Hot news
Minutes of the July meeting of the Federal Reserve: The majority of policymakers expect a possible rate cut in September, while some want to take action in July.
The majority of Federal Reserve participants believe that a rate cut in September may be appropriate if the data continues to meet expectations. This is the key point highlighted by the "New Fed News Agency" in this minutes. Almost all participants believe that more information is needed to enhance confidence in the decline in inflation before a rate cut; some believe that recent progress in inflation and an increase in the unemployment rate provide reasonable grounds for a rate cut in July. The minutes mentioned that the stocks of small and medium-sized companies rose sharply because the Federal Reserve is likely to cut rates in September.
The U.S. non-farm data was revised down by 0.818 million.
The U.S. Bureau of Labor Statistics announced on Wednesday that in the 12 months ending in March 2024, the preliminary non-farm employment data was revised down by 0.818 million people. This number is roughly within the range analyzed by economists beforehand. Although not unexpected, 0.818 million is still the largest non-farm revision since 2009. Previously published non-farm data showed a total addition of 2.9 million jobs in the reporting period involved, averaging 0.242 million jobs per month. After deducting 0.818 million jobs, the monthly average growth rate will decrease to 0.174 million jobs.
Goldman Sachs US election forecast: Harris has a high chance of winning, but will become a "lame duck president."
Goldman Sachs stated in a research report released this week that, as it stands, the US election this year may end with a "lame duck president Harris." Goldman Sachs stated that, in national polls, Harris is leading Trump by about 1.5 percentage points and is leading in the crucial swing state of Pennsylvania. Overall, the probability of Harris winning in November is about 52%-54%.
Last week, home purchase applications in the US housing market hit a new low since February.
The contract interest rate for 30-year fixed-rate mortgages in the US fell again last week, by 4 basis points, reaching 6.5%, the lowest level since May last year. However, the index of new home purchase mortgage applications fell by 5.2% to 130.6, a decrease of about 8% compared to the same period last year. The indicator measuring US new home purchase mortgage applications fell to the lowest level since February this year last week, indicating that although the decline in mortgage rates has boosted demand, it is not enough to offset the impact of rising house prices on the demand side.
DWS: The sharp decline in the US stock market in early August is a reasonable adjustment, and the market may continue to fluctuate in the coming weeks.
Bjorn Jesch, DWS Global Chief Investment Officer, expects the US to cut interest rates for the first time in September; the recent performance of the US stock market has shown a more negative sentiment towards the "Magnificent Seven" large-cap tech stocks, and there is a clear difference of opinion on AI in the market, beginning to question the potential return on investment in high-quality AI, hence continuing to take a cautious approach to the overall US market. He believes that the sharp decline in the stock market in early August was largely a reasonable adjustment, and in the coming weeks, the market may continue to fluctuate, but does not believe that a bear market has arrived.
BlackRock: The interest rate in the USA is too high and the policy is too restrictive.
Rick Rieder, Chief Investment Officer of BlackRock Global Fixed Income, commented on the non-farm report from the US Bureau of Labor Statistics. The report shows that in the 12 months ending in March, the US added 0.818 million fewer jobs than previously reported. He stated that this preliminary revision helps confirm some concerns about the weak job market in recent months. This latest report ultimately emphasizes the importance of the labor force component in the dual mandate of the Federal Reserve, and indicates that the federal funds rate is too restrictive in the case of slowing inflation and economic growth.
Institutions: With the minutes from the FOMC meeting suggesting a rate cut in September, gold has received some moderate buying interest.
Despite the minutes supporting the expected 25 basis point rate cut in September, economists pointed out that the minutes did not add any new content to the broader outlook. The market currently expects a 100% probability of a rate cut next month, with a 30% probability of a 50 basis point cut. The gold market stabilized near the day's highs, with limited upside momentum, as the July monetary policy meeting minutes from the Federal Reserve provided some guidance to investors.
Gamestop's surge has dramatically narrowed, with the trading platform considering unplugging the internet of US retail investors.
The three major indices collectively closed higher, with the Fed meeting minutes boosting expectations of a rate cut.
On Wednesday, US stocks' three major indices collectively closed higher, with a significant downward revision of US non-farm payroll data and the July meeting minutes from the Federal Reserve consolidating expectations for a rate cut in September.
At the close of trading, the Dow rose 55.52 points, or 0.14%, to 40,890.49; the Nasdaq rose 102.05 points, or 0.57%, to 17,918.99; and the S&P 500 Index rose 23.73 points, or 0.42%, to 5,620.85.
Most large tech stocks are up, with Meta up over 1%, Tesla and Nvidia up nearly 1%, and Google down nearly 1%.
