Hot news

• The Fed Beige Book: The US economy grew slightly and inflation cooled down.

According to the Fed's Beige Book survey, the US economy grew at a small pace in the third quarter, with activity in some districts flat or declining. According to a report released on Wednesday, employment also increased only slightly. Labor mobility declined, and several district business contacts expect to be more selective when recruiting, not filling all vacant positions. Most districts saw wages grow slowly or moderately, while overall price growth remained moderate. Consumer spending was almost unchanged, and virtually every district mentioned retailers discounting or consumers buying only essential goods.

• Fed director Warl: Time for a rate cut is "getting closer".

Federal Reserve Board Governor Lael Brainard said on Wednesday that the time for a Fed rate cut was "getting closer," but uncertainty over economic trends was making it unclear when a rate cut might occur. Brainard noted that economic growth is currently advancing at a "more modest pace," the job market is more balanced, and inflation has also moderated. He said that the "most optimistic" scenario was that the possibility of continuing steady downward pressure on inflation was "significant but not high," and in that scenario, "I could imagine cutting interest rates in the not-too-distant future."

• Amid the stock market slump, Goldman Sachs analyst Scott Rubner said it was time for summer adjustment! It's not a good time to buy now.

Goldman Sachs analyst Scott Rubner said on Wednesday, "I wouldn't buy at this point," throwing out a blunt view that the S&P 500 has no way to go but down next. Rubner noted in the memo that, according to data since 1928, July 17 usually marked a turning point in U.S. stock returns. The following August was typically the worst month for passive investment and mutual fund outflows. Goldman's trading team has insisted since early June that the index is on the edge of a summer adjustment due to seasonal weakness, market position and all positive news already digested by the market.

• Bank of America: Broad market breadth of US stocks is improving, bullish signals!

Bank of America points out that the breadth of the US stock market is improving, which is a bullish signal. According to Dow Jones market data,$Russell 2000 Index (.RUT.US)$closed at its highest level since January 2022 on Tuesday and has risen for five consecutive days. At the same time, the advance-decline line of the S&P 500 index has reached a new high, confirming the summer rally at around 5,600 points, Suttmeier said. The advance-decline line is an indicator of market breadth that takes into account the number of rising and falling stocks.

• Biden: Will consider withdrawing if health problems arise.

According to The New York Times, President Biden said in an interview that if doctors directly told him his health was a problem, he would reassess whether to continue running for president. The comment is the latest in a series of back-and-forth explanations for why he might reconsider. Biden also said for the first time that he originally wanted to "get out" of the presidency and give it to someone else, but he decided to run again because he believed his "wisdom" and experience would help heal the country's growing divisions.

• Citi: Trump's return may put pressure on oil prices.

Citigroup's analysts said in a report that President Trump's second term may have a negative impact on crude oil prices. "The ceasefire between Russia and Ukraine may ease concerns about oil and gas supplies, and the warming of US-Saudi relations may allow OPEC+ to return some idle oil capacity to the market," they said in a report. "US oil and gas production may be stronger than before."

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

• US stocks diverge, the Dow hits new highs, and the Nasdaq suffers its worst daily decline since the end of 2022.

As of Wednesday's close, the S&P 500 index fell 1.39% to 5588.27 points, the Nasdaq fell 2.77% to 17996.92 points, marking the largest single-day decline since December 2022, and the Dow Jones index rose 0.59% to 41198.08 points, continuing to hit new historical highs.

Most tech giants suffered heavy declines, with Apple down 2.53%, Microsoft down 1.33%, Amazon down 2.64%, META down 5.68%, Google-A down 1.58%, Tesla down 3.14%, Nvidia down 6.64%, Intel up 0.35%, Qualcomm down 8.61%, and AMD down 10.21%. The seven giants collectively lost a daily market cap of about USD 580 billion (approximately CNY 4.21 trillion).

Chinese concept stocks fell, and the Nasdaq Golden Dragon Index in China fell 1.86%. Alibaba fell by 1.71%, Baidu fell by 2.82%, PDD Holdings fell by 2.96%, JD.com fell by 0.81%, NetEase fell by 0.03%, NIO Inc fell by 6.33%, Li Auto Inc fell by 2.82%, and Xpeng fell by 3.91%.

• Chip stocks collectively plummeted, with Nvidia falling nearly 7%, AMD falling over 10%, and ASML Holding falling nearly 13%.

The US government's trade policy risk has put special pressure on the semiconductor sector in the technology industry. According to reports, the US government is considering implementing stricter trade control measures to prevent some technology companies including Nvidia from providing technology to certain countries. Wednesday$NVIDIA (NVDA.US)$They fell nearly 7%.$Advanced Micro Devices (AMD.US)$Fall by more than 10%.$ASML Holding (ASML.US)$fell nearly 13%.

• "Wood sister": Robotaxi will become a major catalyst, making Tesla's stock price soar 10 times.

