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On Thursday's Pre-Market Trading, after the data was released, the declines in the three major Equity Index futures narrowed.
In the week ending May 10, the number of initial jobless claims in the USA was 0.229 million, the same as the expected 0.229 million, and the previous value was revised from 0.228 million to 0.229 million.
In April, the month-on-month retail sales in the USA recorded 0.1%, beating the market expectation of 0%.
In April, the year-on-year PPI in the USA recorded 2.4%, declining for the third consecutive month, a new low since September of last year. The month-on-month PPI in April recorded -0.5%, the lowest since April 2020, far below the market expectation of 0.2%.
Most Growth Tech stocks fell in Pre-Market Trading. $Tesla (TSLA.US)$ Down more than 2%, $Meta Platforms (META.US)$ 、 $Amazon (AMZN.US)$ down over 1%.
China Concept Stocks are trading lower in Pre-Market Trading. $Alibaba (BABA.US)$ Fell over 5% after the earnings report. $PDD Holdings (PDD.US)$ down nearly 3%, $NetEase (NTES.US)$ In Pre-Market Trading, there is an increase of 8%.
Tesla fell 2% in Pre-Market Trading, and the Board of Directors has formed a special committee to evaluate Musk's compensation plan.
$Tesla (TSLA.US)$ The Board of Directors has set up a special committee composed of Chairman Robyn Denholm and independent director Kathleen Wilson-Thompson. Their task is to evaluate Musk's compensation. If the compensation plan granted to Musk in 2018 cannot be restored, the special committee within the Board of Directors will seek alternative compensation methods, possibly including drafting a new stock options plan to compensate Musk for his past contributions. Reports indicate that the new stock options plan that the special committee may draft will be linked to performance, operation, stock price, and other factors.
Trump: Has requested Apple to stop building factories in India and increase production capacity in the USA.
US President Trump stated in public that he has asked Apple CEO Tim Cook to stop building factories in India, directly targeting the company's diversification plans. Trump began his trip to the Middle East this week, visiting Saudi Arabia, Qatar, and the United Arab Emirates. "I had a little issue (discussion) with Tim Cook yesterday," Trump said during his visit to Qatar, talking about his conversation with Cook. "He is building factories all over India, but I don't want you to build factories in India." Trump stated that their discussion concluded with, $Apple (AAPL.US)$ that he would "increase production in the USA." It should be noted that Apple currently does not have any Smart Phone production lines in the USA.
Walmart rose more than 3% in Pre-Market Trading, but Q1 revenue fell short of expectations, adjusted EPS exceeded expectations.
$Walmart (WMT.US)$ The first quarter earnings report stated that Q1 revenue was $165.6 billion, lower than the market expectation of $165.84 billion, and up 2.5% from $161.51 billion in the same period last year; Q1 GAAP EPS was $0.56; the adjusted EPS was $0.61, exceeding the market expectation of $0.58. Looking ahead, the company issued guidance for Q2, expecting net sales to grow by 3.5% to 4.5% at constant Exchange Rates. The outlook for fiscal year 2026 remains unchanged from previous guidance, still predicting an adjusted EPS of $2.5 to $2.6 for the year. Walmart saw a rise of over 3% in Pre-Market Trading.
Alibaba saw a drop of nearly 6% in Pre-Market Trading, with Q4 revenue growth of 7% year-on-year falling short of expectations, while Alibaba Cloud accelerated its growth.
$Alibaba (BABA.US)$ Fourth quarter revenue increased by 7% year-on-year but fell short of expectations, with net profit growing significantly year-on-year. Among them, Taobao's revenue grew by 9% year-on-year, with 88VIP numbers continuing to show double-digit growth, and Alibaba Cloud's quarterly revenue increased by 18%, with AI revenue experiencing triple-digit growth for the seventh consecutive quarter. Additionally, due to costs related to AI and new businesses, ANT GROUP CO., LTD. profits declined by 31%, contributing 1.76 billion yuan to Alibaba's profits, as estimated by media. Considering Alibaba holds one-third of the shares in ANT GROUP CO., LTD., this implies that ANT GROUP CO., LTD.'s profits were estimated at 5.3 billion yuan for the three months ending in December. After the Earnings Reports were released, $Alibaba (BABA.US)$ Pre-Market Trading once fell nearly 6%.
UnitedHealth continued to decline by 6% in Pre-Market Trading, as the U.S. Department of Justice launched a criminal investigation into the company.
$UnitedHealth (UNH.US)$ In Pre-Market Trading, it continued to drop by 6%. The stock has been declining since mid-April, with its price nearly halved in the past month. On the news front, on May 14 local time, the USA Department of Justice is conducting a criminal investigation into UnitedHealth Group, which may involve Medical insurance fraud. Just a few months ago, the CEO of UnitedHealth Insurance, Thompson, was shot and killed on the streets of New York by Luigi Mangione.
NetEase rose nearly 8% in Pre-Market Trading, with Q1 revenue increasing by 7.4% year-on-year, exceeding expectations.
$NetEase (NTES.US)$ In Q1 2025, revenue reached 28.8 billion yuan, a year-on-year increase of 7.4%, while the market expected 28.5 billion yuan; Net income attributable to shareholders was 10.3 billion yuan, a 35% increase year-on-year; net income attributable to shareholders under non-GAAP was 11.2 billion yuan. In the first quarter, NetEase's gross profit was 18.5 billion yuan, estimated at 17.57 billion yuan; the net revenue from games and related value-added services grew by 12.1% year-on-year. As of the time of publication, NetEase rose nearly 8% in Pre-Market Trading.
