Source: Global Market Report On Monday, the turnover of US stocks ranked first, closing up 0.75% with a turnover of $38.014 billion. Since the opening on June 10, Nvidia's stock has been trading at adjusted prices after the split. The overall value of Nvidia is not expected to change after the split, and the lower stock price will make it easier for investors to reach. In terms of product structure, the operating income of 10-30 billion yuan products is respectively 401/1288/60 million yuan.
On the evening of the 24th Beijing time, the US stock market opened low and went low on Wednesday. As of press time,$Dow Jones Industrial Average (.DJI.US)$down 0.34%,$Nasdaq Composite Index (.IXIC.US)$down 1.79%,$S&P 500 Index (.SPX.US)$down 1.04%.$Alphabet-A (GOOGL.US)$And.$Tesla (TSLA.US)$Poor earnings reports from large technology companies as well as European luxury brands have raised concerns about the health of global businesses. The prospect of a rate cut by the Fed and sector rotation remain market focuses.
On Wednesday, investors continued to evaluate the performance of large companies in the second quarter.
Alphabet, Google's parent company, released its financial report after Tuesday's close. Its revenue and profits exceeded expectations, but YouTube ad revenue fell below market expectations.
Tesla's performance was weaker than expected, with auto sales revenue down 7% year-on-year.
Steve Clayton, head of stock funds at Hargreaves Lansdown, said: "The mid-term earnings season has started and investors have been disappointed with what they have seen. Investors are questioning whether the huge amounts of money invested in Google's AI capabilities are really bringing returns."
Wall Street is particularly interested in the earnings reports from these large technology companies, because these few tech giants have contributed most of the gains in the US stock market in the first half of this year.
According to FactSet data, more than 20% of S&P 500 companies have already released their second quarter earnings reports, with 80% of companies exceeding expectations.
About one-fifth of S&P 500 companies have reported earnings. Analysts had anticipated a decline before the earnings season, but market strategists, including Morgan Stanley's Michael Wilson and Cau at Barclays, warn that the decline will be smaller this time, making the threshold for positive surprises higher. Investors seem particularly worried about sales, with less than half of the companies exceeding expectations.
Investors have largely digested the possibility of a rate cut by the Fed at its September meeting. With growing confidence in a soft landing of the economy, the US stock market continues to rise, and in recent weeks, sectors sensitive to interest rates, such as small caps and industrials, have generally risen.
Asset management company Vanguard Group said the Fed may only cut interest rates once this year due to high housing costs and an overheated job market.
The group predicts that the Fed will only cut interest rates by 25 basis points in September, while according to CME's FedWatch tool, investors expect the Fed to cut interest rates three times this year.
Josh Hirt, senior economist at Vanguard Group, said: "The Fed is looking for reasons to cut interest rates, but it also cannot ignore the risks of cutting rates too early, especially considering that the labor market and wage growth are still strong and may reignite inflation."
The group also said that housing inflation looks set to "remain sticky," with housing prices expected to continue to grow at a rate of about 0.4% per month.
A survey of 100 economists found that more than 80% of respondents predicted a 25 basis point interest rate cut in September; almost three-quarters of economists surveyed predicted that the Fed would cut interest rates twice by 25 basis points this year, up from 60% in the June survey.
70 economists said the Fed would cut interest rates in September and December. In addition, according to the latest survey, the median forecast for all inflation indicators, including US CPI, core CPI, PCE and core PCE, is not expected to reach 2% until at least 2026.
Focus stocks
Growth tech stocks fell sharply, with Tesla down more than 11%, and Google-A, Meta, Taiwan Semiconductor, Broadcom, and Nvidia all down more than 3%.
$Tesla (TSLA.US)$After the close of US stocks on Tuesday, the second-quarter revenue was US$25.5 billion, a year-on-year increase of 2%; the net income was US$1.494 billion, a sharp drop compared to the net income of US$2.614 billion in the same period last year; the net income attributable to common stock shareholders was US$1.478 billion, a year-on-year decrease of 45%; the diluted earnings per share attributable to common stock shareholders were US$0.42, a year-on-year decrease of 46%.
Tesla's second-quarter revenue exceeded Wall Street analysts' previous expectations, but the adjusted earnings per share also dropped by 43%, which did not meet expectations.
$Alphabet-A (GOOGL.US)$After the close of the US stock market on Tuesday, the second-quarter revenue was US$84.742 billion, a year-on-year increase of 14%, and a year-on-year increase of 15% excluding the impact of exchange rates; the net income was US$23.619 billion, a year-on-year increase of 29%; the diluted earnings per share was US$1.89, compared with the diluted earnings per share of US$1.44 in the same period last year. achieved growth.
Alphabet's second-quarter revenue and diluted earnings per share both exceeded Wall Street analysts' previous expectations, but YouTube's advertising revenue did not meet expectations.
Citigroup released a research report stating that Alphabet's performance in the second quarter of this year exceeded expectations and set a target price of US$190 for Alphabet, with a rating of "buy".
Brokerage Guggenheim raised Alphabet's target price from US$195 to US$205. Truist Securities raised Alphabet's target price from US$190 to US$196.
According to sources, $NVIDIA (NVDA.US)$The supplier has been informed that its artificial intelligence chip will start using Samsung Electronics' HBM3E memory.
