Breakfast | S&P records largest monthly decline in six months, Tesla may release new Model 3 today
Hong Kong stocks delayed opening today. In August, U.S. stock indices collectively fell, with the S&P posting its largest monthly decline in six months and the Nasdaq experiencing its largest monthly decline this year. Pinduoduo has risen for seven consecutive days. "X" will add voice and video calling features. Prior to the release of the new Model 3, inventory of North American Model 3 vehicles has been reduced again. Dell's performance exceeded expectations, with a 10% increase after hours. Broadcom's performance exceeded expectations, but its fourth-quarter guidance was disappointing.
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Hong Kong Exchanges and Clearing Limited (HKEX): Typhoon Signal No. 8 is now in effect, and the morning trading session of the securities market (including Northbound trading under Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect) and the derivatives market will be delayed. In addition, the Hong Kong Observatory expects Typhoon Signal No. 8 or above to be in force for most of today, and HKEX may suspend trading for the whole day.
Market Update: Overnight and This Morning
In the early Asian session, Dow Jones futures rose 0.1%, while S&P 500 futures and Nasdaq futures were mostly flat.
As expected by the market, the inflation indicators favored by the Federal Reserve showed moderate growth. The yield on the benchmark 10-year US Treasury, known as the "global asset pricing anchor," declined, and US stocks opened higher but closed mixed. The Dow Jones fell 0.48%, the S&P 500 Index dropped 0.16%, and the Nasdaq rose 0.11%.
In August, the S&P 500 recorded a cumulative decline of 1.77%, marking the largest monthly drop since February this year. The Nasdaq fell 2.17%, and the Nasdaq 100 dropped 1.62%, both recording the largest monthly decline since December last year, ending a five-month winning streak. The Dow Jones and Russell 2000, which had risen for two consecutive months, fell 2.36% and 5.17% respectively.
Most leading technology stocks rose. Amazon closed up nearly 2.2%, marking a three-day winning streak. Meta rose nearly 0.3%, Alphabet rose 0.2%, both recording a five-day winning streak. Apple rose over 0.1%, Microsoft fell 0.3%, and Netflix fell 0.2%. Vinfast dropped over 16%.
Most popular Chinese concept stocks continued to decline for two consecutive days. XPeng Inc. fell over 5%, NIO Inc. fell over 3%, JD.com and Bilibili fell over 2%, Baidu and Tencent Music Entertainment Group fell over 1%, Li Auto fell nearly 0.8%, Alibaba fell 0.8%, NetEase fell 0.5%, and Pinduoduo closed up nearly 0.9%, marking a seven-day winning streak.
What Happened to Blue-Chip Stocks and Hot Stocks
Wenxin One Word App Surpasses 1 Million Daily Active Users on the First Day of Release
Musk: Social Media Platform "X" to Add Voice and Video Calling Features
X users will be able to use voice and video calling features on iOS devices, Android devices, and computers without the need for a phone number. However, Musk did not disclose when these features will be available to users. New Model 3 to be released, Tesla Model 3 in the US and Canada sees another price reduction
Hengda Wealth unable to carry out August redemption
Hengda Wealth announced that due to the slower-than-expected progress in asset disposal and failure to obtain funds from asset disposal, the August redemption cannot be carried out.
Listed company performance
Broadcom's adjusted EPS for the third quarter was $10.54, exceeding analysts' expectations of $10.43. Adjusted net revenue was $8.88 billion, slightly higher than analysts' expectations of $8.87 billion. Semiconductor solutions revenue was $6.94 billion, compared to analysts' expectations of $6.87 billion. It is expected that revenue for the fourth quarter will be $9.27 billion, slightly lower than analysts' expectations of $9.28 billion.
Dell Technologies' adjusted EPS for the second quarter was $1.74, exceeding analysts' expectations of $1.14. Total net revenue was $22.93 billion, higher than analysts' expectations of $20.84 billion. Adjusted operating profit was $1.98 billion, compared to analysts' expectations of $1.50 billion.
