Hot news

• The two vice chairmen of the Federal Reserve spoke out at the same time: they emphasized the need to be cautious about inflation trends

On Monday (May 20) local time, two senior Federal Reserve officials said that despite encouraging recent data, they are not ready to announce “another sustainable return of the inflation trend to the central bank's 2% target.” Philip Jefferson, the “No. 2 person” of the Federal Reserve, said, “The April data is encouraging, but it is still too early to judge whether the process of reducing inflation can continue for a long time.” Vice Chairman Michael Barr said, “The inflation data for the first quarter of this year was disappointing, but these results did not provide confidence to support a loose monetary policy.”

• The rise is like a rainbow! Wall Street banks quickly raised the target price of the S&P 500 index to a maximum of 5,600 points

A new high in US stocks caught Wall Street's top strategists by surprise, prompting many to quickly revise their year-end S&P 500 targets to adapt to gains that far exceeded expectations earlier this year. So far, at least 11 major Wall Street banks have raised their year-end S&P 500 forecasts. In the past week alone, BMO Capital Markets and Deutsche Bank raised their 2024 targets to 5,600 points and 5,500 points, respectively.

• The commodity carnival continues: Luntong reached a record high, silver fluctuated wildly, and iron ore continued to rise

According to the official closing price of the London Metal Exchange (LME) on Monday, gold and copper prices once again reached record highs yesterday, driving industrial metals and black products to rise together. Among them, the closing prices of LME zinc and lead also rose more than 2% on Monday. Meanwhile, gold and silver continued to fluctuate widely, and iron ore futures, which are closely related to China's real estate demand, also rose to a new high of nearly three months on Monday.

• The US Securities Regulatory Commission changed its attitude and may approve the first Ethereum ETF

On Monday, Bloomberg analyst Eric Balchunas wrote that he had increased the chance of spot Ethereum ETF approval from 25% to 75%. He said he has heard rumors that the US Securities and Exchange Commission (SEC) may make a 180-degree shift on this issue. However, this is a 19B-4 document for VanEck due on May 23, and currently requires approval of the S-1 document. The price of Ethereum has surged more than 8% over the past hour to reach the level of $3,400. Meanwhile, the price of Bitcoin is close to $70,000.

Resumption of US stock trading

• The Nasdaq index rebounded to new record highs. Nvidia rose 2.5%, and dropped nearly 13% after Ideal Auto Performance

Last night and this morning, the NASDAQ index continued to hit a record high, while the Dow closed down due to drag down by J.P. Morgan Chase and Cisco, and the S&P 500 index closed slightly higher. By the close, the S&P 500 was up 0.09%, the NASDAQ was up 0.65%, and the Dow Jones Industrial Average was down 0.49%.

Tech giants had mixed ups and downs. Among them, Apple rose 0.62%, Microsoft rose 1.22%, Amazon fell 0.63%, META fell 0.65%, Google-A rose 0.49%, Tesla fell 1.41%, and Nvidia rose 2.49%.

The Nasdaq China Golden Dragon Index fell 1.65%, Alibaba fell 0.29%, Baidu fell 1.55%, Pinduoduo rose 0.4%, JD fell 1.47%, NetEase fell 0.23%, NIO fell 1.14%, Ideal Auto fell 12.78% after the financial report was released, and Xiaopeng Auto fell 0.24%.

• Microsoft's AI PC is fully “shining a sword”! Copilot integrated into Windows 11, GPT 4o “soon” supported

Windows 11 AI PC starts June 18th$Microsoft (MSFT.US)$und$Dell Technologies (DELL.US)$,$LENOVO GROUP (00992.HK)$Launched on partner devices one after another, it is 58% faster than the M3-equipped MacBook Air, and the computation time is 40+ TOPS/second; the new function Recall helps find content viewed on a PC and provides real-time subtitles translated in more than 40 languages, including Chinese. The new Copilot+ Surface Pro starts at $999 and domestic sales start at 8688 yuan. According to Mehdi, GPT-4O, the latest flagship AI model launched by OpenAI last week, will soon support Copilot.

• Dell launches new AI computer, Qualcomm chip, Nvidia: Partnering with Dell is the key to expanding AI

$Dell Technologies (DELL.US)$At the annual conference, a series of new personal computer products focused on optimizing AI tasks were unveiled. The new computer is equipped with a Qualcomm AI chip and can summon Microsoft's AI Copilot service with one click. Dell and$NVIDIA (NVDA.US)$A strategic partnership was reached to make it easier for enterprises and government agencies to use AI technology by providing a complete AI infrastructure, thereby bringing generative AI technology to every company around the world and helping Dell and Nvidia grow their business. Nvidia says collaboration with Dell is the key to expanding AI.

