Hot news

• The Federal Reserve's “big hawkish”: current interest rates may not be enough to calm inflation

Minneapolis Federal Reserve Chairman Kashkari warned that current interest rates may not be enough to return inflation to the target level of 2%. He said that policymakers are most likely to keep interest rates unchanged for a longer period of time in the future. He pointed out that ongoing housing inflation indicators show that America's neutral interest rate may actually be higher in the short term, which may mean that the Federal Reserve needs to do more work to curb inflation.

• Damo delays expectations for when the Federal Reserve will cut interest rates for the first time until September

Economists at Morgan Stanley have delayed expectations of when the Federal Reserve will cut interest rates for the first time from July to September, citing the “lack of progress” in inflation. They still expect to cut interest rates three times this year, 25 basis points each time. Economists such as Ellen Zentner, Sam Coffin, and Diego Anzoategui said in the report that the lack of progress since the beginning of this year means that it will take longer for Fed policymakers to be convinced that inflation is continuing to fall towards the 2% target.

• Key US polls: People's confidence in Federal Reserve Chairman Powell is close to a record low

A recent Gallup poll shows that as US inflation continues to be high, American consumers are very dissatisfied with high prices, and they are pointing their anger at Powell. Americans' confidence in Powell is close to an all-time low. Powell, as chairman of the Federal Reserve, has the worst reputation in nearly 25 years.

• Legendary investor Drucken Miller is furious: The Federal Reserve is responsible for rekindling inflation!

In an interview, billionaire investor Stanley Druckenmiller accused the Federal Reserve of supporting reckless government spending, which hurt ordinary Americans and jeopardized Biden's chances of re-election. He said, “The Federal Reserve was originally in a perfect position. Inflation was falling and the financial environment was being tightened, but it made a mistake when it was one step away from success.” He said that in the future, whether Biden or Trump enters the White House, inflation is likely to increase.

• Russia says OPEC+ is still studying whether to increase oil production, and the US Department of Energy lowered oil price expectations

Russian Deputy Prime Minister Novak said that OPEC+ is still studying whether to increase oil production and will act according to the supply situation if necessary. According to a media survey last week, most analysts expect OPEC+ to extend production cuts until the second half of 2024. On the same day, the US Energy Information Administration (EIA) slightly lowered its expectations for oil prices this year and next two years in its monthly report, and it is expected that some OPEC+ oil producers will continue to limit oil production after the production reduction agreement expires.

Resumption of US stock trading

• The three major US stock indices closed with mixed ups and downs, and Tesla fell nearly 4%

The three major US stock indices closed with mixed gains and losses. The Dow rose 0.08%, the S&P 500 index rose 0.13%, and the NASDAQ fell 0.1%.

Star technology stocks both rose and fell. Tesla fell nearly 4%, Nvidia and Microsoft fell more than 1%, and Intel fell slightly; Google and Netflix rose more than 1%, and Amazon, Meta, and Apple rose slightly. Among them, Amazon once reached a record high in the market.

Popular Chinese securities generally fell, and the Nasdaq China Golden Dragon Index fell 2.12%. Xiaopeng Motors and Bilibili fell more than 6%, NetEase fell more than 4%, Ideal Auto and NIO fell more than 3%, Alibaba and Baidu fell more than 2%, JD fell more than 1%, and Pinduoduo fell slightly.

• US regulation escalates investigation against Tesla, requires autonomous driving data

On Tuesday, the US National Highway Traffic Safety Administration (NHTSA) requested in a letter posted on its official website$Tesla (TSLA.US)$Provide some data before the July 1 deadline, such as how many kilometers were driven by the autonomous driving system and the number of times the driver was reminded by the system to hold the steering wheel. Additionally, NHTSA is also reviewing Tesla's policy to suspend the use of Autopilot features for a week after drivers don't concentrate on driving to accumulate violations. By the close, Tesla was down nearly 4%.

