Hot news

• US inflation expectations are starting to pick up! The vice chairman of the Federal Reserve insists on being “higher and longer”

The New York Federal Reserve announced on Monday that US consumer expectations for April both inflation and housing prices will rise at an accelerated pace, bringing bad news that inflation is heating up and suppressing the prospects for interest rate cuts. Overnight, Federal Reserve Vice Chairman Jefferson pointed out that the downward trend in inflation has weakened, and it is appropriate to keep policy interest rates in a tight range.

• Federal Reserve Survey: Consumer Inflation Expectations Rise Significantly, Labor Market and Financial Outlook Deteriorates

According to a survey report released by the New York Federal Reserve on Monday, American consumers' expectations for inflation and housing price increases rose in April, while at the same time, their views on the labor market deteriorated, highlighting the troubling situation in terms of US household finances and living costs.

• Beware of turbulent US stocks! Traders are betting that US stocks will fluctuate by nearly 1% after CPI and Nvidia's results are announced

Traders are keeping a close eye on this week's US inflation data to look for the possibility of breaking the calm in the market. According to Citi's data, according to the day's affordable interperiod trading price, the options market is betting that the S&P 500 index will fluctuate 0.9% after the release of the CPI report on Wednesday. The entire market predicts that the CPI fluctuation after the announcement this week will be the same magnitude as the day after Nvidia announced its results. The implicit fluctuation between these two is greater than the forecast after the US government released the next non-farm payrolls report on June 7.

• Copper prices hit a two-year high! Analysts warn that it has entered the overbought region

On Monday, the price of copper futures climbed to its highest closing price in more than two years, but after rising about 28% in the past three months, some analysts warned that the industrial metal had entered the overbought region. The senior market strategist at RJO Futures said that although he has a “firm and positive attitude” about the price, he also “fully” admits that copper prices are currently overbought. He noted that according to the Commodity Futures Trading Commission's Trader Commitment Report, net speculative long positions are currently close to record levels — currently at 69,000, compared to 87,000 in 2021. Highly speculative positions may be a reverse indicator.

• Bank of America strategist: If the US intervenes to boost the yen, it will bring global risks

The Bank of America said that the US may join forces with Japan to strengthen the struggling Japanese yen, which will bring widespread risks to the global financial system. Given that Japan's possible intervention to support the yen has had little effect, and the market is wary of further intervention, Bank of America strategist Alex Cohen believes that it is necessary for the US to get involved only when “the market is excessively volatile or disorderly and illiquid.”

Resumption of US stock trading

• Inflation expectations are not good for interest rate cuts. The Dow ended eight consecutive gains, and Game Station once surged over 110%

Overnight, US stocks continued to weaken after opening higher, and the three major indices closed with mixed ups and downs. The Dow Jones Index fell 0.21%, ending eight consecutive daily gains; the S&P 500 index fell 0.02%; and the Nasdaq Composite Index rose 0.29%.

In terms of individual stocks, the two major “meme stocks” (also known as retail group stocks) performed well during the day. Game Station closed up 74.40%, rising more than 110% during the intraday period, triggering multiple breakouts; AMC cinemas rose 78.35%, and at one point nearly doubled during the intraday period.

Big tech stocks had mixed feelings. Tesla rose more than 2%, Apple rose nearly 2%, Nvidia and Google C rose slightly, Microsoft and Amazon fell slightly, and Meta fell nearly 2%.

China Securities surged. The Nasdaq China Golden Dragon Index rose by 3.74%, outperforming the US stock market. Bilibili rose more than 12%, Tencent Music rose nearly 11%, NIO rose nearly 7%, Alibaba rose nearly 6%, JD and Xiaopeng Motors rose nearly 5%, Pinduoduo rose more than 3%, and Ideal Auto rose more than 1%.

• The return of “Legendary Cow Sparrow” sparked a trading frenzy, and Game Station once soared 110%

On Monday EST, Keith Gill, who once led retail investors against Wall Street, posted an image on social media X, which was his first tweet in three years. His return set off a trading frenzy in the market, and WSB shares rose across the board.$GameStop (GME.US)$It rose more than 74%, and surged more than 110% during the intraday period;$AMC Entertainment (AMC.US)$Up more than 78%,$Rivian Automotive (RIVN.US)$An increase of more than 9%,$SoundHound AI (SOUN.US)$,$Kohl's Corp (KSS.US)$An increase of more than 8%,$BlackBerry (BB.US)$An increase of nearly 7%.

