Hot news

• Market stabilizing? The Japanese stock market opened 2% higher and US stock futures rose more than 1%.

As of press time, the Nikkei 225 index and the TOPIX index opened 2% higher. The yen against the US dollar fell more than 1%, ending its five-day rally; US stock index futures rose across the board.

• Will the Federal Reserve act in advance? Guorusby: measures will be taken to repair if the economy deteriorates.

Chicago Fed President Charles Evans said the Fed will respond to signs of economic weakness and hinted that current interest rates may be too tight. He said that it is meaningless to maintain a 'restrictive' policy stance if the economy is weakening. Evans also said that options including raising and lowering interest rates have always been on the table, and the Fed will take steps to repair it if the economy deteriorates.

• San Francisco Fed President Daly: the job market is slowing down, but it cannot slow down too much.

San Francisco Fed President Daly said the labor market is softening and suggested that the Fed should begin easing in the coming quarters, but did not assert that the labor market has begun to slow significantly. Daly emphasized that she believes the job market is still strong. She said that the company has slowed down hiring new employees, but most of them have not been laid off.

• The main thread of the US election will be updated today: Who will be Harris's running mate?

As a 'tipping point' for many global macro events, the US election will usher in another important moment - the Democratic candidate Kamala Harris is expected to announce his running mate on Tuesday and receive formal nomination this week. In this situation, the joint weakness of US employment data and the stock market has brought new difficulties to Harris's 'economic narrative'.

• The latest analysis by the originator of the 'Sam rule': the US economy is 'close' but not yet in recession.

Former Fed economist Sam, interviewed by the media, said that the US has not yet entered a recession, but it is close. Sam explained that overall, we are still entering this phase in a stronger posture, and it is difficult to conclude that we are 'already in a recession'. She added that the Fed now has a lot of room to operate because interest rates are high.

• Goldman Sachs: Hedge funds have been net selling US stocks for eight consecutive weeks, with net selling of indexes and ETFs driven by short selling.

Goldman Sachs said in its latest report that according to its brokerage business data, the strength of hedge funds selling US stocks is the strongest in six weeks. They continue to reduce the net long positions of single stocks and increase the short positions of ETFs at the fastest rate in a year. Among them, macro products such as indexes and ETFs account for about 40% of net sales, and this part of sales is completely driven by short selling.

• Nikkei 225 index futures touched the fuse at one point.

Nikkei 225 index futures once rose 8%, touched the fuse upward, as of press time, now up more than 6%.

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

• S&P and Dow Jones hit their biggest drop in nearly two years, with Nvidia falling 6.36% and Apple falling 4.82%.

On Monday, the US stock market plummeted, and the Dow and S&P both had their worst day in nearly two years. As of the close, the Dow Jones Industrial Average fell 2.60%, the S&P 500 index fell 3.00%, and both indexes recorded their largest single-day decline since September 2022; the Nasdaq Composite index fell 3.43%.

Large technology stocks collectively plummeted, with Nvidia falling 6.36%, once falling more than 15%; Apple fell 4.82%, and once fell more than 10% during the session; Google C fell 4.61%, Tesla fell 4.23%, Amazon fell 4.10%, Microsoft fell 3.27%, and Meta fell 2.54%.

As for Chinese concept stocks, the Nasdaq China Dragon Index rose 0.25%, New Oriental rose 8.89%, bilibili rose 3.16%, Alibaba fell 0.61%, JD.com fell 0.83%, PDD Holdings fell 0.96%, Li Auto fell 1.77%, Xpeng fell 3.17%, and NIO Inc. fell 3.95%.

• Before the technology stocks plunged, Huang Renxun "accurately" sold stocks, cashing out more than 0.32 billion dollars in July.

According to media reports, $NVIDIA (NVDA.US)$CEO Huang Renxun continued to sell the company's stock in July, cashing out 0.3227 billion US dollars just before a massive sell-off of tech stocks. Including the Nvidia stock sold in June, Huang Renxun has cashed out nearly 0.5 billion US dollars in this round of AI boom. It should be pointed out that Huang Renxun's decision to sell shares in June and July has long been disclosed in the March '10b5-1' trading plan.

