Breakfast | S&P 500 Nasdaq rises for three consecutive days, approaching historical peak, UBS bullish on the potential of Chinese internet platforms in AI

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Overnight Morning Market

After the U.S. stock market closed on Thursday, Biden and Trump will hold the first U.S. presidential debate, with the economy being a key issue. Prior to this, the latest data released indicates that the U.S. economy is weakening, leading to a decline in U.S. bond yields and the U.S. dollar. The market is focusing on the U.S. Federal Reserve's emphasis on the inflation indicator - May Personal Consumption Expenditures Price Index PCE.

The S&P 500 and Nasdaq both rose for three consecutive days to a one-week high, approaching the historical high set last Tuesday. The Dow rose for two consecutive days from a one-week low, with tech and AI stocks rising together.

Meta rose 1.3% to near its historical high, Amazon rose 2.2% to hit a new high, with a market value close to $2 trillion. Apple rose 0.4% for the fourth consecutive day, ranking second in the U.S. stock market with a market value of $3.22 trillion; Microsoft rose 0.2% to hit a new high for three consecutive days, with a market value of $3.36 trillion as the largest in the U.S. stock market. NVIDIA fell nearly 2%, with a market value of $3.04 trillion ranking third in the U.S. stock market, and NVIDIA's double long ETF fell 4%.

Chinese concept stocks saw deeper declines. JD.com fell 4.5%, Baidu fell 1.3%, Pinduoduo fell 4.6%. Alibaba fell 2.4%, Tencent ADR fell 1.8%, Bilibili fell 2.9%, Nio fell over 5%, XPeng fell 6.7%, Li Auto fell over 3%.

Blue Chips and Hot Stocks

HKEX will launch Hang Seng TECH Index options weekly starting on September 2.

NASA and Boeing will hold a press conference on "Starship" on Friday afternoon at 2 p.m. Boeing is also facing new whistleblower allegations of defects in the 787 model components.

Novo Nordisk (NVO.N) plans to limit the supply of its approved weight loss drug Wegovy in the Chinese market to avoid affecting overseas market supply in the event of a surge in overseas demand.

Amazon executives: The production plan for Kuiper satellites, previously scheduled to start in the first half of 2024, is now delayed to the fourth quarter. Beta testing of the satellites will begin in 2025 instead of 2024.

Amazon plans to create a shopping zone that connects buyers directly with cheaper goods in Chinese warehouses to compete in the market.

Market news: Nokia will acquire Infinera for $6.65 per share in cash and stock, valuing Infinera at $2.3 billion, expanding its optical network scale and accelerating its product roadmap. Infinera's stock price surged 25% after hours.

Nike's fourth-quarter revenue was $12.61 billion, below market expectations of $12.85 billion. Fourth-quarter revenue in Greater China was $1.86 billion, slightly above the estimated $1.83 billion. Revenue is expected to decline by about 10% in the first quarter. Nike fell over 2% after hours.

U.S. retail investor "Roaring Kitty" Keith Gill, also known as "DFV," posted a photo of a dog on "X," leading his followers to flock to pet product-related companies Chewy and Petco. Chewy's stock price surged up to 25% triggering a circuit breaker, closing flat. Chewy was founded by Ryan Cohen, who was the CEO of GameStop. Petco's stock price also surged over 10% at one point, closing up 0.3%Microsoft: Xbox Gaming is about to land on Amazon Fire TV.

According to The Information: Apple is exploring easily replaceable iPhone batteries and may use new battery technology in an iPhone 16, while also possibly using the new battery technology in all iPhone 17S models.

The first batch of mass-produced new energy vehicles, the Song PLUS DM-i Champion Edition, officially rolled off the production line at BYD's Uzbekistan factory. BYD has signed a green transportation cooperation initiative with the Uzbekistan government to jointly promote sustainable travel methods.

SenseTime: Completes the placement of approximately 1.673 billion new Class B shares, raising a net amount of approximately HKD 1.995 billion.

Chips and Artificial Intelligence

Media: OpenAI generates annual revenue of up to $1 billion from model access.

OpenAI: Trained a model CriticGPT based on GPT-4 to capture errors in ChatGPT code outputs. Plans to further expand the application scale of RLHF on GPT-4 and put it into practice.

Intel launches its first fully integrated optical I/O chip for artificial intelligence.

UBS Hu Yifan: Bullish on the potential of Chinese internet platforms in AI

Hu Yifan, Chief Investment Officer and Head of Macroeconomics for UBS Wealth Management Asia-Pacific, stated that in the field of AI, from an overall perspective, UBS is optimistic about the empowering layer of the AI sector. The profit growth visibility of this sub-market is high, while also possessing strong competitive advantages. UBS is optimistic about AI infrastructure and companies driven by AI infrastructure semiconductors.

Cryptocurrency

According to AXIOS website: Coinbase filed two lawsuits on Thursday seeking to compel financial regulators to hand over internal documents and communications related to past investigations and industry actions.

Startups and IPO Opportunities

Ruqi Travel has applied to issue 30 million shares through a Hong Kong IPO. The price guidance range is HKD 34-45.4 per share. It is expected to be priced on July 8th; trading of the stock is expected to begin on July 10th.

SpaceX stated that the Starbase team is testing the tower "chopsticks" to catch the super heavy booster. Previously, the booster of the "Starship" soft-landed in the water. Musk revealed that the next booster landing will be caught by the tower arm.

Macro: Taking You Around the World

Boston Fed: Expects a rate cut in Q4 this year, with a 25 basis point cut each quarter next year.

Former Monetary Policy Committee member of the Bank of England, Saunders: The Bank of England may cut rates in August, with expectations of two to three rate cuts this year, and the interest rate is expected to reach 3.5% by the end of 2025.

The final annualized seasonally adjusted core PCE price index for the first quarter in the United States was 3.7%, with an expectation of 3.60% and a previous value of 3.60%. The final seasonally adjusted personal consumption expenditure for the first quarter in the United States was 1.5%, with an expectation of 2% and a previous value of 2%. The final annualized seasonally adjusted GDP for the first quarter in the United States was 1.4%, with an expectation of 1.3% and a previous value of 1.30%IMF lowers US economic growth target for this year to 2.6%, expecting its PCE to return to 2% by mid-2025.

Chinese Ministry of Commerce: has received materials for the (EU) relevant barrier investigation application submitted by domestic industries