LB Morning Call | Several US stock tech giants are involved in "performance killing"

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Asia Pacific

This morning, the U.S. stock futures index fell at the beginning of the session, the Nasdaq futures fell 0.34%, the S & P 500 index fell 0.15%, Dow futures fell 0.11%.

Overnight, the three major U.S. stock indexes closed higher across the board, with the Dow up 1.37% to 32,197.59 and the S & P 500 up 2.62% to 4,023.61, closing above 4,000 again after seven weeks. The Nasdaq rose 4.06% to 12,032.42.

Microsoft rose 6.69%, Safe Times rose 5.6%, leading the Dow. Big tech stocks rose sharply across the board, with Apple up 3.42%, Amazon up 5.37%, Netflix up 6%, Google up 7.66%, Facebook up 6.55% and Microsoft up 6.69%. Tesla rose 6.17%.

Most of the popular Chinese concept stocks rose, Shangduike rose 36.07%, Canaan Technology rose 10.5%, and Mingchuang Youpin fell 7.67%. JD.com rose 0.6%, NetEase rose 1.9%, Baidu rose 2% and Pinduoduo fell 0.3%. Alibaba rose 1.3%, Station B rose 4.5%, Kingsoft Cloud rose 2.7% and New Oriental rose over 7%.

IPO

Kingsoft Cloud Holdings Limited disclosed its prospectus on the Hong Kong Stock Exchange and intends to list on the main board market. CICC, JPMorgan Chase and UBS are the joint sponsors. In terms of revenue in 2021, the company is the largest independent Cloud as a Service provider in China and a non-wholly owned subsidiary of Kingsoft Software.

US Stock News

1. German chemical giant BASF, the world's largest chemical company, will cut ammonia production due to soaring natural gas prices. BASF's chief executive said BASF would buy some ammonia from external providers to fill the gap, but warned that farmers would face soaring fertilizer costs next year.

2. Twitter will cut physical work space in several global markets, including San Francisco, New York and Sydney, and said it has no plans to cut jobs. In addition, Twitter may close its Sydney office and consider closing several other offices around the world after the lease expires.

3. Boeing's second quarter revenue was $16.681 billion, and the market expected it to be $17.55 billion; net profit was $160 million, down 72% year over year; earnings per share were $0.32, and it was expected to be $0.39; operating cash flow in the second quarter was $81 million, and the market expected it to be negative $342.7 million.

4. SK hynix second quarter sales of 13.81 trillion won (about RMB 71.3 billion), an increase of 33.8% year over year, a single quarter of the highest record, operating profit 4.19 trillion won, year over year increased by 55.6%, net profit of 2.88 trillion won, up 44.7%.

5. Spotify: Revenue in the second quarter 2.864 billion euros, an increase of 23% year over year, and a loss of 0.19 euros per share; the total MAU in the second quarter was 433 million, an increase of 19% year over year. It is expected that the total MAU in the third quarter will be 450 million, and the total The number of paying users is 194 million.

6. Facebook's second-quarter earnings per share are $2.46 and expected to be $2.56. Revenue is $28.822 billion, expected to be $28.94 billion, the first revenue decline in history. Net profit is $6.687 billion, expected to be $7.174 billion. Daily active user 1.97 billion, expected 1.95 billion; monthly active user number 2.93 billion, expected 2.95 billion. Operating profit margin 29%, expected 28.7%. Total revenue in the third quarter of 2022 is expected to be between $26 billion and $28.5 billion, with $30.32 billion expected. Facebook's U.S. stock fell more than 2% after hours.

7. Qualcomm's fiscal third quarter adjusted earnings per share of $2.96, expected to be $2.86. Adjusted revenue of $10.93 billion, expected to be $10.87 billion. Fourth-quarter adjusted earnings per share are expected to be $3.00-3.30, expected to be $3.26. Fourth-quarter revenue is expected to be $110- $11.8 billion, expected to be $11.92 billion. Qualcomm U.S. stocks fell more than 3% after hours.

8. Electric vehicle manufacturer Rivian will cut 6% of its workforce to optimize costs. Employees in the Normal, Illinois manufacturing operations team will not be affected. Over the next 18 months, the company will focus on enhancing the R1 and EDV (electric delivery vehicles) and accelerating the development and rollout of the R2 and future platforms.

9. Ford's second-quarter adjusted earnings per share were $0.68 and expected to be $0.45. Auto segment revenue was $37.9 billion and expected to be $34.52 billion. North American EBIT was $3.27 billion and expected to be $2.03 billion. Full-year adjusted EBIT is still expected to be $115- $12.5 billion. Dividend per share increased to $0.15 from $0.1. Ford U.S. stocks rose more than 6% after hours.

10 . Adidas said it expects sales growth and profit in 2022 to be lower than previously expected. Sales in Greater China will decline by a double-digit percentage for the remainder of 2022, after expecting revenue to be flat year over year in the second half.

Singapore News

1. Keppel Pacific Oak US REIT's dividend payout per unit (DPU) decreased by 4.4% year over year to 3.02 cents in the first half of this year, with an annualized payout ratio of 8.7%. In the first half of the year, distributable income increased by 5.4% year over year to US $31.54 million (S $43.77 million), and net real estate income increased by 5.9% year over year to US $43 million.

2. Suntec REIT's distributable income increased in the first half of the year, with dividends per unit increasing by 15.8% year over year to 4.81 cents. The trust expects to distribute dividends for the period from April 1 to June 30 on August 29, paying 2.419 cents per unit, an increase of 14.7% over the same period last year.

3. The Singapore Savings Bond issued in March and August received 2.5 times over-subscription, with a subscription amount of nearly 2.4 billion 50 million yuan, a record high for the third consecutive month and an 85% surge from the previous month's subscription amount of 1.3 billion yuan. The 10 -year average interest rate on savings bonds in August was the highest on record at 3.00%, while the first-year interest rate of 2.00% was the highest since January 2019.

4. The Government of Singapore Investment Corporation (GIC) expects a five-year return of 7.7% from 8.8% last year. The fund's risk exposure to the U.S. increased from 34% to 37%, while Asian assets fell to 32%. GIC) is putting money into real estate and other inflation-preserving assets.

Macroeconomy

1. The Fed raised the base rate by 75 basis points to a range of 2.25% to 2.50%, in line with market expectations, which made the cumulative interest rate hike from June to July reach 150 basis points, which is the largest since Paul Volcker took the helm of the Fed in the early 1980s.

2. Fed Chairperson Powell said that another sharp rate hike depends on the data; it may be appropriate to slow down the pace of rate hikes at some point; it will not hesitate to take more substantial action if necessary, and the speed of rate hikes depends on future data; "necessary" to push inflation down to 2.0%; does not think the US must experience a recession, but the possibility of a soft landing is significantly reduced; the Fed has not yet decided when to start slowing down the pace of rate hikes and will not The September meeting provides specific guidance.

3. The Hong Kong Monetary Authority raised the base rate by 75 basis points to 2.75%.

4. The swap linked to the Fed's rate meeting date shows that the probability of the Fed raising interest rates by at least 50 basis points in September is 100%, and the probability of raising interest rates by 75 basis points is 37%. The probability of raising interest rates by at least 25 basis points in November is 100%, the probability of raising interest rates by 50 basis points is 14.8%, and the remaining 3 meetings of the year will raise interest rates by about 99 basis points to 3.32%.

Reminders

20:30, the initial value of the annualized quarterly rate of real GDP in the second quarter of the United States, the initial value of the quarterly rate of real personal consumption expenditures in the second quarter of the United States, and the initial value of the annualized quarterly rate of the core PCE price index in the second quarter of the United States