Breakfast | Goldman Sachs is bullish on the S&P 500 to 5600 points, Apple is reported to launch a thinner iPhone

Good morning! A great day starts with making money.

Overnight Morning Market

US stock index futures opened basically flat on Monday.

Important events and data preview for this week:

1. Monday: China's total social electricity consumption in May, social retail sales, industrial added value of enterprises above designated size, residential sales prices in 70 large and medium-sized cities.

2. Tuesday: US retail sales in May, industrial production rate, business inventories rate in April. FOMC permanent voters Williams, Harker in 2026, and Barkin in 2024 will give speeches. The 11th International Intelligent Connected Vehicles Technology Conference will be held from June 18th to 20th.

3. Wednesday: US NAHB Housing Market Index in June. The 024 Lujiazui Forum, where the China Securities Regulatory Commission will release capital market-related policy measures; FOMC voter Logan in 2026 will participate in a Q&A session, and Fed Governor Quarles will give a speech. NYSE closed for the day.

4. Thursday: China's loan market quoted interest rate in May; US initial jobless claims, total housing starts annualized in May, first-quarter current account, total construction permits in May. The 2024 Lujiazui Forum.

5. Friday: US June Global Manufacturing PMI, Services PMI, existing home sales annualized in May, Conference Board Leading Index in May. FOMC voter Barkin in 2024 will give a speech.

Last week, the Dow fell by 0.54%, the S&P 500 rose by 1.58%. The Nasdaq rose by 3.24%, hitting a new historical closing high for the fifth consecutive trading day. The Hang Seng Index in Hong Kong fell by 2.31%; the Hang Seng TECH Index fell by 1.72%; the Hang Seng China Enterprises Index fell by 2.08%.

Blue Chips and Hot Stocks

Tech journalist Mark Gurman: Apple is focusing on launching a thinner phone for iPhone 17, making MacBook Pro and Watch thinner.

A source close to the policy-making department in Shanghai mentioned that Shanghai's autonomous driving demonstration zone has issued road test licenses to Tesla, and FSD may be under testing.

Tesla paused Cybertruck deliveries due to windshield wiper issues.

XPeng's Heitech flying car completed its maiden flight in Beijing Daxing International Airport Economic Zone.

JD.com adds an additional investment of 10 billion yuan for the 618 promotion.

Trump: Will not ban TikTok under any circumstances.

Meta Platforms CEO Zuckerberg plans to build a 75,000-square-foot mansion

Zuckerberg plans to build a mansion consisting of seven buildings on the west bank of Lake Tahoe in California. Zuckerberg already has a significant real estate portfolio, owning another property in Palo Alto, California, and over 1,200 acres of land in Hawaii. As of April, Zuckerberg's real estate holdings were valued at around $200 million.

Chips and Artificial Intelligence

Intel China Chairman: It is expected to deliver 40 million Core Ultra processors by the end of 2024, and AI PCs are expected to account for 80% of the PC market share by 2028.

Intel has not yet fully fixed the issues causing game crashes with the 13/14th generation Core i9 "Raptor Lake" and "Raptor Lake S" chips. Intel has not confirmed the root cause yet Media: OpenAI considers becoming a for-profit company, or opening the door to IPO

OpenAI CEO Sam Altman told shareholders that the company is considering changing its governance structure, with the non-profit board not controlling the for-profit business. One option the board is considering is to establish a for-profit company. Such a change may pave the way for OpenAI's eventual IPO.

Joseph Tsai's "prediction": Microsoft and OpenAI are very likely to go their separate ways in the future.

NVIDIA open sources 340 billion parameter model Nemotron-4 340B

Startups and IPO Opportunities

Black Sesame Intelligence International Holdings Limited is going through a listing hearing on the Hong Kong Stock Exchange. If the listing is successful, Black Sesame Intelligence will become the first domestic "autonomous driving computing chip stock". The company has achieved a compound annual revenue growth rate of 127.2% over the past three years, with a compound annual gross profit growth rate of 87.8%. However, losses are increasing, with losses reaching nearly billions over the past three years, ten times or even dozens of times the revenue.

Macro: Taking You Around the World

Fed's Kashkari: There may be a rate cut by the end of the year.

Negotiations on investment agreements between Hong Kong and Saudi Arabia, as well as Bangladesh, are ongoing.

Goldman Sachs has raised its year-end target for the S&P 500 index for the third time this year, expecting it to rise to 5600 points by the end of the year, higher than their February forecast of 5200 points. This implies a potential increase of about 3% from Friday's closing price. In the most optimistic scenario, if the "specialness" of mega-cap stocks continues, the index could soar to 6300 points by the end of the year.

CICC: Hong Kong stocks still have comparative advantages, Hang Seng Index may consolidate near 18000 points

After gradually returning to reality and fundamentals, Hong Kong stocks may consolidate near the 18000-point level on the Hang Seng Index, waiting for more new catalysts. Hong Kong stocks still have comparative advantages over A-shares. It is recommended to focus more on structural opportunities, with the allocation direction being overall return rate decline, partial leverage increase, and partial price increase