GMT EIGHT - OPPORTUNITIES IN CHINA

Revenue surged by 53% but still faced a major sell-off! AppLovin (APP.US) plummeted by more than 25% in after-hours trading, solely because the AI model upgrade was just a beat behind.

On Wednesday after the U.S. stock market closed, the mobile advertising platform giant AppLovin (APP.US) released a report showing a surge in profits, but faced a harsh judgment from investors.

The turmoil in the Middle East has led to windfall profits: oil prices surged by 19% alongside rising production, and Occidental Petroleum Corporation (OXY.US) achieved its highest Q2 profit in four years.

Thanks to rising oil prices and increased production, American shale oil producer Occidental Petroleum (OXY.US) announced its highest quarterly profit since 2022 on Wednesday, exceeding Wall Street expectations.

Hong Kong Stock Concept Tracking | Surging over 4%! Gold has surpassed the $4,200 mark, and prices are expected to return to an upward trend within the year (with a list of related stocks).

On August 5, spot gold surged over 4%, breaking through the $4,200 mark.

China Securities Co., Ltd.: Is the current rebound in Hong Kong stocks a retracement or a reversal?

This round of Hong Kong stock market rebound can be understood in two ways.

Guolian Minsheng Securities: What are U.S. Treasuries pricing in?

However, after entering July, amid the weakening of the fundamentals and the Federal Reserve's hesitation on interest rate hikes, the upward momentum in the short end gradually slowed down, while in contrast, long-end rates accelerated to rise sharply.

The "ultimate constraint" has been lifted? Bank of America: After joint intervention, the yen is expected to rebound by about 6% within the year.

Bank of America released its latest exchange rate forecast on Wednesday, significantly raising the year-end target for the yen against the dollar. It is expected that, under the joint influence of coordinated intervention by the U.S. and Japan governments and the Bank of Japan's interest rate hikes in the coming months, the yen will appreciate by about 6% from the current level of approximately 158.

FOMO everywhere! Goldman Sachs capital flow expert: options trading volume hits a record high, and U.S. stocks are staging a "crazy rally."

Data shows that the trading volume of call options on the S&P 500 Index (SPX) surpassed 4 million contracts on Tuesday, setting a record for the highest daily volume in history; meanwhile, the SPX put/call option skew recorded its largest decline in nearly a decade over the past two trading days, reflecting a sharp increase in demand from investors for exposure to upward risk.

HK Bull/Bear Outstanding Qty Ratio(50:50) | August 6

As of August 6, the latest bull-bear street crowd ratio for the Hang Seng Index is 50:50.

US Stock Market Move | Biotech company Attovia Therapeutics (ATTO.US) debuted on NASDAQ, with its share price rising 28.82% on the first day of trading.

Attovia Therapeutics rose 28.82% on its first day of trading, closing at $21.90.

Summary of Key Points from the SanDisk Fiscal Year 2026 Analyst Conference Call

I. Record-breaking financial performance and guidance. 1. Fourth-quarter performance: Revenue reached $8.965 billion, exceeding the upper limit of guidance. Quarter-over-quarter growth, with about one-third coming from increased shipments and two-thirds from price increases. 2. Gross margin and earnings per share: Non-GAAP gross margin rose to 84.6%; Non-GAAP EPS reached $39.25. 3. Cash flow and capital returns: Operating cash flow was $7.126 billion; the company returned $4.5 billion to shareholders through stock repurchases during the quarter. 4. Full fiscal year 2026 performance: Total revenue for the year reached $20.248 billion, with shipment growth in the mid-teens, in line with expectations. 5. Fiscal year 2027 first-quarter guidance: Expected revenue of $10.3 billion to $10.8 billion, with growth driven by increased shipments and moderate price increases. Non-GAAP gross margin is expected to be between 83% and 85%, with Non-GAAP EPS of $44 to $46.

Overnight US stocks | The Dow Jones Industrial Average has reached a new historical high, while SpaceX (SPCX.US) is about to unlock its shares, resulting in a price drop of over 13%.

As of the close, the Dow Jones Industrial Average rose 263.24 points, an increase of 0.49%, closing at 54,349.12 points; the Nasdaq dropped 221.55 points, a decrease of 0.83%, closing at 26,363.44 points; the S&P 500 Index fell 12.97 points, a decrease of 0.17%, closing at 7,723.55 points.

Federal Reserve Governor Cook stated that the longer inflation remains above target, the harder it becomes to control, reiterating that interest rate hikes will be supported if necessary.

Federal Reserve Governor Cook reiterated on Wednesday that she is prepared to support further interest rate hikes if inflation does not continue to ease in the future.

AI veteran Jeff Dean leaves after 27 years, founding a new company with three top scientists. Alphabet (GOOGL.US) shares plummet over 4%.

Google's parent company, Alphabet, announced a major leadership reshuffle in its AI business on Wednesday.

