On the evening of the 30th Beijing time, the market focused on the financial reports of Google's parent company, Alphabet, and others. The number of ADP employment in the United States in October exceeded expectations, while GDP in the third quarter fell short of expectations.
The three major U.S. stock indexes turned higher, $Nasdaq Composite Index (.IXIC.US)$ rising by 0.18%, reaching a historic high, $S&P 500 Index (.SPX.US)$ Most of the star tech stocks rose, continuing to rise by nearly 3%, rising more than 2%, rising by more than 1%, and so on. $Dow Jones Industrial Average (.DJI.US)$ up by 0.35%.
The financial reports of large technology companies are receiving attention. Among the seven tech giants in the US stock market, five companies have released their performance this week.
Alphabet, Google's parent company, announced after Tuesday's closing that its performance exceeded analysts' expectations, with strong quarterly revenue growth in its cloud business.
Chip manufacturer AMD's stock price plummeted as its fourth-quarter revenue guidance failed to impress investors.
Tech giants Meta Platforms and Microsoft will announce their financial reports on Wednesday. Apple and Amazon's reports will be released on Thursday.
On the economic front, the US GDP grew by 2.8% in the third quarter, slightly below the forecast of 2.9%. Analysts say this report indicates strong growth in the US economy in the third quarter, showing resilience from residents and businesses amid global headwinds and uncertainties before the November elections.
According to the initial estimates released by the US Department of Labor on Wednesday, after adjusting for inflation, the US GDP growth for the third quarter was annualized at 2.8%, down from 3% in the second quarter. The median forecast by surveyed economists was 2.9%.
Consumer spending, the largest component in economic activities, rose by 3.7%, marking the largest increase since early 2023.
In October, ADP reported an increase of 0.233 million jobs in the US, well above expectations. The estimated increase was 0.111 million jobs, and the previous value showed an increase of 0.143 million jobs.
ADP private employment agency reported on Wednesday that despite the devastating storm in the southeastern United States and severe labor supply disruptions, private sector job creation in October reached the highest level in over a year.
ADP's Chief Economist Nela Richardson said: "Despite the recovery after the hurricane, job growth in October remains strong. As the year ends, the U.S. recruitment has been proven to be robust and versatile."
These numbers contradict expectations of an economic slowdown in October, however, some economists had hinted that the October report would be an outlier, which Federal Reserve officials would not consider at their meeting next week.
Another set of data shows that the initial value of the U.S. core PCE price index for the third quarter was 2.2%, expected 2.1%, previous value 2.8%.
The market is also watching the upcoming U.S. presidential election closely.
Goldman Sachs Group stated that global investors have overestimated the financial market's risk of uncertainty due to the 'difficult birth' of the U.S. presidential election outcome next week.
Goldman Sachs analysts Michael Cahill, Lexi Kanter, and Alec Phillips wrote in a report: "While we recognize the possibility of election uncertainty risk, we believe that market participants seem to have somewhat overestimated the chances of delayed election results."
Goldman Sachs' viewpoint has its basis. First, the neck-and-neck results in state and national polls mask the potentially significant differences in the Electoral College. Second, strategists suggest that the way states handle ballots has changed since the COVID-19 pandemic, and the counting speed should be faster than in 2020.
UBS Group warned of unfavorable factors such as the U.S. election and declining interest income. The bank stated that although the prospects for a soft economic landing in the USA are good, the U.S. election on November 5 could trigger market volatility, causing unpredictable effects on investor sentiment; the macroeconomic outlook in other parts of the world is also 'still overshadowed by dark clouds.'
UBS Group CEO Sergio Ermotti stated: 'Currently, the market is reflecting expectations of a Trump victory. If Kamala Harris wins, some trades betting on Trump may be reconsidered, causing rotational effects in the market.'
Some people view Bitcoin as a Trump trade, as Republican presidential candidate Trump has shown a positive attitude towards digital assets during his campaign. Data from the well-known betting website Polymarket shows that Trump is currently significantly ahead of Kamala Harris, while polls indicate a close race between the two.
IG Australia Pty market analyst Tony Sycamore stated that Bitcoin continues to 'digest the expectations of Trump winning the election,' adding that Bitcoin needs to consistently break through $70,000 to have the confidence to surpass the record of $73,798 set in March.
On Tuesday, U.S. stocks closed mixed, with the Dow slightly down while the Nasdaq hit a historic high.
Rob Haworth, Senior Investment Strategist at U.S. Bancorp Asset Management, stated: 'Growth stocks such as Nasdaq 100 index constituents are back in the lead. We are closely watching the financial reports released by tech companies to ensure strong investments in artificial intelligence (AI) and other productivity-enhancing tools to support robust future profit growth.'
Focus stocks
$Super Micro Computer (SMCI.US)$ On Wednesday, the company stated in a document that its audit institutions had resigned. In response to this news, the stock fell by 26%.
$NVIDIA (NVDA.US)$ Dropped by 1.60%, the company recently released the GPU display driver for October 2024 (different from the regular gaming driver), fixing as many as 8 high-severity security vulnerabilities.
$Tesla (TSLA.US)$ Dropped by nearly 1%. According to reports, BYD, as an electric car company, achieved quarterly revenue higher than Tesla for the first time. BYD announced its third-quarter report on Wednesday, with third-quarter revenue of 201.1 billion yuan, a year-on-year growth of 24%; while Tesla's total revenue for the third quarter was $25.182 billion (about 180 billion yuan), an 8% increase compared to the same period last year when revenue was $23.35 billion.
$Alphabet-C (GOOG.US)$ Alphabet's mother company's stock price rose by 5.6%, with its cloud business revenue increasing by 35% year-on-year. The financial report shows that Alphabet's major business revenues exceeded expectations across the board in the third quarter, including YouTube ads that lagged behind in the second quarter. The application of Artificial Intelligence (AI) technology has driven the company's cloud business beyond Wall Street's expectations, helping Google Cloud's revenue grow rapidly, with a growth rate exceeding 30%.
$Advanced Micro Devices (AMD.US)$ Dropping nearly 9%. Third quarter revenue reached $6.8 billion, with a gross margin of 50%, operating revenue of $0.724 billion, net income of $0.771 billion, and diluted EPS of $0.47. Despite AMD's record high total revenue and most important datacenter revenue in the third quarter, the midpoint of its revenue guidance for the fourth quarter fell slightly below market expectations. Some analysts attribute this to supply chain constraints preventing them from meeting the high demand for AI chips. Morgan Stanley lowered AMD's target price from $178 to $169.
$Amazon (AMZN.US)$ Rising 1%, former PR chief Craig Berman recently stated that the reason why Amazon founder Bezos withdrew his endorsement of Democratic candidate Harris was mainly for the future of his space exploration technology company, Blue Origin.
$Eli Lilly and Co (LLY.US)$ Falling 12%, third-quarter revenue fell short of expectations.
$Snap Inc (SNAP.US)$ Increasing by 13%, third-quarter revenue and user growth exceeded expectations.
$Reddit (RDDT.US)$ Rose 34%, both the third quarter performance and the fourth quarter guidance exceeded expectations.
$Trump Media & Technology (DJT.US)$Please use your Futubull account to access the feature.$Phunware (PHUN.US)$ Nvidia. $Rumble (RUM.US)$ Shares of companies related to the Donald Trump concept varied in gains and losses.
Editor/Rocky