Breakfast | Powell says there's no need to rush into rate cuts, US stocks under pressure! JD.com and Bilibili plummet after earnings, only NetEase surges 10%

Overnight Market Overview

All three major U.S. stock indexes fell. The S&P 500 index closed down 36.21 points, a decrease of 0.60%, at 5949.17 points. The Dow Jones Industrial Average, closely related to the economic cycle, closed down 207.33 points, a decrease of 0.47%, at 43750.86 points. The Nasdaq, which is heavily weighted with technology stocks, closed down 123.07 points, a decrease of 0.64%, at 19107.65 points.

Most sector ETFs in the U.S. stock market fell, with news of Trump's nominee for Secretary of Health causing the biotechnology ETF to drop about 2.6%.

The "Seven Sisters of Technology" had mixed results. Alphabet A closed down 1.84%, Tesla closed down 5.77%, Amazon closed down 1.22%, and Meta, involved in the "metaverse," closed down 0.49% after being fined nearly 800 million euros for violating EU antitrust regulations; Meta plans to appeal the European Commission's decision. Nvidia closed up 0.33%, having initially risen nearly 2% before turning negative. Apple closed up 1.38%, and Microsoft closed up 0.4%.

Among popular Chinese concept stocks, ZEEKR closed down 23.68%, as Volvo Cars sold its 30% stake in Lynk & Co to ZEEKR for a transaction price of 5.4 billion yuan. Bilibili closed down 12.8%, with mobile game and advertising revenue surging; Bilibili's Q3 revenue grew 26% year-on-year, and adjusted net profit turned positive for the first time. Fangdd closed down 10.13%.

JD.com closed down 6.56%, with Q3 revenue growing 5% year-on-year, exceeding expectations, and net profit soaring 48%, with active users showing double-digit growth for three consecutive quarters. NetEase closed up 10.41%, as its gaming business dragged down overall performance; Q3 revenue and net profit both shrank, but PC game performance was strong, achieving double-digit growth in both revenue and quarter-on-quarter comparisons.

Reports indicate that Trump's team plans to eliminate the $7,500 electric vehicle tax credit, causing electric vehicle concept stocks to plummet. Nikola closed down 22.76%, Workhorse closed down 14.49%, "Tesla's rival" Rivian closed down 14.3%, WeRide ADR closed down 17.07%, and Jia Yueting's FFIE closed down 2.82%.

In individual stocks, Disney closed up 6.23%, having risen nearly 12% at one point, with adjusted earnings per share for Q4 exceeding estimates; Cisco closed down 2.13%, with last quarter's revenue declining 6% but still better than expected, and slightly lowering its full-year guidance. "Affordable weight loss drug supplier" Hims & Hers Health (HIMS) closed down 24.46%, marking the worst single-day performance since its IPO in the U.S. Amazon launched electronic health products targeting Prime members, with analysts stating that Hims faces a "severe threat."

Powell: Strong Economy, Fed Doesn't Need to Rush to Cut Rates, Has Time to Understand Trump's Policy Impact

Powell stated that labor market indicators have returned to a more normal level consistent with the Fed's full employment goal; inflation will continue to decline toward the 2% target, although there may be bumps along the way; the path of interest rates is not preset and depends on data and economic outlook; if the data tells us to slow down rate cuts, slowing down would be a wise move; Congress generally believes that the Fed's independence is very important, and it is too early to draw conclusions about the Trump administration's policies; the impact of AI may come later and be greater than we expect

U.S. October PPI Rebounds Across the Board, Year-on-Year Increase of 2.4% Exceeds Expectations, Service Sector Sticks

The U.S. Producer Price Index (PPI) saw a rebound in October, with both year-on-year and month-on-month figures mostly exceeding expectations and rebounding from September data. The service sector rose by 0.3% in October, accounting for most of the PPI increase. The decline in food and energy prices suppressed the overall PPI increase. Financial blog Zerohedge stated that U.S. inflation is heading in the wrong direction. The market expects the Federal Reserve to cut interest rates in December, with a slowdown in rate cuts next year.

Reports Indicate Trump Team Plans to Eliminate $7,500 Electric Vehicle Tax Credit, Electric Vehicle Stocks Plummet

The Trump team is considering eliminating the $7,500 subsidy for electric vehicles to fund its tax reduction plan. This policy is one of the Biden administration's measures to combat inflation. Trump supporters and the oil industry hope to eliminate the electric vehicle tax incentives, while automotive industry groups are calling for their retention. Elon Musk believes that the elimination of the subsidy policy will have little impact on Tesla but will create greater trouble for competitors.