• Palantir Q2 revenue increased by 27% year-on-year, raised its full-year performance guidance, and rose nearly 12% after hours.

$Palantir (PLTR.US)$Q2 revenue of $678 million, a year-on-year increase of 27%; net profit of $134 million, compared with $28.127 million in the same period last year. The company raised its full-year performance guidance, with revenue guidance for 2024 raised to $2.742 billion - $2.75 billion. The company's post-market trading stock price is now up nearly 12%.

• Lucid's second-quarter revenue exceeded expectations, with PIF promising to inject an additional $1.5 billion in capital.

Electric vehicle manufacturer.$Lucid Group (LCID.US)$Second quarter revenue of $200.6 million, analyst expectation of $185.8 million; second quarter car deliveries of 2394 units, analyst expectation of 1999 units; second quarter adjusted pre-tax loss of $647.6 million, analyst expectation of loss of $560.9 million; second quarter loss per share of $0.34, compared with a loss per share of $0.40 in the same period last year; Saudi Arabia’s Public Investment Fund (PIF) promised to inject an additional $1.5 billion in capital. This capital will allow the company to continue operating with sufficient liquidity until at least the fourth quarter of 2025. As of press time, Lucid rose more than 6% after market.

• Google loses the case! The largest antitrust case in the United States in twenty years announces the verdict, will the search field change?

A federal judge in the District of Columbia has announced a ruling that Google's search business violates US antitrust law. This means that the plaintiff, the US Department of Justice, has won, and the way millions of Americans get information online could change dramatically, and Google's decades of dominance in the search market could be overturned. Overnight, Google finally closed down 4.6%.$Alphabet-C (GOOG.US)$Morgan Stanley puts Taiwan Semiconductor on the preferred stock list, says the post-sell-off valuation is attractive.

• Morgan Stanley analyst puts [Taiwan Semiconductor] on the preferred stock list, believing that after its recent weak performance, the stock's valuation is attractive. The analyst said that in the long-term semiconductor downturn, [Taiwan Semiconductor]'s quality and defense are bullish. He also pointed out that confirming the continued strength in rising prices and AI capital expenditures should be a key catalyst for [Taiwan Semiconductor].

Dell Technologies announced a restructuring plan, cutting sales personnel and increasing the AI team.$Taiwan Semiconductor (TSM.US)$When feeling worried and disappointed about the current situation, always try to focus on a larger picture. - Peter Lynch

• Dell Technologies announces restructuring plan, cuts sales staff, doubles down on AI team.

$Dell Technologies (DELL.US)$Northbound capital bought nearly HKD 0.7 billion worth of Tencent and sold more than HKD 0.6 billion worth of HSBC shares.

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.

• On August 5th (Monday), Southbound funds net bought HKD 1.388 billion of Hong Kong stocks.

Net purchases were HKD 0.681 billion, HKD 0.272 billion, and HKD 0.182 billion, respectively.

$TENCENT (00700.HK)$,$XIAOMI-W (01810.HK)$,$China Construction Bank Corporation (601939.SH)$Net sales were HKD 0.648 billion, HKD 0.372 billion, and HKD 0.352 billion, respectively.

$HSBC HOLDINGS (00005.HK)$,$PETROCHINA (00857.HK)$,$MEITUAN-W (03690.HK)$Keywords: US trade account; Super Micro Computer, Rivian financial report.

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.

In terms of financial events, the Reserve Bank of Australia will announce its interest rate decision and monetary policy statement.

On Tuesday, economic data will be released such as the US trade account for June, global supply chain pressure index for July, and retail sales monthly rate for June in the Eurozone.

Whenever you feel worried and disappointed about the current situation, always try to focus on a larger picture. - Peter Lynch

Regarding financial reports,$Super Micro Computer (SMCI.US)$,$Uber Technologies (UBER.US)$,$Rivian Automotive (RIVN.US)$- [Company Names] and other US stock companies and [Company Names] and other Hong Kong stock companies will release their financial reports respectively.$TECHTRONIC IND (00669.HK)$- [Company Names] and other Hong Kong stock companies will release their financial reports respectively.

In terms of new stocks, there will be new listings in the US stock market.$Pershing Square USA (PSUS.US)$will be listed.

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- Peter Lynch

Editor/Somer