1. The US stock "sector rotation" has stopped, with the Dow ending its previous "six consecutive gains"; 2. Former US President Trump will deliver a keynote speech at the Republican National Convention on Friday morning Beijing time; 3. Guo Mingchi: Apple may not have increased orders for the iPhone 16; 4. Broadcom is discussing developing new AI server chips with OpenAI.
On July 19th, Cailianshe news (Editor Shi Zhengcheng), the sparks of rebound were quickly extinguished after the opening today, and the three major U.S. stock indexes entered a state of overall decline. This also means that the "rotation trading" logic that became a safe haven for the market in the past few days has come to an end.
At the close, the S&P 500 Index fell 0.78% to 5,544.59 points; the Nasdaq Index fell 0.7% to 17,871.22 points; and the Dow Jones Industrial Average fell 1.29% to 40,665.02 points, this index had risen for 6 consecutive trading days.
(Dow Jones Industrial Average daily chart, source: TradingView)
Considering the clear connection between the adjustment of the U.S. stocks this week and the progress of the U.S. presidential election, global investors will also wait and see for the next important node - on Thursday evening local time, Republican presidential candidate Trump will accept the nomination and deliver a keynote speech at the Republican National Convention.
According to the Republican National Committee, the focus of Thursday's conference is "how Trump will open a new golden age for America."
For example, in Trump's nomination speech in 2020, he outlined policies on economy, public security, diplomacy, military, epidemic, etc., and mentioned his visions on tax reform, energy, education, medical reform, etc.
For Chinese investors, this speech also has a special feature - Trump's speech time happens during A-share Friday morning trading hours. According to the official schedule of the Republican Party, the official agenda of Thursday evening will start from 5:45 p.m. Milwaukee time (6:45 a.m. Beijing time on Friday), and will last until 10:30 p.m. local time, which is 11:30 a.m. Beijing time on Friday.
According to the schedule, there will be a series of guests speaking on stage on Thursday, including Eric Trump, former Fox News host Tucker Carlson, Ultimate Fighting Championship (UFC) CEO Dana White, etc. After all these people have finished speaking, Trump will conclude this year's national conference.
Considering the recent storm surrounding the "Trump Interview," which happened before the debate between him and Biden at the end of June, this will be Trump's latest and complete policy statement after experiencing the debate and the assassination. According to him on Sunday last week, after the assassination, he "rewrote" the speech manuscript and will focus on conveying the signal of "unity."
With the temporary end of the impact related to Trump this week, the US stock market is expected to return to the track of second-quarter trading. At that time, we also hope to see whether the large technology stocks that have fallen for a week can stabilize, or whether the "rotation trading" on Wall Street has just begun or is just another false signal.
Popular stocks performance
Although the Nasdaq fell for the second day on Thursday, some tech giants have attempted to rebound. For example, NVIDIA, which fell badly yesterday, rose by 2.80%, but ASML (-0.85%), Qualcomm (-0.07%), and AMD (-2.30%) are still waiting for improvement.
In other individual stocks, Apple fell 2.03%, Microsoft fell 0.71%, Amazon fell 2.22%, META rose 3.07%, Google-A fell 1.80%, and Tesla rose 0.29%.
Chinese concept stocks continued to fall, and the Nasdaq China Golden Dragon Index fell 1.21%. Alibaba fell 0.65%, Baidu fell 0.21%, Pinduoduo rose 0.2%, JD.com fell 2.58%, Netease fell 0.41%, NIO Inc fell 1.09%, Li Auto Inc fell 1.03%, and XPeng fell 2.91%.
Other news
[Guo Mingchi: Apple may not have increased iPhone 16 orders]
As of the close on Thursday, Apple fell 2.03%. Well-known consumer electronics analyst Guo Mingchi wrote on Thursday that although there have been occasional news about Apple increasing iPhone 16 orders in the market after WWDC in June, this matter is doubtful based on the latest statements from suppliers. He also questioned the underlying logic of "Apple Intelligence" boosting the demand for replacing phones in the second half of the year.
[Meta negotiates to invest in AI glasses partner]
According to multiple media reports, U.S. technology giant Meta Platforms is exploring an investment of billions of euros in European eyewear manufacturer EssilorLuxottica. Last year, the two companies collaborated to launch the "Ray-Ban I Meta Series" smart glasses.
