Pre-market trading in the US: NIO-SW leads the decline in Chinese concept stocks after earnings, while AMD and Tesla lead the decline in technology stocks.

LB Select
2024.03.05 10:20
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After the release of the earnings report, NIO-SW fell more than 4% in pre-market trading, while JD, NetEase, and BIDU-SW dropped over 2%. Alibaba fell more than 1%, with only Li Auto rising nearly 2%. Cryptocurrency-related stocks experienced a sharp decline, while Trump-related stock Phunware surged 40% at one point, following a 75.28% increase in the previous trading day.

U.S. Stock Market News

  1. The 2024 Chinese Government Work Report is released!

The report proposes that China's GDP growth this year will be around 5%, CPI increase around 3%, and the deficit ratio is planned to be around 3%.

  1. It is reported that AMD encountered obstacles from the U.S. government when selling "customized AI chips" to the Chinese market. The performance of these chips is lower than those sold by the company outside of China, as they are designed to comply with U.S. export controls.

  2. NIO-SW's revenue in Q4 of 2023 reached 17.1 billion RMB, compared to 16.064 billion RMB in the same period last year, with the market expecting 16.786 billion RMB. The loss per share is 3.18 RMB. It is expected to deliver 31,000 to 33,000 vehicles in Q1 of 2024, while the market expects 44,035 vehicles.

  3. Data from Counterpoint Research shows that in the first six weeks of this year, iPhone sales in China dropped by 24%, ranking fourth among Chinese smartphone manufacturers.

  4. Tesla's Gigafactory in southeastern Berlin, Germany, halted production due to a power outage. Media reports suggest that the power outage may have been caused by climate activists setting fire to a power pole.

  5. Alibaba leads the investment in General Large Model startup project MiniMax, with the company's valuation exceeding 25 billion USD.

  6. TM ADR US will acquire a 19.5% stake in Panasonic Holdings Corporation's battery joint venture Primearth EV Energy, making it a wholly-owned subsidiary of TM ADR US, thereby enhancing its ability to mass-produce car batteries.

  7. Huawei and Amazon have signed a global patent licensing agreement, resolving litigation between the two parties.

Pre-market Movement

In pre-market trading, futures for the three major stock indexes in the U.S. are down, while the fear index is rising.

Bitcoin is currently trading at $66,674, up over 2% in the past 24 hours; Ethereum is trading at $3,692, up nearly 5% in the past 24 hours.

Tech stocks in the U.S. are generally down in pre-market trading, with AMD falling over 3%, Tesla dropping over 2%, NVIDIA and Apple down over 1%.

Chinese concept stocks are also experiencing a general decline, with NIO-SW, which just released its earnings report, falling over 4% at one point, now narrowing to around 2%; JD.com, NetEase, Baidu down over 2%, Alibaba down over 1%, Pinduoduo, XPeng down less than 1%, only Li Auto up nearly 2%.

Stocks related to cryptocurrencies are trending lower, with MicroStrategy falling over 14% at one point, Marathon Digital falling over 9%, and Coinbase falling 5%. In terms of individual stocks, the Trump concept stock Phunware once rose by 40%, with a 75.28% increase in the previous trading day.

AeroVironment rose by 19%, with third-quarter revenue exceeding expectations.

Strategy Review

1. Why are Netflix and AMD likely to start being sold off?

"We believe that the expectations for the growth of artificial intelligence are an irrational boom... The opportunities brought by artificial intelligence are significant, really significant, just not as huge as investors imagine."

2. JPMorgan: Technically bullish on US stocks, but still concerned about these issues

JPMorgan traders believe that the US is now in the mid-term of economic expansion after an asymmetric recession, with the hot inflation in January possibly just an exception, and US stocks may continue to rise in the future. However, due to technical overbought conditions in the stock market, the resurgence of economic recession concerns, the vulnerability of the AI sector to negative factors, credit tightening, and so on, there are still downside risks for US stocks.

3. Is the current US stock market really a bubble?

Wall Street controversy: Morgan Stanley sees US stocks as a bubble, while Goldman Sachs supports the current rally as reasonable. The market continues to move forward under the push of "low volatility and bubble accumulation." Why?

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