Hot news
Pre-market trading on Monday, US stock futures are generally down.
Pre-market trading, growth tech stocks are generally down with ASML Holding down over 2%, Amazon and Apple down over 1%.
Pre-market trading, most China concept stocks are up with Li Auto Inc up over 5%, XPeng up over 3%, Alibaba and Baidu up over 2%.
China concept stocks ETF continues to lead the US stock ETF market in pre-market trading, and A-share related ETFs are leading. As of the deadline$VanEck ChiNext ETF (CNXT.US)$ up 9.03%, $Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$ 9.02%。
Apple plans to release Apple Intelligence and iOS 18.1 on October 28.
Technology journalist Mark Gurman revealed in the latest episode of Power On that $Apple (AAPL.US)$ Apple Intelligence feature will be launched on October 28th along with iOS 18.1. Reports suggest that Apple is rolling it out slowly to ensure major bugs are ironed out and to support all new traffic on its AI cloud servers. The first version of Apple Intelligence will include features like notification summaries, while subsequent updates (such as iOS 18.2) will add ChatGPT integration and support for custom Genmoji emojis.
The Meta version of Sora is here, able to seamlessly produce complete multimedia content.
On October 4th, Beijing time, $Meta Platforms (META.US)$ Meta has revealed a new AI model called Movie Gen. It consists of two models, Movie Gen Video and Movie Gen Audio, seamlessly producing complete multimedia content, covering everything from images to sound. Meta claims this is the most advanced media base model to date.
Amazon was downgraded by Wells Fargo & Co, citing limited visibility on short-term profit recovery, with a pre-market drop of 1.80%.
Wells Fargo & Co. $Amazon (AMZN.US)$ rating was downgraded from 'shareholding' to 'in sync with the market', with the target price lowered from $225 to $183. The challenges that may restrict Amazon's revenue growth until 2027 were emphasized. According to Wells Fargo & Co, although Amazon Web Services (AWS) remains strong, it is 'insufficient' to drive positive estimate revisions in the short term. The bank cautioned that 'profit margin expansion may also be limited in 1H25,' and the company is unlikely to see recovery positive revisions before the guidance in July 2025.
JD.com will offer limited-time, limited-quantity discounts before Double 11.
as reported by Star Daily $JD.com (JD.US)$ Internal sources revealed that there was an emergency meeting within JD.com's retail division recently, planning to launch the limited-time and limited-quantity price reduction strategy 'Dark Month, Windy Night' led by Liu Qiangdong, the founder and chairman of the board, on October 8, 2004. This 'Dark Month, Windy Night' promotion will cover products with the most significant investment and price reductions of the year.
Zeekr rose by 5.75% in pre-market trading, breaking the 0.02 million mark in large orders with 7X, and the first-month deliveries are expected to exceed 0.01 million units.
$ZEEKR (ZK.US)$ The large orders for 7X have exceeded 0.02 million units, and the expected first-month delivery volume will exceed 0.01 million units. Previously, within 24 hours of the Zeekr 7X release (as of September 21), large orders had already surpassed 6,000 units; on the second day of the new car release, nationwide deliveries involving thousands of people in hundreds of cities were initiated, achieving a delivery efficiency and system capability that leads the industry. The Zeekr 7X is positioned as a luxurious large five-seat SUV, with a starting price of 0.2299 million yuan.
Boeing's negotiations with the union are set to resume on October 7.
The company and its largest union announced on Friday local time that contract negotiations will resume on October 7. Both parties are seeking to reach an agreement to end the strike by approximately 33,000 Boeing workers on the U.S. West Coast. Negotiators from Boeing and the International Association of Machinists and Aerospace Workers have been working to find common ground, but have recently failed to reach an agreement on key issues in the presence of a federal mediator. $Boeing (BA.US)$ USA
Rio Tinto negotiates to acquire Acadia Lithium Corporation.
Mining giant $Rio Tinto (RIO.US)$ Currently in negotiations to acquire the lithium producer listed in New York. $ACADIA Pharmaceuticals (ACAD.US)$ Rio Tinto is in negotiations with the lithium company, marking its latest attempt to establish a foothold in this rapidly growing market. In a statement on Monday, Rio Tinto stated that it has made a takeover offer to Acadia Lithium, but uncertain if an agreement can be reached. Rio Tinto mentioned that they will not provide further comments unless there is a need to update investors on the latest developments. In January of this year, Livent based in Philadelphia and Allkem from Australia merged to form Acadia Lithium Corporation, currently valued at around $3 billion.
