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On Tuesday, the three major futures indices fell slightly.
Ahead of the highly anticipated Nvidia financial report, the US stock market is on high alert. On Tuesday's pre-market trading, the three major futures indices fell slightly.
Most of the growth tech stocks fell before the market opening.
Most of the popular China concept stocks rose before the market opening, with JD.com and Xpeng rising nearly 4%.
Credit Suisse: Compared to raising revenue guidance, it is more important for Nvidia to reassure Blackwell about the delay.
According to Goldman Sachs, if $NVIDIA (NVDA.US)$ Income exceeded expectations, AI-related stocks may have a price increase potential of 3-15%. Conversely, if below expectations, the entire AI stock group may have a 5-10% downside, and the priority of stock selection may reverse. Morgan Stanley stated that the current market has raised expectations for Nvidia's revenue guidance for the next quarter. However, more crucially, the company needs to allay investors' concerns about the Blackwell delay (due to chip design restructuring).
iPhone 16 is coming! Apple announced that a new product launch event will be held on September 10.
$Apple (AAPL.US)$ Apple announced that a press conference will be held at its headquarters in Cupertino, California on September 10 Beijing time, where it is expected to release a brand new iPhone and Apple Watch. This event will be live-streamed on the Apple website and YouTube platform.
Pdd Holdings experienced significant pre-market fluctuations, with Goldman Sachs remaining bullish.
$PDD Holdings (PDD.US)$ The stock has underperformed this year, currently with a P/E ratio of less than 10 times, reflecting investor concerns about intensified domestic competition and geopolitical issues in Temu. At the same time, Pdd Holdings' faster growth in GMV and transaction service revenue exceeding expectations imply the continued growth momentum of Temu. Pdd Holdings remains one of the fastest-growing companies in China's internet sector in the second quarter, with its strategic/investment plans driving future growth. Pdd Holdings is rated a buy with a 12-month base target price of $184.
Pinduoduo rose more than 3% in the pre-market and fell more than 1% as of the time of publication.
JD.com rose nearly 4% pre-market and announced a share buyback plan of up to $5 billion.
$JD.com (JD.US)$ Announcement, the Board of Directors has approved a new share buyback plan, which will take effect from September 2024; under the new share buyback plan, the Company may repurchase shares worth no more than $5 billion within the next 36 months ending in August 2027 (including American Depository Shares).
Trip.com rose nearly 10% pre-market, Q2 net profit attributable to shareholders increased more than five times.
$Trip.com (TCOM.US)$ Trip.com rose nearly 10% pre-market, H-shares closed up more than 9% today. In terms of news, Trip.com's second-quarter revenue was 12.79 billion yuan, a year-on-year increase of 14%, analysts expected 12.75 billion yuan; net profit attributable to shareholders was 3.833 billion yuan, a year-on-year increase of 507.45%; adjusted earnings per ADS was 7.25 yuan, analysts expected 5.22 yuan. The effect of cross-border travel during the period was significant, with Trip.com's overseas platform revenue increasing by 70%.
Gaotu dropped more than 8% pre-market, with Q2 performance changing from profit to loss compared to the same period last year.
$Gaotu Techedu (GOTU.US)$ The Q2 financial report as of June 30 was released today, with a net revenue of 1.0098 billion yuan (RMB, the same below) for the period, a year-on-year increase of 43.6%; a net loss of 0.4296 billion yuan, while the same period last year was a net profit of 56.2 million yuan; non-US GAAP net loss of 0.418 billion yuan, while the same period last year had a net profit of 63.2 million yuan.
He Xiaopeng: Never reduced shareholding in Xpeng.
At the Mona M03 launch event, $XPeng (XPEV.US)$ Chairman He Xiaopeng stated that he personally purchased all of the shares of Xpeng Motors and has never reduced holdings. It is reported that Xpeng Motors recently announced that He Xiaopeng has purchased a total of 1 million shares of Class A common stock of the company on the open market at an average price of HK$27.13 per share.
Xpeng Motors rose nearly 4% in pre-market trading.
Google will release the Android 15 update in October.
According to reports, $Alphabet-C (GOOG.US)$ It has been confirmed that the Android 15 update for Pixel devices will be released in October. Independent Android platform developers are expected to receive the source code for Android 15 next week for development and adaptation. The Google Pixel 6 series, 7 series, 8 series, 9 series, and related products such as Pixel Tablet and Pixel Fold will all receive the Android 15 update.
The acquisition drama comes to an end, and Paramount Global may seek to sell its 12 non-core television stations.
$Paramount Global-A (PARAA.US)$ Paramount Global is reportedly seeking to sell its 12 non-core television stations, and has hired a bank to explore various options. In addition, billionaire Edgar Bronfman Jr. has withdrawn his plan to acquire Paramount for $6 billion. Insiders say that if sold, these TV stations could generate revenues of $0.5 billion to $1 billion, and are expected to attract interest from private equity firms and other broadcasting companies.