• Apple Spring Press Conference: The M4 chip arrives as scheduled, and the new iPad Pro starts at 8999 in China

$Apple (AAPL.US)$An Apple special event, commonly known as the “Spring New Product Launch”, was held online on Tuesday. Apple released the iPad Pro, iPad Air, and the high-profile M4 chip. The new iPad Pro is available in two sizes, the 11-inch model and the 13-inch model. The starting price for the Bank of China's 11-inch model is 8,999 yuan, and the 13-inch model is 11,499 yuan. The new iPad Pro will be equipped with Apple's next-generation processor, the M4 chip.

• From largest holdings to drastic holdings reduction, Druckenmiller cuts Nvidia holdings

According to media reports on Tuesday, billionaire Stanley Druckenmiller revealed that he had drastically cut his holdings at the beginning of this year$NVIDIA (NVDA.US)$The position also indicates that the AI boom in the short term may be overhyped. Previously, according to his fund holdings documents, he increased his bets on Nvidia by selling shares and buying call options at the end of last year. Nvidia once became Drucken Miller's largest holdings. His fund held Nvidia shares worth nearly 550 million US dollars, accounting for about 16% of its total share capital. By the close, Nvidia was down nearly 2%.

• Disney's core streaming business made a profit for the first time, but the stock price plummeted by more than 9%

$Disney (DIS.US)$The core streaming entertainment division was profitable for the first time in the first quarter, two quarters ahead of schedule. In addition, Disney also raised its earnings forecast per share for the whole year, saying that efforts to turn losses into profits are paying off. However, as profit prospects and the number of Disney+ streaming service users were lower than expected, Disney plummeted by more than 9% by the close.

• Palantir plummeted by more than 15%, and sales in overseas markets were sluggish

$Palantir (PLTR.US)$Q1 revenue was US$634 million, up 20.8% year over year. Analysts expected US$618 million; adjusted earnings per share of US$0.08 were in line with expectations. However, executives said during the earnings call that Palantir's international business declined 3% month-on-month during the quarter due to the continued downturn in the European market. The European business accounts for 16% of the company's business. By the close, Palantir had plummeted by more than 15%.

• The stock price once rose more than 20% after the market! “America Tieba” Reddit's first quarter results exceeded expectations, beating peers with 48% revenue growth

“American forum”$Reddit (RDDT.US)$Q1 revenue increased 48% year over year to US$243 million, exceeding market expectations of US$214 million; loss per share was US$8.19, better than market expectations of US$8.71. Among them, advertising revenue, the core business that contributed most of its revenue, increased 39% year over year to US$223 million, surpassing its main competitor's growth rate. Reddit rose more than 20% after the market. As of press time, the stock had risen nearly 14%.

Top 20 US stock turnover

Hong Kong Market Outlook

• Beishui continues to increase Bank of China's holdings by about HK$600 million and sells Kuaishou over HK$400 million

On May 7 (Tuesday), Southbound made a net purchase of HK$2,142 billion in Hong Kong stocks.

$BANK OF CHINA (03988.HK)$,$LI AUTO-W (02015.HK)$,$XIAOMI-W (01810.HK)$Received net purchases of HK$593 million, HK$361 million and HK$179 million respectively;

$KUAISHOU-W (01024.HK)$,$MEITUAN-W (03690.HK)$,$HSBC HOLDINGS (00005.HK)$Net sales were HK$419 million, HK$364 million and HK$351 million respectively.

Today's attention

Keywords: monthly wholesale sales rate in the US in March; Federal Reserve Vice Chairman and Boston Federal Reserve Chairman delivered a speech; Arm, Uber, AMC theater performance

On Wednesday, in terms of economic data, data such as US EIA crude oil inventories for the week up to May 3 and the monthly rate of US wholesale sales in March are worth paying attention to.

In connection with the incident, Federal Reserve officials continued to make speeches, including Vice Chairman Jefferson and Boston Federal Reserve Chairman Collins.

In terms of financial reports, important US stock companies have been listed one after another.$Uber Technologies (UBER.US)$,$Shopify (SHOP.US)$,$Affirm Holdings (AFRM.US)$Financial reports will be announced before the market.$Arm Holdings (ARM.US)$,$AMC Entertainment (AMC.US)$,$Airbnb (ABNB.US)$Earnings will be released after the market.

Futubull Chen read:

From prophecies, you can learn a lot about the prophet, but you have little to gain about the future.

—Warren Buffett

editor/tolk