Starbucks is considering selling its stake in its China business, seeking new growth paths.
According to informed sources, $Starbucks (SBUX.US)$ Discussions have been initiated with multiple private equity firms, technology companies, and other potential investors to explore various Options for its business in China, including the possible sale of a partial stake. According to sources, Starbucks this week sent letters through a financial advisor to several potential investors, inquiring about their views on the Chinese market and possible paths for business growth. Because the discussions are private, they requested anonymity. This transaction could value Starbucks’ Assets in China at several billion dollars. As of the time of writing, Starbucks has risen by over 1% in Pre-Market Trading.
Foot Locker surged over 80% in Pre-Market Trading, as Dick's Sporting Goods will acquire it for $2.4 billion.
According to Reuters, $Dick's Sporting Goods (DKS.US)$ Agreed to acquire a smaller competitor for $2.4 billion. $Foot Locker (FL.US)$ , this is following$Skechers USA (SKX.US)$This month marks the second major Footwear deal following the acquisition, as US retailers aim to tackle severe demand challenges. The two companies announced on Thursday that this Sporting Goods retailer is acquiring Foot Locker at a price of $24 per share, a premium of 86% over the last closing price. As of the time of writing, Foot Locker surged over 80% in Pre-Market Trading.
Global macro.
Is it an eagle or a dove? Federal Reserve's Goolsbee: I am a "dog".
Goolsbee stated, "I think it is unrealistic to expect businesses or central banks to draw conclusions on long-term trends in such a volatile short-term situation; it truly is a very challenging environment." People will ask me, 'Are you a dove or a hawk?' Goolsbee joked, "I would say I don't even know if I like birds." Instead, Goolsbee describes himself as a 'data dog' who makes decisions based on objectively measurable economic data. He mentioned he is still waiting for more information. "The first principle of the data dog is to distinguish when to act and when to observe. When more information is needed, it's the time to keep observing," Goolsbee stated.
Fearless of Trump's attacks! The EU strongly states that it is not in a hurry to reach a trade agreement with the USA.
Since taking office in January of this year, US President Trump has launched fierce trade warfare against many countries around the globe, with traditional ally the EU included. Despite facing strong pressure from the USA, the EU does not seem anxious to reach a trade agreement with the USA. The EU believes its scale will provide it with advantages in trade. Recently, senior EU officials expressed in media interviews that, as one of the world's three major economies, the EU will not be pushed around and hopes to reach better trade terms than the UK-US agreement. "We do not feel we are in a weak position. We also do not feel an excessive pressure to accept an unfair agreement," EU Trade Commissioner Valdis Dombrovskis stated last week.
Currently, the EU faces a 25% import tariff imposed by the USA on Steel, Aluminum, and Autos, as well as a 10% 'baseline tariff' on almost all other Commodities. The USA previously announced a 20% so-called 'reciprocal tariff' on the EU and then granted a 90-day grace period.
"The detox period" has passed, JPMorgan's global market strategy chief stated that the USA may avoid an economic recession.
According to Bloomberg, the head of global market strategy at JPMorgan stated that the USA may avoid an economic recession, as the likelihood of this scenario has decreased with the clearer global trade outlook. Dubravko Lakos-Bujas mentioned on Thursday that he believes the possibility of a recession is 35%, clarifying that this is his personal opinion. JPMorgan's official assessment earlier this week still认为 the risk is 'still high,' but below 50%. 'The situation is indeed clearer compared to a few weeks ago,' he said to Bloomberg Television's Francine Lacqua during a break at the global market conference hosted by JPMorgan in Paris. 'Some uncertainties surrounding trade, tariffs, and policy have begun to be controlled.'
Bank of America: The S&P 500 Index is expected to rise to about 6900 points, with a low likelihood of an economic recession.
According to a report by Bank of America, although the negative market sentiment may pose challenges for the stock market, if the anticipated economic recession does not occur, the USA stock market could see significant growth. Based on data from the past 70 years, when the ISM Manufacturing Index and consumer surveys sharply decline, but no recession ultimately occurs, the USA stock market averages a 17% increase in the following year. In this scenario, the S&P 500 Index is expected to rise to around 6900 points.
The price of a container shipped from China to the USA has increased by up to 1,500 USD.
According to CCTV Finance, following the latest adjustments to the US-China tariff policies in the past few days, several foreign trade companies in Shanghai, Jiangxi, and other areas have restarted their market supply to the USA, rapidly resuming the production and promotion of export products to the USA, with factories bustling with activity. In recent days, foreign trade logistics have also experienced a peak in shipments to the USA, with a surge in inquiries at international freight forwarding companies. According to multiple freight forwarding companies, with the adjustment of tariff policies, the cargo space for shipments to the USA at the end of May is nearing full capacity. At the same time, shipping companies such as Matson, Evergreen, and COSCO have also issued price increase notices, with the shipping costs for each container rising between $500 and $1500. Taking the Shanghai port to New York route as an example, the current quote for a 40-foot container is around $4300.
Top 20 transactions in Pre-Market Trading.
Macro calendar reminders for the USA stock market.
(The following is in Beijing time)
At 20:40, Federal Reserve Chairman Powell will deliver the opening remarks at the second Thomas Laubach Research Conference.
At 21:15, the USA's April industrial production month-on-month rate.
At 22:00, the USA's March business inventory month-on-month rate.
At 22:00, the USA's May NAHB Property Market Index.
At 22:30, the USA's EIA natural gas inventory for the week ending May 9 (billion cubic feet).
Editor/Rocky