Shell Q3 refining margin significantly decreased.
$Shell (SHEL.US)$ Shell stated on Monday that due to the global demand decline, the company's refining margin in the third quarter significantly decreased compared to the previous three months, and the trading income of petroleum products also weakened. In its latest trading report, Shell announced that in the three months ending in September, its refining margin decreased from $7.7 per barrel in the previous quarter to $5.5 per barrel, a nearly 30% decrease. The trading performance of the chemicals and petroleum products divisions is expected to be lower than in the second quarter.
Global macro
Better-than-expected employment report boosts confidence, with Goldman Sachs lowering the probability of a U.S. economic recession to 15%.
Following the latest U.S. employment report showing better results than expected, Goldman Sachs reduced the probability of the U.S. entering a recession in the next 12 months by 5 percentage points to 15%. The U.S. Department of Labor announced last Friday that job growth in September was the largest in six months, with the unemployment rate dropping to 4.1%. Jan Hatzius, the Chief U.S. Economist at Goldman Sachs, stated in a report on Sunday that the September employment report "reset the narrative for the labor market" and alleviated concerns about the labor demand weakening too quickly and the inability to stop the rising trend in unemployment rates. The bank maintained the expectation of a continuous 25 basis point rate cut, stating that by June 2025, the final interest rate will drop to 3.25-3.5%.
S&P 500 is expected to rise another 10%, with two prominent Wall Street strategists bullish on U.S. stocks.
One of the most pessimistic strategists on Wall Street until mid-2024, Michael Wilson of Morgan Stanley, stated that explosive job growth announced last Friday, along with expectations of further rate cuts by the Fed, increased his view on cyclical stocks relative to safer defensive stocks. Meanwhile, Goldman Sachs CEO David Kostin also raised his expectations for next year's earnings growth for S&P 500 index component companies, as robust macroeconomic prospects are boosting profit margins. The strategist raised the benchmark index's 12-month target from 6000 points to 6300 points, indicating a potential 10% increase from the current level.
Bank of Japan officials: Many companies believe that excessive depreciation of the yen is undesirable.
Yasuyuki Kamiyama, the manager of the Bank of Japan's Osaka branch, stated on Monday that many companies in western Japan believe that excessive depreciation of the yen is undesirable. After attending the quarterly meeting of regional branch managers at the Bank of Japan, he said in a press conference, "Quite a few companies seem to think that excessive depreciation of the yen is problematic." "However, there are mixed views on whether the yen should appreciate further, with a unanimous agreement among companies that exchange rate fluctuations should be moderate," Kamiyama said.
The People's Bank of China has paused its gold shareholding for the fifth consecutive month, with foreign exchange reserves at a scale of $3,316.4 billion.
Data released by the People's Bank of China shows that as of the end of September, gold reserves remained unchanged at 72.8 million ounces for the fifth consecutive month. According to statistics from the State Administration of Foreign Exchange of China, as of the end of September 2024, the size of foreign exchange reserves was $3,316.4 billion, an increase of $28.2 billion from the end of August, with a growth rate of 0.86%.
The open interest of the ftse china a50 index futures hit a record high.
With the Chinese mainland on a week-long holiday, traders are turning their focus to futures listed in Singapore and Hong Kong. Since the start of the China National Day Golden Week holiday last Tuesday, the open interest of the ftse china a50 index futures on the Singapore Exchange has surged to a record high of 1.2 million lots. "The strong trading volume reflects global investors managing their China exposure and adjusting positions before the spot market reopens," said Ding Meiyan, Head of Stock Derivatives Business at the Singapore Exchange Group.
Global funds set a record high net selling volume of India stocks.
The Indian stock market faced the largest net sell-off by global funds since at least January 1, 1999. Data from the Securities and Exchange Board of India shows that on October 3, global funds made a net sell-off of $0.1017 billion in Indian bonds; based on exchange data, global funds also saw a record high level of $1.85 billion net sell-off in Indian stocks on October 3.
Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.
Editor/Rocky
