On October 17, according to Caixin, pre-market trading in the USA on Thursday (October 17) saw futures of the three major indexes collectively rise. As of the time of publication, Dow Jones index futures rose by 0.26%, S&P 500 index futures rose by 0.58%, and Nasdaq 100 index futures rose by 1.10%.

On the same day, Taiwan Semiconductor released its third-quarter financial report, with all indicators stronger than expected, and also raised its performance guidance. Chairman Wei Zhejia emphasized: "Artificial intelligence is real", the demand is just beginning, and it is expected that Q4 business will continue to be supported by strong demand for cutting-edge technology.

In response to this news, Taiwan Semiconductor surged nearly 9% in pre-market trading, reaching a historic high in stock price; the company's major customer, 'AI shovelman' Nvidia, also rose over 3%, Broadcom and AMD rose by about 2.9%, and Apple rose by 0.7%.

Data released shortly before publication showed that the number of initial jobless claims in the USA last week was recorded at 0.241 million people, lower than the market's forecast of 0.26 million people; the 'terrifying data' of retail sales increased by 0.4% on a monthly basis, unexpectedly higher than the expected 0.3%, boosting market confidence in a 'soft landing'.

In addition, major US banks each made gains in their earnings reports, marking a good start to the Q3 earnings season. Adam Crisafulli, founder of Vital Knowledge, stated that the company's performance indicates a favorable market atmosphere, resilient economic growth, reduced inflation pressures, and the economy is normalizing.

Crisafulli added, "This is more supportive for the market than anything else. It has helped catalyze many cyclical value stocks." He believes that some funds may have shifted from tech stocks to value stocks, causing a pullback in tech stocks in the past few days.

Most European stock markets trading higher, with the german DAX30 index up 0.80%, the UK FTSE100 index up 0.45%, and the France CAC40 index up 1.46%.

Company news

Taiwan Semiconductor's third-quarter results exceeded expectations.

Taiwan Semiconductor's net income for the third quarter was 325.3 billion New Taiwan dollars, a 54% year-on-year increase, estimated at 299.3 billion New Taiwan dollars; third-quarter gross margin was 57.8%, estimated at 54.8%; third-quarter revenue was 759.692 billion New Taiwan dollars, compared to 546.733 billion New Taiwan dollars in the same period last year, while the market expected 742.166 billion New Taiwan dollars.

Several individual developers have received emails saying that Azure OpenAI service will be terminated on October 21, 2024, and only enterprise clients are eligible to subscribe.

Reporters have learned that several individual developers have received emails from Microsoft Azure stating that the Azure OpenAI service they use will be terminated on October 21, 2024. The reason is that due to local regulatory requirements, only enterprise customers in mainland China are eligible to subscribe to Azure OpenAI services.

Northwestern University in the usa sues Moderna for infringing its LNP patent technology.

Northwestern University in the USA has filed a new patent lawsuit against moderna in the Federal Court of Delaware, accusing the company of abusing the school's innovative results to develop its flagship new coronavirus vaccine Spikevax. The lawsuit alleges that moderna used the liposomal nanoparticle (LNP) technology developed by Northwestern University without permission in the Spikevax vaccine to transport fragile mRNA into the human body.

Baiyu Pharmaceutical and Novartis signed an exclusive licensing agreement for an investigational anti-tumor small molecule drug.

Baiyu Pharmaceutical and Novartis have signed an exclusive licensing agreement for a small molecule anti-tumor drug. According to the agreement, Baiyu will receive an upfront payment of $70 million, as well as various milestone payments of up to $1.1 billion for development, registration, and commercialization, and corresponding royalties. Novartis will have the global exclusive development and commercialization rights to this small molecule innovative drug.

Intel responds to security concerns: will keep in touch with relevant departments to clarify related questions.

Intel China announced on October 17th that it has noticed the reports from relevant media, and will maintain communication with relevant departments to clarify doubts and reaffirm the firm commitment to product safety and quality. Previously, the China Cybersecurity Association issued a document suggesting initiating a cybersecurity review of the products sold in China due to significant defects in product quality and safety management found in intel.

Tang Weishi: Some chinese auto manufacturers have proposed acquiring brands under Stellantis, but I declined.

"Several chinese auto manufacturers have contacted me, hoping to acquire some brands, but I declined." During the Paris Motor Show, Stellantis Group CEO Tang Weishi stated that currently all 14 brands under the group are profitable, so no strategic discussions (selling or shutting down brands) have been initiated, but in the future, Stellantis Group will not be able to retain brands that no longer create value for customers. Stellantis Group was formed by the merger of French Peugeot Citroën and Fiat Chrysler, currently owning 14 automotive brands including Fiat, Chrysler, Peugeot, Citroën, Maserati, and others. In addition, Stellantis Group also holds about 20% of China's new energy vehicle manufacturer Leapmotor.

Events to watch during the US stock market hours (Beijing time)

October 17th

21:15 US industrial production rate for September

At 22:00, the U.S. October NAHB property market index, U.S. August business inventory monthly rate, IMF Managing Director Kristalina Georgieva delivered a speech before the IMF and World Bank annual meeting.

At 22:30, EIA natural gas inventories for the week ending October 11 in the United States.

At 23:00, EIA commercial/strategic crude oil inventories for the week ending October 11 in the United States, Chicago Fed President Gulsby (FOMC voter in 2025) delivered welcoming remarks at an annual conference.

October 18th

At 04:00, U.S. August net international capital inflows.