Berkshire Hathaway Reduces Holdings in Apple and Bank of America in Q3, Nearly Liquidates Utah Beauty, New Investment in Domino's Pizza, etc.

As of the end of Q3, Berkshire Hathaway's major holdings included Apple, American Express, Bank of America, Coca-Cola, and Chevron. In the third quarter, only Apple and Bank of America were reduced among the company's top ten holdings.

During Q3, Berkshire reduced its stake in Apple by 25%. This year, its cumulative reduction in Apple has reached two-thirds. In Q3, Berkshire reduced its stake in Bank of America by nearly 23%, with a holding ratio of 10.4% at the end of the quarter. It is worth noting that entering October, regulatory filings showed that Buffett continued to reduce his holdings in Bank of America. Since the holding ratio fell below the critical threshold of 10%, there is no need to disclose the transaction details promptly according to U.S. SEC regulations.

In Q3, Berkshire made new investments in Domino's Pizza and pool supplies distributor Pool. Both have some commonalities: both have underperformed the overall market so far this year. Due to pressure on spending from low-income consumers, Domino's Pizza's stock price has been suppressed; due to people's caution regarding discretionary spending, demand for pools has been sluggish, dragging down Pool's stock price.

JD.com Q3 Revenue Grows 5% Year-on-Year, Exceeding Expectations

JD.com’s net profit surged by 48% in Q3, with active users experiencing double-digit growth for three consecutive quarters. Specifically, JD.com’s net revenue for Q3 was 260.39 billion yuan, estimated at 259.73 billion yuan, with a net profit attributable to the parent company of 11.7 billion yuan. Adjusted earnings per ADS increased by 29.5% year-on-year to 8.68 yuan, estimated at 7.42 yuan.

NetEase Q3 Revenue and Net Profit Both Decline, Gaming Business Under Pressure, But PC Games Show Strong Growth

Due to the drag from its gaming business, NetEase's net revenue in Q3 decreased by nearly 4% year-on-year, and net profit fell by 16.7% year-on-year. Revenue from gaming-related businesses decreased by 4.2% year-on-year, but PC games performed well, with revenue increasing by 29% year-on-year and 30% quarter-on-quarter.

Bilibili Achieves First Profit Since IPO! Q3 Revenue Grows 26% Year-on-Year

Bilibili achieved revenue of 7.31 billion yuan in the third quarter, a year-on-year increase of 26%; the net loss was 79.8 million yuan, narrowing by 94% year-on-year; the adjusted net profit was 236 million yuan, compared to a net loss of 863 million yuan in the same period last year.

Specifically, the growth in revenue and profit this quarter was driven by advertising and gaming businesses. In the third quarter, Bilibili's advertising revenue was 2.09 billion yuan, a year-on-year increase of 28%, and gaming revenue was 1.82 billion yuan, a year-on-year increase of 84%, leading to a significant year-on-year increase of 76% in Bilibili's gross profit, with the gross profit margin rising for nine consecutive quarters to 34.9%.

Geely Automobile's Q3 revenue exceeds 60 billion, setting a new single-quarter record, expected to achieve annual sales target of 2 million vehicles

The company's net profit attributable to shareholders in the third quarter was 2.455 billion yuan, a year-on-year increase of 92%; in the first three quarters, the net profit attributable to shareholders increased by 358% year-on-year to 13.053 billion yuan.

Geely's strategic overhaul: Lynk & Co and ZEEKR merge, equity consolidated under Hong Kong-listed company

After the merger, Lynk & Co, previously established by a joint venture of Geely Holding, Geely Automobile, and Volvo, will no longer have a direct relationship with Geely Holding and Volvo Cars, but will be controlled by ZEEKR. Geely Automobile's Gui Shengyue stated that the integration of Lynk & Co and ZEEKR is aimed at avoiding industry competition and reducing duplicate investments and overlapping expenses.

Burberry announces new strategy to turn around difficulties, stock price surges 22%, marking the largest single-day increase in history

Burberry released its financial report on Thursday, showing a significant revenue decline of 22% and a year-on-year shift from profit to loss. However, the new CEO simultaneously announced a strategic restructuring plan and a cost-saving plan of 40 million pounds. Analysts pointed out that this transformation could mark a "turning point" for the struggling brand