Pre-market Update: Alibaba Plans to Spin-off Cainiao Logistics for IPO, Citigroup Reports Increase in Short Positions on Nasdaq
The delivery time for iPhone 15 in China is twice as long as the previous generation. JD.com fell by 3%, while Pinduoduo and Bilibili both dropped by over 1%. Alibaba's stock also declined by 0.6%. Beike saw a significant drop of nearly 6%, while Xiaopeng fell by over 2%, and Li Auto and NIO both dropped by 1.7%. Tesla's stock declined by 1.3%, while TSMC fell by 1.2%. Nvidia, Apple, Microsoft, Google, Netflix, Meta, and Amazon all saw a decrease of 0.5%.
Top News in US Stocks
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Alibaba: Plans to spin off Cainiao Smart Logistics Network Limited and list it independently on the Main Board of the Hong Kong Stock Exchange.
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Market News: French authorities have received a software update for Apple's iPhone 12 and are currently reviewing it.
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According to a Weibo post by NIO, in the just-concluded 39th week of 2023 (September 18-24), NIO's weekly sales reached 9,000 units, maintaining its position as the top-selling brand among China's new energy vehicle brands. As of September 24, the monthly sales have reached 29,200 units, continuing to lead the new energy vehicle market.
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The China Association for Non-Governmental Education has denied rumors that extracurricular training will be completely banned starting from October 15.
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According to The Wall Street Journal, Intel's plans to manufacture chips in Germany are facing obstacles, including a shortage of skilled workers and "Byzantine" bureaucracy.
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Sam Altman, CEO of Open AI, stated on the 25th that the AI revolution will be a huge transformation that can help expand and rapidly execute human ideas. As computing power increases, more AI-related applications will be developed.
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Counterpoint Research released a report stating that in Apple's largest overseas market, China, the waiting time for the first sales of iPhone 15 and iPhone 15 Pro Max is longer than the previous generation product, iPhone 14. The delivery time for the standard version of iPhone 15 is twice as long as that of iPhone 14. The waiting time for the top-of-the-line iPhone 15 Pro Max is 9 days longer than that of iPhone 14 Pro Max, setting a new record.
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According to CNN, the president of the United Auto Workers will meet with President Biden on Tuesday to discuss the strike.
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It is rumored in the market that after Apple and MediaTek, Qualcomm's next-generation 5G flagship chip will also be produced using TSMC's 3nm process. The announcement is expected to be made in late October, making Qualcomm the third customer of TSMC's 3nm process.
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Informed sources revealed that negotiators from the Republican and Democratic parties in the US Senate are close to reaching an agreement on a short-term spending measure. The measure aims to keep the US government running after October 1.
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Fed's Kashkari: If the economy becomes too strong, it may be necessary to raise interest rates and maintain them for a longer period. If real interest rates tighten, it may be necessary to lower interest rates.
Pre-market Movement
In pre-market trading, Dow Jones futures fell 0.41%, Nasdaq futures fell 0.57%, and S&P 500 futures fell 0.49%.
JD.com fell 3%, Pinduoduo and Bilibili fell over 1%, Alibaba fell 0.6%; Beike fell nearly 6%, Xiaopeng fell over 2%, NIO fell 1%, and Xpeng fell 1.7%. Tesla fell 1.3%, TSMC fell 1.2%, Nvidia, Apple, Microsoft, Google, Netflix, Meta, and Amazon fell 0.5%.
Institutional Views
1. Citi: Increase in short positions on Nasdaq futures, bearish sentiment rising
Citi Group strategists stated that investors are selling off the Nasdaq 100 index, which is dominated by technology stocks, and establishing short positions in the futures market. The net short position on the Nasdaq 100 index is currently $8.1 billion, with all long positions already closed. Meanwhile, there is a small net short position on S&P 500 index futures, but there are still $15 billion in long positions yet to be closed. Shorting technology stocks reflects investors' growing concerns that the Federal Reserve will keep interest rates high for a longer period of time.
- JPMorgan raises global energy stock rating
JPMorgan has raised its rating on global energy stocks to overweight, citing upward risks in oil prices in the near and long term. Last week, JPMorgan stated that oil prices could rise to $150 per barrel and urged investors to buy such stocks, including ExxonMobil, Marathon Oil Corp., Baker Hughes, and Canadian oil sands producer Cenovus Energy Inc.