Waller's proposal to reduce the number of FOMC meetings has sparked heated discussions. Analysts suggest that market volatility may intensify, but trading opportunities will also increase.

Market participants believe that if Waller reduces the number of Federal Open Market Committee policy meetings each year, this may create more trading opportunities for investors.

Bezos reduced his holdings in Amazon stocks for the first time this year, cashing out $350 million.

As Amazon's stock price reached a record high on Monday, Jeff Bezos sold nearly $350 million worth of Amazon shares, marking his first sale of the companys stock this year. This transaction was disclosed in a Form 4 filing released after the market closed on Wednesday. The billionaire indicated two days earlier in another document that he plans to sell up to 15 million shares of Amazon stock, worth over $4 billion, with this sale being only a small portion of that plan. According to the Bloomberg Billionaires Index, as Amazon's stock price has risen 18% this year, Bezos's wealth has increased by $38.7 billion, bringing his total to $292 billion. After Amazon reported strong earnings for its cloud computing division last week, it recently became the fifth company to surpass a market capitalization of $3 trillion. Even after this sale, Bezos remains the largest shareholder of Amazon with an 8.16% ownership stake.

International gold prices rose over 4%, returning above the $4,200 mark.

On Wednesday, in the New York late trading session, spot gold rose by 4.11%, quoted at $4,245.39 per ounce. It has continued to rise since the start of the Asia-Pacific session and has fluctuated in a narrow range at high levels since 23:00 Beijing time, hitting a daily high of $4,267.78 at 02:23. Spot silver increased by 4.12%, priced at $62.0075 per ounce, also continuously rising since the beginning of the Asia-Pacific session, reaching a daily high of $62.7770 at 22:10. COMEX copper futures rose by 1.47%, quoted at $6.7410 per pound, having peaked at $6.7650 at 02:30. Spot platinum decreased by 0.10%, while spot palladium increased by 1.33%. In the trading session of U.S. stocks, the Philadelphia Gold and Silver Index closed up by 6.86%, at 345.93 points, maintaining upward momentum and fluctuating at high levels since 22:00. The New York Stock Exchange ARCA Gold Miners Index, trading throughout the global session, rose by 7.33%, closing at 2,395.57 points, maintaining a slight upward trend since the beginning of the Asia-Pacific session, stabilizing around 2,250 points, and gapping up to above 2,350 points at the U.S. stock market opening, followed by fluctuations at high levels. In the U.S. stocks trading session, the Commodity Index closed up by 1.62%, while the Metals and Mining Index rose by 1.42%.

Western Digital's net revenue for the fourth fiscal quarter was $3.75 billion, while analysts expected $3.68 billion. Adjusted earnings per share for the fourth fiscal quarter were $3.56, compared to analysts' expectations of $3.31. For the first fiscal quarter, revenue is expected to be between $4 billion and $4.2 billion, with analysts expecting $4.02 billion. Adjusted EPS for the first fiscal quarter is expected to be between $3.85 and $4.15, while analysts expect $3.83.

SpaceX fell by 14%, with a market value evaporating by $225 billion.

Meta launches its first AI programming agent, directly challenging Anthropic and OpenAI.

Iran claims to have reached an agreement with Oman regarding the shipping routes in the Strait of Hormuz, and the market is paying attention to the prospects for the restoration of energy transportation.

Iran has announced that it has reached an agreement with Oman on the proposed shipping route in the Strait of Hormuz.

The first batch of over $100 billion in stocks will be unlocked on Thursday. SpaceX (SPCX.US) faces the first test of its nine-phase lock-up period arrangement, with the market on alert for selling pressure and extreme fluctuations.

On Thursday, approximately $101 billion worth of SpaceX stocks will reach their first unlock period, allowing insiders to begin selling their shares. Due to the unprecedented nine-phase, staggered unlock mechanism and the large scale of the first unlock, the market generally expects that SpaceX's stock price may face a new round of volatility.

US Stock Market Move | Advanced Micro Devices, Inc. (AMD.US) fell over 7% as its Q3 revenue guidance fell short of expectations.

On Wednesday, AMD (AMD.US) fell more than 7%, closing at $480.71.

After casting a dissenting vote last week, Kashkari calls for interest rate hikes: the Federal Reserve should take action starting in September.

Minneapolis Fed President Neel Kashkari stated on Wednesday that the Federal Reserve should begin to gradually raise interest rates in order to lower inflation, which remains above target, and to avoid having to implement more aggressive rate hikes in the future if inflation becomes further entrenched.

A-shares evening hotspot | China announces five countermeasures against the U.S. How to interpret this?

On August 5, China consecutively announced multiple countermeasures against the U.S.: implementing countermeasures against American compliance testing companies, tightening export controls on dual-use items related to drones to the U.S., and taking countermeasures against six American entities, including those applying DNA science.

US Stock Market Move | SpaceX (SPCX.US) dropped 8% as a large amount of locked shares is about to be released.