Popular China concept stocks are generally up, with the Nasdaq China Golden Dragon Index up 2.39%. Vipshop is up over 9%, Futu Holdings, XPeng, and Li Auto are up over 4%, and Nio and Alibaba are up over 3%.
The head of the Apple App Store will resign during the restructuring.
$Apple (AAPL.US)$ - [USA] Warren Buffett
The first AI NPC from Nvidia has entered the game, allowing players to have voice conversations and interact with the NPC.
$NVIDIA (NVDA.US)$ Release a game demo where players can interact with NPCs using voice dialogue, understand level goals, optimize equipment configurations, and then adjust weapon colors to start battles. NVIDIA ACE is a platform that allows developers to create intelligent game NPCs through generative AI. In short, ACE can create unprecedented fully voice-activated, fully dynamic video game characters.
Meta has risen nearly 2%, launching a new web crawler program to train AI models.
$Meta Platforms (META.US)$ Launch a new web crawler program Meta-External Agent and Meta-External Fetcher to collect internet data for training its AI models. This program can bypass robots.txt rules to obtain data without limitations.
Better-than-expected financial report! Tadger rises more than 11%.
Ford adjusts electric car strategy: reducing production costs and cutting capital expenditures.
Facing competition from low-cost car manufacturers, $Ford Motor (F.US)$ it is changing its electric car strategy, currently focusing on producing two new electric pickups and a new commercial van. The company states that the cost of all products will be lower, with longer range, and achieve pre-tax profits within one year of product launch.
Novo Nordisk fell more than 1.4%, a new study suggests that semaglutide is associated with suicidal tendencies.
Semaglutide is the main active ingredient in the development of the diabetes drug Ozempic and the weight loss drug Wegovy. $Novo-Nordisk A/S (NVO.US)$ According to the results published in JAMA Network Open, suicidal thoughts and behaviors associated with semaglutide were 45% higher compared to other drugs. In addition, the risk for those taking semaglutide and antidepressants was nearly four times higher.
Zoom raises full-year revenue outlook.
$Zoom Video Communications (ZM.US)$ Adjusted earnings per share for the second quarter were $1.39, compared to analyst expectations of $1.22; Second quarter revenue of $1.16 billion, compared to analyst expectations of $1.15 billion; Expected adjusted earnings per share for the third quarter to be $1.29-$1.31, compared to analyst expectations of $1.24.
Snowflake raises full-year product revenue outlook
Cloud data platform $Snowflake (SNOW.US)$ Second quarter revenue of $0.8688 billion, compared to analyst expectations of $0.8507 billion; Second quarter product revenue of $0.8293 billion, compared to analyst expectations of $0.8126 billion; Expected full-year product revenue of $3.36 billion, compared to analyst expectations of $3.33 billion, with the company's original forecast of $3.3 billion; Expected operating profit margin to remain at 3% for the full year; Expected adjusted profit margin of 3% for the third quarter.
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.
Beijing Capital added nearly 0.3 billion Hong Kong dollars to its holdings in Xiaomi, and sold 0.1 billion Hong Kong dollars of Meituan.
On August 21 (Wednesday), the net purchase of Hong Kong stocks by the southbound funds amounted to 0.281 billion Hong Kong dollars.
$XIAOMI-W (01810.HK)$,$WUXI BIO (02269.HK)$,$TENCENT (00700.HK)$Received net purchases of 0.282 billion Hong Kong dollars, 97.81 million Hong Kong dollars, and 84.23 million Hong Kong dollars respectively;
$TRACKER FUND OF HONG KONG (02800.HK)$,$CHINA SHENHUA (01088.HK)$,$MEITUAN-W (03690.HK)$Net selling of 0.417 billion Hong Kong dollars, 0.104 billion Hong Kong dollars, 0.1 billion Hong Kong dollars respectively.
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: US August S&P Global manufacturing and service PMI data, Fed monetary policy meeting minutes; China's July Swift RMB share in global payments; Eurozone and Japan August PMI data.
On Thursday, economic data: China will release July Swift RMB share in global payments; Eurozone and Japan will release August PMI data; USA will release August S&P Global manufacturing and service PMI, existing home sales, and weekly EIA natural gas inventory data.
In terms of financial events, the Fed will release monetary policy meeting minutes; the European Central Bank will release the July monetary policy meeting minutes.
Regarding financial reports,$PING AN (02318.HK)$,$AIA (01299.HK)$,$NTES-S (09999.HK)$,$BIDU-SW (09888.HK)$,$BILIBILI-W (09626.HK)$
In terms of new stocks, $COR3 & Co (COC.US)$ Will be listed today.
Futubull Morning News:
In recent years, my investment focus has shifted. We don't want to buy the worst furniture at the cheapest price, we want to buy the best furniture at a reasonable price.
Editor/Emily