscal quarter remained unchanged at around 9,000 units.

Top 20 US stock turnover

Hong Kong Market Outlook

• The Beishui Wild Fortune Fund surpassed HK$5.5 billion and sold Meituan nearly HK$1 billion

On May 6 (Monday), Southbound made a net purchase of HK$5,086 billion in Hong Kong stocks today.

$TRACKER FUND OF HONG KONG (02800.HK)$,$BANK OF CHINA (03988.HK)$,$LI AUTO-W (02015.HK)$Received net purchases of HK$5,524 million, HK$579 million and HK$328 million respectively;

$MEITUAN-W (03690.HK)$,$CNOOC (00883.HK)$,$TENCENT (00700.HK)$Net sales were HK$961 million, HK$789 million and HK$566 million respectively.

• Hong Kong stocks rarely rise ten times in a row, institutional figures: expected to break out of a three-year trough

As of the close of May 6, the Hang Seng Index rose 0.55%, according to Wind data. So far, the Hang Seng Index has rarely been rising for 10 consecutive trading days. Institutional sources said that in addition to favorable policies and improved fundamental expectations, a better financial environment is also an important factor driving the rise of Hong Kong stocks. Recently, overseas capital has flowed into Hong Kong stocks, and the return of transactional capital and short selling also accounts for a certain proportion. Local and regional allocation funds have also returned. Looking ahead to the future market, institutional sources expect that the Hong Kong stock market may break out of a three-year trough period to nurture long-term fundamental restoration. The value of the strategic allocation of Hong Kong stocks is worth paying attention to.

Today's attention

Keywords: China's foreign exchange reserves in April; many Federal Reserve officials delivered speeches; Disney, Occidental Petroleum, Rivian performance

On Tuesday, in terms of economic data, data such as China's foreign exchange reserves for April and the monthly retail sales rate in the Eurozone for March will be revealed one after another.

In terms of the incident, a number of Federal Reserve officials will take turns attending the speech. These include: FOMC Voting Committee 2024, Richmond Federal Reserve Chairman Barkin; FOMC Permanent Voting Committee and New York Federal Reserve Chairman Williams; and 2026 FOMC Voting Committee and Minneapolis Federal Reserve Chairman Kashkari.

In terms of earnings, the streaming giant$Disney (DIS.US)$It will be on the pre-market list,$Occidental Petroleum (OXY.US)$,$Rivian Automotive (RIVN.US)$,$Upstart (UPST.US)$Other companies will release their latest results after the market today.

Futubull Chen read:

The main difference between a fool and a wise man is that a wise person can learn from mistakes, while a fool doesn't.
—Philip Fisher

Edit/Jeffrey