Hot news

• Before the opening of the market on Wednesday, the three major stock index futures of the U.S. stock market fell slightly.

Growth tech stocks fluctuated slightly before the market opened, with Nvidia's performance slightly up.

China concept stocks were mixed before the market opened, with PDD Holdings falling over 1%.

• Nvidia's Q2 financial report is about to be released, with expectations of a doubling of revenue and profit year-on-year.

Wall Street analysts predict that $NVIDIA (NVDA.US)$ Q2 revenue is expected to grow by 113% year-on-year to $28.84 billion, while net income is expected to grow by 142% year-on-year to $14.95 billion. With the continued boom in artificial intelligence, investors will pay special attention to Nvidia's datacenter business. Analysts currently predict that revenue from this business in the second quarter will more than double year-on-year, reaching $25.19 billion, which will be a historical high.

• Goldman Sachs: NVIDIA's financial report may trigger a market value shock of nearly $300 billion.

$NVIDIA (NVDA.US)$ The quarterly performance will be announced on Wednesday, and its stock price volatility is the most concerned issue on Wall Street. Goldman Sachs predicts that as the most watched stock in the world, NVIDIA's financial report may cause the stock price to fluctuate by more than 9%. As of Tuesday's close, NVIDIA's market value was $3.15 trillion. This means that its market value may fluctuate significantly by $298 billion, which is higher than the total market value of 95% of the companies in the S&P 500 index constituents.

• Salesforce Q2 financial report will be announced after market trading, and the market expects Q2 revenue to grow by 7.3% to $9.23 billion.

$Salesforce (CRM.US)$ The second quarter financial results of Salesforce for the fiscal year 2025 will be announced after the U.S. stock market closes on Wednesday. Wall Street analysts currently expect that Salesforce's Q2 revenue will increase by 7.3% YoY to $9.23 billion, and EPS will be $2.35.

• Apple's service department is cutting nearly 100 employees, which is part of the department's restructuring efforts.

According to insiders, $Apple (AAPL.US)$ the service department is rare in its decision to lay off about 100 employees, which is part of the department's effort to adjust its focus. This includes some engineering positions, with the largest layoffs targeting the application teams responsible for Apple Books and Apple News. Other service teams are also undergoing layoffs, including the application team that operates Apple News.

• "Stock God" further reduces holdings in Bank of America, cashing out nearly $1 billion.

According to the documents submitted to the U.S. Securities and Exchange Commission (SEC) on Tuesday evening, the company led by Buffett, $Berkshire Hathaway-B (BRK.B.US)$ sold over 24 million shares in total last Friday, Monday, and Tuesday. $Bank of America (BAC.US)$ Stocks, cashing out about 0.982 billion US dollars. Since mid-July, Berkshire Hathaway has reduced its stake in Bank of America by nearly 13% through a series of shareholding reductions, totaling a cash-out of 5.4 billion US dollars.

• Walmart is launching a new service to third-party sellers to boost its e-commerce business before the holiday shopping season.

According to Reuters, $Walmart (WMT.US)$ announced on Tuesday that it will provide services to third-party sellers on its online marketplace, Marketplace, handling the transportation of their goods directly from Asia to Walmart's US warehouses, and be responsible for order fulfillment and managing returns from any e-commerce site. Walmart is trying a new way to boost its e-commerce platform business before the holiday shopping season.

• Up nearly 30% year-to-date! Berkshire Hathaway is about to enter the "trillion club."

With the continued rise in stock prices, the company under the "Stock God" Warren Buffett is about to enter the 1 trillion dollar market cap club. As of Tuesday's close, the company's market cap is close to 993 billion dollars. $Berkshire Hathaway-A (BRK.A.US)$ /$Berkshire Hathaway-B (BRK.B.US)$ The company is about to enter the $1 trillion market value club. As of Tuesday's close, the company's market value was close to $993 billion. If its market value reaches $1 trillion, it will become the eighth company in the US and the ninth company globally to achieve this milestone.

• Taiwan Semiconductor pre-market rose 1%, with news that its 3nm/5nm process revenue exceeded NT$1 trillion in the first three quarters.

According to media reports, relying solely on the 3nm and 5nm processes, $Taiwan Semiconductor (TSM.US)$ The revenue for the first three quarters of 2024 has exceeded NT$1 trillion (about 223.706 billion RMB), surpassing industry expectations. In the past few quarters, Taiwan Semiconductor has consistently maintained its industry-leading position in process adoption and revenue.

• Li Auto rose nearly 1% pre-market, with Q2 revenue exceeding expectations.

$Li Auto (LI.US)$ Q2 sales revenue was 30.32 billion yuan, an increase of 8.4% year-on-year; vehicle gross margin was 18.7%, a decrease of 2.3 percentage points year-on-year; total revenue was 31.678 billion yuan, an increase of 10.6% year-on-year; gross profit was 6.177 billion yuan, a decrease of 0.9% year-on-year; net profit was 1.101 billion yuan, a decrease of 52.3% year-on-year; diluted net income per ADS attributable to common shareholders was 1.05 yuan.

