Breakfast | NVIDIA, Tesla lead the surge in technology stocks! Starbucks soared 24.5%, marking the largest single-day increase in history

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Overnight Morning Market

The three major U.S. stock indexes closed higher across the board, with the Dow rising 1.04% to 39,765.64 points, the S&P 500 rising 1.68% to 5,434.43 points, and the Nasdaq rising 2.43% to 17,187.61 points, marking the fourth consecutive day of gains.

The "Tech Seven Sisters" all rose. NVIDIA led the way with a 6.53% increase, closing at $116.14, rebounding nearly 17.42% since August 7th, with a cumulative market value increase of $423.858 billion over four days. Tesla rose 5.24%, Meta rose 2.44%, Amazon rose 2.06%, Microsoft rose 1.77%, Apple rose 1.72%, and Google Class A rose 1.15%.

AI concept stocks mostly rose. "AI demon stock" AMD rose 4.89%, Dell Technologies rose 4.9%, Oracle rose 0.39%, Snowflake rose 3.28%, CrowdStrike rose 3.66%, C3.ai rose 1.59%, Palantir rose 3.44%, while BigBear.ai fell 5.19%, SoundHound AI, a company held by NVIDIA, fell 3.29%, Serve Robotics, an AI robot delivery company held by NVIDIA, fell 7.49%, and BullFrog AI fell 0.79%.

Among popular Chinese concept stocks, Huya rose 14.13%, with total revenue in the second quarter reaching 1.54 billion yuan, and may repurchase up to $100 million worth of ADS or common stock; Tencent Music fell 15.31%, with second-quarter revenue and operating profit basically meeting or exceeding expectations, but social entertainment paying users were lower than expected.

ZEEKR rose 6.89%, XPeng rose 5.13%, Nio rose 3.46%, Tencent Holdings ADR rose 0.89%, Pinduoduo rose 1.09%, JD.com rose 0.23%, Bilibili rose 3.71%, Baidu rose 1.14%, Alibaba rose 0.23%, while NetEase fell 0.09%, Li Auto fell 0.62%, New Oriental fell 0.34%, Kingsoft Cloud fell 4.9%.

Starbucks rose 24.5%, marking the largest single-day increase in history, with a total market value exceeding $100 billion, and the company appointed Brian Niccol, former CEO of Chipotle, as chairman and CEO.

Blue Chips and Hot Stocks

Investors aggressively bought on dips before earnings reports, with NVIDIA rising 17% over four days, increasing its market value by $420 billion. Analysts point out that based on the earnings reports of large-cap tech stocks this quarter, some of NVIDIA's largest customers have indicated plans to continue investing in AI infrastructure. Currently, NVIDIA's stock price is about 36 times future earnings, significantly lower than the approximately 44 times in June.

Jensen Huang continues to sell NVIDIA shares, cashing out over $500 million in two months. Jensen Huang is not the only insider selling stocks. In the first half of 2024, company executives and directors sold stocks worth over $700 million, exceeding any other period in the company's history. Analysts believe that there is a significant bubble in artificial intelligence After being found guilty of monopolistic practices, Google may follow in Microsoft's footsteps and face a breakup as the U.S. Department of Justice considers splitting it up. Reports suggest that the Department of Justice is likely to seek to prohibit Google and other companies from signing exclusive contracts that guarantee their search engine dominance; if the DOJ pushes forward with the breakup plan, Google is most likely to be stripped of the Android operating system and Chrome; U.S. government officials are also considering forcing Google to sell its online advertising platform AdWords, compelling Google to share more data with competitors, and preventing Google from gaining unfair advantages through AI products.

Closely following Apple's lead, Google's Android system is now equipped with the Gemini AI assistant for the first time, and the most powerful AI Pixel flagship phone has been released: The Pixel 9 Pro Fold starts at $1799; the Pixel 9 Pro starts at $999, the Pixel 9 Pro XL starts at $1099; and the Pixel 9 starts at $799.

Tech journalist Mark Gurman stated that Apple is developing multiple smart glasses products, including the budget-friendly Vision Pro expected to be launched next year. In addition, Apple is continuing to develop the second generation of Vision Pro, with no clear release date yet.

Starbucks changes leadership amid consumer challenges, stock price soars, Chipotle CEO takes over. Due to weak sales in the two largest markets of China and the U.S. leading to declining performance, Starbucks' current CEO Laxman Narasimhan is gradually losing the board's trust and stepping down. Meanwhile, Brian Niccol, who successfully led Chipotle out of difficulties, will be leaving, causing Chipotle's stock price to drop by 10% on Tuesday.

13F

JPMorgan Chase increased its holdings of NVIDIA by over 11.16 million shares and Apple by 24.73 million shares in the second quarter, while also increasing its holdings of Microsoft, Amazon, Google, Meta, and other tech giants. In terms of Chinese concept stocks, JPMorgan Chase increased its holdings by 458% or 26.7 million shares, and significantly increased its positions in iQIYI and Bilibili. As of the end of the second quarter, JPMorgan Chase's total portfolio value was approximately $1.22 trillion, up from $1.18 trillion in the previous report.

Vanguard Group Inc cleared its positions in Rio Tinto and other stocks in the second quarter. It increased its holdings of NVIDIA, Apple, Microsoft, Google Class A, and Google Class C. It reduced its holdings of Berkshire Hathaway Class B shares, Caterpillar, and other stocks. Top holdings include Microsoft, Apple, NVIDIA, Amazon, and Meta Platforms.

Macro: Insights into the World

U.S. July PPI growth slowed down across the board, rising 2.2% year-on-year, below expectations of 2.3% and the previous value of 2.6%, with a month-on-month increase of 0.1%, lower than the previous and expected 0.2%. Analysts suggest that the PPI data further proves that the inflation situation has reversed, leading to an increase in expectations of a Fed rate cut.

China's new social financing in July was 770 billion yuan, compared to 3.3 trillion yuan in June. New RMB loans in July were 260 billion yuan, compared to 2.1 trillion yuan in June. M2 grew by 6.3% year-on-year, with M1 decreasing from 5% in June to 6.6%. The M2-M1 scissors gap was -12.9%, widening from -11.2% at the end of June "The world's richest man" vs. "US presidential candidate" global debut, Trump and Musk talked for over two hours. In addition to discussing assassination attempts, the core content includes: inflation is mainly caused by huge government deficits; AI's power needs have almost reached twice the electricity available in the United States; fossil fuels will also be the main source of power for power plants; Musk praised Trump's effectiveness in fighting inflation during his tenure