On Thursday, local time, U.S. stocks rebounded after opening low, and the three major indexes closed down significantly. At the close, the Dow fell 375.12 points, or 0.98%, the Nasdaq fell 0.64%, and the S&P 500 fell 0.46%.
In terms of industry sectors, the 11 major sectors of the S&P 500 index fell six times and rose five times. Communication services and healthcare led the declines with declines of 4.03% and 0.62%, respectively, while materials and energy led gains of 0.69% and 0.50%, respectively.
International Business Machines Corp. (IBM) and construction machinery giant Caterpillar led the Dow component declines. The former fell 8.25%, with first-quarter revenue up 1% year-on-year to $14.462 billion, failing to meet some investors' expectations, while the latter fell 7.02% due to a slight decline in quarterly sales.
Chinese concept stocks bucked the trend, with the Nasdaq China Golden Dragon Index closing up 0.75%, the fourth consecutive session of gains. Among the popular stocks, New Oriental rose 3.5%.
After hours, Google's parent company Alphabet and Microsoft released their financial reports for the first quarter of 2024, and key indicators such as quarterly revenue and net profit of both companies exceeded expectations. As of press time, Alphabet shares rose more than 11% in after-hours trading, and Microsoft rose more than 4% in after-hours trading.
In terms of individual stocks, Meta shares closed down 10.56%, the biggest one-day decline since October 2022, as the company released a second-quarter revenue outlook that missed market expectations while raising its capital expenditure forecast for this year. CEO Mark Zuckerberg said on the earnings call that "investment in AI will take a long time to pay off," raising concerns about the commercial future of AI technology.
Merck rose 2.93% as the company raised its annual profit and revenue forecasts on the back of strong sales of cancer treatment Keytruda and human papillomavirus vaccine Gardasil.
In terms of economic data, the first estimate data released by the U.S. Department of Commerce on the 25th showed that the U.S. real gross domestic product (GDP) grew at an annualized rate of 1.6% in the first quarter, which was lower than the consensus market expectation, and also significantly slower than the growth rate of 4.9% and 3.4% in the third and fourth quarters of last year, and the lowest level since the second quarter of 2022.
►►The State Council issued a report on the research and handling of the deliberation opinions of the special report on the management of state-owned assets of financial enterprises and the accountability of rectification. The report shows:
- Adjust the proportion of state-owned financial capital in banking, insurance, securities and other industries in a timely and reasonable manner;
- Concentrate on building a "national team" in the financial industry and promote leading securities companies to become stronger and better;
►►On April 25, the Ministry of Commerce held the second regular press conference in April. The spokesman said that we will promote the trade-in of consumer goods as the focus of the current work to promote consumption, adhere to the two-wheel drive of "policy + activities", and guide all localities to combine brand activities, key exhibitions, industrial clusters and leading enterprises and other advantageous resources to carry out a series of activities of "National Consumer Goods Trade-in Action - Local Station". At present, the Ministry of Commerce has successively supported Hainan, Ningxia, Shandong, Guangdong and other places to launch local station activities. Jilin, Shanghai, Guangxi, Jiangxi and other local station activities will be launched around the "May Day".
►►The Ministry of Finance and the State Administration of Taxation issued the LAT policy for the reform of the rural collective property rights system. It points out that if villagers' committees and villagers' groups transfer or change the use rights of state-owned land, buildings on the ground and their attachments to the names of rural collective economic organizations in accordance with the requirements of the reform of the rural collective property rights system, they will not be subject to LAT for the time being. This announcement will be implemented from January 1, 2024.
►►Beijing Municipal Bureau of Economy and Information Technology and Beijing Municipal Communications Administration jointly issued the Implementation Plan for the Construction of Computing Power Infrastructure in Beijing (2024-2027). The plan points out that enterprises that purchase independent and controllable GPU chips to carry out intelligent computing services will be supported according to a certain proportion of the investment amount to accelerate the realization of independent and controllable supply of intelligent computing resources. For the stock data centers that take the initiative to carry out green and energy-saving transformation, support will be given according to a certain proportion of the investment amount. Improve the efficiency of the AI computing power voucher policy, encourage enterprises to make good use of intelligent computing resources, and accelerate the promotion of large models to empower industry applications.