IPO opportunities
ARM IPO plans to raise $5-7 billion, with a valuation between $50-70 billion
According to reports, ARM will hold a roadshow after Labor Day (the first Monday in September) in the United States and price its IPO on September 13, with plans to raise $5-7 billion and a valuation range of $50-70 billion.
Macro: A glimpse of the world
In October! The US government faces another shutdown crisis
The White House officially requested the US Congress to provide a short-term funding solution to avoid a government shutdown on October 1.
Fed officials: Not in favor of immediate monetary policy easing
Fed's Bostic stated that US inflation is still too high and he is not in favor of an immediate policy easing. If inflation unexpectedly rises, he will support further tightening of policies.
US government to provide $12 billion to help traditional automakers transition
As the US auto industry union believes that the rapid transition to electric vehicles will result in job losses for auto workers and threatens to strike, the US Department of Energy is preparing to provide funds to automakers for facility transformation to adapt to the production of electric and hybrid vehicles. US Core PCE Price Index YoY Rises 4.2% in July, MoM Records the Smallest Consecutive Increase in Over Two Years
The US July Personal Consumption Expenditures (PCE) Price Index YoY rebounded from 3% in June to 3.3%, in line with market expectations, marking the largest YoY increase since June 2022; MoM growth was 0.2%, in line with expectations and the previous value.
Bridgewater Co-CIO: The Fed Needs More Time Than Expected to Cut Rates
The Federal Reserve will not rush to raise or cut interest rates. "If I were in their (Fed) position, I would think that both raising and cutting rates have a high threshold. I need to see how things develop."
SEC Delays Decision on Latest Bitcoin ETF Application
The US Securities and Exchange Commission (SEC) has postponed its decision on the applications for WisdomTree and Invesco Galaxy's physically-backed Bitcoin exchange-traded funds (ETFs). Bitcoin plummeted on the same day, briefly falling below $26,000 per coin.
China's State Council: Increase in Special Additional Deduction for "One Elderly, One Child" Personal Income Tax
The special additional deduction for infant care under the age of 3 has been increased from 1,000 yuan per infant per month to 2,000 yuan. The special additional deduction for child education has been increased from 1,000 yuan per child per month to 2,000 yuan. The special additional deduction for supporting the elderly has been increased from 2,000 yuan per month to 3,000 yuan.
People's Bank of China, China Banking and Insurance Regulatory Commission: Lower Interest Rates on Existing First Home Loans
Lower interest rates on existing first home loans and lower down payment requirements for home purchases; unify the minimum down payment policy for commercial personal housing loans nationwide.
11 Mainland Banks Have Officially Announced the Reduction of Deposit Rates, with a Maximum Decrease of 25 Basis Points
Among the state-owned major banks, Agricultural Bank of China and Industrial and Commercial Bank of China have lowered the one-year fixed deposit benchmark rate by 10 basis points to 1.55%, and the three-year and five-year rates have been lowered by 25 basis points to 2.2% and 2.25% respectively. Xingye Bank, CITIC Bank, Ping An Bank, Everbright Bank, China Merchants Bank, Zhejiang Commercial Bank, Bohai Bank, Hengfeng Bank, and Minsheng Bank have all made adjustments as well.
Institutions: Hong Kong Stocks Expected to Continue Attracting Capital Inflows
After experiencing declines in early and mid-August, Hong Kong stocks rebounded from the latter half of the month, showing a V-shaped trend overall. Market participants believe that various indicators of Hong Kong stocks have bottomed out or are close to bottoming out, and a large amount of capital has started to enter the market for bargain hunting, leading to an increase in market optimism. AI Boom-led US Stock Rally Stalls in August, September May Bring More Volatility
The US stock market's surge led by the AI boom ran out of steam in August, but if we look at the past few decades, the market is expected to be more volatile in the upcoming September.