1. Nvidia had a disappointing finish after a strong opening that lasted only one day as the "Global Stock King"; 2. Huang Renxun continued to disclose his plan to sell stocks; 3. Gilead's long-acting HIV prevention drug showed strong results and the stock price surged over 8%; 4. Piper Sandler listed AMD as the preferred large chip stock for the second half of the year.
On June 21st, Cailian News (editor, Shi Zhengcheng) reported that the Nasdaq and S&P 500 indexes only briefly touched the historic highs after opening yesterday and this morning before entering a full-day pullback state.
At the close of business, the S&P 500 index, which had once hit the 5500 mark, fell 0.25% to 5,473.17 points, the Nasdaq fell 0.79% to 17,721.59 points, and the Dow Jones Industrial Average rose 0.77% to 39,134.76 points. Many "technical analysis" investors were unsettled by the fact that both the Nasdaq and the S&P have shown an "outside day" or commonly known as a "reversal" - today's candle fully engulfing the previous trading day's candle, which has a more pronounced impact after a continuous upward trend.
(Nasdaq daily chart, source: TradingView)
(S&P 500 index daily chart, source: TradingView)
The most typical trend among the stocks on the rise in this round of global stock market is NVIDIA. It went from being up nearly 4% to eventually closing down more than 3%, also giving up the position of "world's most valuable company" it had held for just one day to Microsoft.
(Nvidia daily chart, source: TradingView)
Leo Nelissen, an analyst at BN Capital, commented that today was a typical day of profit-taking. Funds within the market flowed from growth stocks to value stocks, particularly energy stocks, as international oil prices showed a bullish trend again. Interestingly, in the past three months, the top ten components of the S&P 500 index have risen an average of 17%, while the remaining stocks have fallen an average of 1.3%. Currently, the degree of concentration in the index is so high that the weakness of some "big companies" can cause the index to fall, but it won't cause a widespread decline in stock prices.
Andrew Thrasher, an analyst at Financial Enhancement Group, vividly describes the current market as "sellers entering the market while bulls dance on a knife's edge." He said that almost everything now depends on NVIDIA and Apple, and there aren't many factors that could cause the market to fall.
The market's movement on Thursday may also be related to the appearance of the "Triple Witching Day" on Friday. According to statistics, there are approximately $5.5 trillion worth of U.S. stock index, individual stock, and ETF options expiring this Friday. tomorrow's close is also the day when the S&P and Dow Jones indices adjust their weightings every quarter, and a lot of ETFs that track the index will also adjust their holdings.
Popular stocks performance
On Thursday, tech giants on the U.S. stock market had mixed performance, with Apple down 2.15%, Microsoft down 0.14%, Amazon up 1.8%, META up 0.44%, Google-A up 0.69%, Tesla down 1.78%, NVIDIA down 3.54%, and Intel down 0.03%.
Chinese concept stocks have been weak, with the Nasdaq Golden Dragon China Index down 1%. Alibaba was down 0.15%, Baidu was down 2.27%, Pinduoduo was down 0.03%, JD.com was down 1.27%, NetEase was up 0.99%, Nio Inc. was down 2.26%, Li Auto Inc. was down 1.74%, and Bilibili was up 5.38%.
Other news
[Gilead's long-acting AIDS drug shows super-positive results]
U.S. biopharmaceutical company Gilead Sciences announced on its website Thursday that its research and development of "Lenacapavir" showed 100% effectiveness in preventing HIV. The result also drove the company's stock price up by 8.46%.
More than 5,300 test subjects were randomly assigned in a 2:2:1 ratio to receive Lenacapavir, Descovy, and Truvada for HIV pre-exposure prophylaxis (PrEP). Descovy and Truvada are both taken orally once a day, while Lenacapavir is an injection taken every six months.
The results showed that there were no cases of HIV infection among the 2,134 women in the Lenacapavir group. In the Truvada group of 1,068, there were 16 cases of HIV infection, with an incidence rate of 1.69 cases/100 people; in the Descovy group of 2,136, there were 39 cases of HIV infection, with an incidence rate of 2.02 cases/100 people.
[High Qualcomm stock fell more than 5% after the first AI PC went on sale]
As of Thursday's close on the U.S. stock market, Qualcomm fell more than 5% in one day, dowsing both its own negative news and the poor overall performance of the chip industry. The company launched a laptop computer with the Snapdragon X Elite chip this week, but software compatibility issues quickly became apparent. At the same time, with Apple's release of the M4 chip last month, Qualcomm's emphasized performance advantages have become somewhat awkward.
[Denmark's Zealand achieves 8.6% weight loss in 16 weeks with new drug]
On Thursday local time, Danish biotechnology company Zealand Pharma announced that its long-acting amylin analog petrelintide being developed has achieved positive top-line results in Phase Ib trials. The high-dose group of participants had an average weight loss of 8.6% from baseline over 16 weeks, while the placebo group for comparison only had a 1.7% decrease. Additionally, compared to GLP-1 drugs, amylin analogs have fewer side effects for weight loss. Influenced by this news, Zealand rose more than 10% in after-hours trading on the U.S. stock market on Thursday.
Hwang Renxun is continuing to sell his shareholding.
According to the 144 documents submitted by Nvidia CEO Hwang Renxun after Thursday's close, he sold 120,000 shares of Nvidia's stocks again on Monday and Tuesday respectively and announced that he is expected to sell another 120,000 shares on Thursday. Based on Nvidia's price, 120,000 shares approximately equal to 15-16 million U.S. dollars, which means that Hwang Renxun will withdraw close to 80 million U.S. dollars in the past two weeks.
On Thursday, American chip company AMD rose 4.62% against the trend. In terms of news, the hacking incident that the company suffered did not have an impact on its stocks. In addition, renowned investment bank Piper Sandler reiterated its buy rating on the semiconductor company and listed it as the preferred large chip stock for the second half of the year. Analyst Harsh Kumar pointed out that the company has a bright outlook for the second half of 2024, and GPU supply has also improved.
According to product structure, in 2023 the operating income of products of 10-30 billion yuan are respectively 401/1288/60 million yuan. The company's overall sales volume in 2023 is 18,000 kiloliters, which is a significant growth of 28.10% compared to the previous year.