Breakfast | Tech stocks significantly adjusted, S&P and Nasdaq ended 5 months of consecutive gains, Amazon and Intel's earnings reports exceeded expectations

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On the eve of non-farm payrolls, the Nasdaq fell 2.8%, NVIDIA dropped nearly 5%

Microsoft's revenue guidance and Meta's user growth disappointed Wall Street, dragging the tech sector down the most.

All three major U.S. stock indexes fell. The S&P 500 index closed down 1.86%, ending a five-month winning streak with a 0.99% drop in October. The Dow Jones closed down 0.90%, ending a five-month winning streak with a 1.34% drop in October. The Nasdaq closed down 2.76%, ending a two-month winning streak with a 0.52% drop in October.

The "Tech Seven Sisters" all fell. Apple dropped 1.82%, down 3.04% in October, ending a five-month winning streak. NVIDIA fell 4.72%, up 9.32% in October and had three months of gains. Tesla dropped 2.99%, down 4.5% in October. Meta fell 4.09%, down 5.57% in October. Google A dropped 1.92%, up 3.17% in October, Amazon fell 3.28%, up 0.04% in October. Microsoft dropped 6.05%, marking its largest single-day drop in two years. Advanced Micro Devices closed down 11.97%.

Most Chinese concept stocks retreated. The Nasdaq Golden Dragon China Index closed down 1.30%, down 4.50% in October. Li Auto fell 13.58%, down 2.5% in October. ZEEKR dropped 4.78%, XPeng fell 1.06%, Nio dropped 4.67%, Pinduoduo fell 0.23%, NetEase closed down 0.24%, Alibaba closed down 0.73%.

Guo Mingqi: The possibility of Advanced Micro Devices being suspended or delisted is increasing

Tianfeng International analyst Guo Mingqi wrote that the resignation of the auditing firm is a serious signal, and the possibility of Advanced Micro Devices facing suspension or delisting is increasing. This will pose a huge challenge to its survival, and significant adjustments may occur in the company's executive team or board. Further corporate consolidation is also possible, with AMD's acquisition of ZT Systems being a precedent.

Apple's iPhone revenue "turns around" last quarter, but sales in China are weak, and a tax payment of 10 billion drags down profits, dropping over 2% in after-hours trading

In the third quarter, Apple's revenue reached a record high for the same period, exceeding expectations with a 6% growth. The fourth quarter growth rate is expected to be "in the low single digits," while analysts expect a 7% growth; third-quarter EPS fell nearly 34% year-on-year, but excluding the one-time tax payment of $10.2 billion, EPS grew by 12%; iPhone revenue turned to a 5.5% increase after a year-on-year decline in the second quarter, exceeding expectations, while service revenue was below expectations, slowing to a 12% growth, iPad revenue increased nearly 8% but still fell short of expectations, and wearable device revenue unexpectedly declined by 3%; sales in the Greater China region saw a significant slowdown in year-on-year decline to 0.3%.

Intel's Q3 data center, AI revenue, and Q4 EPS guidance exceeded expectations, rising over 14% in after-hours trading

Revenue: Q3 revenue was $13.28 billion, expected to be $13.02 billion. Breaking it down, client computing revenue was $7.33 billion, expected to be $7.46 billion. Foundry revenue was $4.35 billion, expected to be $4.44 billion. Data center and artificial intelligence (AI) revenue was $3.35 billion, expected to be $3.15 billion EPS: Adjusted loss per share of $0.46, compared to a profit of $0.41 per share in the same period last year. The adjusted EPS metric includes a loss provision of $0.63, which was not reflected in the previously provided earnings guidance.

Amazon Q3 Earnings Exceed Expectations, Cloud Growth Accelerates, Capital Expenditure May Increase Next Year, Shares Up 6% After Hours

Revenue: Net sales in the third quarter increased by 11% year-on-year to $158.9 billion, exceeding expectations of $157.29 billion, marking the fifth consecutive quarter of low double-digit percentage growth.

Operating Income: Increased by over 55% year-on-year to $17.4 billion, exceeding expectations of $14.75 billion, but had previously seen a year-on-year growth of 91% in Q2 and 219% in Q1.

EPS: Diluted earnings per share (EPS) of $1.43, a year-on-year increase of 52%, compared to expectations of $1.14.

Li Auto Q3 Conference Call: Production Expansion Needed by 2025 Spring Festival to Meet Demand, Aiming for Over 25% Share in High-End New Energy Market

Li Xiang stated that the biggest variable in the industry over the next 3-5 years comes from AI, including intelligent driving and smart assistants, which will provide consumers with a completely different experience and mark the beginning of a true qualitative change. The Li L series will remain in its growth phase for the next 1-2 years, with the Li L6 being very popular, necessitating production expansion by the 2025 Spring Festival to meet demand. The long-term goal is to capture over 25% market share in the new energy vehicle market priced above 200,000 RMB.

Revenue: Q3 revenue of 42.9 billion RMB, market estimate of 41.27 billion RMB, a year-on-year increase of 23.6% and a quarter-on-quarter increase of 35.3%.

