Hot news
On Tuesday, the futures of the three major U.S. stock indexes traded mixed before the market opened.
Star tech stocks rose across the board before the market opened, with Oracle up nearly 8%.
Most large U.S. bank stocks rose before the market opened, amid news of the significant easing of banking industry capital regulations.
$Wells Fargo & Co (WFC.US)$Pre-market trading surged over 2%.$JPMorgan (JPM.US)$,$Bank of America (BAC.US)$Rising more than 1%. According to Bloomberg, large US banks will face a much lower capital increase requirement of 9% after regulators agreed to fully revise the proposed package of rules, compared to the original plan. With improvements in the macroeconomic environment, regulatory environment, and banks' own profitability, Wall Street institutions are generally optimistic about the future performance of bank stocks.
Oracle pre-market trading rose nearly 8% and momentum hit a new high. The first quarter performance exceeded expectations, and reached a cooperation with Amazon AWS.
$Oracle (ORCL.US)$Pre-market trading rose nearly 8%, and the momentum will hit a historic high after the opening. In terms of news, Oracle's first-quarter revenue increased by 7% year-on-year to $13.3 billion, with analysts expecting $13.23 billion; During the period, it signed 42 new cloud GPU contracts worth $3 billion, and strong contract backlog will support continued revenue growth in the 2025 fiscal year. In addition, Oracle announced a multi-cloud agreement with Amazon AWS, and the latest version of Oracle's Exadata hardware and database software, the 23ai edition, will be embedded in AWS cloud data centers.
Google lost the lawsuit! The court supports the European Commission's €2.42 billion antitrust fine.
On Tuesday, September 10th,$Alphabet-A (GOOGL.US)$Lost the final legal battle against the European Union's antitrust agency, the European Commission, bringing an end to a long-standing antitrust case. The European Court of Justice upheld a landmark antitrust ruling by the European Commission in 2017, imposing a hefty fine of 2.42 billion euros (equivalent to 2.67 billion US dollars) on Google.
Involving 13 billion euros! Apple's massive tax evasion case has been ruled against.
$Apple (AAPL.US)$Defeated in a lawsuit involving a 13 billion euro (14.4 billion US dollars) Irish tax case, further driving the EU's crackdown on special privileges given by countries to large corporations. The European Court of Justice, based in Luxembourg, supported a landmark ruling from 2016, stating that Ireland had violated state aid laws by unfairly favoring Apple. The court ruled on Tuesday that Apple's victory in the lower court should be overturned because judges had wrongly concluded that the Commission's regulatory agency had made a mistake in the assessment.
As of the time of writing, Apple's pre-market trading has dropped by more than 1%.
Taiwan Semiconductor's pre-market trading has dropped by over 1%, while its August sales saw a large year-on-year increase but a slight monthly decline.
$Taiwan Semiconductor (TSM.US)$Pre-market trading has dropped by over 1%, with the company's August sales reaching 250.866 billion New Taiwan dollars, a 33% year-on-year increase but a 2.4% monthly decline. Sales so far this year have totaled 1773.974 billion New Taiwan dollars, a 30.8% year-on-year increase. Reports suggest that increased orders for Apple's iPhone 16 chips will drive TSMC's 3nm process revenue to increase by over 30%.
Bad news continues! Mobileye has decided to terminate internal lidar development.
$Mobileye Global (MBLY.US)$It has been decided to terminate the internal development of the next generation frequency-modulated continuous wave (FMCW) lidar for autonomous driving and highly automated driving systems. The lidar research and development department will be closed by the end of 2024, affecting approximately 100 employees. The operating expenses of the lidar research and development department in 2024 are estimated to be about $60 million.
Li Auto Inc. rose more than 3% in pre-market trading, with weekly sales volume of 0.0107 million, ranking third in the luxury brand sales list.
$Li Auto (LI.US)$Rising more than 3% before the market, in terms of news, Li Auto released the sales list for the new week (September 2nd to 8th). Li Auto remained the top new force with a weekly delivery volume of 0.0107 million units, surpassing Audi and BMW to become the second largest luxury brand after Tesla and Mercedes-Benz. Soochow Securities pointed out that the Li ONE continued to show strong performance, with monthly deliveries exceeding 20,000 units for three consecutive months, and strong competitiveness in the price range of 0.2 to 0.3 million yuan.
JD.com rose nearly 1% before the market, and Moody's upgraded its credit rating to 'A3'.
$JD.com (JD.US)$Pre-market trading rose nearly 1%, rating agency Moody's announced an upgrade of JD Group's issuer rating and senior unsecured rating from "Baa1" to "A3", with a stable outlook. Moody's vice president and senior analyst said that the rating upgrade and stable outlook reflect JD's leading position in the Chinese e-commerce market, and believe that the group has a unique and resilient business model. With strong supply chain capabilities, economies of scale, and prudent financial policies, JD can maintain a low leverage ratio and a robust net cash position.
