Hot news

• Possible rate cuts? Federal Reserve Board member Cook: Inflation control has seen the dawn.

On Tuesday (June 25) local time, Fed board member Lael Brainard said that it was appropriate to lower policy restrictions at some point to maintain a healthy balance of the economy as labor market cooled gradually with significant progress being made in terms of inflation. She expected inflation to gradually improve this year and see faster progress by 2025. Product structure, operating income of 10-30 billion yuan products amounted to 0.401/1.288/0.06 billion yuan respectively.

• Fed board member Bowman: there are multiple upward risks to inflation and no interest rate cut expected this year.

Bowman believes that the 'lowering inflation' factors such as improved supply chains and the surge in labor supply brought by immigration are unlikely to continue. In addition, geopolitical, fiscal stimulus, and relaxed financial environment are additional potential risks to inflation. The Fed may postpone the interest rate cut until 2025. Bowman expressed an open attitude towards raising interest rates when necessary, stating that if the progress of declining inflation stagnated or even turned upward, she would still be willing to raise interest rates.

• The US June Conference Board Consumer Confidence Index fell, and recent economic prospects were weaker.

The US Conference Board announced that consumers' short-term expectations for US business conditions, labor markets, and personal/household incomes fell, hovering near a 10-year low. Only 12.5% of respondents expect business conditions to improve in the next six months, a new low since 2011.

• 16 Nobel laureates in economics stated that Trump's policies will exacerbate inflation.

Sixteen Nobel laureates in economics signed a letter on Tuesday warning that if Republican presidential candidate Donald Trump wins the US presidential election in November, the US and world economies will be affected. Economists say that Trump's economic plan will rekindle inflation, partly because he promises to impose tougher tariffs on imported products, which they say will push up prices of many goods purchased by American consumers.

• As the financial reporting season approaches, Deutsche Bank warns that the "silent period" may lead to a short-term pullback in the US stock market.

Deutsche Bank strategists warned this week that as the earnings season approaches, the share buyback entering the "quiet period" may lead to a short-term pullback in the S&P 500 and Nasdaq Composite Index after reaching historical highs. Most listed companies have a quiet period policy that prohibits trading stocks in the last two weeks before the end of the quarter until one or two days after the financial report is released.

• Natixis: As the Fed rate cut approaches, the S&P 500 index will maintain the 'buy on dips' mode.

French industrial bank believes that as the Fed approaches a rate cut, investors may continue to flock to US stocks as signs of a pullback appear, and expects the Fed's easing cycle to begin in early 2025. Manish Kabra, director of strategy for BNP Paribas' US stocks, and other strategists predict that despite the s&p 500 index's year-to-date gain of 15%, the index is expected to maintain a "buy on dips" strategy, with the next round of gains approaching the Fed's rate cut cycle.

• JPMorgan fund remains Bullish on Asian chip stocks: with valuations far lower than their USA counterparts, there is still potential for growth.

Oliver Cox, a well-known fund manager at JPMorgan, said that the expected PE ratio of Asian chip companies is about 17 times, much lower than their American counterparts, and the difference in valuation between the two is the largest since 2009, indicating that there is still room for growth in Asian chip stocks.

Gamestop's surge has dramatically narrowed, with the trading platform considering unplugging the internet of US retail investors.

• S&P, NASDAQ stopped declining for three consecutive days, and all seven giants of US stocks rose while Nvidia soared nearly 7%.

The three major US stock indexes closed mixed, with the Dow down 0.76%; the Nasdaq up 220.83 points, or 1.26%; and the S&P 500 index up 0.39%.

Popular tech stocks rose across the board, with Amazon up 0.41%, Microsoft up 0.73%, Apple up 0.45%, Google up 2.68%, Meta up 2.34%, and Tesla up 2.61%.

Most popular China stocks fell on the Chinese concept stock NASDAQ Index, down 1.29%. Vipshop fell more than 3%, while Bilibili, JD.com, Futu Holdings, and Weibo all fell more than 2%, and Nio, Manbang, Alibaba, and Pinduoduo all fell more than 1%.

• Returning to the $3 trillion club! Famous investors support Nvidia, saying there is no need to worry about overvaluation.

$NVIDIA (NVDA.US)$It rose by 6.76% to $126.09 on Tuesday, ending three consecutive days of decline. The latest market value was $3.1 trillion, which increased by $196.3 billion overnight (approximately RMB 1.4 trillion). In the eyes of Steven Eisman, senior investment portfolio manager at Lombard, Nvidia's market value fell by $430 billion in three days, which is not a big deal. He said he holds 'a lot' of Nvidia stocks and sees it as a long-term investment that will make sense in the coming years.

• The Royal Bank of Canada lowered the second-quarter delivery expectation of Tesla by 23%.

Tom Narayan, an analyst at the Royal Bank of Canada Capital Markets, lowered the second-quarter delivery expectation from 533,000 to 410,000 vehicles. This analyst stated that the estimate was lowered based on signals released through registration data and application downloads, indicating strong performance at the end of this quarter in the US and Europe. It is expected that Tesla will announce its delivery status in the first week of July. Maintain an 'outperform' rating with a target price of $227.$Tesla (TSLA.US)$The US National Highway Traffic Safety Administration (NHTSA) disclosed a recall announcement on Tuesday,

• Tesla announced the recall of 23,000 Cybertruck models in the United States.

On Tuesday, the National Highway Traffic Safety Administration (NHTSA) released a recall notice.$Tesla (TSLA.US)$Tesla will recall a total of 11,688 Cybertrucks of the 2024 model year. The reason for the recall is that excessive electric current can cause the front windshield wiper motor controller to malfunction, causing reduced visibility and increased collision risk. Tesla's after-sales service department will replace the wiper motor for free. In addition, because the trapezoidal decorative panel on the rear hatch may be improperly glued and has a risk of falling off, Tesla will also recall 11,383 Cybertrucks of the 2024 model year.