$Apple (AAPL.US)$Down more than 1%, the company will release its third-quarter results after the US stock market on August 2. Wall Street analysts generally expect Apple's third-quarter revenue to be US$84.07 billion, and earnings per share to be US$1.33.
There are reports that Apple is developing a foldable iPhone, which is expected to be launched in 2026. In recent months, Apple has been in contact with Asian suppliers to discuss the production of related parts. If the foldable iPhone is really launched, it will be one of the biggest hardware design reforms in iPhone history.
Spain's antitrust regulator, the National Commission for Markets and Competition (CNMC), announced on Wednesday that it is investigating possible anti-competitive behavior in Apple's App Store app store. CNMC stated that Apple has imposed unequal commercial conditions on developers of mobile applications sold in its app store, which may constitute unfair competition.
The agency stated in a statement that these practices may be considered very serious violations of fair competition laws and may therefore be subject to fines of up to 10% of its global revenue.
Barclays analyst Tim Long raised Apple's target price from US$160 to US$187, but still maintained a "sell" rating on the stock. The analyst pointed out that after two years of "flatness", Apple's revenue growth rate in 2025 should reach 9%, and its iPhone, Mac, and service businesses will all improve.
Tim Long added that market expectations for Apple are rising, and people hope that the next generation of iPhones with artificial intelligence can improve market sentiment.
JPMorgan raised Apple's target price from US$245 to US$265 and maintained a "buy" rating.
Goldman Sachs analyst Toshiya Hari published a report, maintaining a "buy" rating on$Advanced Micro Devices (AMD.US)$And.$Arm Holdings (ARM.US)$, and a "sell" rating on Intel.
Goldman Sachs expects that AMD's Q2 performance and guidance are expected to meet market expectations, and the data center business may achieve double-digit growth. ARM's Q2 performance and guidance both exceed market expectations, and the compound annual growth rate of revenue in the next three years may reach 23%. In contrast, Intel's Q2 performance and guidance may disappoint Wall Street, and its server CPU market share is still being squeezed by peers.
$Microsoft (MSFT.US)$Down more than 1%. Microsoft officials said that the EU should be responsible for the world's largest IT system failure. The company said that the EU's restrictions prevented it from locking the Windows system, which was one of the reasons for the world's largest IT failure event.
What Microsoft calls EU restrictive measures refers to the agreement reached between Microsoft and the European Union in 2009. According to the agreement, Microsoft promised to give all security software the same Windows kernel access rights as its own software, allowing security product developers like$CrowdStrike (CRWD.US)$Third-party security software vendors to access and perform extremely complex operations through the API in Windows client and server systems.
Microsoft believes that the cost of this policy is a decrease in system security, and the blue screen crash event is a manifestation of the consequences of this policy. Microsoft said, "Although the company hopes to further lock the operating system to improve security, the EU's requirements make this goal difficult to achieve."
There are reports that Malaysia has asked Microsoft and CrowdStrike to consider compensating affected companies for the global network service interruption last week. Malaysian Digital Minister Gobind Singh Deo said on Wednesday that he has asked Microsoft and CrowdStrike to consider compensating companies that suffered losses during the global network service interruption last week.
$Amazon (AMZN.US)$After opening lower, the stock price rebounded slightly, and the current decline was within 1%.
According to internal documents and sources, Amazon's device business has accumulated a loss of over $25 billion between 2017 and 2021. Amazon will launch a paid version of Alexa voice service this month, which will incorporate more AI and GC technologies than the current Echo experience.
Amazon's move aims to enhance the competitiveness of its voice assistant service and attract more users to use its products. The paid version of Alexa will provide more comprehensive functions and services, including smart home control, music playback, shopping, etc. Amazon also plans to launch more new features and improvements in the coming months to further enhance the user experience.
$Meta Platforms (META.US)$On Wednesday, the Llama 3.1 open source large model series was released, including the largest version Llama 3.1 405B, the lightweight Llama 3.1 8B and Llama 3.1 70B, which can be used by anyone for free. Zuckerberg said that open source artificial intelligence is the way forward and that AI development will continue to be highly competitive, and open source is rapidly narrowing the gap.
$Rivian Automotive (RIVN.US)$Down more than 5%. CEO RJ Scaringe confirmed that the compact SUV Rivian R2 will be launched in 2026, and plans to launch the sub-compact SUV R3X and the sport SUV R3 after that, with R3X earlier than R3. It is reported that Rivian R2 and R3 share a platform, but R3's wheelbase will be 5 inches shorter than R2's. Among them, Rivian R2 is planned to be launched around 2026 with a starting price of about $45,000. In terms of power, Rivian R2 will offer three versions: single motor, dual motor, and three motor.
Deutsche Bank lowered the target price of amazon from $53 to $45 and maintained a "hold" rating.$Bristol-Myers Squibb (BMY.US)$Q2 revenue was $3.822 billion, down 15.6% year-on-year, better than market expectations of $3.68 billion. It suggests that there are signs of recovery for simulation chips that have been continuously sluggish in demand. Diluted EPS for Q2 was $1.22, higher than analysts' average expectation of $1.16. The company expects total revenue in Q3 to be between $3.94 billion and $4.26 billion, while analysts expect $4.14 billion.
$Texas Instruments (TXN.US)$The company's overall sales volume in 23 was 18,000 kiloliters, a year-on-year increase of 28.10%, which is a significant growth. In terms of product structure, the operating income of 10-30 billion yuan products was 401/1288/60 million yuan respectively.
Editor/Jeffy