Source: Sina US Stocks On the evening of the 20th Beijing time, the US stocks opened mixed on Thursday, and then the three major indexes rose slightly. Nvidia hit another new high and consolidated its position as the largest market cap company in the US stock market. Initial jobless claims in the United States last week were higher than expected, and real estate and manufacturing indexes were below expectations. Until the manuscript was submitted, the S&P 500 index rose 0.29% to break through 5500 points, the Nasdaq Composite Index rose 0.37%, and the Dow Jones Index rose 0.13%. The US stock market was closed on Wednesday due to the June holiday (Juneteenth). On Tuesday, the S&P 500 index and the Nasdaq both set new historical highs. The US stock market is expected to record gains this week. The S&P 500 index set its 31st new high this year on Tuesday. Due to the continued AI craze and the resilience of economic growth, it is expected to continue to support corporate profits, especially in the technology sector. Nvidia's stock price hit another new high. The AI darling and chip maker surpassed Microsoft last Tuesday and became the world's most valuable company. Against the background of the continued AI craze boosting the stock market, Nvidia's stock price has risen 174% from 2024 to date. As Nvidia consolidates its position as a thriving market leader in the AI theme market, its market value has surpassed that of Apple in early June. "Nvidia is still the most important stock in the world," said Chris Weston, head of Pepperstone research, in a report. However, Weston warned that the overall performance of the index market was poor, and the market participation was mediocre, suggesting that the rise was built on an unstable foundation. "The fact remains that the market is still very bullish on AI-related stocks and large tech stocks, and given the lack of clear immediate risks, the path of least resistance is for stock indices to rise." While consumer spending has shown signs of slowing and hints at potential economic weakness, investors continue to flock to the AI giant. The rise of Nvidia has also boosted its peers. Chip maker Broadcom has surged more than 60% from 2024 to date. Scott Chronert, Citigroup's US stock strategy director, wrote in a report on Tuesday: "We still believe that Wall Street (the S&P 500) is diverging from the corporate sector (the foundation of the US economy), is this strange? There is no doubt that generative AI is currently infiltrating the US stock market environment as a sustained driver of growth." Nevertheless, some commentators have noted that while this doldrums has not yet fully affected the US stock market, which repeatedly sets new highs, the rise lacks breadth beyond the largest tech companies, and this situation may continue to deteriorate. Thomas Fitzpatrick, managing director of R.J. O'Brien and Associates, said, "There's a feeling of AI theme that's very similar to the 2000-2001 US stock style, but as we know, markets stay irrational longer than you stay solvent. But for now, it's hard to stop the speeding train." Sam Stovall, chief investment strategist at CFRA Research, said that due to three major unfavorable factors that will suppress stock prices, the US stock market will see a correction. This Wall Street veteran pointed out that so far this year, the stock market has performed strongly, with the S&P 500 index up 15% from 2024. However, he predicted that the benchmark index would fall 5% due to unfavorable interest rates, inflation, and stock valuations. The inflation rate is declining but still above the Federal Reserve's target of 2%, leading Fed officials to expect only one interest rate cut by year-end. As for Thursday's economic data, the initial claims for unemployment benefits in the United States were almost unchanged last week, and the data for the previous week rose sharply. These data tend to fluctuate before and after holidays and school vacations. Data released by the US Department of Labor on Thursday showed that as of June 15, the number of initial claims for unemployment benefits decreased by 5,000 to 238,000. The number of continued claims for unemployment benefits as of June 8 rose to 1.82 million. In the past year, the number of people applying for unemployment benefits has remained low as the labor market has shown resilience in the face of high prices and high interest rates. The four-week moving average of initial jobless claims rose to 232,750, the highest level since September last year.
On the evening of the 23rd Beijing time, U.S. stocks opened mixed on Tuesday, and then diverged. As of press time,$Dow Jones Industrial Average (.DJI.US)$fell by 0.02%, $Nasdaq Composite Index (.IXIC.US)$increased by 0.21%,$S&P 500 Index (.SPX.US)$rose by 0.15%. Traders are preparing for$Alphabet-A (GOOGL.US)$with$Tesla (TSLA.US)$and other company reports, and continue to pay attention to the possibility of the U.S. election and the Fed's interest rate cuts this year.
