Hot News
In May, the "small non-farm" report was surprisingly low, hitting a new low since March 2023. Trump commented quickly: "Mr. Powell, who is too late," should lower interest rates.
On Wednesday Eastern Time, ADP Research reported that U.S. ADP employment increased by 0.037 million in May, down from a previous value of 0.062 million, significantly lower than the expected 0.114 million, marking a new low since March 2023. This sharp decline directly reflects the significant weakening of employers' demand for new employees.
After the data was released, investors raised their expectations for possible future rate cuts. Trump clearly expressed dissatisfaction with the data performance, continuing to pressure Powell on Social Media: "The ADP report is out!! Mr. Powell, who is too late, must now lower the interest rates. It's unbelievable!! Europe has already cut rates nine times!". The Director of the U.S. Federal Housing Finance Agency also called for Powell to lower rates.
In May, the ISM services PMI in the United States shrank for the first time in nearly a year, with a significant decline in demand and high prices.
On Wednesday, ****, ISM reported that due to a sudden drop in demand, the U.S. May ISM services PMI index fell into contraction for the first time in nearly a year: The U.S. May ISM services PMI index was 49.9, significantly below the expected 52, and down from April's previous value of 51.6, lower than the predictions of the majority of economists surveyed.
Steve Miller, Chairman of the ISM survey committee, pointed out that the overall index does not signify severe contraction, but reflects the general uncertainty faced by service sector businesses. Affected by uncertainties regarding long-term tariff prospects, respondents expressed difficulties in forecasting and planning, frequently mentioning efforts to postpone or reduce Orders until the impact becomes clearer.
Musk called on the American public to take action and "veto" Trump's tax cut plan.
Local time on Wednesday, former U.S. Department of Efficiency (DOGE) advisor and Tesla CEO Musk intensified his attack on President Trump's iconic tax reduction bill (the "Big Beautiful Tax Law"), urging the American public to contact legislators and "veto" the bill. "Call your senator, call your congressman. It is wrong to bankrupt America," Musk suggested, "A new spending bill should be drafted to avoid a significant increase in the deficit and to avoid raising the debt ceiling by 5 trillion dollars."
Media reports, citing informed sources, revealed that Musk's public opposition to the bill is partly due to the fact that the bill cuts electric vehicle tax credits that are beneficial to Tesla. On Wednesday, U.S. House Speaker Mike Johnson stated that he called Musk to discuss the tax legislation draft on Tuesday night, but Musk did not answer.
Federal Reserve Beige Book: U.S. economy shows slight cooling, uncertainty and tariff pressures intensifying.
The economic conditions report "Beige Book" released by the Federal Reserve on Wednesday pointed out that recent economic activity in the U.S. has slightly declined, indicating that tariffs and high uncertainty are having a broad impact on the economy. The term "tariffs" appeared 122 times in the Beige Book, up from 107 times in the previous report, and relevant vocabulary related to "uncertainty" appeared 80 times. This report serves as an important reference for the Federal Reserve's monetary policy meetings, with the next interest rate meeting scheduled for June 17-18.
Post-Market Trading
The three major indices showed a mixed performance, with the Dow slightly declining, ending a four-day rally, while many stocks in the semiconductor sector gained strength.
On Wednesday, U.S. Eastern Time, the three major indices were mixed; the Nasdaq rose slightly, the S&P 500 Index rose by 0.01%, while the Dow closed slightly lower, ending a previous four-day upward trend.
The large technology stocks showed divergence, with Meta rising by 3.16%, Google rising by 1.65%, Amazon rising by 0.74%, NVIDIA rising by 0.50%, Microsoft rising by 0.19%, Apple falling by 0.22%, and Tesla falling by 3.55%.
Popular Chinese concept stocks generally increased, with the Nasdaq Golden Dragon China Index rising by 2.04%. Alibaba rose by 3.90%, JD.com increased by 2.84%, PDD Holdings went up by 1.34%, NIO gained 6.23%, XIAOMI-W rose 3.77%, Bilibili increased by 1.50%, Baidu rose by 1.36%, NetEase rose by 0.92%, and Tencent Music increased by 1.84%.
The semiconductor sector saw many stocks strengthening, with Wolfspeed rising by 15%, Nano Micro Semiconductor up by 14.14%, STMicroelectronics increasing by 10.67%, Taiwan Semiconductor rising by 2.42%, Broadcom gaining 1.65%, and NVIDIA up by 0.5%.
NVIDIA concept stocks Applied Digital rose nearly 30%, surging 94% over three trading days, with long-term orders expected to bring in 7 billion dollars in revenue.
NVIDIA concept stocks $Applied Digital (APLD.US)$ Saw a single day increase of nearly 30%, surging 94% over three trading days. On the news front, the company previously announced it has partnered with $NVIDIA (NVDA.US)$ supported professional cloud service providers $CoreWeave (CRWV.US)$Signed two 15-year lease agreements, which will bring approximately 7 billion USD in revenue to this data center operator during the lease period.
Wes Cummins, CEO of Applied Digital, stated in a statement: "These lease agreements consolidate Applied Digital's position as an emerging provider of next-generation artificial intelligence and high-performance computing critical infrastructure. With the new long-term lease agreement with CoreWeave, we have taken a step in our strategic expansion towards advanced computing infrastructure."
