Hot news

• The US Markit composite PMI hit a two-year high in May. The price index rebounded, and expectations of market interest rate cuts collapsed again

The initial value of the US Markit service sector PMI reached a 12-month high in May, and the initial comprehensive PMI reached a 25-month high. Factory input prices have risen at the fastest rate since November 2022, and the prices paid and received by service providers have also increased. It's also worth noting that the latest data shows that the main driver of inflation now comes from manufacturing rather than services. Traders postponed the estimate of when the Federal Reserve will cut interest rates for the first time from November to December.

• Federal Reserve Board: It is necessary to keep interest rates high for a longer period

Atlanta Federal Reserve Chairman Bostic said that monetary policy is not as effective in slowing economic growth as in previous cycles, so it is even more necessary to maintain high interest rates for a long time to curb inflation.

• UBS raised the target level of the S&P 500 index to 5,500 points at the end of the year

David Lefkowitz, head of US equities at UBS Global Wealth Management, raised the S&P 500 target point from 5,000 points to 5,500 points at the end of the year, and set the 12-month target at 5,600 points for the first time. Lefkowitz wrote in a report on Thursday, “The current environment is still supportive, and the four key positive drivers of the stock market basically still exist: steady profit growth, declining inflation, changes in the Federal Reserve's policy, and a sharp rise in artificial intelligence investment.”

• Goldman Sachs: Hedge funds continue to bet on AI, but tech giants are no longer interested

Facing the unattainable share prices of the “Seven Sisters” of US stocks, US hedge funds are reducing their exposure to large technology stocks. According to the Goldman Sachs analyst team report, hedge funds reduced their holdings of Google, Amazon, Nvidia, Microsoft, and Meta shares in the first quarter. Among the “Seven Sisters,” only Apple was not reduced by hedge funds; instead, their holdings were increased. Despite facing a reduction in holdings, most tech giant stocks other than Tesla are still the most important holdings of most hedge funds.

• The coin industry suddenly became very popular! SEC Approves Key Documents for Spot Ethereum ETF

The US Securities and Exchange (SEC) approved plans by the New York Stock Exchange, Chicago Board Options Exchange (Cboe), and Nasdaq for a spot Ethereum ETF. The move removed a key obstacle to Ethereum spot trading in the US, but the SEC has yet to issue full approval for spot Ethereum ETFs, and approval of the issuer plan is still required.

Resumption of US stock trading

• NASDAQ and S&P dropped out after lightly hitting new highs, and Nvidia surged more than 9% against the market, and the stock price broke through $1,000

Overnight, the S&P 500 index and the NASDAQ hit new intraday record highs at the beginning of the session, then fell all the way down. Meanwhile, all 30 constituent stocks of the Dow closed down on Thursday. By the close, the S&P 500 index was down 0.74%, the Nasdaq index was down 0.39%, and the Dow Jones Industrial Average was down 1.53%.

US tech giants are basically falling. Among them, Tesla fell more than 3%, Apple fell more than 2%, Amazon and Google-A fell more than 1%, Microsoft and META fell slightly, and Nvidia rose more than 9%.

The decline in Chinese securities increased, and the Nasdaq China Golden Dragon Index fell 3.71%. NIO fell more than 8%, Xiaopeng Motors fell more than 7%, Ideal Auto fell nearly 6%, JD fell more than 4%, Alibaba fell more than 2%, and Pinduoduo reversed the market by more than 4%.

• At one point, Nvidia surged nearly 12% to a record high, and investment banks raised their target price as high as 1,350 US dollars

$NVIDIA (NVDA.US)$At one point, it surged nearly 12% to a record high. In the end, it closed up 9.32% to 1037.99 US dollars, with a total market value of 2.55 trillion US dollars. Nvidia previously announced results, Q1 revenue, profit, and Q2 guidelines that fully surpassed market expectations, and announced a “1 split 10” stock split. After Nvidia's results, investment banks raised their target prices one after another. UBS, Goldman Sachs, Barclays, etc. all raised them to 1,200 US dollars, while Jeffrey overlooked it to 1,350 US dollars.

• The second quarter continued to burn money+delivery volume stagnated, and Boeing led the decline in the Dow

$Boeing (BA.US)$Chief Financial Officer Bu said that cash consumption in the second quarter is expected to be worse than in the first quarter. At the same time, the company canceled previous statements about creating positive cash flow this year. At the same time, it said that compared with the first quarter of this year, commercial aircraft deliveries will not increase in the second quarter. By the close, Boeing closed down 7.55%, leading the decline in the Dow's constituent stocks, and is also the second-largest individual stock in the S&P 500.

