Large cap

Last night, the three major US stock indices fell, with Nike plummeting by 20%. As of the close, the Dow fell 0.12%, the Nasdaq fell 0.71%, and the S&P fell 0.41%. The yield on the 10-year US Treasury bond rose 2.588% to 4.4%, compared with a -35.8 basis point difference in the yield on the 2-year Treasury bond. The panic index VIX rose 1.63% to 12.44, and Brent crude oil fell 0.45%. Spot gold fell 0.06% yesterday, to $2326.23 per ounce. The US dollar index fell 0.08% yesterday to 105.85.

The US core PCE price index increased by 2.6% year-on-year in May, the smallest increase since March 2021. After the data was released, traders increased their bets on a Fed interest rate cut. The Chicago PMI in June was recorded at 47.4, the highest since November 2023. Warren Buffet modified his estate donation plan and announced that he will donate his estate to a charity trust fund managed by his family members.

Industry & Stocks

In terms of industry sectors, except for semiconductor, real estate, energy, finance, and industrial sectors, which rose by 1.01%, 0.81%, 0.39%, 0.34%, and 0.04%, respectively, all other S&P 6 major sectors fell: Utilities, Communications, Consumer Discretionary, Healthcare, Technology, and Materials each fell by 1.12%, 0.91%, 0.44%, 0.08%, 0.05%, and 0.03%, respectively.

In terms of conceptual sectors, aviation ETF rose by 0.05%, travel service sector fell by 0.24%, high-end hotel Marriott International fell by 0.2%, airbnb rose by 0.01%, and Norwegian Cruise rose by 0.8%. Solar energy sector fell by 7.34%. In terms of fintech sectors, PayPal fell by 0.58% and NU fell by 0.23%. The cybersecurity sector rose by 0.12%, and SQ rose by 1.74%.

Chinese concept stocks were mixed. KWEB fell by 0.73%. Taiwan Semiconductor rose by 1.27%, Pinduoduo rose by 0.77%, Alibaba fell by 0.51%, JD.com fell by 1.6%, Ideal fell by 2.51%, New Oriental rose by 1.71%, Nio fell by 5.24%, Xpeng fell by 4.68%, Tal Education rose by 0.19%, Bilibili fell by 3.38%, Luckin Coffee rose by 1.93%, and Miniso rose by 0.05%.

Most large technology stocks fell. Microsoft fell by 1.3%, and the $13 billion deal for Microsoft to invest in the generative AI company Open AI will be subject to further scrutiny by EU antitrust regulators. Apple fell by 1.63%, and Apple is researching new battery technology for iPhones to make battery replacement easier. Nvidia fell by 0.36%, Google fell by 1.84%, Amazon fell by 2.32%, and Meta fell by 2.95%. If the Australian government forces Facebook to pay licensing fees to media channels for displaying links, Meta will consider blocking all news content from Facebook. Lilly fell by 0.4%, Broadcom rose by 1.19%, Novo Nordisk fell by 1.21%, Tesla rose by 0.23%, and Micron fell by 0.53%.

NOK rose 1.34%, INFN rose 15.78%, Nokia will acquire Infinera for $2.3 billion to strengthen its position in the optical network field, especially in the North American market. Qualcomm rose by 2.07%. According to the China Academy of Information and Communications Technology, the domestic market's mobile phone shipments in May were 30.329 million, a year-on-year increase of 16.5%. TM rose by 0.53%. According to informed sources, Toyota is discussing the possibility of building a wholly-owned factory with relevant departments in Shanghai.

Daily Focus

1. Nike fell nearly 12% after the close, with fourth-quarter revenue falling below expectations and first-quarter revenue expected to decline by 10%.

On June 28, Nike's fourth-quarter revenue was $12.61 billion (vs. $12.86 billion), of which Greater China's revenue was $1.86 billion (vs. $1.83 billion), and EPS was $0.99 (compared to $0.66 in the same period last year), with a gross margin of 44.7% (45.3%) and inventory of $7.52 billion (vs. $7.99 billion). In addition, Nike said that the lifestyle business declined in the fourth quarter and the forex headwinds worsened in the fourth quarter. First-quarter revenue is expected to decline by about 10%.

2. The US dollar rose during the first US presidential election debate, with the market believing that Trump has an advantage.

