Global macro
Before market on Tuesday, three major futures indexes diverged.
Fed Governor Bowman: There are multiple upward risks to inflation outlook, and no rate cut is expected in 2024.
In her speech on monetary policy, Fed director Bowman stated that there will be no interest rate cuts expected in 2024, and the expected rate cut time will be moved to 2025. She believes that there are multiple upward risks in the inflation outlook and re-emphasizes the need to keep interest rates high for a period of time.
Yellen harshly commented on the US economy: Inflation can drop to the target of 2% next year, and recession will not occur!
US Treasury Secretary Yellen said on Monday that she does not believe the US economy will go into recession. She expects the Fed to achieve its 2% inflation target next year, faster than forecast by Fed policymakers. In addition, Yellen believes there will be no severe economic recession and said, 'I haven't seen the basis for economic downturn. I think we have a good and strong economy.'
Former US Treasury Secretary: The Federal Reserve is 'completely wrong' on its anti-inflation path!
Former US Treasury Secretary Summers heavily criticized the Fed's anti-inflation strategy on Monday, and was praised for predicting that the market and Fed policymakers exaggerate the potential number of rate cuts in 2024. Summers said that recent data showing a slowdown in inflation is to a certain extent an illusion, and that this is a trend caused by the normalization of prices after the COVID-19 pandemic - he said that the market should not expect this trend to continue.
Japanese trader: The yen may fall to 170 this time!
With a huge US-Japan interest rate differential, the yen may still have room to fall. As the potential for Fed rate cuts remains uncertain, the market's bearish sentiment towards the yen is still strong. Some traders expect the yen to continue to weaken to 170, setting a new low since 1986.
Bullish oil market! Goldman Sachs: Oil demand may not peak for another 10 years.
As international oil prices rebounded from their lows this month, Goldman Sachs sounded the rally cry for a bullish reversal again. Goldman Sachs analysts said that a possible supply shortage may emerge in the global oil market as it will take 10 more years for the oil market to reach its peak of demand. Meanwhile, oil supply from major oil-producing countries around the world may continue to decrease.
Hot news
Most growth-tech stocks are up before the market, and Nvidia is up more than 2%.
What is the potential for Apple AI replacement? JPMorgan: A year of "super cycle" is difficult to reproduce, it is more like a two-year "stair climbing".
JPMorgan analysts believe that...$Apple (AAPL.US)$During the first year of AI upgrade cycle, it will not be significantly affected by EU's Digital Markets Act, and Apple will have enough time to resolve these issues in fiscal year 2025. Because the AI upgrade cycle is more likely to show a two-year 'stair-climbing' pattern rather than a one-year 'super cycle'. In this two-year AI upgrade cycle, Apple's sales focus will be on North America for the first year, during which there will be enough time to resolve the EU issue; it is expected that the second year's focus will be on the European and Chinese markets.
Novo Nordisk is up nearly 2% before the market, and Simaglutide has been approved for long-term weight management in China.
$Novo-Nordisk A/S (NVO.US)$US stocks rose nearly 2% before the market, and are expected to hit a new historic high after opening. According to Novo Nordisk in China, the National Medical Products Administration recently approved the listing application of Novo Heng (Simaglutide Injection for long-term weight management). It is reported that Novo Heng can reduce an average of 17% (16.8 kg) of weight and bring multiple health benefits beyond weight loss to patients. The safety of which has been widely verified. In addition, on Monday local time, Novo Nordisk announced on its official website that it will invest 4.1 billion US dollars to build a plant in Clayton, North Carolina, in order to increase the supply of its heavyweight weight loss drug Wegovy, diabetes treatment drug Ozempic, and other injection drugs.
Amazon is secretly developing a competitor to ChatGPT called 'Metis' using retrieval augmented generation (RAG) AI technology to generate more responses.
According to an internal document, the technology giant in the USA is developing an AI chat tool with the internal project codenamed "Metis". Amazon hopes to compete directly with OpenAI's ChatGPT.$Amazon (AMZN.US)$It is developing an artificial intelligence chat tool with the internal project code "Metis" and hopes to compete directly with OpenAI's ChatGPT. The project will use the artificial intelligence technology of "Retrieval-Augmented Generation (RAG)", which can generate more responses.
Media and Technology Group of Trump rose more than 8% before the market, and rose more than 21% yesterday.
which rose more than 21% yesterday, rose more than 8% before the market. Last week, the company announced that it expects to receive more than $69.4 million in cash exercise warrants on June 20 and 21, 2024. According to TMTG, if all of the warrants covered by the registration statement are exercised in cash, the company can receive up to approximately $247 million.$Trump Media & Technology (DJT.US)$Last week, the company announced that it expects to receive more than US$69.4 million in cash exercise warrants on June 20 and 21, 2024. TMTG disclosed that if all of the warrants covered by the registered statement are cash-exercised, the company can receive up to approximately US$247 million.
Faraday Future fell more than 27% before the market and submitted a 40:1 stock split (i.e., stock merger) proposal. The proposed reverse stock split is intended to increase the market price of the company's common stock and reduce the risk of being delisted from NASDAQ Capital Market.
$Faraday Future Intelligent Electric Inc. (FFIE.US)$US stocks fell more than 27% before the opening. Recently, Faraday Future announced that the company has submitted a reverse stock split proposal with a ratio of up to 40:1. The proposed reverse stock split aims to increase the market price of the company's common stock to reduce the risk of being delisted from the NASDAQ Capital Market.
Bank of America: Raises Broadcom's target price to $2150 and shifts from value stock to growth stock
Bank of America Securities released a report and reiterated its "buy" rating, raising its target price from $2000 to $2150. It reflects that Broadcom will shift from a value stock to a growth stock due to the growth contribution of artificial intelligence and its cloud computing company, VMWare. The report said that based on fiscal year 2017-2023 data, Broadcom's normalized growth rate for its traditional semiconductor and software businesses is 5-10%. The bank expects that driven by AI chips and VMWare's annual compound growth rate of 24%, Broadcom's annual compound growth rate from fiscal years 2024-2026 will double to 13%.$Broadcom (AVGO.US)$Use your buy Futubull account. Target price for Broadcom has been raised to $2150 by Bank of America. It will shift from a value stock to a growth stock thanks to the growth contribution of artificial intelligence and its cloud computing company, VMWare. Next year, it is expected to have further acquisition potential. Based on fiscal year 2017-2023 data, Broadcom's normalized growth rate for its traditional semiconductor and software businesses is 5-10%. Driven by AI chips and VMWare's annual compound growth rate of 24%, Broadcom's annual compound growth rate from fiscal years 2024-2026 is expected to double to 13%.
Not to be outdone, after NVIDIA CEO Huang Renxun announced the latest AI chip iteration schedule on the evening of June 2nd, AMD CEO Su Zifeng also threw out an iteration roadmap during her speech on the morning of June 3rd before the COMPUTEX opened. The company will launch the MI325 X and Ryzen AI300 this year, the MI350 series in 2025, and the MI400 series in 2026.
Most popular Chinese concept stocks weaken before the market opening.
Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.
Reminder for US Macro Events
(All in Peking Time)
21:00 FHFA House Price Index month-on-month for April in the United States.
22:00 Conference Board Consumer Confidence Index for June in the United States.
Next day
00:00 The Fed board member, Lisa Cook, will give a speech at the Economic Club of New York.
02:10 Federal Reserve Board member, Bowman, will give a keynote speech at the Midwest Networking Symposium hosted by the St. Louis, Chicago and Kansas City Federal Reserve Banks.
04:30 API crude oil inventory for the week ending June 21 in the United States.
Editor/Somer