• Tesla's latest impact report doesn't mention the goal of selling 20 million vehicles by 2030

On Thursday local time,$Tesla (TSLA.US)$The “2023 Impact Report” was released. Notably, the report did not mention the previously proposed annual sales target of eventually reaching 20 million units. Musk said in 2020 that Tesla hopes to sell 20 million cars a year by 2030, which is double the sales volume of Toyota, the world's largest car manufacturer. This number also appeared in the 2021 and 2022 reports. Tesla closed down 3.54% on Thursday.

• Alibaba's official announcement! Proposed issuance of US$4.5 billion convertible senior notes, due in 2031

$Alibaba (BABA.US)$An announcement was issued on the Hong Kong Stock Exchange on Thursday stating that it is proposed to issue convertible senior notes with a total principal amount of US$4.5 billion and due in 2031. Overnight, Alibaba's US stock fell more than 2%.

• Station B's first quarter revenue increased 12% year on year, and net loss increased 21.4% year on year

$Bilibili (BILI.US)$Total net turnover in Q1 in 2024 was 5.665 billion yuan, up 12% year on year; gross profit was 1.605 billion yuan, up 45% year on year; gross margin reached 28.3%, compared with 21.8% year on year; net loss was 765 million yuan, compared with 630 million yuan in the same period last year; adjusted net loss was 456 million yuan, a decrease of 56% year on year; average daily active users reached 102.4 million yuan, up 9% year on year. By the close, Bilibili had dropped more than 12%.

• Synopsys rose more than 2%, and Q2 earnings per share increased by about 26%, raising the annual performance target

Chip design software manufacturer$Synopsys (SNPS.US)$Up more than 2%, the company's second-fiscal quarter revenue was US$1,455 million, up 15% year on year; non-GAAP diluted earnings per share were US$3, up about 26% year on year. Looking ahead, Synopsys Chief Financial Officer Shelagh Glaser said it will raise full-year revenue and non-GAAP earnings per share targets.

• Gorman will step down as executive chairman of Morgan Stanley's board of directors as scheduled

$Morgan Stanley (MS.US)$James Gorman, executive chairman of the board of directors, said on Thursday that in view of the successful transition of Ted Pike, who took over as CEO this year, he will resign as executive chairman of the company's board of directors at the end of the year. Gorman stepped down as CEO of Damo at the end of last year and said he plans to serve as chairman for up to one more year after Pique takes over as CEO, and will not interfere with his work during this period.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui Sweep China surpassed HK$1.1 billion and sold Tencent over HK$200 million

On May 23 (Thursday), Southbound made a net purchase of HK$3.51 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$TRACKER FUND OF HONG KONG (02800.HK)$,$PETROCHINA (00857.HK)$Received net purchases of HK$1,128 million, HK$477 million and HK$249 million respectively;

$TENCENT (00700.HK)$,$MEITUAN-W (03690.HK)$,$CHINA MOBILE (00941.HK)$Net sales were HK$244 million, HK$115 million and HK$83.19 million respectively.

• Xiaomi Q1 revenue was 75.507 billion yuan, up 27.0% year on year

$XIAOMI-W (01810.HK)$The results for the first quarter ended March 31, 2024 were announced. The financial report showed that revenue was 75.507 billion yuan (RMB, same below), up 27.0% year on year; adjusted net profit was 6.491 billion yuan, up 100.8% year on year.

• NetEase's revenue for the first quarter of 2024 was RMB 26.9 billion, up 7.2% year-on-year

$NTES-S (09999.HK)$Revenue for the first quarter of 2024 was RMB 26.9 billion, up 7.2% year on year; adjusted net profit attributable to common shareholders was RMB 8.5 billion, compared to RMB 7.6 billion for the same period last year; gross profit of RMB 17 billion for the first quarter was estimated at RMB 16.59 billion.

Today's attention

Keywords：US one-year inflation rate forecast

On Friday, in terms of economic data, the final value of the US University of Michigan Consumer Confidence Index for May will be announced.

In terms of financial events, Federal Reserve Governor Waller delivered a speech.

In terms of financial reports,$Booz Allen Hamilton Holding Corp (BAH.US)$,$Buckle Inc (BKE.US)$Results will be announced.

In terms of IPOs, Hong Kong stocks$SUNHO BIO-B (02898.HK)$Listed today; US stocks$Harden Technologies (HAHA.US)$Launched today.

Futubull Chen read:

The price is what you pay, and the value is what you get.
—Buffett

Editor/Somer