• Netease dropped more than 1% pre-market, with target price downgraded by several major banks after its Q2 earnings release.

$NetEase (NTES.US)$ After the release of its Q2 earnings, Netease had its target price downgraded by several major banks. Morgan Stanley lowered its target price from $90 to $85 to reflect weak growth in the next four quarters. Lyon estimated that the company's Q3 online game and value-added service revenue will remain flat year-on-year, and lowered its adjusted net profit forecast for the next two years. ADR target price was lowered from $126 to $120. BOC International reduced its target price to $111 per ADS and HKD 147 per H-share.

• e.l.f. Beauty announced a share buyback plan of up to $0.5 billion and rose more than 3% pre-market.

An American cosmetics company. $e.l.f. Beauty (ELF.US)$ Announced a new share buyback plan of up to $0.5 billion, with no expiration date. The company stated that after using $17 million in cash to repurchase shares in the past two weeks, the authorized limit of the $25 million buyback plan for 2019 has been exhausted.

• Nvidia's earnings report may cause market fluctuations of nearly $300 billion! Options traders are making multiple large block orders.

Nvidia's earnings report is coming after hours tonight! Goldman Sachs predicts a significant market volatility with a market cap of up to $298 billion. Yesterday, Nvidia rose over 1% with a trading volume of 2.35 million shares, nearly halving the 30-day average trading volume. On the options chain, the bulls dominate, and the highest trading volume is for call options with a strike price of $130 expiring this Friday, totaling 0.086 million contracts, with open interest of 0.136 million contracts.

In large transactions, there were 3 orders of over 10 million USD yesterday, including main buying call orders expiring on October 18th with a strike price of 90 USD, main selling call orders expiring on October 18th with a strike price of 90 USD, and main selling call orders expiring on January 17, 2025 with a strike price of 15 USD.

Global macro

• BlackRock: The U.S. economy will slow down, not decline.

Global asset management giant BlackRock predicts that the U.S. economy will slow down, not decline, especially after observing better-than-expected earnings from U.S. companies, particularly in the technology sector. Additionally, the latest initial jobless claims, ISM non-manufacturing data, and Federal Reserve bank lending survey all indicate a slowdown rather than a recession in the U.S. economy. The bank stated, 'In the quiet trading of the summer season, we may still see minor fluctuations. We remain overweight on Japanese and U.S. stocks and are bullish on the AI theme in the U.S.'

• The US dollar is hovering near its annual low, and traders are closely watching for clues of a rate cut by the Federal Reserve.

On Wednesday, the US dollar remained near its lowest level in over a year against a basket of currencies, with the pound slightly below its multi-year high against the dollar. The market is focused on clues about the expected magnitude of the interest rate cut in the US next month. Cryptocurrencies have become the focus of the Asian market, falling more than 4% after breaking the support level of around $60,000. The Australian dollar rose to an eight-month high against the US dollar, as data released earlier showed that domestic inflation in Australia slowed to a four-month low in July, but the overall progress in curbing price increases is disappointing.$Bitcoin (BTC.CC)$The US presidential election is uncertain, and options suggest a potentially significant stock market decline after the election. Apart from volatility index (VIX) futures, investors who want to understand market sentiment before and after the US presidential election can now focus directly on S&P 500 index options related to the election period. For months, the premium on October VIX futures has persisted, indicating expectations that November 5th, the election day, will lead to increased market volatility.

• In 2021, the company's net income increased by 72.3% year-on-year, reaching 1.6 billion yuan. The company's order growth was 28.5% year-on-year, with orders totaling 500 billion yuan. The gross margin increased by 5 percentage points year-on-year to 38.3%. In terms of business segments, the revenue of cosmetic products increased significantly year-on-year, reaching 850 million yuan.

Goodix Technology (603160.SH)$Cboe Global Markets (CBOE.US)$The US dollar is hovering near its annual low, and traders are closely watching for clues of a rate cut by the Federal Reserve.

• Is it the "Harris volatility" turn to dominate the market? Wall Street is adjusting its bets.

According to the latest forecast, Harris' approval rating nationwide is 48.4%, leading Trump's 46.9%. Moreover, more and more states that were previously leaning towards the Republican Party are now showing a swing, further highlighting Harris' strong position. This shift has directly led to the decline of the "Trump trade", and many industries and companies that were deeply tied to Trump are being revalued in the stock market. At the same time, Harris is also boosting new transactions.

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)

22:30: Weekly EIA crude oil inventory change (thousand barrels) as of August 23rd in the United States.

02:00 the next day: Total acceptance amount (hundred million US dollars) of 2-year FRN floating-rate notes on August 28th in the United States.

06:00 the next day: FOMC voting member and Atlanta Federal Reserve President Bostic will give a speech on the economic outlook for 2024.

Performance forecast.

Thursday morning: Nvidia (NVDA.US), Salesforce (CRM.US), $HP Inc (HPQ.US)$,$Noah Holdings (NOAH.US)$

Pre-market trading on Thursday: $Best Buy (BBY.US)$

Editor/Emily