Breakfast | SEC reviews "Retail Investor Leader" trades, low-priced purchases of Berkshire trades invalidated

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Overnight Morning Market

On Monday, only the Dow fell among the three major U.S. indexes, down 0.3%. The S&P 500 rose 0.11%, while the Nasdaq rose 0.56%. Among the major sectors of the S&P 500, only four rose on Monday, with the IT sector where Nvidia is located rising nearly 1%, and the healthcare sector up over 0.7%.

Tesla fell 1% for the second consecutive trading day. Apple rose for six consecutive days, Meta rose for two days, and Netflix fell for three days. Nvidia rose 4.9%, hitting a new closing high; Arm rose over 5%, while Micron Technology and Taiwan Semiconductor's U.S. stocks rose over 2%. Berkshire Hathaway (BRK.A.N) rose 0.6% to about $631,000 per share.

Most popular Chinese concept stocks turned lower intraday. The Nasdaq Golden Dragon China Index, which once plummeted 99.97%, fell 0.35%. XPeng fell over 2%, Nio fell over 1%, ZEEKR rose nearly 1.7%, and Li Auto rose over 0.9%. Pinduoduo fell nearly 2%, Baidu fell over 1%, NetEase fell 0.8%, Alibaba fell nearly 0.6%, Bilibili rose over 1%, and JD.com rose nearly 1%.

GameStop (GME) opened 75% higher on a gap and closed up 21%; Structure Therapeutics rose 54.2%; Faraday Future Intelligent Electric (FFIE) rose 7.1%.

Blue Chips and Hot Stocks

According to the Wall Street Journal: The U.S. Securities and Exchange Commission is reviewing the trades of U.S. retail investor "Roaring Kitty" Keith Gill before and after his social media posts. The SEC is looking into some GameStop (GME.N) call options trades.

Trading Platforms Consider Banning Retail Investor "Roaring Kitty" Keith Gill

Trading platform ETrade is considering banning U.S. retail investor "Roaring Kitty" Keith Gill from trading on the platform. Concerns about stock manipulation have grown as a result of Gill's recent purchases of GameStop (GME.N) options. Before reigniting the MEME craze in May, Gill bought a large number of GameStop options on ETrade, with screenshots of his E*Trade account showing he owned $115.7 million worth of stock and a set of options expiring later this month. His total profit on that position was $6.86 million.

On Monday, several stocks in the U.S. market experienced abnormal trading. Berkshire Hathaway A briefly fell 99.97% to $185.1, with about 50 shares traded at that price. In addition, stocks such as Montreal Bank and Barrick Gold fell by over 98%, with trading remaining stagnant.

NYSE stated that the technical issue with the CTA SIP's industry-wide quote range has been resolved. The issue triggered a halt in trading for a large number of stocks listed on the New York Stock Exchange, and the affected stocks have either resumed or are in the process of resuming trading.

NYSE: Trades of Berkshire Hathaway Stock Bought at Low Prices Invalid, All Erroneous Trades of Berkshire Hathaway to be Cleared

The NYSE Group Stock Exchange, in conjunction with other UTP exchanges, has decided to cancel all erroneous trades related to the CTA SIP quote issue for Berkshire Hathaway (BRK.A.N) owned by Warren Buffett that occurred between 9:50 and 9:51 a.m. Eastern Time (9:50 and 9:51 p.m. Singapore Time), with prices lower than or equal to $603,718.30 per shareNYSE: Will clear erroneous trades with Bank of Montreal (BMO), Chipotle Mexican Grill (CMG), Barrick Gold (GOLD), and NuScale Power (SMR).

NYSE Equities: Trading halts due to erroneous price bands will be deemed invalid

NYSE Equities stated that trading halts caused by erroneous price bands may be deemed invalid. Halts due to circuit breaker thresholds were triggered by incorrect ranges published by CTA SIP; evaluating trading halts due to circuit breaker thresholds between 9:30 am and 10:27 am Eastern Time.

Market News: NYSE will cancel erroneous trades for securities with codes ARGT, ASR, BOND, DXYZ, GLP, KFRC, SPYU.

S&P Dow Jones Indices: (Regarding the index quoting issue on May 30) will take measures to reduce future event risks.

According to CNBC: Google is laying off at least 100 employees in its rapidly growing cloud computing division. Media previously reported that Microsoft is laying off hundreds in its Azure cloud business.

NASA: Plans to launch the Boeing Starliner spacecraft on June 5 at 10:52 am.

Skydance Media's latest acquisition offer to Paramount Global (PARA.O) includes an option allowing non-voting shareholders to cash out some shares at around $15 per share, a 26% premium to the previous trading day's closing price.

Baidu Maps: Lane-level navigation will soon be available on Tesla.

CITIC Securities announced plans to arrange cash dividends in mid-2024, with an upper limit of 40% of the net profit attributable to common shareholders of the parent company for the period.

Shipping giant Maersk raised its full-year underlying EBITDA guidance, surpassing analysts' average expectations. Full-year underlying EBITDA is expected to be $7 billion to $9 billion, up from the previous forecast of $4 billion to $6 billion, while analysts estimated $5.86 billion. Underlying EBIT is expected to be $1 billion to $3 billion, up from the previous forecast of a loss of $2 billion to breakeven, with analysts estimating a loss of $451.8 million.

ByteDance appoints former Warner Bros. executive John Rogovin as global general counsel. John Rogovin served as general counsel at Warner Bros. for over 12 years and has also worked at the Federal Communications Commission and the Department of Justice.

According to The Wall Street Journal: New York State will restrict social media algorithms targeting teenagers.

Chips and Artificial Intelligence

Arm CEO Rene Haas: Aims to capture over 50% of the Windows PC market within five years.

Huang Renxun: NVIDIA plans to build a large design center in Taiwan within five years, employing at least 1,000 engineers. They are also looking for a large site to build a headquarters. The specific location is still under consideration and no decision has been made yet.

Apple's Worldwide Developers Conference WWDC will kick off with the keynote address at 1:00 pm Eastern Time on June 10. It is widely seen as a key moment for Apple to fully integrate AI features into its major hardware operating systems

Macro: Taking You Around the World

US Factory Activity Index Drops for the Second Consecutive Month in May

Due to the largest drop in new orders in nearly two years, US manufacturing activity slowed for the second consecutive month in May. The Institute for Supply Management (ISM) Manufacturing PMI fell from 49.2 in April to 48.7 in May. Employment saw growth for the first time since September last year, breaking free from the low levels it has been in for most of the past two years.

Countdown to Qualification Adjustment for Stock Connect, Small-Cap Stocks Doing Everything Possible to Maintain Stock Prices

With only one month left until the end of the latest assessment period for the Stock Connect qualification adjustment, companies with small market capitalization struggling on the edge of "HKD 4 billion" due to significant declines in their stock prices have been stimulating their stock prices through buybacks, increases in holdings, and the release of positive business developments. Once removed from the Stock Connect, losing the support of mainland funds, the liquidity of listed companies will be greatly affected.

China's Ministry of Commerce: China and Spain have exchanged in-depth views on facilitating personnel exchanges, government procurement, and market access for agricultural products.

With Modi's re-election in sight, the Indian stock market closed at a new all-time high on Monday