Hot news
On Wednesday during pre-market trading, the three major futures indexes rose collectively.
In economic data, usa's ADP employment figures for November increased by 0.146 million, expected to increase by 0.15 million, and the previous value was revised from an increase of 0.233 million to an increase of 0.184 million.
Salesforce rose nearly 12% in pre-market trading, with third-quarter performance exceeding expectations and an increase in full-year revenue guidance.
$Salesforce (CRM.US)$ In pre-market trading, it rose over 10%, reaching 365 dollars, and the stock price is expected to hit a historical high after the opening. In terms of news, Salesforce's revenue for the third quarter of fiscal year 2025 was 9.44 billion dollars, an 8.3% year-on-year increase, with market expectations at 9.35 billion dollars; adjusted eps was 2.41 dollars, with market expectations at 2.44 dollars. The current remaining performance obligations (cRPO) amount to 26.4 billion dollars, a year-on-year increase of 10%, higher than the market expectation of 26.1 billion dollars. Additionally, Salesforce expects fourth-quarter revenue to be between 9.9 billion and 10.1 billion dollars, above market expectations of 10.05 billion dollars. The company raised its full-year revenue guidance, expecting revenue to be between 37.8 billion and 38 billion dollars, previously estimated at 37.7 billion to 38 billion dollars.
Marvell Technology rose over 13% in pre-market trading, with a 19% sequential increase in sales for the third quarter that exceeded expectations.
Chip manufacturer $Marvell Technology (MRVL.US)$ In pre-market trading, it surged over 13% to $108.6. The company reported a year-on-year and quarter-on-quarter sales growth of 7% and 19% respectively for the third quarter of fiscal year 2025, reaching $1.52 billion, with adjusted eps at $0.43, exceeding market expectations. Marvell Technology's CEO Matt Murphy stated that the biggest contributors to growth during the quarter were sales of new custom ai chips for amazon and other hyperscale datacenter builders. Furthermore, Marvell Technology expects the momentum to continue, with fourth-quarter revenue projected to reach $1.8 billion (+/-5%), above the general market expectation of $1.65 billion.
Okta surged 14% in pre-market trading! Q3 results exceeded expectations, with ai applications continuing to explode.
Provider of authentication and access management services. $Okta (OKTA.US)$ The financial report shows that third-quarter revenue was $0.665 billion, a 14% year-on-year increase, surpassing the analyst expectation of $0.65 billion. The eps was 67 cents, higher than the market expectation of 58 cents. Okta expects fourth-quarter revenue to be between $0.667 billion and $0.669 billion, with eps between 73 and 74 cents, both exceeding analyst expectations. In addition, Okta also projects fiscal year 2026 revenue to be between $2.77 billion and $2.78 billion, above the analyst expectation of $2.56 billion.
Apple 'stands with' amazon, stating that it is considering using its ai chips to pre-train large models.
$Amazon (AMZN.US)$ At the annual cloud computing service AWS conference, a new ai platform was announced, with the group's developed ai model nova enhancing customer experience. The short video production tool nova reel will facilitate users in creating product promotion videos to be played on the amazon platform. $Apple (AAPL.US)$ Benoit Dupin, Senior Director of Machine Learning and ai, revealed that apple uses customized ai chips from amazon web services in many of its cloud computing services and is also evaluating the use of amazon's latest ai chips to pre-train its Apple Intelligence model.
Eli lilly and co's weight loss drug Zepbound surpassed novo-nordisk a/s's Wegovy in the first comparative trial.
As Nvidia's market cap continues to soar, founder and CEO Huang Renxun has been consistently selling company shares in recent times. Huang Renxun has reduced his holdings for 42 trading days, a total of 5.04 million shares. Based on a conservative estimate of cashing out 12 million US dollars per day, Huang Renxun has cashed out more than 0.5 billion US dollars in 2 months. In addition, in the first half of 2024, company executives and directors sold stocks worth more than 0.7 billion US dollars, the highest amount in the company's history. $Eli Lilly and Co (LLY.US)$ In a study sponsored by the company, patients treated with Zepbound lost an average of 20% (about 50 pounds) in 72 weeks, while those treated with Wegovy lost 14%. The results confirmed earlier trials of the two drugs, indicating that Zepbound is more effective. As of press time, eli lilly and co's stock rose over 1% in pre-market trading.
It is reported that intel contacted top headhunting firm Spencer Stuart to seek a 'parachute' CEO.