• Musk-like operation: Tesla re-recruits some overcharged employees who were fired in April

On May 14, according to media reports, Musk suddenly fired nearly 500 supercharging station team employees at the end of last month. However, soon after,$Tesla (TSLA.US)$The re-employment of these employees began. Executives, including Max de Zegher, the director of the North American charging business, were among the first to be rehired. The exact number of reinstatements is currently unknown. Regarding this situation, neither Musk nor Max de Zegher responded to questions from netizens. Overnight, Tesla rose more than 2%.

• Are you still looking forward to it? Apple Vision Pro revealed to be sold globally soon

In order to reverse the weak sales situation of Vision Pro,$Apple (AAPL.US)$Ready to sell the Vision Pro headset in markets other than the US after next month's Global Developers Conference. The first batch of overseas expansion candidates may include China, France, Germany, Australia, Japan, South Korea, and Singapore. Tim Cook also previously specifically stated that Vision Pro will enter the Chinese market in 2024. Overnight, Apple rose nearly 2%.

• Meta's new AI devices are in full swing: exploring the development of AI headsets with cameras and translators

As multiple technology companies seek to develop AI wearables,$Meta Platforms (META.US)$Research and development of new AI devices has also begun. According to information, the Meta platform is exploring the development of artificial intelligence headsets with cameras, hoping this device can be used to recognize objects and translate foreign languages. However, insiders revealed that the design of the product has yet to be decided, and there are still technical and privacy issues unresolved.

• OpenAI launches faster and cheaper AI models for all users

OpenAI has unveiled a faster and cheaper artificial intelligence model to support its chatbot ChatGPT. During Monday's live event, OpenAI unveiled GPT-4O, a new big language model. The model is trained on large amounts of data from the internet, is better at processing text and audio, and supports 50 languages. The new model will target all users, not just paid users. The release of GPT-4o will shake up the rapidly developing field of artificial intelligence. Currently, GPT-4 is still the gold standard.

• Alibaba cleared site B and opened positions on Zhihu in the first quarter, and the total market value of US stock holdings fell 63%

$Alibaba (BABA.US)$According to the 13F US stock position documents submitted, Alibaba cleared 10 million shares in the first quarter$Bilibili (BILI.US)$, 8.43 million shares$Hello Group (MOMO.US)$, bought more than 1.7 million shares and opened a position$Zhihu (ZH.US)$. upholding$XPeng (XPEV.US)$und$Weibo (WB.US)$The position remains unchanged. By the end of the first quarter, Alibaba's total US stock holdings had dropped from US$421 million to US$154 million, a decrease of 63%.

• The mining industry's “Deal of the Century” has been fraught with hardships. After BHP Billiton raised the price, Anglo-American Resources once again rejected it

On May 13, according to media reports,$BHP Group Ltd (BHP.US)$reveal,$ANGLO AMERI PLC (NGLOY.US)$BHP Billiton's May 7 “mark-up” takeover proposal was rejected this Monday. BHP Billiton's initial offer for Anglo-American Resources was £31.1 billion, then increased to £34 billion, 15% higher than the original proposal, but this increased price still failed to meet the expectations of the Anglo-American Resources Group, so it rejected BHP Billiton's proposal. BHP Billiton's new proposal also requires Anglo-American Resources to sell their business in South Africa before the deal is completed, but Anglo-American Resources has indicated that it has refused to accept it.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui raised more than HK$400 million from ICBC and sold Tencent Holdings for nearly HK$500 million

On May 13 (Monday), Southbound made a net purchase of HK$8.807 billion in Hong Kong stocks.

$TRACKER FUND OF HONG KONG (02800.HK)$,$ICBC (01398.HK)$,$CHINA SHENHUA (01088.HK)$Received net purchases of HK$2,864 million, HK$451 million and HK$109 million respectively;

$TENCENT (00700.HK)$,$KUAISHOU-W (01024.HK)$,$MEITUAN-W (03690.HK)$Net sales were HK$481 million, HK$242 million and HK$238 million respectively.

Today's attention

Keywords: Tencent/Ali/Sea earnings report, US PPI monthly rate, Powell's speech

On Tuesday, in terms of economic data, the monthly rate of the US PPI will be announced.

In terms of financial events, at 22:00 Beijing time, Federal Reserve Chairman Powell and ECB Governing Council Member Nott attended a meeting and delivered a speech together.

In terms of major financial reports,$TENCENT (00700.HK)$,$BABA-SW (09988.HK)$,$Sea (SE.US)$A financial report will be issued.

Futubull Chen read:

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