Overnight US Stocks | Dow Jones hits a new all-time high, small-cap stocks surge, gold hits a new high

According to the Wise Finance APP, on Tuesday, the three major indices rose, with the Dow Jones rising by over 740 points, hitting a historical high and the largest single-day increase in over a year. Small-cap stocks surged, with GameStop (GME.US) rising for the seventh consecutive trading day.

[US Stocks] At the close, the Dow Jones rose by 742.76 points, up 1.85%, to 40,954.48 points; the Nasdaq rose by 36.77 points, up 0.20%, to 18,509.34 points; the S&P 500 index rose by 35.98 points, up 0.64%, to 5,667.20 points. The Russell 2000 small-cap index rose by 73.41 points, up 3.36%, to 2,260.43 points. Tesla (TSLA.US) closed up 1.5%, while Nvidia (NVDA.US) fell by 1.6%. The Nasdaq Golden Dragon Index rose by 0.74%, with XPeng (XPEV.US) up over 6% and Nio (NIO.US) up by 5.8%.

[European Stocks] Major European indices fell, with Germany's DAX30 index down by 0.39%, the UK's FTSE 100 index down by 0.22%, France's CAC40 index down by 0.69%, and the Euro Stoxx 50 index down by 0.71%.

[Asia-Pacific Stock Markets] The Nikkei 225 index rose by 0.2%, Indonesia's Jakarta Composite Index fell by 0.75%, and Vietnam's VN30 index fell by 0.31%.

[Gold] COMEX August gold futures rose by 1.71% to $2,470.4 per ounce at the close, while COMEX September silver futures rose by 1.95% to $31.54 per ounce.

[Cryptocurrency] Bitcoin fell by 0.24% to $64,606.2 per coin, while Ethereum fell by 1.29% to $3,440.92 per coin.

[Crude Oil] The price of WTI crude oil futures for August delivery on the New York Mercantile Exchange fell by 30 cents, a decrease of about 0.4%, to close at $81.91 per barrel.

[Metals] London metals fell, with LME copper down nearly 1.45% at $9,664 per ton. LME aluminum fell by over 2.27% to $2,406 per ton. LME lead closed down $4 at $2,184 per ton. LME zinc fell by about 2.37% to $2,885 per ton. LME nickel closed down $107 at $16,594 per ton. LME tin closed down $75 at $33,171 per ton.

[Macro News]

US retail data stronger than expected, but sales outlook dim. US retail sales were flat in June, with a strong underlying trend that could boost second-quarter economic growth estimates. However, the sales outlook is not optimistic. From the profit reports of major retailers and manufacturers, it can be seen that households are becoming more price-sensitive and focusing on basic needs. The CEO of PepsiCo stated last week that low-income consumers are "struggling to make ends meet" and have devised many strategies to stretch their budgets until the end of the month Most households have exhausted their excess savings accumulated during the COVID-19 pandemic and are burdened with a large amount of credit card debt. As interest rates rise, credit card debt becomes more unaffordable. With the cooling labor market, wage growth is also slowing down. Nevertheless, the pace of consumer spending is sufficient to sustain economic expansion. Prior to the release of retail data, market expectations for economic growth in the second quarter of 4 to 6% (first-quarter economic growth rate was 1.4%).

U.S. NAHB Housing Market Index Declines for the Third Consecutive Month. The U.S. NAHB Housing Market Index declined for the third consecutive month in July, reaching its lowest level this year. The reason is that rising interest rates are suppressing sales and keeping construction financing costs high. The report shows that the measure of sales expectations for the next six months is one of the few positive factors, with this forward-looking indicator rising for the first time since March. NAHB's prospective buyer traffic and current sales indices both hit new lows for the year in July. Data also shows that overall, 31% of builders lowered prices in July, compared to 29% the previous month. Builders have been lowering prices for an average of 6% for the 13th consecutive month, with 61% still using sales incentives.

Fed Governor Brainard Reiterates Possibility of Rate Cut Later This Year. Fed Governor Brainard stated that if inflation continues to slow, the labor market cools but remains resilient, then a rate cut later this year would be appropriate. Brainard emphasized the need to rely on data, especially considering that the risks to inflation and employment have become more balanced. Her comments on the rate outlook are consistent with those in June. Brainard said, "If economic conditions continue to evolve in a favorable direction of inflation decelerating, soft but resilient employment, I expect that a rate cut later this year would be appropriate." She indicated that an increase in unemployment due to layoffs would prompt her to vote in favor of an early rate cut. However, if subsequent reports do not confirm a continued easing of inflation pressures, she believes that keeping rates high for a longer period may be appropriate. Brainard noted that the labor market has undergone a "substantial rebalancing," with job vacancies decreasing and the labor force increasing. "This ongoing rebalancing suggests that inflation will continue to decline towards our 2% target."

[Stock News]

Amazon (AMZN.US) Prime Day Sales Grow 13% in the First Six Hours, Consumers Spend More Strategically. According to Momentum Commerce, which manages 50 different product category brands, Amazon Prime Day sales grew by approximately 13% year-on-year in the first six hours. "Consumers continue to spend, but they are strategic, which is beneficial for promotions like Prime Day," said EMarketer Inc. analyst Sky Canaves. "I think we will see shoppers buying items like headphones and chargers, rather than larger electronics like laptops." Amazon introduced Prime Day in 2015 to attract new subscription users, with members paying $139 annually for delivery discounts, video streaming, and other benefits This event helps Amazon lock in shoppers before the holidays and deepen relationships with existing customers through exclusive offers. Data from market research firm Consumer Intelligence Research Partners shows that as of March, approximately 180 million people in the United States have Prime memberships, an 8% year-on-year increase. Prime Day can serve as a barometer for the holiday shopping season. Adobe estimates that the total online sales for retailers during the two-day event will reach $14 billion, an approximately 11% year-on-year increase.

Tesla (TSLA.US) races towards the "complete form" of the 4680 battery, the final move of a 5-year bet. It is reported that Tesla plans to mass-produce vehicles with the fully dry electrode 4680 battery by the end of the year, which will be the "complete form" version of the 4680 battery. It is understood that the design of the dry electrode for the 4680 battery has recently been finalized, which is a step towards large-scale production. The Tesla battery department will now focus on improving production yield and efficiency, expanding capacity. "Making the dry electrode will change Tesla as soon as it is done," said a Tesla insider. The 4680 battery is the core of Tesla's competitiveness for the next generation of products, and the dry electrode is the core of the 4680 battery. Since its inception, Tesla has spent 5 years on this project.

【Major Banks' Ratings】

Barclays: Lowered JD.com (JD.US) target price from $41 to $40

Cantor: Raised AMD (AMD.US) target price from $170 to $200

Bank of America: Lowered Warner Bros. Discovery (WBD.US) target price from $14 to $12

Deutsche Bank: Lowered BlackRock (BLK.US) target price from $924 to $912