The plan also proposes to strengthen the intelligent computing power support for the development of the artificial intelligence industry, accelerate the commercialization of artificial intelligence large models, promote the application of large models in urban governance, government services, education and scientific research, medical and health, intelligent manufacturing, cultural tourism, financial technology, smart energy and other fields, support enterprises to deepen the vertical field to refine and strengthen the industry model, build an efficient and collaborative large model innovation ecology, cultivate a group of influential large model service providers, and promote the integration and application of computing power to a wider, deeper, More refined fields to promote industrial upgrading and transformation.
ByteDance: There are no plans to sell TikTok
ByteDance issued an article saying that the news from foreign media about ByteDance's exploration of selling TikTok is untrue, and ByteDance does not have any plans to sell TikTok.
Everest, Tibet: There are some errors in the announcement due to negligence
Tibet Everest announced that the company disclosed the "Announcement on Receiving the Tibet Securities Regulatory Bureau" on April 19, 2024, and due to the negligence of our company, there were some errors in the announcement. The main reason is that the company's staff directly copied the text of the PDF file without double-checking and reviewing, resulting in multiple typos in the text.
In the evening, the Second Department of Management of Listed Companies of the Shanghai Stock Exchange issued a regulatory warning to Tibet Everest Resources Co., Ltd. and relevant responsible persons, saying that the information disclosure of listed companies' announcements was inaccurate, reflecting the company's daily information disclosure defects, and low-level text errors appeared in many announcements of Tibet Everest, which caused a greater impact. The Second Management Department of Listed Companies of the Shanghai Stock Exchange issued a regulatory warning to Tibet Zhufeng Resources Co., Ltd. and Hu Handong, secretary of the board of directors. Tibet's Mount Everest and its directors, supervisors, and senior executives should draw inferences from one case to avoid the recurrence of such problems.
Guolian Securities: Planning to acquire control of Minsheng Securities The stock will be suspended from the 26th
Guolian Securities announced that the company is planning to acquire the control of Minsheng Securities Co., Ltd. and raise matching funds by issuing A shares. The transaction is still in the planning stage and is expected to constitute a major asset restructuring. After application, the company's shares will be suspended from the opening of the market on April 26, and it is expected that the suspension will not exceed 10 trading days.
Guao Technology: Chen Chongjun, the actual controller of the company, was criminally detained
Guao Science and Technology announced that it received the "Detention Notice" issued by the Qingdao Municipal Public Security Bureau provided by the family of the actual controller Chen Chongjun, and learned that Chen Chongjun was criminally detained by the Qingdao Municipal Public Security Bureau on suspicion of manipulating the securities market. At present, the company's business situation is normal. Chen Chongjun does not serve as a director, supervisor or senior management of the Company. Chen Chongjun's detention will not have a significant impact on the company's daily operations and will not affect the disclosure of the company's 2023 annual report.
In the evening, the Shenzhen Stock Exchange issued a letter of concern to Guao Technology, requiring the company to explain the specific matters that the company had on Chen Chongjun's suspected crime of manipulating the securities market as of the date of the reply letter, and to explain whether it involves the company or the company's relevant directors, supervisors and senior executives' liabilities, and if so, please explain whether the company or relevant directors, supervisors and senior executives are suspected of major violations of laws and regulations.
Huatai Securities: It plans to sell all its shares in AssetMark, a U.S. holding subsidiary
Huatai Securities announced that the company intends to sell all 50,873,800 ordinary shares of AssetMark Financial Holdings, Inc. (hereinafter referred to as "AssetMark") held by Huatai International Investment, a wholly-owned overseas subsidiary of the company, through a direct agreement to sell as a whole, accounting for about 68.4% of the issued ordinary shares of AssetMark. All of Huatai International Investment's common stock in AssetMark will be sold for a combined consideration of $35.25 per share (non-interest-bearing), and Huatai Securities will receive approximately $1.793 billion in cash based on Huatai International Investment's equity interest in AssetMark. Upon completion of the transaction, AssetMark securities will be delisted from the NYSE and deregistered. This transaction will help the company achieve a high return on investment.
