Breakfast | Nasdaq, S&P 500, Apple, Microsoft all hit new highs, analysts shout out iPhone super cycle is here

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Overnight Morning Market

Thanks to DA Davison and Bank of America raising Apple's target price to $230, the S&P 500 and Nasdaq hit new highs as Apple's stock price surged by 7%, with analysts expecting Apple's AI products to stimulate consumer upgrades for the iPhone. Investors' focus has shifted to the key risk events on Wednesday - the Fed's interest rate decision and CPI data.

The S&P 500, Nasdaq, and Nasdaq 100 hit new all-time closing highs again. Apple rose by 7.26%, marking its largest single-day gain since November 2022, breaking through the $200 mark to reach a new all-time closing high, surpassing NVIDIA with a market value of $3.18 trillion. Microsoft rose by 1.12% to a new high. Meta rose by 0.97% to a two-month high, Amazon rose by 0.09% to a four-week high, Google Class A rose by 0.92%, and Netflix rose by 0.63%. Tesla fell by 1.80%.

Retail investors remain enthusiastic about meme stocks. GameStop surged by over 22.8%, while AMC Theatres rose by 10.83%.

Popular Chinese stocks experienced a general decline. JD.com fell by 0.61%, Baidu by 1.61%, Pinduoduo by 1.04%. Alibaba dropped by 1.77%, Tencent ADR by 0.38%. Nio fell by 5.51%, Li Auto by 1.95%, XPeng by 5.42%, and ZEEKR by 6.51%.

Blue Chips and Hot Stocks

Wall Street firms including Wedbush Securities believe that Apple's AI products will drive consumer upgrades for the iPhone, leading to target price increases by DA Davison and Bank of America to $230.

Oracle reported first-quarter revenue of $14.29 billion, up from $13.837 billion in the same period last year. First-quarter revenue is expected to grow by 5%-7%, with adjusted earnings per share expected to be between $1.31 and $1.35. Cloud service sales in the first quarter are expected to grow by 21%-23% at fixed exchange rates. Over the past two quarters, the company has signed its largest sales contracts in history and will offer its namesake database on Google's cloud infrastructure. Oracle's after-hours gains expanded to 11%.

Sources: BlackRock and Microsoft CEO will attend the G7 summit in Italy this week.

GameStop (GME.N) completed its equity issuance plan at market price, selling the maximum number of registered shares and raising approximately $2.137 billion.

ZEEKR (ZK.US) released its Q1 2024 financial report: revenue of 14.737 billion yuan, a year-on-year increase of 71%, a significant increase of 117% in deliveries year-on-year, and a vehicle gross profit margin of 14%, up 3.9 percentage points year-on-year.

Evergrande Auto: Relevant departments are planning to order Tianjin Evergrande to stop producing and selling new energy passenger car products and to rectify the situation. The local government has terminated three agreements and ordered the return of 1.9 billion yuan in incentives and subsidies.

A California judge rejected Tesla's attempt to dismiss a lawsuit alleging false advertising for its autonomous driving technology, which will now proceed to formal trial. This means Tesla will face charges in California related to false marketing of its autonomous driving capabilities, alleging that the automaker exaggerated the capabilities of its vehicles JPMorgan believes that Tesla is unlikely to launch autonomous taxis in the next few years. Although Tesla will showcase the concept of autonomous taxis on August 8th and may also launch a related app, it may take many more years for this business to generate substantial revenue. JPMorgan's rating for Tesla stock is equivalent to sell, with a target price of $115.

If Tesla shareholders vote against reinstating Elon Musk's $56 billion compensation plan on Thursday, Musk may fulfill his threat to take AI research to other companies, or he may even leave. Analysts warn that if the proposal is rejected, the company's stock price is expected to come under pressure.

Chips and Artificial Intelligence

Market news: OpenAI chooses Oracle Cloud services to expand Microsoft Azure platform.

Court documents show that Musk voluntarily withdrew the lawsuit against OpenAI.

Kuaishou's "Keling" large model will soon open the "image-generated video" feature, with over 50,000 people already queuing to apply

An average of 10,000 people apply for test accounts every day. Kuaishou's Keling currently offers the "text-generated video" feature and will soon open the "image-generated video" feature.

Samsung has hired a senior Apple Siri executive to lead its North American AI department, the latest sign of the world's largest tech companies becoming more aggressive in the field of artificial intelligence.

Macro: Taking You Around the World

French President Macron denies rumors of resignation.

Xi Jinping presided over the fifth meeting of the Central Committee for Comprehensive Deepening Reform, emphasizing the improvement of China's modern enterprise system with Chinese characteristics and the construction of a globally competitive environment for technological innovation.

Chinese Premier Li Keqiang will make an official visit to New Zealand, Australia, and Malaysia from June 13th to 20th.

The Chinese Ministry of Foreign Affairs responds to the "EU launching an investigation into Chinese electric vehicles": urging a prompt termination, stating that if the EU persists, China will not sit idly by.

According to the Yomiuri Shimbun, Japan will promote Level 4 autonomous driving nationwide.

PBOC Governor Pan Gongsheng: Deepening the Reform of Interest Rate and Exchange Rate Marketization

The People's Bank of China will improve the dual-pillar regulation framework of monetary policy and macro-prudential policy, deepen the reform of interest rate and exchange rate marketization, implement an independent financial budget management system for central banks, improve a widely covered, efficient, and secure modern payment system, and enhance a credit system covering the whole society.

Jiangsu Province has issued an implementation plan for adjusting pig production capacity, appropriately expanding the capacity control range