Recently, Faraday's future has gone crazy!
On Thursday local time, all three major US stock indexes closed lower, with the Dow breaking through 40000 points for the first time during trading and then turning lower. As of the close, the Dow Jones fell 0.10%; The Nasdaq fell 0.26%; The S&P 500 index fell 0.20%. The market continues to pay attention to the US stock market financial reports and the outlook of the Federal Reserve's monetary policy.
Popular Chinese concept stocks generally rose, with the Nasdaq China Golden Dragon Index rising 2.49%. Faraday's future has risen by 134%, with a cumulative increase of 3964% in the past 5 trading days; IQiyi rose by over 12%, Zhongtong Express rose by over 10%, Huya rose by nearly 10%, Alibaba rose by over 7%, Xiaoniu Electric rose by over 6%, NetEase and Beike rose by over 5%, Weibo and Tencent Music rose by over 4%, Xiaopeng Automobile and Vipshop rose by over 3%, JD.com, Baidu, Pinduoduo, and Ctrip rose by over 1%, while Miniso and Yixian E-commerce rose slightly.
The Dow Jones Industrial Average broke through the 40000 point mark for the first time in trading
On Thursday local time, all three major US stock indexes closed lower, with the Dow breaking through 40000 points for the first time during trading and then turning lower. As of the close, the Dow Jones Industrial Average fell 38.62 points to close at 39869.38 points, a decrease of 0.1%; The Nasdaq Composite Index fell 44.07 points to close at 16698.32, a decrease of 0.26%; The S&P 500 index fell 10.54 points to close at 5297.61, a decrease of 0.2%. The market continues to pay attention to the US stock market financial reports and the outlook of the Federal Reserve's monetary policy.
In terms of economic data, the US Department of Labor reported that as of the week ending May 11th, the number of initial jobless claims in the United States was 222000, with an expected 220000, compared to 231000.
The US import price index rose 0.9% month on month in April, with an expected 0.30%, compared to the previous value of 0.40%.
The annualized total number of new housing starts in the United States in April was 1.36 million households, with an expected 1.42 million households, compared to the previous value of 1.321 million households. The total number of construction permits in April was 1.44 million, with an expected 1.485 million households and a previous value of 1.458 million households.
The Philadelphia Federal Reserve's manufacturing index for May in the United States was 4.5, with an expected value of 8, compared to the previous value of 15.5.
On the same day, the 2024 FOMC voting committee and Cleveland Fed Chairman Mester stated that decision-makers need more data to be confident that inflation is moving towards the 2% target, and suggested that officials maintain interest rates at high levels for a longer period of time to achieve this goal.
Mester reiterated that monetary policy is currently in a favorable position and added that as the supply side is unlikely to have much help with inflation this year, she expects the slowdown in prices to be smaller than last year.
New York Fed Chairman Williams stated that April inflation data showed positive signals, but it is not yet enough to prompt the Fed to cut interest rates in the near future. Williams expressed the above views in a media interview on Wednesday. As the Chairman of the Federal Reserve of New York, Williams also serves as Vice Chairman of the Federal Open Market Committee (FOMC) and has permanent voting rights on monetary policy, making him considered the "number three figure" of the Federal Reserve.
Popular technology stocks fluctuate between gains and losses
Popular technology stocks have mixed gains and losses. Intel rose more than 2%, Chaowei Semiconductor rose more than 1%, and Google A, Tesla, Apple, and Micron Technology saw a slight increase; Micro computers fell more than 5%, Cisco and TSMC fell more than 2%, parent companies such as Asmart and Facebook, Meta, and Amazon fell more than 1%, while Qualcomm, Netflix, Microsoft, Nvidia, and others saw a slight decline.
Chip company Arm rose 0.53% to $114.27 per share. On the news side, Saudi Arabia's sovereign wealth fund PIF disclosed its holdings in the first quarter, making a large number of new purchases of Arm call options, and its holdings have already ranked seventh in terms of heavy holdings. It is worth noting that PIF's latest 13F report shows that this sovereign wealth fund is aggressively pursuing an unprecedented investment frenzy among global investors around AI. In the first quarter, PIF not only built new positions in Arm, but also new positions in stock call options in AI fields such as AMD, Nvidia, and Microsoft.
Tesla rose 0.49%. Tesla CEO Musk recently revealed the launch date of the Cybertruck pickup truck's fully autonomous driving (FSD) function. Cybertruck has been on the market for over half a year, but Tesla has not yet provided the important feature of FSD on this electric pickup truck. Musk confirms that Cybertruck will receive FSD capability for version v12.5. For Tesla, enabling the FSD feature on the Cybertruck will be a major test, as this is the first time this feature has been applied to this type of vehicle.
Apples rose slightly by 0.06%. On Thursday, market research firm Omdia announced that the likelihood of Apple launching a flip top foldable iPhone is very low as it will compete with its own 6.1 inch to 6.9 inch iPhone products. On the contrary, Apple may launch a 7.9-inch expandable book folding product, which is more meaningful in terms of increasing screen size and user usage scenarios compared to simply expanding the screen size of the same device.