• Wall Street is betting on Nvidia's impressive Q1 earnings report, and the bullish target price points directly at $1,100

Wall Street bets$NVIDIA (NVDA.US)$The US stock market will release a quarterly report that exceeds expectations after the Wednesday session. The AI chip maker is expected to maintain explosive growth and stay ahead of competitors. Among them, Barclays analyst Brian Curtis rated Nvidia as “overweight” and raised the target share price from $850 to $1,100.

• A Wall Street dude's latest statement triggered J.P. Morgan Chase to drop more than 4%

$JPMorgan (JPM.US)$CEO Jamie Dimon told shareholders at the company's Investor Day event on Monday that there will be no large share buybacks at current prices, but will be more active when stock prices fall. J.P. Morgan Chase's stock hit a record high last week and continued to dive due to this statement, closing down 4.5% on Monday. Regarding the shift plan, Dimon also stated that “it is progressing smoothly,” and emphasized that “it depends on the board of directors.”

• Apple's Chief Operating Officer Visits TSMC to Target State-of-the-Art Process Production Capacity

Based on multiple media reports,$Apple (AAPL.US)$Chief Operating Officer Jeff Williams recently paid a low-key visit$Taiwan Semiconductor (TSM.US)$to ensure the first batch of production capacity for the 2nm process that will be “packaged” and will soon be launched. According to reports, Apple is developing chips for its internal servers to handle some of the powerful artificial intelligence workloads that will be unveiled at the developer conference to be held at the end of this month.

• US pharmacy Hims & Hers announced that it will provide an affordable version of the GLP-1 complex at a price 85% lower than Nord and Nord

American pharmacy startup$Hims & Hers Health (HIMS.US)$Health closed up 27.66% on Monday. The company announced on Monday that it will launch a semeglutide complex, starting at $199 per month. In a horizontal comparison, Novo Nordisk Wegovy, which uses the same ingredients, sells for at least 1,350 US dollars per month, and Novartis also costs more than 900 US dollars, which means that the price is 85% lower than Novo and NORD. In the future, an oral weight loss complex drug of $79/month will also be launched.

• Ideal US stocks fell by nearly 13%, Q1 revenue increased 36% year over year, and Q2 delivery guidelines fell short of expectations

Before the US stock market on May 20,$Li Auto (LI.US)$Announcement of financial results for the first quarter ended March 31, 2024. Financial data showed a year-on-year increase of 36.4% and a year-on-month decrease of 38.6%. Ideal Auto expects second-quarter revenue growth of 4.2%-9.4% year-on-year, with an estimated delivery volume of 105,000 to 110,000 vehicles, compared to the market estimate of 130,692 vehicles. Ideal intraday fell by more than 16%, the biggest intraday decline in 19 months, and closed down nearly 13%.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui continues to increase the Bank of China's holdings by nearly HK$800 million and sells more than HK$600 million in Xiaomi

On May 20 (Monday), Southbound made a net purchase of HK$2.49 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$CCB (00939.HK)$,$SUNAC (01918.HK)$Received net purchases of HK$793 million, HK$592 million and HK$184 million respectively;$XIAOMI-W (01810.HK)$,$MEITUAN-W (03690.HK)$,$CHINA MOBILE (00941.HK)$Net sales were HK$637 million, HK$455 million and HK$338 million respectively.

• Ideal Auto's Q1 net profit fell by more than 30%

$LI AUTO-W (02015.HK)$Total revenue for the first quarter was 25.6 billion yuan, up 36.4% year on year; net profit was 591 million yuan, down 36.7% year on year; adjusted net profit was 1,276 billion yuan, down 9.7% year on year. Vehicle sales revenue during the period was 24.3 billion yuan, an increase of 32.3% over the previous year.

• Ctrip's Q1 net profit increased 28% year over year

$TRIP.COM-S (09961.HK)$Net revenue for the first quarter was 11.9 billion yuan, up 29% year on year; net profit was 4.3 billion yuan, up 28% year on year.

Today's attention

Keywords: Xiaopeng Motors earnings report, speeches by several Federal Reserve officials

On Tuesday, in terms of financial events, US Treasury Secretary Yellen & ECB President Lagarde & German Finance Minister Lindner delivered a speech; Richmond Federal Reserve Chairman Barkin delivered a welcome speech at an event; Federal Reserve Governor Waller delivered a speech on the US economy; New York Federal Reserve Chairman Williams delivered an opening address at an event; Atlanta Federal Reserve Chairman Bostic delivered a welcome speech at an event; and Federal Reserve Governor Barr attended a fireside conversation.

In terms of financial reports,$XPeng (XPEV.US)$A financial report will be issued.

Futubull Chen read:

When trading is lost, don't gambler-style increase in order to try to reduce costs.
—William Gann

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