According to the media, $Intel (INTC.US)$ is considering hiring external candidates for the first time to succeed the departing intel CEO Pat Gelsinger, and sources indicate that intel has spent money to hire the world's top headhunting firm Spencer Stuart to find potential successors for the company's CEO position. One insider stated that the intel board of directors also reached out to the recently departed intel director Lip-Bu Tan to gauge his interest in taking on the top leadership role at the chip manufacturing giant, which is facing severe operational difficulties. Since its founding, intel has consistently promoted senior technical personnel from within to serve as CEO, so an externally appointed CEO would break this tradition.
Kingsoft Cloud surged over 10% in pre-market trading, and is expected to set a new high at the opening.
Hong Kong stock Kingsoft Cloud rose over 10% today, driving $Kingsoft Cloud (KC.US)$ U.S. stocks rose over 10% in pre-market trading, with the stock price expected to set a new high at the opening. The stock has surged over 170% in the past month. According to a recent report from CICC, the profit forecast for Kingsoft Cloud for this year and next remains unchanged, maintaining an 'outperform industry' rating. Based on performance visibility and improved market risk appetite, the target price for U.S. stocks has been raised by 46% to $9.50.
Global macro
Wall Street's optimism is heating up again! wells fargo & co: S&P 500 is expected to target 7007 points next year.
Wells Fargo & Co's stock strategist Christopher Harvey and his team expect the S&P 500 to rise to 7007 points by the end of 2025, which is the highest target among Wall Street strategists, and they predict that the S&P 500 index could increase by more than 26% next year. Harvey stated, "Overall, we anticipate that the Trump administration will face an increasingly favorable macro environment for the stock market, while the Federal Reserve will slowly lower interest rates." He added that the stock market will rise in an environment where corporate profit margins continue to expand, the growth rate of the USA economy is faster than the current general forecast of 2.1%, and "merger and acquisition activity slightly rebounds by the end of 2025."
Bank of America: The inventory destocking cycle has ended, and looks bullish on U.S. cyclical stocks in 2025.
The bank stated that in 2022, the USA was at a level of 9% after the peak of inflation, and today's environment resembles that of the late 1990s to the early 2000s, as only a few expensive large stocks account for one-third of the S&P 500 index. Savita Subramanian, head of U.S. stocks and algo strategy at Bank of America, stated that common stocks offer more opportunities than the index. "We like companies with good prospects for cash returns linked to the U.S. economy—large-cap value stocks." Additionally, analysts believe the inventory destocking cycle has ended. After experiencing destocking troughs in 2003, 2001, and 2022, the S&P 500 index's earnings grew by 6%, 44%, and 35% respectively in the following 12 months.
Several Federal Reserve officials have signaled that expectations for a rate cut in December are rising.
San Francisco Fed President Daly stated that a rate cut this month is uncertain but remains within the policymakers' considerations. Daly mentioned, "To maintain a good economic development, we must continue to adjust policy, whether in December or later; we will have opportunities to debate and discuss this issue at our next meeting, but the key is that we must continue to lower policy to adapt to the economy." Chicago Fed President Goolsbee also mentioned that he expects interest rates to "drop significantly from current levels" over the next year. It is worth noting that among the officials speaking this week, only Governor Waller indicated he supports a rate cut in December; however, he also added that his decision would depend on more data released before the meeting.
"South Korea Martial Law Storm" shocks the world, what impact will it have on investors?
Most Wall Street analysts believe that U.S. investors do not need to worry too much, as this crisis will pass quickly. Investment firm CFRA stated, "I think you should remain calm because this is an unplanned and unforeseen event, likely to be short-lived. By the time many investors react to withdraw, the market bottom may have already been formed." However, at the same time, some analysts pointed out that global investors should closely monitor developments. Rory Green, a strategist at investment consultancy TS Lombard, warned, "Given South Korea's prominent role in the global supply chain, it is worth paying special attention. Meanwhile, political turmoil may continue, and Yoon Suk-yeol is now destined to face impeachment."
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)
23:00 USA October durable goods orders month-on-month revision.
23:00 USA October factory orders month-on-month.
23:00 USA November ISM non-manufacturing PMI.
Next day 02:45 Federal Reserve Chairman Powell will be interviewed at the DealBook/Summit conference hosted by new york times.
Next day 03:00 The Federal Reserve releases the Beige Book on economic conditions.
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