Microsoft fell 0.49%. On May 15th local time, Microsoft revealed in its 2024 Environmental Sustainability Report that in the fiscal year 2023, the emissions of Scope 1 and Scope 2 (greenhouse gas emissions directly generated by assets owned or operated by the company, as well as emissions generated by purchased electricity, heating, and steam) decreased by 6.3% compared to 2020. However, the emissions of Scope 3 (emissions generated by the company's overall value chain) increased by 30.9%, mainly related to data center construction.
Google rose 0.97%. Google recently held its annual I/O developer conference. According to Google's official statistics, in this 110 minute speech, Google CEO Pichaiti and AI made 121 appearances, while also launching a series of AI centered products and services, as well as the Veo video generation model, which claimed to be more effective than Sora. The entire press conference left a deep impression on Wall Street.
Amazon fell 1.27%. A nationwide study released by the Center for Urban Economic Development at the University of Illinois, Chicago on May 15th showed that five years after Amazon raised its hourly wage to $15, half of the warehouse workers surveyed said they found it difficult to afford enough food or shelter. Researchers conducted a survey of 1484 company employees in 42 states in the United States. 53% of respondents stated that they have experienced one or more forms of food insecurity in the past three months, and 48% of respondents have experienced one or more forms of housing insecurity.
Meta fell 1.73%. EU regulatory authorities announced on Thursday that they will investigate whether META has violated the Digital Services Act on the protection of minors. The European Commission stated in a statement that it is concerned that Meta's Facebook and Instagram systems, including their algorithms, may stimulate children's behavioral addiction and cause the so-called "rabbit hole effect".
In addition, the European Commission also expressed concerns about Meta's age assurance and verification methods, and added that it will now prioritize in-depth investigations and continue to collect evidence through "sending additional information requests, conducting interviews or inspections.". The EU further stated, "The initiation of formal procedures empowers the European Commission to take further enforcement steps, such as taking temporary measures and non-compliance decisions."
Cisco fell 2.68%. Cisco's revenue for the third quarter was $12.7 billion, a year-on-year decrease of 13%, with analysts expecting $12.66 billion; Earnings per share were $0.46, compared to $0.78 in the same period last year, with a market expectation of $0.65. During the period, product revenue was $9.02 billion, with analysts expecting $8.95 billion. The company has raised its annual revenue guidance, with an expected revenue of $53.6 billion to $53.8 billion, compared to a previous expectation of $51.5 billion to $52.5 billion and an analyst expectation of $53.63 billion.
Wal Mart rose 6.99%. Wal Mart's revenue in the first fiscal quarter increased by 6% year-on-year to $161.5 billion, $3.36 billion higher than the market expectation. Non GAAP earnings per share (EPS) were $0.6, a year-on-year increase of 22.4%, which was $0.08 higher than market expectations.
Looking ahead, Wal Mart expects that its revenue will grow by 3.5% to 4.5% in the second quarter, its operating profit will grow by 3% to 4.5%, and its adjusted EPS will be 0.62 to 0.65 dollars. For the annual performance, Wal Mart currently expects that the adjusted EPS in 2025 will be at or slightly higher than the top of the previous guidance (the previous guidance range was $2.23 to $2.37), higher than the market expectation of $2.37; It is also expected that the revenue growth rate in 2025 will be at or slightly higher than the previous guidance range of 3% to 4%, with a market expectation of 4.31%.
Most popular Chinese concept stocks rose
Faraday's Future Rise by 134%
Popular Chinese concept stocks generally rose, with the Nasdaq China Golden Dragon Index rising 2.49%. Faraday will rise by 134% in the future, iQiyi will rise by over 12%, Zhongtong Express will rise by over 10%, Huya will rise by nearly 10%, Alibaba will rise by over 7%, Xiaoniu Electric will rise by over 6%, NetEase and Beike will rise by over 5%, Weibo and Tencent Music will rise by over 4%, Xiaopeng Automobile and Vipshop will rise by over 3%, JD, Baidu, Pinduoduo, and Ctrip will rise by over 1%, while Miniso and Yixian E-commerce will slightly rise. Bitmining fell nearly 10%, New Oriental fell more than 4%, NIO fell more than 1%, and New Oxygen, TAL, and Dingdong Maicai saw a slight decline.
Faraday Future's stock price rose 134% on Thursday, closing at $1.65 per share, with a market value of $70.41 million. In the past 5 trading days, Faraday's future stock price has risen rapidly, with a cumulative increase of 3964%.
In April of this year, Faraday Future announced that the company received a letter from NASDAQ on April 24th stating that its stock had closed below $0.1 for 10 consecutive trading days, which did not comply with NASDAQ listing regulations. Therefore, NASDAQ staff decided to delist Faraday Future's stock from the NASDAQ market.
On May 7th, Jia Yueting posted a video on his personal social media platform in response, stating that "FF has received a delisting opinion letter from NASDAQ, and the company is facing a very high risk of delisting, but it is not as some media have misread that it has already been delisted.".
Industry insiders believe that the future surge in Faraday's stock price may be related to speculative speculation. In the stock market, some investors may use policy changes, market rumors, and other factors to engage in short-term speculation, thereby driving up stock prices. "In this situation, investors need to remain vigilant and avoid blindly following the trend."
