Breakfast | Trump concept stock DJT soared 21%, Goldman Sachs says US stocks enter the best fourth quarter trading period in nearly a century

LB Select
2024.10.28 23:45
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The three major US stock indexes closed slightly higher, while Chinese assets surged, with Nio up more than 10% and XPeng up 8.98%. Apple officially launched Apple Intelligence and unveiled a new iMac. Philadelphia prosecutors sued Musk, demanding that he stop distributing $1 million to voters. Media reports that Meta is developing an artificial intelligence search engine. Alibaba's international site released its first end-to-end AI product. Bitcoin traders once again eye the $70,000 mark, with funds flowing into US ETFs. The Trump family's encrypted project plans to issue its own stablecoin. Volkswagen plans to close at least 3 factories in Germany, laying off tens of thousands of employees

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US stocks collectively rose, Chinese concept stocks surged, Bitcoin approached $70,000

The three major US stock indexes closed slightly higher, with Chinese assets surging and the Nasdaq Golden Dragon Index closing up over 4%. The FTSE China A50 Index futures, known as one of the leading indicators of A-shares, surged in the night trading session, turning from a decline to a rise.

According to HSBC statistics, overseas Asian funds are withdrawing funds from the Indian and South Korean markets and actively building positions in the Chinese market. In addition, according to research reports recently released by several foreign institutions, the target prices of Chinese concept stocks such as Tencent Holdings, Meituan, JD.com, Bilibili, and Pinduoduo have been intensively raised.

The "Tech Seven Sisters" mostly rose. Google rose by 0.88%, Apple rose by 0.86%. Nvidia fell by 0.72%. Amazon rose by 0.3%. Microsoft fell by 0.36%. Trump Media & Tech surged by over 21%, with a cumulative increase of nearly 200% this month.

Chinese concept stocks generally rose, with JA Solar up over 17%, Canadian Solar up over 15%, Daqo New Energy up over 14%, Nio up over 10%, Alibaba up by 2.6%, JD.com up over 4%. Li Auto rose by 1.18%, XPeng rose by 8.98%.

Apple officially launches Apple Intelligence and unveils new iMac

Apple Intelligence is officially launched on iPhone, iPad, and Mac, with features including writing tools, image cleaning, and content summarization. Apple is upgrading all Mac computers to the M4 chip, with the first revamped product being the iMac, which will completely eliminate the Lightning port and upgrade the RAM collectively to at least 16GB for smoother AI operation. The new iMac starts at $1,299 with 16GB of memory and will be available on November 8th. More AI features, including integrated ChatGPT, will be released by the end of the year.

Ford's net profit falls below expectations

Ford's adjusted earnings per share for the third quarter were $0.49, in line with expectations; revenue was $46.196 billion, exceeding the expected $41.9 billion; net profit was $892 million, below the expected $1.881 billion. The full-year adjusted EBIT is expected to be $10 billion, below analysts' expectations of $10.63 billion, with the company originally forecasting $10 billion to $12 billion.

Media: Xiaomi 15 Pro priced over 5000 yuan

The Xiaomi 15 series and the launch event of the new Xiaomi Pangolin OS 2 are scheduled for October 29th at 19:00. Wang Teng, Deputy General Manager of Xiaomi's China Market Department and General Manager of the Redmi brand, bluntly stated on Weibo that "Xiaomi 15 Pro is over 5K+", indicating that the price of the Xiaomi 15 Pro phone is expected to exceed 5000 yuan. Xiaomi's car division revealed that the Xiaomi SU7 Ultra production version will be equipped with the largest mid-size racing-grade carbon-ceramic brake discs.

Pinduoduo's billion-dollar subsidy officially launches the second round of "Super Double Subsidy" activity

From October 11th to 18th, the first round of "Super Double Subsidy" accumulated an order volume of over 16.4 million

Media: Meta is developing an artificial intelligence search engine to reduce reliance on Google and Microsoft

Meta is developing a search engine that can provide conversational answers about current events for users of Meta AI chatbots. The company is trying to keep up with OpenAI in artificial intelligence development.

Alibaba International Station: Launches the first full-process AI product

Alibaba's full-process AI product is equipped with 4 professional AI intelligent assistants in the fields of foreign trade operations, reception, marketing, and compliance, enabling full-process hosting of the entire foreign trade operation. It can also link to the company's exclusive knowledge base to form personalized solutions.

Influencer Broker Robinhood enters the US election gambling market, allowing users to bet on Harris or Trump contracts

Robinhood announced that starting from Monday, eligible US citizens can trade election prediction contracts for Harris and Trump, allowing users to bet on who will win the election.