Insiders revealed that Meta is in talks to purchase about 5% of the shares of EssilorLuxottica. As of publication, the latter's market capitalization exceeds $95 billion and is France's ninth largest listed company, meaning the potential transaction price is slightly below $5 billion.
German eVTOL manufacturer receives Saudi aviation order.
German eVTOL (electric vertical take-off and landing aircraft) manufacturer Lilium NV announced on Thursday that it has signed a sales agreement with the Saudia Group for 50 aircraft, with an option to purchase an additional 50. At the same time, Lilium reiterated its goal of delivering to the first customers by 2026 and provided more details on the testing plan. Lilium closed up 0.62% on Thursday's US stock market close.
According to local media reports on Thursday, Broadcom is in talks with the artificial intelligence OpenAI over creating new AI server chips. The report said that OpenAI has hired engineers from Google's TPU department to develop its own AI server chips. This move aims to reduce their dependency on Nvidia and is also part of OpenAI CEO Sam Altman's vision to improve global semiconductor infrastructure. The report also stated that many details still need to be finalized, and if the chip is eventually developed, it will not be produced until 2026 at the earliest. Broadcom rose 2.91% on Thursday as a result of this news.
According to local media reports on Thursday, Broadcom is in talks with the artificial intelligence OpenAI over creating new AI server chips. The report said that OpenAI has hired engineers from Google's TPU department to develop its own AI server chips. This move aims to reduce their dependency on Nvidia and is also part of OpenAI CEO Sam Altman's vision to improve global semiconductor infrastructure. The report also stated that many details still need to be finalized, and if the chip is eventually developed, it will not be produced until 2026 at the earliest. Broadcom rose 2.91% on Thursday as a result of this news.
At the same time, Lilium reiterated its goal of delivering to the first customers by 2026 and provided more details on the testing plan. Lilium closed up 0.62% on Thursday's US stock market close.
The stock prices of weight loss drug companies 'Shuangxiong' have been falling for several days.
At Thursday's close, Eli Lilly shares fell 6.26%, marking the largest drop since September 2021; Novo Nordisk fell 4.01%, hitting its lowest level in nearly two months. The three-day continuous decline has shrunk the market cap of the world's highest-valued pharmaceutical company Lilly by nearly $86 billion and the market cap of Europe's highest-valued listed company Novo Nordisk also shrank by $67.5 billion. This selling frenzy coincides with rival Roche announcing positive initial trial results for its oral weight loss pill.
US photovoltaic module manufacturer SunPower fell 40.08% on Thursday. According to media reports, SunPower informed customers to suspend some of its business, stop signing new agreements, and is unable to support installation services for goods in transit or already delivered. The publicly listed company two weeks ago disclosed that EY resigned as auditor due to inappropriate behavior by company executives.
Buffett's Hawaiian Electric and other companies have tentatively agreed to pay more than $4 billion to solve hundreds of lawsuits related to last year's Maui Island wildfire, according to sources. Hawaiian Electric Industries surged over 40% in post-market trading on Thursday's US stock market.
Netflix's Q2 revenue was $9.56 billion, with net addition of 8.05 million streaming paid memberships, EPS of $4.88. For the third quarter, it is expected to have revenue of $9.73 billion and EPS of $5.10.
German eVTOL manufacturer Lilium has signed a sales agreement with Saudia Group for 50 aircraft, with an option to purchase an additional 50. Lilium also reiterated its goal of delivering to the first customers by 2026 and provided more details on the testing plan. Lilium closed up 0.62% on Thursday's US stock market close.
Netflix's Q3 revenue prediction fell short of expectations.
US streaming media giant Netflix released its latest financial report after hours on Thursday. Its Q2 revenue was $9.56 billion, exceeding the analyst's forecast of $9.53 billion, with a net increase of 8.05 million streaming paid memberships, exceeding the analyst's forecast of a net increase of 4.87 million; its Q2 EPS was $4.88, exceeding the analyst's forecast of $4.74. For the third quarter, it is expected to have revenue of $9.73 billion with an EPS of $5.10, exceeding the analyst's forecast of $4.74.