Tesla shares fell 3.55%, as both the Chinese and European automotive markets declined.
On Wednesday, Eastern Time, $Tesla (TSLA.US)$ the stock price fell 3.55%. Preliminary data from the Passenger Car Association indicates that Tesla's wholesale sales of new energy passenger vehicles in China in May were 61,662 units, a year-on-year decline of 15%. Tesla also faced setbacks in major European markets, with sales continuing to decline in May, selling only 1,210 vehicles in Germany, a year-on-year drop of 36.2%; in the United Kingdom, sales fell by more than 45%, being pushed out of the top four in sales, marking the fifth consecutive month of sluggish performance.
Broadcom's stock initially rose over 3% before its earnings, reaching a new historical high! JPMorgan: AI "money printing machine" is operating at full speed, and Broadcom is expected to deliver impressive results in Q2.
JPMorgan released a Research Report stating that the strong demand for artificial intelligence (AI) products, the stabilization of non-AI semiconductor business, and the continued growth of VMware business together contributed to the overall performance. $Broadcom (AVGO.US)$it is expected to announce second quarter earnings reports that are in line with or slightly above market expectations and provide an optimistic forecast for third quarter performance. The bank maintains a 'shareholding' rating on Broadcom, with a target price of $250.
American Software MongoDB surged nearly 15% in after-hours trading, with QA performance exceeding expectations, and an additional $0.8 billion stock buyback plan announced.
$MongoDB (MDB.US)$The company released its first-quarter Earnings Reports, reporting a loss of $0.46 per share, an improvement compared to the same period last year; revenue of $0.549 billion, exceeding the Analyst expectations of $0.528 billion. The company raised its full-year adjusted EPS outlook to $2.94-$3.12 and announced an additional $0.8 billion stock buyback plan.
Apple's request to pause the court order regarding changes to the App Store was denied.
Apple's request to pause a court injunction was not approved; this injunction requires. $Apple (AAPL.US)$ Developers of the App Store are allowed to guide users to purchase in-app items on the web without having to pay a commission. A federal appeals court in San Francisco made this ruling on Wednesday, marking the latest setback for the iPhone maker in its long-standing battle over the dominance of the Smart Phone software market and its app store against Epic Games Inc., the developer of Fortnite. Apple had requested to stay the execution of the judge's April ruling while appealing, which required Apple to comply with a ban issued by the judge in 2021, after the judge found that Apple had engaged in anti-competitive behavior in violation of California law.
Stablecoin giant Circle is about to go public, with a share price set at 31 dollars.
According to documents submitted to the U.S. Securities and Exchange Commission on Wednesday, the stablecoin issuer$Circle Internet Corp. (CRCL.US)$has achieved 25 times oversubscription, ultimately increasing the number of shares issued from 32 million to 34 million. Each share is expected to be priced at 31 dollars, a significant jump from the initial range of 24 to 26 dollars, raising 1.1 billion dollars. Circle will begin trading under the code CRCL on Thursday at the New York Stock Exchange, becoming one of the most representative pure cryptocurrency上市 companies in the United States. Circle's USDC holds about 27% of the stablecoin market, ranking second only to Tether USDT, which holds 67% of the market.
Top 20 trading volumes.
Hong Kong Market Outlook
Northbound funds aggressively bought MEITUAN for over 1.4 billion Hong Kong dollars, increased their holdings in Alibaba by over 0.6 billion Hong Kong dollars, and sold Tencent and XIAOMI for about 1.4 billion Hong Kong dollars respectively.
On **** (Wednesday), southbound funds net purchased Hong Kong stocks worth 3.516 billion Hong Kong dollars.
$MEITUAN-W (03690.HK)$、$BABA-W (09988.HK)$、$BYD COMPANY (01211.HK)$They acquired net purchases of 1.414 billion Hong Kong dollars, 0.62 billion Hong Kong dollars, and 0.394 billion Hong Kong dollars respectively.
$TENCENT (00700.HK)$、$XIAOMI-W (01810.HK)$、$SMIC (00981.HK)$Net sell of 1.436 billion Hong Kong dollars, 1.375 billion Hong Kong dollars, and 0.135 billion Hong Kong dollars respectively.
Today's focus.
Keywords: China Caixin Services PMI, U.S. initial jobless claims for the week, U.S. April trade balance, Broadcom Earnings Reports.
On Thursday, economic data including China's Caixin Services PMI, the number of initial unemployment claims in the United States for the week, and the US April trade balance will be released.
In terms of financial events, at 2 AM, the Federal Reserve will publish the Beige Book on economic conditions; European Central Bank President Lagarde will hold a monetary policy press conference.
In terms of Earnings Reports, $Broadcom (AVGO.US)$ Earnings Reports will be released after the market closes tonight.
Regarding new stocks,$NEWTREND GROUP (02573.HK)$、$RONGTA TECH (09881.HK)$The subscription will end; $Circle Internet Corp. (CRCL.US)$ It will be listed.
Futubull Morning Reading:
The price is what you pay, and the value is what you get.
—— Warren Buffett
Editor/joryn
