ADDX Go Market Morning Wrap - 2024 Oct 11th
Market Key Focus
US Market
CPI
The U.S. CPI rose 2.4% year-on-year in September, the lowest in three and a half years, but exceeded expectations.
Jobless Claim
The number of first-time unemployment claims for last week unexpectedly increased to a 14-month high.
Stocks
The CPI pushed down the US stock market. Interest rate-sensitive small-cap stocks fell 1% at one point, and the Dow and S&P fell away from their highest levels. Nvidia rose 1.6%, AMD fell 4%, and Tesla fell 3.6% at one point.
Treasury
The 10-year Treasury yield rose slightly, hitting a 10-week high. Weak U.S. initial claims data increased market bets on a 25 basis point rate cut in November, and the two-year Treasury yield fell nearly 5 basis points. The dollar hit an eight-week high.
China Market
Stocks
Chinese stocks bucked the trend and rose, with the China Concept Index rising by 1.5% at one point. Popular Chinese stocks rose and fell, with Ctrip rising by more than 5% and Li Auto falling by nearly 4%.
FX
The offshore RMB rose by more than 100 points, breaking through 7.09 yuan.
Macro
- Oil prices rose by more than 3.5% amid concerns about the conflict between Israel and Iran and the impact of hurricanes in the southern United States. Gold prices stopped falling for six consecutive days, while silver rose by more than 2%. Bitcoin once fell below $59,000.
Earnings For Today
Before Open
JPMorgan
EPS forecast 3.99, Revenue forecast 41.45B
BlackRock
EPS forecast 10.24, Revenue forecast 5.05B
Wells Fargo & Co
EPS forecast 1.28, Revenue forecast 20.39B
Bank of NY Mellon
EPS forecast 1.38, Revenue forecast 4.5B
Fastenal
EPS forecast 0.5133, Revenue forecast 1.91B
Bank7
EPS forecast 1.04, Revenue forecast 23.3M
After Close
Unity Software
EPS forecast 0.9467, Revenue forecast 26.09M
Market Events
PPI(MoM)(Sep)
Previous: 0.2%
Forecast: 0.1%
Core PPI(MoM)(Sep)
Previous: 0.3%
Forecast: 0.2%
Stocks to Focus
- AMD launched the MI325X AI accelerator. Su Zifeng said that the AMD AI accelerator, which is comparable to Nvidia Blackwell, will be mass-produced and shipped in the fourth quarter, and its performance will surpass Nvidia. AMD's stock price rose first and then fell, falling more than 5% during the session. Analysts said that the new product did not significantly change the recent financial outlook, and the MI325X could not effectively challenge Nvidia's dominant position.
- Morgan Stanley interprets Nvidia's closed-door meeting: Inference computing will boost long-term demand for AI chips. Nvidia said in the closed-door meeting that with the release of the OpenAI o1 model, a new AI narrative is unfolding, and the growth in demand for inference computing power has brought new growth space for Nvidia. Morgan Stanley expects that Nvidia's AI processor market share will continue to increase in 2024 and 2025, and the shipment trend is expected to continue to grow.
- The Robotaxi conference is coming, and Tesla will usher in a watershed moment. The Robotaxi, which is betting on Tesla's future, is about to debut, with wing-shaped two-doors, L4 driving technology, and is expected to be commercialized by the end of 2025. Other new models, Optimus robots and FSD technology progress may also be unveiled at the conference. Wall Street warned that it is necessary to be wary of the downside risk of Tesla's "selling facts" and the conference may be disappointing.