U.S. Stocks closed higher Wednesday on better-than-expected U.S. ADP jobs data for May, showing signs of a recovery in the job market. By the close, the Dow was up 527.24 points, or 2.05 per cent, at 26,269.89, the S.P. 500 was up 42.05 points, or 1.36 per cent, at 3,122.87 and the Nasdaq was up 74.54 points, or 0.78 per cent, at 9,682.91.
Chart: Nasdaq closed at 9,682.91, 1.6% below record high
Major U.S. tech giants were mixed, with Facebook down 1.1 percent, Amazon up 0.24 percent, Apple up 0.55 percent, NetFlix down 1.25 percent, Alphabet down 0.2 percent and Microsoft up 0.24 percent.
China’s major technology stocks rose mostly, with NetEase up 1.45 per cent, Aichi Yi up 3.84 per cent, Ping Duo up 1.26 per cent, Weibo up 4.17 per cent, Tencent Music down 0.85 per cent, Alibaba up 2.0 per cent, JD.com up 2.0 per cent, Baidu up 4.87 per cent and EBay up 5.49 per cent.
Share price of China General Stock
Most of the other Chinese stocks rose, including: Temple Bank (up 52.56%), NIO (up 19.15%), Housing World (up 17.43%), Such as Han Holding (up 14.29%), Sohu (up 11.31%) ), Tou Buehnod (up 11.1%), Luckin Coffee (up 10.73%), fluent (up 9.49%), Pleasant Loan (up 8.88%), Letters (up 8.72%), Baxter (up 7.86%), With who to learn (up 6.84%), Futo Holdings (up 5.8%), eggshell apartment (up 5.78%), fighting fish (up 5.61%), e-shop (up 5.44%), LeCou (up 5.33%), group car (up 5.3%), NetEase has Dow (up 5.27%), Baozun E-commerce (up 5.11%), Stranger (up 4.94%), Juju Group (up 4.89%), Ctrip (up 4.88%), Titanium (up 4.52%), Good Future (up 4.21%), New Oxygen (up 3.94%), Youxin (up 3.77%), Future Worry (up 3.61%), Lychee (up 3.26%), Sina (up 3.23%), Tiger Securities (up 3.22%), Zhengbao Education (up 3.19%), Yi Car Network (up 3.03%), Xin and Fu (up 3.01%), Maverick Electric (up 3.00%), Zhongtong (up 2.86%), Leshin (up 2.81%), Sogou (up 2.77%), Thunderbolt (up 2.66%), Dane Technologies (up 2.56%), Auto House (up 2.54%), Huami (up 2.34%), Yunmi (up 1.72%), 58 Tongcheng (up 1.61%), Tiger Tooth (up 1.51%), Phoenix New Media (up 1.49%), Cheetah Mobile (up 1.39%), New Oriental (up 1.14%), 360 Financial (up 1.07%) and financial sector (up 5.5%)
Among the companies that fell were SMIC (down 0.08%), Beep Mile (down 0.12%), Touch (down 0.59%), Lanting Set (down 0.61%), Vicente (down 0.79%), Microloan Network (down 1.52%), 1 Drug Net (down 1.75%), E.C., 1.76 percent, Mushroom Street (down 1.85 percent), Century Connect (down 2.0 percent), UT Starcom (down 2.12%), Cluster (down 2.17%), 500 Lottery Network (down 2.17 percent) %), Renren (down 2.5%), Jane Pu Technology (down 2.78%), Jianan Technology (down 3.21%), Jinshan Yun (down 3.67%), Xiaowin Technology (down 4.05%), Worry Free English (down 16.02%).
Pictured: Goldman Sachs raises stock rating, NIO shares rise more than 19%
In an investment report released on June 3rd, Fei Fang, an analyst at Goldman Sachs, said NIO’s liquidity risk had declined after a challenging 2019. Nio’s rate of burning money narrowed from $3.6 billion in the second quarter of 2019 to $1.6 billion in the first quarter of this year. Mr Fang said NIO car deliveries in the first four months of the year were up 37 per cent year-on-year, highlighting “the growing acceptance of this emerging car brand by Chinese consumers”. “ES6 and ES8 are driving demand for NIO products by being superior in quality compared to other high-end electric vehicles on the market, and positive consumer reviews,” he said. Fang Fei expects NIO to sell 10,000 vehicles a month by 2022, breaking even, and 175,000 units a month by 2023, accounting for 19% of China’s electric vehicle market. Goldman Sachs raised its NIO rating to “buy” from “neutral” and raised its target price to $6.40. Even in February, when the outbreak was severe, NIO sales were better than the overall auto market. With the resumption of production, its sales in March and April increased more than double the month-on-month rate. NIO shares rose $0.9, or 19.15 percent, to $5.60 in regular trading today.