• Novo Nordisk's semaglutide for the treatment of obesity has been approved in China, and the stock price has hit a new record high.

$Novo-Nordisk A/S (NVO.US)$On Tuesday, it announced that its star weight-loss drug semaglutide has been approved in China for long-term weight management, especially for patients with obesity and weight-related comorbidities. Novo Nordisk claims that this is the world's first and currently the only long-acting glucagon-like peptide-1 receptor agonist (GLP-1) weekly preparation for long-term weight management, which can achieve an average weight loss of 17% (16.8 kg) and bring multiple health benefits beyond weight loss to patients. Its safety has been widely verified. Novo Nordisk rose more than 3% on Tuesday and hit a new record high.

• Eli Lilly and Company collaborates with OpenAI to develop new antibiotics.

On Tuesday local time, the US pharmaceutical giant$Eli Lilly and Co (LLY.US)$Announced that it has reached a cooperation with OpenAI to use its generative artificial intelligence (AI) to develop new antibiotics. Diogo Rau, Chief Information and Digital Officer of Eli Lilly, stated that generative AI provides a new opportunity to help researchers accelerate the discovery of new antibiotics, and develop specific techniques in the fight against resistant bacteria. The cooperation between the two companies will help solve major global health challenges faced by people around the world.

• FedEx soared nearly 14% after hours, with annual profit guidance exceeding expectations.

$FedEx (FDX.US)$Soared nearly 14% after hours to $292.558. FedEx's fourth-quarter adjusted EPS was $5.41, higher than analysts' expectations of $5.34. The fourth-quarter revenue was $22.1 billion, in line with analysts' expectations. It is expected to repurchase $2.5 billion in shares in fiscal year 2025. The adjusted EPS in fiscal year 2025 is expected to be $20-22, with analysts' expectations of $20.85.

• Rivian receives $5 billion investment from Volkswagen, with a stock price surge of more than 50% after hours.

"Tesla's rival"$Rivian Automotive (RIVN.US)$Soared more than 50% after hours on news that Rivian and Volkswagen plan to form a joint venture for the next generation of electric vehicles. Volkswagen holds a $1 billion stake in the company and plans to invest $5 billion by 2026.

• It is reported that Spirit AeroSystems Holdings is planning to acquire its major supplier Asco Industries in the form of stock at a price of about $35 per share.

According to people familiar with the matter cited by the media,$Boeing (BA.US)$It has proposed to acquire its major supplier Spirit AeroSystems Holdings, Asco Industries ($Spirit Aerosystems (SPR.US)$), mainly with stock rather than cash. The price of $35 per share represents a premium of approximately 6% over Spirit AeroSystems' closing price on Monday, with a total transaction value of $4.1 billion.

If you want to play this game, you must believe in yourself and your judgment.

BeiShui crazily bought China Mobile for nearly HKD 1.8 billion and sold Tencent for about HKD 200 million. On Monday (June 3rd), Southbound funds net purchased HKD 3.4 billion of Hong Kong stocks.

• Beishui continues to increase holdings of China Construction Bank by nearly 400 million Hong Kong dollars, and sell nearly 500 million Hong Kong dollars of CNOOC.

On Tuesday, Southbound funds bought net HK$323 million of Hong Kong stocks.$CCB (00939.HK)$, $ICBC (01398.HK)$, $MEITUAN-W (03690.HK)$They respectively received a net purchase of HK$388 million, HK$293 million, and HK$171 million;

$TRACKER FUND OF HONG KONG (02800.HK)$, $CNOOC (00883.HK)$, $CHINA SHENHUA (01088.HK)$Net sales of HKD 582 million, HKD 475 million and HKD 163 million, respectively.

• Buffett reduced his holding position in BYD Company and the shareholding ratio fell to 5.99%

Berkshire Hathaway, which is owned by Buffett, reduced its shareholding.$BYD COMPANY (01211.HK)$and its position fell from 6.18% to 5.99%

• Fast fashion brand UR is reportedly considering going public in Hong Kong.

According to Bloomberg, Guangzhou fast fashion group Urban Revivo Fashion is considering going public in Hong Kong. Insiders revealed that the company is discussing potential stock issuance plans with advisors to raise at least $100 million (approximately RMB 700 million) in funding, but these discussions are still in the preliminary stage and the company may decide not to go public.

The company's overall sales volume in 2023 was 18,000 kiloliters, with a year-on-year increase of 28.10%, indicating significant growth. In terms of product structure, the operating income of products worth 10-30 billion yuan were 401/1288/60 million yuan respectively.

Wednesday, June 26th

Keywords: API and EIA crude oil data; Speech by Fed Director Bowman; Speech by Fed Director Lael Brainard.

On Wednesday, in terms of economic data, EIA and API crude oil data will be released. Investors should pay close attention to the impact of this data on commodities and petroleum shares.

In addition, the US May new home sales annualized total will also be released.

In terms of economic events, Nvidia shareholders' meeting will be held at 9am Pacific Time on Thursday, June 26th (12am Beijing Time on June 27th).

Fed Director Bowman will give a keynote speech at the Midwest Network Seminar, sponsored by the St. Louis, Chicago and Kansas City Federal Reserve Banks, on monetary policy and banking capital reform. Fed Director Lael Brainard will speak at the New York Economics Club.

On the heavy financial report side,$Micron Technology (MU.US)$Will release its financial report after the Eastern Time market closes on June 26th.

Futubull Morning News:

Always follow the rules of your investment plan, which will strengthen good self-control!

- Bernice Cohen

Editor/Emily