It is reported that Eli Lilly and Co. is selling the weight loss drug Zepbound small bottles at a 50% discount.
According to Bloomberg, in order to solve the shortage of weight loss drugs, $Eli Lilly and Co (LLY.US)$ Selling its heavyweight weight loss drug, Zepbound, to patients at a low monthly price of $399. Eli Lilly said in a statement that starting from Tuesday, patients with Zepbound prescriptions can purchase the monthly disposable bottle directly from Eli Lilly's direct-to-consumer website. The price of bottled medicine is about half of the injection price, and the price of higher doses is $549 per month.
Sanofi's subsidiary, Pasteur, flu vaccine has been temporarily suspended nationwide in response to the news.
Recently, the news that the flu vaccine giant, Pasteur, a subsidiary of Sanofi, has suspended vaccination has attracted widespread attention in the market. $Sanofi (SNY.US)$ On the afternoon of August 27, the reporter consulted Sanofi China as a consumer. The company stated that due to potency issues, Sanofi has decided to temporarily stop the supply and sales of flu vaccines in China.
PDD Holdings fell after its performance, with multiple put orders rising more than 50 times.
$PDD Holdings (PDD.US)$The overnight plunge was nearly 30%, with call options accounting for about 55% and trading volume increasing nearly 8 times compared to the 30-day average to 0.81 million contracts. On the options chain, the air force occupies the main position, and in the top nine contracts, the open interest is very small, with only 868 contracts. The put options with an expiration date of this Friday and a strike price of $95 had the highest trading volume, reaching 0.052 million contracts, with an open interest of 552 contracts.
In addition, multiple put options with an expiration date of this Friday and a strike price between $105 and $116 made more than 50 times profit.
On the news side, PDD Holdings' Q2 revenue fell short of expectations, and future profits will gradually decline. At the earnings conference call, PDD Holdings' Executive Director and Co-CEO Zhao Jiazhen said that fierce competition in the e-commerce industry is inevitable, and the future profits of PDD Holdings will gradually decline, which is a necessary cost for long-term health.
Global macro
With the impending interest rate cut by the Federal Reserve, funds are pouring into Southeast Asia, and capital inflows into the Indonesian stock market have reached the highest level since 2022.
As the Federal Reserve's rate cut cycle approaches, investors are withdrawing from major Asian markets such as India and turning their attention to Southeast Asian markets with relatively lower valuations. Global funds are pouring into the Southeast Asian market, with the Indonesian stock market being particularly favored. Data shows that foreign investors have purchased $0.9338 billion worth of Indonesian stocks since August, with monthly purchases reaching the highest level since April 2022. Exchange data also shows that the Indonesian stock market has seen net buying orders for 14 consecutive days.
Goldman Sachs predicts that the S&P 500 index will hit a new high this week.
According to Scott Rubner, Global Markets Head and Tactical Specialist at Goldman Sachs (GS.US), strong corporate buybacks and systematic fund inflows are expected to drive the S&P 500 index to a new all-time high this week, further intensifying investors' fear of missing out (FOMO). He also points out that the US stock market will see a very positive three-week trading window before September 16th.
GMO: As the market approaches historical highs, the "lagging" value stocks will roar back.
Investment firm GMO, led by legendary investor Jeremy Grantham, wrote in a new research report that it is time to embrace the cheapest stocks in the market, and value stocks will eventually make a strong comeback. The company stated, "In a world where many stocks are being pushed higher by positive sentiment and investor optimism, many of the most unpopular and left-behind stocks are trading at amazing discounts."
Oil prices continue to decline? Goldman Sachs and Morgan Stanley are both bearish on oil prices until 2025.
Wall Street is concerned about the outlook for oil next year, with both Goldman Sachs and Morgan Stanley lowering their price forecasts due to increased global supply, including potential supply from OPEC+. These two banks currently expect the global benchmark Brent crude oil price to be below $80 per barrel by 2025. Goldman Sachs has revised its forecast down to $77 per barrel, while Morgan Stanley expects futures prices to be between $75 and $78 per barrel.
Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.
Reminder for US Macro Events
(All in Peking Time)
20:55: US Redbook Retail Sales YoY for the week ending August 19th.
21:00: US FHFA House Price Index MoM (%), US June S&P/CS20 City Unadjusted House Price Index YoY (%).
22:00: US August Conference Board Consumer Confidence Index, US Richmond Fed Manufacturing Index.
22:30: US August Texas Services Outlook Index, US Dallas Fed Services Revenue Index.
01:00 the next day: US July Seasonally Adjusted M2 Money Supply (USD billion).
04:30 the next day: US API Crude Oil inventories change for the week ending August 23 (thousand barrels).
Editor/Emily