Figure: Jinshan Yun’s first-quarter loss widened by about 65% and its share stake fell more than 3%
After the first-quarter results, Jinshan Yun’s shares rose 6 percent in premarket trading. Jinshan Yun’s net loss was RMB331.6 million, or RMB0.39 per share, compared with RMB201.4 million and RMB0.23, respectively, and the loss increased by about 65% to RMB1.39 billion, up 64.5% from RMB845.8 million a year earlier. As of March 31, 2020, Jinshan Yun’s cash, cash equivalents and short-term investments were worth RMB2,198.4 million, slightly lower than RMB2.248.7 billion as of December 31, 2019. Jinshan Yun raised $551.3 million after its May 8, 2020 IPO (initial public offering) issued 3,450,000 U.S. depositary shares at $17 a share, excluding commissions and other expenses. Jinshan Yun expects second-quarter revenue to be between Rmb1.5bn and Rmb1.54bn, up between 60 per cent and 65 per cent. In regular trading today, Jinshan Yun shares were down $0.84, or 3.67 per cent, at $22.02, having briefly bottomed out at $21.47. In after-hours trading, Jinshan Yun’s shares were up $0.15, or 0.68 percent.
U.S./Foreign Technology Stocks
Other foreign technology stocks rose, including Groupon (up 8.87 per cent), Lyft (up 8.71 per cent), Twitter (up 8.12 per cent), Zoom (up 7.59 per cent), NXP (up 7.0 per cent), Hewlett-Packard (up 6.7per per cent), iRobot (up 6.64 per cent), Motorola (up 5.88 per cent), Yelp (up 5.79 per cent), and Pinterest (up 5.3 per cent), Micron Technologies (up 4.49%), Slack (up 3.96%), Broadcom (up 3.85%), Western Digital (up 3.27%), Ericsson (up 3.14%), Lending Club (up 2.67%), Uber (up 2.62%), IBM (up 2.42%), Nokia (up 2.38%), Nokia (up 1.39%) and GoPro (up 1.000%) Salesforce (up 0.44%), Oracle (up 0.39%), Tesla (up 0.16%), Qualcomm (up 0.15%), Cisco (up 0.11%) and Sony (up 0.06%).
Among the decliners were Snap (down 0.1%), Adobe (down 0.13%), Intel (down 0.31%), Fibit (down 0.32%), PayPal (down 0.45%), Nvidia (down 0.63%), Dell Technologies (down 0.69%), AMD (down 1.51%), Symantec (down 1.66%), VMware (down 2.32%), Spotify (down 2.32%), And Blackberry (2.2%).2% Zynga (down 3.13%), Yidian (down 3.62%), Box (down 3.69%), Momentum Blizzard (down 4.19%) and SpeedICo (down 7.14%).
Figure: Apple app business surges, Morgan Stanley raises target share price
Net revenue from Apple’s App Store store rose 39 percent in May, according to Market Research Inc., helping Apple’s share price rise, according to Morgan Stanley. Katy Huberty, an analyst, maintained an “overweight” rating on Apple shares and raised its target price to $340 from $326. In an investment report Released Wednesday, Huberty said the App Store’s revenue growth in May was the biggest since April 2017. At the start of the second quarter, the App Store’s net revenue grew 35 per cent year-on-year, “well above” expectations of 18 per cent. As part of the “new normal”, she said, consumers are using more apps, a trend that will continue to exist in the short to medium term, with consumers spending more time at home. According to Morgan Stanley, Apple’s net revenue per download fell in February-April as consumers used free collaboration and communications apps. But the trend changed in May, with net revenue per download up 12 per cent, an “encouraging” sign for the development of a healthy application ecosystem. Apple’s shares rose $1.78, or 0.55 percent, to $325.12 in regular trading today. Separately, U.S. District Court Judge Yvonne Gonzalez Rogers ruled Tuesday that shareholders could sue Apple CEO Tim Cook for making comments on a conference call with analysts on November 1, 2018 that strong iPhone demand. A few days later, Apple notified the foundry of the production restrictions. On January 2, 2019, Apple cut its quarterly revenue forecast to more than $9 billion, and the next day, apple shares plunged 10 percent and its market value by $74 billion.
Pictured: Twitter with Trump in a row
Twitter’s profit plunged 70 percent to 11 cents a share in the last quarter, while revenue rose 3 percent to $807.6 million. Despite the negative impact of the outbreak on the advertising industry, Twitter’s profits were in line with market expectations and revenue was higher than expected. Daily live users rose to 166 million from 152 million in the fourth quarter of last year, up 24% from a year earlier and the highest level since 2016. On May 28, Twitter tagged us with a tweet from U.S. President Donald Trump for “celebrating violence.” On the same day, Mr. Trump signed an executive order to tighten oversight of social platforms. Twitter’s shares rose $2.62, or 8.12 percent, to $34.88 in regular trading today, above the $34.37 buy-in point in the cup-handle pattern. Twitter’s shares fell to $20, falling below a 52-week low as a result of the outbreak. Twitter’s share price is 50 per cent deep ercy, but it is still within acceptable limits. Twitter’s relative strength line is still well below its all-time high, suggesting it is far from performing much less than the broader market. In addition, Twitter’s profit growth has been weak. Twitter’s IBD has a combined rating of 68 (up to 99). In addition, it has a per share rating of 61 and a relative strength rating of 48. Against the backdrop of the rally, Twitter’s shares are still about 25 percent below its 52-week high after rising in recent weeks.