Companies that account for 29% of the market cap of the S&P 500 index will release their earnings reports this week. Tesla and Alphabet will be the first among the "seven giants of technology stocks" to release their performance.
Alphabet and Tesla's parent company Google will release their earnings reports after the U.S. stock market closes on Tuesday. This will be the first batch of earnings reports from large technology companies this reporting season, and investors will use it to judge the performance of technology companies in the second quarter.
Despite last week's sell-off, the valuations of technology companies are still high. Investors are looking for more evidence that their business is strong and that the hype around artificial intelligence is justified.
David Kostin, a strategist at Goldman Sachs, said, "Unless there is a significant change in the macro environment or the second-quarter earnings report leads analysts to raise revenue expectations for the next few quarters, the recent trend of small-cap outperformance may continue."
Small-cap stocks have performed well recently, and traders believe that the reason behind it is that a large amount of funds has been transferred from large-cap technology companies that led the market earlier this year to small-cap stocks.
Investors are becoming increasingly optimistic about the prospect of the Fed starting to lower interest rates soon, as rate cuts are especially favorable for smaller and more cyclical companies.
However, Mercer, the world's largest institutional investment consulting firm, warns that with Biden's withdrawal from the presidential race and the intensifying of the U.S. election, the Fed is increasingly likely to do nothing until the end of the year rather than getting involved.
Hooman Kaveh, chief investment officer of the company, said, "If you are a member of the Fed board, you are likely to say 'let's stay put and keep it unchanged before the presidential election.'
Larry Tentarelli, chief technical strategist of the Blue Chip Daily Trend Report, said that the phenomenon of shifting from large-cap tech stocks to small-cap stocks seen last week still exists widely.
He said that small-cap stocks rose broadly on Monday because investors predicted the performance of earnings reports in the coming days and the possibility that the Personal Consumption Expenditures (PCE) Index for this weekend may be positive.
Tentarelli said, "I believe that the current sector rotation trend is still intact. If the inflation report is positive, I think small-cap and banking stocks will continue to rise. "
After Biden withdrew from the presidential election race, the development of the U.S. election remains the focus of the market. U.S. economic data and inflation indicators favored by the Fed will be released later this week.
Andrea Tueni, head of sales and trading at Societe Generale, said, "Earnings season is coming. This will be the focus before Friday's inflation data is released. At present, I haven't seen a repricing of the 'Trump trade.'
Standard Chartered Bank said in a client report on Monday that despite Donald Trump's public claim to favor a weaker dollar, most of his policies will lead to short-term inflation, higher interest rates, and a stronger dollar.
Focus stocks
Most of the star tech stocks rose,$Amazon (AMZN.US)$,$Oracle (ORCL.US)$Increased by more than 1%, $NVIDIA (NVDA.US)$,$Tesla (TSLA.US)$Increased by about 0.6%.
Citibank reiterated its "buy" rating and target price of $150 for NVIDIA, and opened a 30-day upward catalyst observation for NVIDIA, mainly for three reasons: (1) NVIDIA CEO Jensen Huang and Meta CEO Mark Zuckerberg are likely to discuss the future of AI development, and it is estimated that NVIDIA will announce the long-awaited Arm-based Grace CPU chip server; (2) Huang Renxun's remarks will provide positive information regarding the profit model and return on investment of terminal customers; (3) it is expected that news will be released to accelerate the demand for AI, and the recent stock price correction in response to geopolitical factors (PE is discounted by 13% compared with the three-year average level), which can be regarded as a buying opportunity.
As Elon Musk's brain-computer interface company Neuralink's valuation soars, some of the company's employees and investors are preparing to sell their stocks.
According to two people familiar with the matter, Neuralink will launch a tender offer as early as next month to repurchase shares from employees who wish to sell stocks. Some employees and investors of Neuralink are also preparing for this.
UBS Group has raised AMD's target price from $200 to $210.
According to sources, the return rate of Apple's first space computing device, Vision Pro, in the Chinese market was over 50%.