On June 28, the USD rose in post-market trading, and the market believed that former US President Trump was leading in the first US presidential debate. Incumbent President Biden stumbled in the early clash of the debate, which could increase concerns about his ability to beat Trump in the November election. Carol Kong, a strategist at the Commonwealth Bank of Australia (CBA), said: 'From the current reaction, the market thinks that Trump is' winning 'this debate, but it is still too early to draw conclusions.'

3. Who is the government's target audience? Japan launches the "Tokyo Futari Story" app.

On June 28, according to ZAKER, in order to cope with the increasingly serious marriage and fertility crisis, the Tokyo government in Japan has urgently released an official AI dating application called "Tokyo Futari Story", intending to change the current prevalence among young people The phenomenon of 'Hitori' (single) through the 'Futari' (dual) concept.

Behind this move is the severe decline in the birth rate facing Tokyo and even the entire Japanese society. Last year, the number of deaths in Japan exceeded twice the number of newborns, and the number of births continued to decline for the eighth consecutive year, dropping to 758,631, a year-on-year decrease of 5.1%, while the number of deaths reached 1,590,503.

"Tokyo Futari Story" app focuses on safety and reliability, and uses advanced AI algorithms and a government-backed real-name authentication system to help users find ideal partners. It is aimed at single people aged 18 and above living, working or studying in Tokyo. By collecting personal information and questionnaire survey results, matching is done using artificial intelligence technology to provide users with suitable friends.

Due to obtaining the endorsement and supervision of the government, this dating app has very strict reviews of user information. When using the app, users need to accept strict reviews by the government, including proving their marital status and income status, and even participating in online interviews to confirm their identity. These measures are designed to ensure the safety and reliability of the app and provide users with a better dating experience.

4. In May, Apple's shipments of iPhones in China increased by 40% thanks to discount promotions.

On June 28, according to Bloomberg, Apple's iPhone shipments in China increased by 40% in May, a slower growth rate than in April, despite major discount promotions by major retailers a few weeks before the June shopping festival. After the shipment volume of Apple's latest generation of phones fell in the first two months of the year, it grew in March and increased sharply by 52% in April in China. Part of the reason is that Apple and its Chinese distributors have been promoting sales with price reductions since 2024, and these activities have continued until the June 18 shopping festival. Before that, sales of Apple's latest generation of phones once fell by double digits.

Apple VisionPro is available for sale in China today. The store staff said that reservations for VisionPro trials have been scheduled for early July.

On June 28, Apple's first mixed reality headset device, Vision Pro, was officially on sale in China. According to the official website of Apple, the 256GB version of Vision Pro sells from 29,999 yuan, the 512G version sells from 31,499 yuan, and the 1T version sells from 32,999 yuan. Today, the reporter visited Apple stores in Shenzhen, Guangzhou, and Shanghai, and found that Vision Pro had arrived in the stores and the supply was sufficient. Some store staff said that reservations for trials still needed to be made, and the number of reservations had reached early July. The reporter saw at the Tianhuan Apple store in Guangzhou that several users had purchased Vision Pro. A store staff at a flagship Apple store in Shenzhen said that currently more Vision Pro is purchased by companies or developers. The reporter learned that there are still limited applications that are compatible with Vision Pro, and domestic developers are still promoting the development of Vision Pro applications.

5. Several Wall Street banks have announced dividend increases and buybacks.

After the US stock market closed on June 29, several Wall Street banks successively announced an increase in quarterly dividends and buyback plans. According to the Jin10 data as of the time of publication, Bank of America plans to increase its quarterly dividend by 8%, from $0.24 per share to $0.26 per share; State Street Bank plans to raise the dividend by 10%; Citigroup plans to increase the quarterly dividend from 53 cents to 56 cents per share; JPMorgan plans to increase the quarterly dividend from $1.15 per share to $1.25 per share, and plans to repurchase no more than $30 billion of stocks; Morgan Stanley plans to increase the quarterly dividend from 85 cents per share to 92.5 cents per share, and plans to reauthorize the buyback of up to $20 billion of stocks; Wells Fargo & Co is expected to increase its third-quarter dividend to 40 cents per share.

Other investment banks: The Bank of New York Mellon plans to raise the quarterly dividend from 42 cents per share to 47 cents per share; Goldman Sachs plans to increase the quarterly dividend from $2.75 per share to $3 per share.