Huading shares: Terminate the issuance of shares to specific targets in 2023
Huading Co., Ltd. announced that after comprehensive consideration of factors such as current capital market policy changes and careful research, the company decided to terminate the issuance of A shares to specific targets in 2023.
Ganneng shares: net profit of 204 million yuan in the first quarter, a year-on-year increase of 3565.82%
Ganneng Co., Ltd. announced the first quarter report, with an operating income of 1.694 billion yuan, a year-on-year decrease of 0.39%, and a net profit of 204 million yuan, a year-on-year increase of 3565.82%.
Huida Sanitary Ware: net profit in the first quarter increased by 5979.08% year-on-year
Huida Sanitary Ware released the first quarter report of 2024, with a net profit attributable to the parent company of 28.3842 million yuan in the first quarter, a year-on-year increase of 5979.08%.
Pan Micro Network: Net profit attributable to the parent company in the first quarter increased by 4764.41% year-on-year
Pan Micro Network released the first quarter report of 2024, and the net profit attributable to the parent company in the first quarter was 27.9947 million yuan, a year-on-year increase of 4764.41%.
Suda Vig: net profit in the first quarter increased by 1442% year-on-year
Suda Vig released the first quarter report of 2024, achieving operating income of 471 million yuan, a year-on-year increase of 19.79%, net profit attributable to shareholders of listed companies of 16.3598 million yuan, a year-on-year increase of 1441.84%, and basic earnings per share of 0.0630 yuan.
Montage Technology: Net profit in the first quarter increased by 1032.86% year-on-year
Montage Technology disclosed its report for the first quarter of 2024, with a net profit of 223 million yuan in the first quarter, a year-on-year increase of 1032.86%. In the first quarter, the demand for memory interface chips achieved recovery growth, and some of the company's new products (such as PCIeRetimer, MRCD/MDB chips) began to be shipped on a large scale, driving the company's operating income and net profit to increase significantly over the same period last year; in the first quarter, the sales revenue of the company's interconnection chip product line was 695 million yuan, an increase of 68.38% over the same period of last year, setting a record high in the sales revenue of the product line in the first quarter.
Trina Solar: net profit in the first quarter was 516 million yuan, down 70.83% year-on-year
Trina Solar announced that its net profit in the first quarter of 2024 will be 516 million yuan, down 70.83% year-on-year, and its net profit in 2023 will be 5.53 billion yuan, up 50.26% year-on-year, with 10 distributions of 6.33 yuan.
Huafu Securities: The recent introduction of a series of new policies in the capital market is a major positive for China's capital market, which will help really good companies stand out in the future. With the support of the government's policy to encourage the development of small and medium-sized enterprises and innovative enterprises, some small-cap stocks in the technology growth segment can quickly adapt to market changes and technological innovation, and are expected to become market leaders in emerging industries in the future. It is recommended to pay attention to the investment opportunities of small- and mid-cap stocks that have been wrongly killed in the process of the recent market correction.
Zhongyuan Securities: In April, the brokerage index continued to fluctuate and fall, and once approached the low point of the year in early February, although it stabilized and rebounded slightly since the middle of the year, but the overall performance was relatively weak, and the average P/B of the sector fell back to below 1.20 times again. In the short and medium term, the China Securities Regulatory Commission will systematically promote the implementation of the various policies and measures proposed in the new "National Nine Articles" of the capital market with the "1+N" policy system, and the high-quality development of the capital market will create a good external business environment for the securities industry. In this process, the brokerage sector is expected to be repeatedly active and actively maintain continuous attention to the brokerage sector. Pay attention to swing investment opportunities for leading brokerages and low-valued small and medium-sized and flexible brokers.
Founder Securities: Under the guidance of the new "National Nine Articles" policy, as the disclosure of the annual report and the first quarterly report is nearing the end, the market risk appetite has been re-improved, and the structure has been fully adjusted in April, and the market in May and June is worth looking forward to. The market is expected to break through and go straight to 3,400 points under the leadership of "double creation" and the strengthening of small and medium-sized market capitalization.
(This article is from Yicai)
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