Trump family's crypto project plans to issue its own stablecoin

Crypto media Decrypt reported that the Trump family's cryptocurrency project "World Liberty Finance" (WLF) plans to issue a stablecoin. It recently raised $14 million in its initial token sale and is still in development.

Bitcoin traders once again target $70,000, funds flow into US ETFs

Options traders have been increasing their bets, expecting Bitcoin to reach $80,000 by the end of November regardless of who wins the US election, hitting a record high. A report by CoinShares shows that $910 million flowed into digital assets last week, driving the inflow for the year to $27 billion, nearly three times the record high in 2021. Ethereum saw an outflow of $35 million last week, the largest outflow among all assets.

Toyota partners with NTT to develop AI autonomous driving

Nikkei News: Toyota is partnering with Nippon Telegraph and Telephone Corporation (NTT) to develop artificial intelligence autonomous driving technology to prevent traffic accidents. The plan is to start research and development next year with a joint investment of 500 billion yen.

Volkswagen plans to close at least 3 German factories, laying off tens of thousands of employees

Daniela Cavallo, chairwoman of the Volkswagen Works Council, also stated that the scale of the remaining factories in Europe will be reduced. This will mark the first time Volkswagen has closed domestic factories in Germany. Volkswagen has ten core factories in Germany, and Cavallo also mentioned that Volkswagen will cut the salaries of all employees by 10% and there will be two rounds of salary freezes in the future, so there will be no salary increases in 2025 and 2026.

Boeing launches a $19 billion stock issuance plan to meet liquidity needs and prevent credit rating downgrade

Boeing has launched a nearly $19 billion stock issuance plan, one of the largest in history, to meet liquidity needs and prevent a credit rating downgrade to junk status.

Unfazed by the US stock market decline after the election, Goldman Sachs: We have entered the best fourth quarter trading period in nearly a century

Goldman Sachs fund flow expert Scott Rubner said that this Monday marks the beginning of the best fourth quarter trading period for US stocks since 1928, as well as the start of the best trading period of the year during election years. The buyback window for the largest buyers of listed companies' stocks also reopened on Monday; since 1928, the median return of the S&P 500 index from October 27th to December 31st in election years has been 6.25%.

Morgan Stanley: US stock performance largely follows the pattern of the 2016 election

The outstanding performance of financial and industrial stocks indicates that the direction of market movements is somewhat similar to 2016. "However, beyond the financial sector, the magnitude of fluctuations in these sectors is not convincing, and the financial sector also benefits from a strong earnings season and improving fundamentals."

Nomura warns: Market overly hedged against Trump trades, may see a "Harris surprise"

If a "Harris election deadlock/Congress split" scenario occurs, there is a risk of reversal for various assets, with some unwinding risks for stocks betting on a Trump sweep/"overheated economy"/relaxed regulation themes; under a Harris "deadlock" scenario, gold/cryptocurrencies may come under pressure; if the Democrats take control of Congress, the stock market may decline by 7% to 10% in the next one to three months.

US Election

After Amazon founder Bezos' "Washington Post" went against the norm and announced its refusal to endorse the Democratic presidential candidate, more than 200,000 people have canceled their digital subscriptions to the newspaper. Four sources familiar with the matter said that Bezos personally made the decision not to allow the paper to endorse Harris. The paper has endorsed Democratic presidential candidates for almost 30 years.

The New York Times cited multiple sources saying that former New York City Mayor and Bloomberg LP owner Michael Bloomberg recently donated $50 million to a nonprofit organization supporting the Democratic presidential candidate Harris. Previously, he had provided $47 million in public political donations to the Democratic Party, second only to George Soros among all Democratic mega-donors. Bloomberg had invested $95 million in the 2018 midterm elections to help the Democratic Party.

US President Biden cast his early vote for the presidential election in Delaware, supporting the Democratic presidential candidate Kamala Harris. November 5th is the voting day for the US election, but many states allow early voting. The first batch of mail-in ballots was sent out on September 11th.

According to calculations released on the Florida State University website, over 43.3 million American citizens have voted early. Texas has the highest number of early voters, with around 5.4 million people. Florida ranks second with 4.6 million people, followed by California with 4.2 million people.

Philadelphia prosecutors have sued Musk, demanding that he stop distributing $1 million to voters. The US Department of Justice has sent a letter warning Musk's political action committee that its random distribution of $1 million in bonuses may violate federal election laws