Ark Invest founder Cathie Wood said that building an autonomous taxi platform will be a catalyst for its stock price to rise by about 10 times, repeating her bullish view on Tesla's business over the years. Wood described the autonomous taxi ecosystem as an "$8 trillion to $10 trillion global revenue opportunity" and believes that platform providers including Tesla will be able to capture up to half of it.$Tesla (TSLA.US)$"Wood Sister": Robotaxi will be a major catalyst, driving up Tesla's stock price tenfold.

• President Trump said that banning TikTok will let Zuckerberg profit from it, and Meta fell nearly 6%.

US Republican presidential candidate Trump reiterated in an interview that he has no plans to ban TikTok, and he will support TikTok, because banning TikTok will only make$Meta Platforms (META.US)$Democratic presidential candidate Trump reiterated in an interview that he did not plan to ban TikTok, but would support the app since banning TikTok would only allow Zuckerberg to fish. Trump pointed out that banning TikTok in the United States would benefit the company and CEO he did not want to reward.

• The online sales on the first day of Amazon's Prime Day event were approximately $7.2 billion in the United States.

According to a report, the risk of US government trade policy has put the semiconductor sector in the technology sector under special pressure. The US government is considering implementing stricter trade control measures, including stricter export controls, to prevent some technology companies from providing technology to specific countries, including Nvidia.$Amazon (AMZN.US)$Major retailers including Target offered discount shopping activities throughout July to compete with Amazon's sales event.$Walmart (WMT.US)$And.$Target (TGT.US)$According to a report, the risk of US government trade policy has put the semiconductor sector in the technology sector under special pressure. The US government is considering implementing stricter trade control measures, including stricter export controls, to prevent some technology companies from providing technology to specific countries, including Nvidia.

• Meta will not provide new multimodal AI models in the European Union.

$Meta Platforms (META.US)$In a statement, they said they will release a multimodal Llama model in the coming months, but because of the unpredictability of the European regulatory environment, it will not be released in the European Union. This move has set a trap between Meta and European regulatory agencies and highlights the increasing number of US tech giants choosing to refuse to provide products to European customers.

• Johnson & Johnson rose more than 3%, exceeding expectations for the second quarter report.

$Johnson & Johnson (JNJ.US)$The second-quarter company's adjusted earnings per share were $2.82, and its revenue was $24.45 billion. Analysts predicted earnings per share of $2.70 and revenue of $22.31 billion. The company also announced that its full-year adjusted earnings per share guidance has been lowered to between $9.97 and $10.07.

• The financial report exceeded expectations, and UnitedHealth rose more than 4%.

$UnitedHealth (UNH.US)$In Q2 2024, revenue was $98.86 billion, compared to $92.903 billion in the same period last year, and the market expected $98.83 billion. Adjusted EPS was $6.8, higher than the market expected $6.63. The company still expects full-year adjusted EPS to be between $27.5 and $28.

• Airfare prices have fallen for four consecutive months! TD Cowen downgraded the rating of American Airlines to "hold".

Data compiled by the US Transportation Statistics Bureau shows that airfare prices fell by 5.0% month-on-month in May, continuing the 3.6% decline in April. Airfare prices have fallen for four consecutive months. TD Cowen downgraded its rating from "buy" to "hold" and lowered its target price from $16 to $10. Analyst Thomas Fitzgerald said that recent heavy discounting by airlines such as American Airlines is expected to impact revenue.$American Airlines (AAL.US)$The transaction amount TOP20 | Chip stocks fell across the board! AMD, ASML fell more than 10%; UnitedHealth rose sharply for two consecutive days after its performance report, and its target price was significantly increased by institutions.

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.

They were respectively net purchased HKD 1.221 billion, HKD 0.108 billion and HKD 84.11 million;

$TENCENT (00700.HK)$,$PING AN (02318.HK)$,$CCB (00939.HK)$They were respectively net sold HKD 1.18 billion, HKD 0.322 billion and HKD 0.215 billion.

$TRACKER FUND OF HONG KONG (02800.HK)$,$CNOOC (00883.HK)$,$PETROCHINA (00857.HK)$——[US] Benjamin Graham

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.

Keywords: Taiwan Semiconductor, Netflix performance; U.S. initial jobless claims; European Central Bank interest rate decision.

On Thursday, economic data includes the initial jobless claims in the U.S. for the week ending July 13th, the July Philadelphia Fed Manufacturing Index, and the monthly rate of the June Conference Board Leading Indicators.

Regarding financial reports,$Taiwan Semiconductor (TSM.US)$Financial report will be released today;$Netflix (NFLX.US)$,$Intuitive Surgical (ISRG.US)$Performance will be released after post-market trading in the U.S.;

Futubull Morning News:

Choosing to bet on your own predictions for the future, or choosing to protect yourself from losses due to forecasting errors? We suggest the latter.

- Benajmin Graham, US

Editor/Emily