Jack Ma speaks internally: Alibaba is not a company that is protected, believe in the power of the market.
On September 10th, the 25th anniversary of Alibaba's establishment, Jack Ma, the founder of Alibaba, stated internally that he sees the resurgent trend of Internet AI technology and fierce competition in various industries. Many of Alibaba's businesses face challenges and being surpassed. "This is expected because no company can always be the first in any field. Only competition can make oneself stronger and make the industry healthier. Besides, Alibaba has never been a company that is protected. Alibaba believes in the power of the market and the value of innovation."
As of press time,$Alibaba (BABA.US)$Rising more than 2% before the market opens.
AI stock Palantir surged 14% overnight, and call options made a huge profit of 8 times.
$Palantir (PLTR.US)$ Overnight, it surged by 14.08%, marking the largest single-day increase since February. The volume of options trading skyrocketed by 1.31 times, while the implied volatility shrank to 25.54%. On the options chain, the highest volume was for put options with a strike price of 32 USD expiring this Friday. One call option with an expiry date of October 11th this year and a strike price of 38 USD made a whopping 8 times profit! In addition, multiple in-the-money call options expiring this year made profits of 3-5 times.
On the news side, according to a press release from S&P Dow Jones Indices, technology companies Dell and Palantir will replace Etsy and American Airlines in the S&P 500 Index, and the changes will take effect before the start of US stock trading on September 23.
The first commercial spacewalk mission by humans was launched.
SpaceX, a space exploration technology company owned by Musk, announced the launch of a spacecraft carrying 4 commercial astronauts for the mission "Polaris Dawn". This mission will transport the spacecraft to an altitude of approximately 1,400 kilometers from Earth, and allow astronauts to attempt the first commercial spacewalk on the "Dragon" spacecraft. They will test communication based on Starlink lasers and conduct extensive research under microgravity conditions before returning to the ground.
Global macro
How can large US technology stocks regain their upward momentum? Goldman Sachs points out the direction: they need a "magical" moment to help.
Goldman Sachs senior technology analyst Kash Rangan stated that to drive another rally in large US technology stocks, there needs to be a "magical moment" boost. The firm points out that this magical moment formula involves the steady rate cuts from the Federal Reserve along with a series of innovations that would drive profit growth of over 20%. The technology sector must make strides in customer add-on sales and monetization, particularly in the field of artificial intelligence.
Goldman Sachs delivers a "reassurance pill": The risk of economic recession in the USA is very low, and it is unlikely for US stocks to fall into a bear market.
Goldman Sachs strategists state that a sharp drop of 20% or more in the US stock market is unlikely because the risk of economic recession remains low and the Federal Reserve is expected to cut rates. The team led by Christian Mueller Glissmann indicates that although the US stock market may dip by the end of the year due to rising valuations, mixed economic growth prospects, and policy uncertainty, the likelihood of the market entering a bear market is very small, as the economy is also supported to some extent by a "healthy private sector".
US presidential candidates Harris and Trump will debate at 9:00 a.m. Beijing time on Wednesday.
The debate scheduled at 9:00 a.m. Beijing time on Wednesday, September 11, is likely to become the most important night of Vice President Harris's political career. Former President Trump aims to turn a new page after a challenging summer by participating in this debate. Since becoming the Democratic presidential nominee replacing President Biden, Harris has narrowed the polling gap with Trump.
UBS: The rise in US bonds before this round of rate cuts is more pronounced than in previous cycles.
In a report, UBS strategists point out that the recent trends in US Treasury bonds and yield curves seem more significant compared to historical averages and medians before the expected rate cut by the Federal Reserve on September 18. "The bond market usually rebounds when the Fed cuts rates, but compared to previous cycles, the recent rebound is larger; the 10-year (US Treasury) has seen the largest increase in recent history in the past month."
US consumer credit unexpectedly grew by $25.5 billion, marking the largest increase since the end of 2022.
In July, American consumer lending saw the largest increase since November 2022, reflecting significant growth in non-revolving debt and credit card balances. Data released by the Federal Reserve on Monday showed that total outstanding consumer credit increased by $25.5 billion, surpassing all economists' expectations. Outstanding revolving debt, including credit cards, increased by $10.6 billion, reaching the highest level in five months.
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)
At 22:00, Federal Reserve Board Governor Barr delivered a speech on Basel III agreement.
The next morning
Monthly short-term energy outlook report released by the EIA at 00:00.
At 00:15, Federal Reserve Board Governor Bauman delivered a speech on bank stress tests.
04:30 US API Crude Oil Inventories (in 10,000 barrels) as of September 6th
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