The Apple official website shows that goods that meet the return conditions can be returned within 14 days from the date of delivery. Previously, Vision Pro's sales in the US market did not meet expectations, and sales have not yet reached 0.1 million units.
Industry analysts believe that the high selling price and lack of practical functions are the main reasons affecting consumer purchases. Although Apple is developing a lower-priced version of Vision Pro, the practicality and application value of the product are still key. Currently, Vision Pro needs more practical applications, especially applications that improve work efficiency to promote its popularity. However, the above data has not been confirmed by Apple officials.
TOP20 US stock trading volume$Microsoft (MSFT.US)$A spokesperson said in an interview with the media that the EU should be responsible for the largest IT system failure in the world. He said that the EU's restrictive measures prevented it from locking the Windows system, and it was one of the reasons for the largest IT failure event in the world.
What Microsoft calls EU restrictive measures refers to the agreement reached between Microsoft and the European Union in 2009. According to the agreement, Microsoft promised to give all security software the same Windows kernel access rights as its own software, allowing security product developers like$CrowdStrike (CRWD.US)$Third-party security software vendors to access and perform extremely complex operations through the API in Windows client and server systems.
Microsoft believes that the cost of this policy is a decline in system security, and the blue screen crash event is a manifestation of the consequences of this policy.
Microsoft spokesperson complained, "Although the company hopes to further lock the operating system to improve security, the EU's requirements make this goal difficult to achieve."
Internet security company Wiz may have rejected Google's $23 billion acquisition proposal. The company's CEO said that the company will seek to go public as planned and achieve its goal of annual revenue of $1 billion.
Earlier this month, sources revealed that Alphabet, Google's parent company, planned to offer $23 billion to acquire Wiz, a cybersecurity start-up, and has been in deep negotiations with the company. On the 23rd, a source stated that Wiz CEO Assaf Rappaport announced in an internal email that the company would reject Google's acquisition proposal.
Truist Securities has raised Amazon's target price from $220 to $230 and maintains a "buy" rating.
$Meta Platforms (META.US)$CEO Zuckerberg confirmed that the company will release a brand-new AR smart glasses by the end of this year and stated that Meta is almost ready to showcase the product prototype. According to media reports, Meta may announce the new AR smart glasses at the Meta Connect annual conference scheduled for September.
dropped nearly 6%, $iQIYI (IQ.US)$fell more than 4%,$BeiGene (BGNE.US)$,$XPeng (XPEV.US)$fell nearly 4%,$Bilibili (BILI.US)$Dropped more than 3%, $TAL Education (TAL.US)$nearly 3%.
$Spotify Technology (SPOT.US)$Rose nearly 13%, with Q2 net profit turned from loss to profit on a YoY basis, and Q3 profit guidance far exceeded expectations.
$General Motors (GM.US)$Fell more than 4%. On the news front, General Motors will postpone the opening time of the electric pickup truck factory by six months, to 2026.
$United Parcel Service (UPS.US)$Fell more than 11%, with Q2 revenue and adjusted earnings per share lower than expected.
$NXP Semiconductors (NXPI.US)$With a drop of more than 6%, the third-quarter performance guidance is below market expectations.
$Boeing (BA.US)$A supply chain executive of the company said on Tuesday that suppliers and airlines have the right to doubt the company's aircraft production forecast, and the company's production has recently declined.
Ihssane Mounir, Boeing's Senior Vice President of Global Supply Chain and Manufacturing, said during a discussion with other executives at the Farnborough Airshow, "From the perspective of the supply side and airlines, it is reasonable that we have not fulfilled our commitments to their schedules."
Boeing plans to increase the production of its best-selling 737 MAX, but after the almost brand-new 737 MAX 9 incident on January 5, the company has been under legal and regulatory scrutiny this year and has significantly reduced its output.
$CrowdStrike (CRWD.US)$Receiving attention. In the previous two trading days, the stock had accumulated a cumulative decline of 23%, and today it rose more than 1%. At the same time as the stock fell, "Wood Sister" bought nearly 0.06 million shares.
Editor/Lambor