Net Profit: Achieved a net profit of 2.8 billion RMB, roughly flat year-on-year, but a significant increase of 156.2% compared to 1.1 billion RMB in Q2. Adjusted net profit attributable to shareholders was 3.84 billion RMB, a year-on-year increase of 11%. This marks the eighth consecutive quarter of profitability.

Earnings Per Share: Adjusted earnings per share of 3.63 RMB, compared to 3.29 RMB in the same period last year.

Meta Q3 Performance Strong, Multiple Investment Banks Raise Target Prices

1. Citigroup: Raised Meta's target price from $645 to $705.
2. Piper Sandler: Raised Meta's target price from $575 to $650.
3. JP Morgan: Raised Meta's target price from $640 to $660.
4. Oppenheimer: Raised Meta's target price from $615 to $650.
5. Barclays: Raised Meta's target price from $550 to $630.
6. Investment Bank Roth MKM: Raised Meta's target price from $620 to $635.
7. Canadian Imperial Bank of Commerce: Lowered Meta's target price from $585 to $583.
8. Investment Bank D.A. Davidson: Raised Meta's target price from $600 to $700.

U.S. PCE Inflation Indicator Accelerates, Consumer Spending Rebounds

The PCE inflation indicator saw its largest monthly increase since April, supporting the Federal Reserve's decision to slow down interest rate cuts after a significant reduction last month. The core PCE price index in the U.S. rose by 0.3% month-on-month in September, with the annual PCE price index at 2.1%, the lowest level since early 2021, slightly above the Federal Reserve's target of 2% This may indicate that the Federal Reserve will take a cautious approach to interest rate cuts in the coming months. The market generally expects the Federal Reserve to implement a second rate cut in November.

ARK significantly reduced its holdings in Tesla in the third quarter

“Woodstock” Cathie Wood's ARK fund sold 720,000 shares of Tesla in the third quarter, reducing its holdings by 13.65%, but it remains its top holding, accounting for 10.65%.

OpenAI adds search functionality to ChatGPT

This upgrade makes OpenAI more similar to traditional search engines, directly competing with Google. Starting Thursday, ChatGPT paid subscribers will be able to respond to queries by searching the web for the latest information and summarizing the content they find, rather than relying on potentially outdated data. The search function is powered by the Bing search engine.

JD's "Double 11" battle report: Live streaming order volume increased by 245% year-on-year

As of 9 PM on October 31, JD's "Double 11" transaction volume, order quantity, and number of ordering users maintained double-digit growth, with over 16,000 brands seeing transaction volume increase by more than three times year-on-year, and the number of brands with transaction volume exceeding 100 million increasing by over 40% year-on-year. More than 17,000 merchants saw order volume increase by over five times year-on-year. This year, the number of products eligible for JD's 11.11 billion subsidy increased by more than four times year-on-year.

China-U.S. financial working group holds sixth meeting

Both sides engaged in professional, pragmatic, candid, and constructive communication on financial policy issues such as the macroeconomic financial situation and monetary financial policy of the two countries. The Chinese side expressed concerns to the U.S. side regarding relevant issues. The meeting heard reports from both sides' technical expert groups on topics such as the compilation of the balance of payments, crisis communication for globally systemically important banks (G-SIBs), and risks in climate and the insurance industry, and exchanged views on how to strengthen cross-border financial service regulatory cooperation.

Geely Group statement: Never privately communicated or negotiated with the European Commission

Geely Group has always advanced negotiations under the guidance of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products. From late September to mid-October, Geely Group fully participated in the consultation talks held by the Chamber of Commerce in Brussels with the European Commission regarding industry plans. During the talks, the European Commission actively reached out to Geely's brands, and Geely prioritized the overall situation, refusing to communicate separately with the European Commission. Geely Group has consistently adhered to the principle of prioritizing the overall situation and firmly supports industry negotiations.

October A-share average daily trading volume reaches historic high, 60 stocks rise over 100%

According to Wind data, the average daily trading volume of A-shares in October was 20,144.9 billion yuan, with a total trading volume of 36.26 trillion yuan, an increase of nearly 140% compared to September. The monthly trading amount was very close to June 2015, with only a difference of 0.2 trillion yuan, ranking second in history. There were 29 stocks with an average daily trading volume exceeding 5 billion yuan in October. Dongfang Caifu's average daily trading amount was 33.643 billion yuan, with a cumulative trading volume exceeding 600 billion yuan in October, including over 90 billion yuan on October 9, setting a record for single-stock daily trading volume in A-shares. Runhe Software, SMIC, CATL, and CITIC Securities all had average daily trading amounts exceeding 10 billion yuan in October

In the first three quarters, the number of property transactions by mainland buyers in Hong Kong reached a record high, with an average expenditure of HKD 11 million

According to the latest data from Centaline Property, in the first three quarters, the Hong Kong new and second-hand private residential market recorded a total of 33,915 transaction registrations, with a transaction amount of HKD 309.3 billion. Among them, transactions by "Mandarin Pinyin buyers" recorded 8,133 cases, accounting for 24%, involving an amount as high as HKD 90.6 billion. Both figures set historical records, increasing by 68% and 43% compared to last year, respectively