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ADDX Go Market Morning Wrap - 21st October

Go Wire
Go Wire
October 21, 2024
GoGPT Summarizes Articles



Market Key Focus


US Market

- Markets

Only small-cap indexes fell in the U.S. stock market. The S&P 500 index closed up 23.20 points, or 0.40%, at 5,864.67. The Dow Jones Industrial Average, which is closely related to the economic cycle, closed up 36.86 points, or 0.09%, at 43,275.91. The Nasdaq, which is dominated by technology stocks, closed up 115.94 points, or 0.63%, at 18,489.55. The Nasdaq 100 index rose 0.66%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100 technology industry components, closed up 0.34%. The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed down 0.21%.

The VIX index fell more than 5% and approached 18.

- Stocks

Bank of America raised its target price for Nvidia, saying there is still nearly 40% upside. Demand has picked up, with iPhone 16 sales in China soaring 20% in the first three weeks of its launch compared to last year's previous generation of phones. Netflix's third-quarter earnings exceeded expectations by nearly 45%, with an unexpected increase of more than 500,000 subscribers and a 35% increase in advertising members from the previous quarter. Morgan Stanley and JPMorgan Chase both expect it to rise by more than 20%. The United States has launched a federal investigation into whether Tesla's autopilot system is flawed.

- Treasury

The yield on the benchmark 10-year U.S. Treasury bond was about 4.08%, down about 1 basis point on the day and about 2 basis points for the week; the yield on the two-year U.S. Treasury bond was about 3.95%, down about 2 basis points on the day and about 2 basis points for the week.




- FX

The U.S. dollar index DXY fell as much as 0.3% to 103.46, breaking away from its 11-week high since August 2, ending a two-day rally and posting its biggest one-day drop since late September.

However, it rose by about 0.6% for the week and 2.8% in October, the biggest gain since April 2022.


Asian Market

- Markets

The Taiwan Stock Exchange Weighted Stock Price Index closed up 1.9%, the Nikkei 225 Index closed up 0.2%, the stock indices of Thailand, Vietnam and India rose slightly, and South Korea's Kospi index fell 0.5%.

The Nasdaq China Golden Dragon Index closed up 3% and broke away from a three-week low. Among ETFs, the China Technology Index ETF (CQQQ) rose nearly 7%, and the China Internet Index ETF (KWEB) rose 4.5%.

- Stocks

Among the popular Chinese stocks, Bilibili rose nearly 10% and closed up 3.6%, Tiger Securities rose more than 13% and closed up 0.6%, NIO rose 6.6% and closed up 1.4%, Tencent ADR rose more than 4% throughout the day, Li Auto rose more than 6%, Zeekr rose 5%, NetEase and JD rose about 3%, Baidu and Xpeng Motors rose more than 2%.

- FX

The yen rose as much as 0.6% against the dollar in the midday trading of the U.S. stock market, breaking through the 150 mark, but it was not far from the 11-week low since August 2, and fell 0.3% for the whole week.

The offshore RMB rose by 200 points, once rising above 7.11 yuan, but fell by 460 points for the whole week


European Market

- Markets

The European STOXX 600 index closed up 0.21%, up 0.58% for the week.

The German DAX 30 index closed up 0.38%, The French CAC 40 index closed up 0.39%, The British FTSE 100 index fell 0.32%, up 1.46%, 0.46% and 1.27% for the week respectively.

- Stocks

Boosted by China's favorable policy expectations, luxury stocks rose, Gucci's parent company Kering Group rose 3.5% and once rose more than 5% during the session, and the largest luxury group LVMH rose more than 2%. The European technology sector rose 2% to lead the way, and mining stocks rose 1.4%

- Treasury

The euro zone's benchmark 10-year German bond yield fell 2.6 basis points to 2.183%, down 8.2 basis points for the week.

The two-year German bond yield fell 3.8 basis points to 2.108%, down 12.7 basis points for the week, hitting a new low after the European Central Bank cut interest rates on Thursday.

- FX

The euro rose by 0.3% against the US dollar and stabilized above 1.08, breaking away from the lowest level since August 2, ending a seven-day losing streak, and falling by about 0.7% for the week.

The pound rose by 0.5% against the US dollar and stabilized above 1.30, continuing to break away from a two-month low, and fell by 0.2% for the week.


Cryptocurrency Market

  1. Bitcoin, the largest cryptocurrency by market value, rose 3% to $69,000, close to a four-month high, and rose about 10% for the week.
  2. Ethereum, the second largest cryptocurrency, also rose more than 3% to $2,700, and rose more than 9% for the week to its highest level in the month.


Macro

  1. The "Trump deal" has been restarted. COMEX silver futures rose 6.5% to $33.85 per ounce. Spot silver broke through the $33 mark for the first time since December 2012, breaking through an important resistance level. This week, London spot gold broke through the $2,700 per ounce mark, continuing to set a new record high.



  1. WTI November crude oil futures closed down 2.05% at $69.22 per barrel, down about 8.4% for the week. Brent December crude oil futures closed down 1.14% at $73.60 per barrel, down about 7.6% for the week.
  2. China's GDP grew by 4.6% in the third quarter. Retail sales of consumer goods accelerated year-on-year in September. Industrial growth rebounded after slowing down for four months. The growth rate of fixed asset investment stabilized and remained the same as in August. The decline in many real estate indicators narrowed in the first three quarters.
  3. Japan's core CPI rose 2.4% year-on-year in September, slowing for the first time in five months, while "core-of-core" inflation excluding energy remained stable. Report: Bank of Japan officials said there is no rush to raise interest rates in October and there is no need to adjust inflation expectations. Japan's largest labor union is demanding another 5% wage increase next year

 

Earnings For Today




Market Events




Stocks to Focus

  1. Last week, Berkshire Hathaway increased its stake in Sirius XM by approximately $86.73 million and is now Sirius' largest shareholder.
  2. Intel is looking for interested PE and strategic investors this week and may sell most of Altera's shares. Intel acquired Altera, a programmable chip business, for $16.7 billion in 2015 and made it a subsidiary in February this year, seeking an IPO in 2026. Intel's CEO also said last month that Altera is a core part of the company's future.
  3. Media reports: Microsoft will lose OpenAI's technology once it develops AGI. The media said that there is a clause in the contract that Microsoft will not be able to use OpenAI's technology if OpenAI develops AGI. The clause is designed to ensure that giants like Microsoft do not abuse AGI technology. The problem is that according to the clause, OpenAI's board of directors can decide when AGI will come.
  4. The drugstore chain CVS unexpectedly replaced its CEO and its third-quarter earnings guidance was lower than expected, causing its stock price to fall by nearly 10%