On October 13th, the trend of the three major US stock indices diverged. As of press release, the Dow rose 0.83%, the Nasdaq rose 0.06%, and the S&P 500 index rose 0.52%.
Gold stocks continued to strengthen, with Gold Fields up more than 5% and Harmony Gold up more than 3%.
The Q3 financial reporting season for banking stocks started well, with Citigroup up more than 3%, Wells Fargo up more than 4%, and JPMorgan Chase up nearly 4%.
In terms of the commodity market, international oil prices have surged, with WTI crude oil futures main contracts rising by over 4% and Brent crude oil futures main contracts rising by nearly 4%; Spot gold rose by over 2%.
Global News
Will the US September CPI exceed expectations and the Federal Reserve raise interest rates or continue to pause? The organization looks at it this way
According to data released by the US Department of Labor on the 12th, the US CPI rose 3.7% year-on-year in September, which is the same as in August and higher than market expectations of 3.6%; The month on month increase was 0.4%, slightly slower than the 0.6% increase in August and higher than the market expectation of 0.3%. Excluding volatile food and energy prices, the core CPI increased by 4.1% year-on-year and 0.3% month on month, in line with market expectations. Many securities firms believe that the necessity for the Federal Reserve to raise interest rates has decreased, and US bond yields may continue to remain high.
Can the artificial intelligence theme continue to drive US stocks as the US stock reporting season kicks off?
Since the end of July, the S&P 500 index has fallen by a cumulative 6.1%, narrowing its annual gain to 12%. This week, the US stock market officially entered the third quarter financial reporting season. Against the backdrop of long-term factors such as soaring US bond yields and weakening US consumer spending trends, coupled with short-term disruptions such as the Israeli-Palestinian conflict and the risk of a US government shutdown, both funds on the market and profit taking on the market are closely monitoring important signals sent by the financial reporting season.
How does the International Energy Agency evaluate the oil market under the Israeli-Palestinian conflict?
With the continuation of the new round of Palestinian-Israeli conflict and the sharp escalation of geopolitical risks, investors are closely monitoring the potential risk of oil supply disruptions in the Middle East region. According to Xinhua News Agency, since the outbreak of a new round of conflict between Palestine and Israel, approximately 2200 people have died on both sides and over 8000 others have been injured. The International Energy Agency (IEA) stated in its latest monthly oil market report on Thursday (12th) local time that although the conflict between Palestine and Israel has not yet had a direct impact on crude oil supply, energy market participants will still be "on pins and needles" as the crisis spreads. The IEA stated in its report that "the conflicts in the Middle East are full of uncertainty and the situation is rapidly developing." The IEA also lowered its forecast for global oil demand growth in 2024.
Indian Bond Market Watching China's Exposure with Foreign Investors Adding to the Market
Recently, JPMorgan Chase announced that it will include 23 Indian government bonds worth $330 billion in its Emerging Market Government Bond Index (GBI-EMI), which is expected to attract nearly $30 billion in capital inflows. According to an interview with international institutions by First Financial, recently, global investors' interest in Indian bonds has been increasing, and funds are ready to move. Since 2018, the Bloomberg Barclays Global Composite Index, JPMorgan Chase Index, and FTSE Russell Index have been included in Chinese government bonds, and a large influx of funds has since followed. However, starting from 2022, funds have turned into net outflows. Last year, the net outflow of foreign capital from China's bond market was $86 billion, turning into a net seller for the first time in at least a decade. In the first quarter of this year, funds flowed out of $25 billion, and foreign investment maintained a wait-and-see trend.
Company Message
Tesla's delivery volume in the third quarter has declined month on month, and analysts predict that gross profit margin may fall to the lowest level in four years
Due to a decline in sales, Tesla is about to release its third quarter financial report on October 18th, which has been lowered by overseas analysts' optimistic expectations. According to FactSet data, Wall Street generally believes that Tesla's third quarter earnings were $0.74 per share, a decrease of 5% month on month. According to US financial media Benzinga, Morgan Stanley analyst Adam Jonas cautiously expects Tesla's performance to further decrease its gross profit margin to 17.5% in the third quarter, down from 18.1% in the second quarter and 19% in the first quarter. Based on this calculation, this will be Tesla's three consecutive quarters of not reaching the 20% pass line, and also the lowest gross profit margin level in the past four years.
The largest acquisition in the gaming industry will be completed! UK approves Microsoft's new agreement to acquire Activision Blizzard
On October 13th, the UK Competition and Market Authority (CMA) issued a statement stating that it had approved Microsoft's revised acquisition of Activision Blizzard, but did not include the copyright of cloud games. At this point, the largest acquisition in the history of the gaming industry has crossed the final regulatory hurdle. The CEO of Microsoft stated that the final regulatory hurdle has been overcome and the acquisition of Blizzard has been completed.
Far beyond expectations! OpenAI expects revenue of $1.3 billion this year and development costs to decrease further
With the support of the paid version of ChatGPT and AI development tools, the artificial intelligence giant OpenAI has seen revenue far exceed expectations this year. On October 12th local time, according to foreign media reports, Sam Altman, CEO of OpenAI, told employees this week that the company's revenue is expected to reach $1.3 billion this year, which means that OpenAI's current monthly revenue exceeds $100 million. According to reports, since OpenAI launched the paid version of ChatGPT in February this year, the company's revenue has grown significantly. If OpenAI's revenue can reach $1.3 billion this year, it will be 30% higher than the company's previous estimate of $1 billion.
Before the Double 11, JD's stock price suffered a heavy setback. Rating agencies lacked confidence in its retail performance in the third quarter
The most direct reason for this round of stock price decline is the downgrade of JD's rating by several major banks and the lack of confidence in its business in the third quarter. On October 13th, Macquarie downgraded JD Group's Hong Kong stock rating to neutral, with a target price of HKD 124. Morgan Stanley has downgraded JD Group's ADR rating to flat, with a target price of $33. Nomura released a report predicting that JD's revenue in the third quarter will increase by 1% year-on-year to 246 billion yuan, and estimates that JD's retail revenue will remain unchanged at 212 billion yuan year-on-year, 4% lower than the market's expected 220 billion yuan.
TSMC: has been approved for continuous operation in Nanjing, and is applying for an indefinite exemption for operation in Chinese Mainland
With regard to the information that TSMC has obtained the authorization from the United States, TSMC responded to the reporter of the Science and Technology Innovation Board Daily that "TSMC has been approved to continue its operations in Nanjing, and TSMC is also applying for an indefinite exemption for its operations in Chinese Mainland. Based on the suggestion of the Bureau of Industry and Security of the U.S. Department of Commerce, TSMC is expected to obtain an indefinite exemption by completing the application procedure for the authorization of 'certified end users'."