IQiyi rose 12.12%. On the news, iQiyi released its financial report for the first quarter of 2024 as of March 31: data shows that iQiyi achieved a total revenue of about 7.927 billion yuan (in Chinese yuan, the same below), a year-on-year decrease of 5%; The net profit is about 655 million yuan, an increase of about 6.02% year-on-year; Non GAAP (Non GAAP) net profit was approximately 844 million yuan, a year-on-year decrease of approximately 10.31%.
Among them, the revenue from membership services was 4.8 billion yuan, with a record high monthly average single member revenue (ARM), and a continuous six quarter on quarter growth. The revenue of online advertising services was 1.5 billion yuan, a year-on-year increase of 6%; The revenue from content distribution was 928 million yuan, a year-on-year increase of 27%. In the current quarter, iQiyi's Non GAAP operating profit was 1.1 billion yuan, with an operating profit margin of 14%, reaching a historic high.
JD.com rose 1.93%. On May 16th, JD.com released its financial report for the first quarter of this year, with revenue and net profit exceeding market expectations. Data shows that JD Group's revenue in the first quarter reached 260 billion yuan, a year-on-year increase of 7%, with a further increase in growth rate.
In the first quarter, JD Group's net profit attributable to common shareholders of listed companies under non US GAAP accounting standards was 8.9 billion yuan (approximately 1.2 billion US dollars), a year-on-year increase of 17.2%, significantly exceeding market expectations.
Specifically, JD Retail's revenue in the first quarter reached 226.83 billion yuan, a year-on-year increase of 7%, while JD Logistics's revenue was 42.137 billion yuan, a year-on-year increase of 14.7%.
In terms of revenue composition, the revenue of electronic products and household appliances reached 123.212 billion yuan (approximately 17.065 billion US dollars), an increase of 5.3% compared to 116.999 billion yuan in the same period of 2023.
The revenue of daily necessities was 85.296 billion yuan (approximately 11.813 billion US dollars), an increase of 8.6% compared to 78.565 billion yuan in the same period of 2023.
The service revenue was 51.541 billion yuan (approximately 7.138 billion US dollars), an increase of 8.8% compared to 47.392 billion yuan in the same period of 2023.
Baidu rose 1.66%. On the afternoon of May 16th Beijing time, Baidu released its financial report for the first quarter of 2024 as of March 31st. According to the financial report, Baidu achieved a total revenue of 31.513 billion yuan in the first quarter of this year, with a core revenue of 23.803 billion yuan. Meanwhile, the net profit attributable to Baidu (Non GAAP) was 7.011 billion yuan, a year-on-year increase of 22%, while the net profit attributable to Baidu's core (Non GAAP) was 6.628 billion yuan, a year-on-year increase of 26%, both exceeding market expectations.
The revenue from online marketing was 17 billion yuan (approximately 2.36 billion US dollars), a year-on-year increase of 3%; The non online marketing revenue was 6.8 billion yuan (approximately 935 million US dollars), a year-on-year increase of 6%; The revenue from iQiyi was 7.9 billion yuan (approximately 1.1 billion US dollars), a year-on-year decrease of 5%.
Zhongtong Express rose 10.24%. Zhongtong Express recorded a revenue of 9.96 billion yuan in the first quarter, a year-on-year increase of 10.87%; The adjusted net profit was 2.224 billion yuan, a year-on-year increase of 15.8%. The number of packages in the first quarter was 7.171 billion, a year-on-year increase of 13.88%. The company expects the industry growth rate to be between 15% and 20% this year. Based on the principle of not making loss making express deliveries, the company accepts a certain range of market share decline. The company maintains its previous annual business volume guidance of 34.73 billion to 35.64 billion items, with a growth rate of 15% to 18%.
Anda Insurance's intraday stock price hit a historic high
Buffett invested heavily in the stock in the first quarter
Anda Insurance's US stock price rose by over 11% before trading, reaching a historic high; Subsequently, the increase narrowed slightly, rising 4.71% to close at $264.88 per share. On the news front, Buffett's Berkshire Hathaway revealed that it had invested in Chubb Insurance in the first quarter, buying 25.92 million shares with a market value of approximately $6.7 billion, making it the ninth most heavily held stock.
Chubb also has a label as one of the rare "Dividend Aristocrats" in the US stock market. The so-called "dividend aristocracy" refers to companies that have achieved dividend growth for more than 25 consecutive years among the constituent stocks of the benchmark P&500. Currently, only 68 companies meet this standard, and Chubb, as one of them, has achieved dividend growth for 31 consecutive years.
According to the latest regulatory documents, since the second half of last year, Berkshire has been building positions and increasing its holdings in Chubb. As of the end of March 2024, it has purchased nearly 26 million shares with a cumulative holding value of approximately $6.7 billion, making Chubb Berkshire's ninth largest holdings.
Chubb is one of the world's largest property and accident insurance companies, and in the past two months, it also gained popularity as an insurer for the Baltimore Bridge collapse accident in the United States.