On Wednesday, SpaceX (SPCX.US) fell by 8%, closing at $115.26.

In July, the ISM Services PMI in the United States expanded for the 25th consecutive month! Business activity and new orders accelerated in growth, but the employment index returned to the contraction zone.

In July, the U.S. service sector continued to expand, with business activities and new orders noticeably accelerating, but employment indicators fell back into contraction, while input price pressures further intensified.

US Stock Market Move | Gold stocks rise broadly, with Gold Fields Limited Sponsored ADR (GFI.US) up over 9%.

On Wednesday, gold stocks rose broadly, with Gold Fields (GFI.US) up over 9% and AngloGold (AU.US) up nearly 9%.

US Stock Market Move | NVIDIA Corporation (NVDA.US) rose over 4% as SpaceX adopts its AI system to enhance satellite computing power.

On Wednesday, Nvidia (NVDA.US) rose over 4%, closing at $220.62.

US Stock Market Move | Eli Lilly (LLY.US) rose over 7%, with Q2 revenue increasing by 48% year-on-year, and has raised its full-year performance outlook.

On Wednesday, Eli Lilly (LLY.US) rose more than 7%, reaching $1197.12.

The S&P 500 continues to reach new highs, with SanDisk and Western Digital announcing their earnings results. Three major events and their interplay are shaping the narrative of the AI bull market.

The S&P 500 index is expected to reach new highs, and the outlook for artificial intelligence spending remains optimistic.

"Blood-stained chips" turn into profits! Castle Investment acquires $16 billion worth of AI stocks at a discount; flagship fund jumped nearly 6% in July.

Castle Investment drove a swift deal that led to a 5.9% increase in its flagship Wellington fund in July.

ADP employment hits a new low for the year, as the Federal Reserve's policy path faces more tests.

ADP Research reported on Wednesday that the number of jobs added in the U.S. private sector in July was 44,000, lower than market expectations, marking the smallest increase since the beginning of the year.

SpaceX's stock price plummeted 12%, with a market value evaporating by $205 billion.

U.S. stocks opened with the Dow Jones up 0.33%, the S&P 500 up 0.56%, and the Nasdaq up 0.39%. SpaceX (SPCX.O) fell 10.5%, raising concerns over its surge in AI spending. AMD (AMD.O) dropped 7%, with poor Q2 performance and outlook. Shopify (SHOP.N) surged 20%. Gold briefly hit $4,200, with Harmony Gold (HMY.N) up 7.5% and Gold Fields (GFI.N) up 8.3%. Storage concept stocks edged down slightly.

The U.S. Treasury Department has maintained its debt issuance guidelines as expected, while an increase in financing demands may intensify the "dependency" on short-term debt.

The U.S. Treasury Department maintained its previous guidance on future debt issuance as scheduled on Wednesday. Since taking office, Becerra has relied on short-term Treasury bills (with maturities of up to one year) to meet the government's growing financing demands.

Changxin Rejects Apple's Price Pressure

According to the latest media reports, Apple had attempted to negotiate lower DRAM procurement prices with Changxin Storage, but was rejected. Changxin Storage insisted on a price not lower than that of Samsung Electronics and SK Hynix, and even higher.

The Hong Kong Department of Health: Promoting the Construction of Hong Kong as an International Medical Innovation Hub and Continuously Advancing the Development of Clinical Trials.

Professor Lu Chongmao chaired the fourth meeting of the Medical Innovation Development Supervisory Committee, discussing strategies for Hong Kong to develop into an international hub for medical innovation and the continued promotion of clinical trial development.

AI empowers e-commerce! Shopify (SHOP.US) Q2 revenue soared 34% year-on-year, and the Q3 performance guidance exceeded expectations, driving the stock price to surge.

Shopify announced better-than-expected second-quarter revenue and third-quarter performance guidance, indicating that the company's investment in AI is attracting more merchants to use its e-commerce service system, which may alleviate investors' previous concerns about emerging AI tools intensifying competition in the small business market.

Walt Disney Company (DIS.US) focuses on growth in its theme parks and streaming business: Q3 earnings exceed expectations, buyback goals raised, official announcement of content cooperation with TikTok.

Disney's Q3 earnings exceeded expectations, driven by strong growth in its theme parks and streaming business.

Shanghai Stock Exchange: MINIMAX, Luxshare Precision, and Sanhua Group added to the Hong Kong Stock Connect eligible stocks list.

On August 5th, the Shanghai Stock Exchange issued a notice stating that according to the relevant provisions of the "Implementation Rules for the Shanghai-Hong Kong Stock Connect," the list of stocks eligible for the southbound trading under the Stock Connect has been adjusted. MINIMAX-W, Luxshare Precision, and SanHuan Group have been added to the list, and the changes will take effect from the next trading day of the southbound stock connect.

The trajectories of the weight loss drug duopoly have diverged! Strong sales fuel Eli Lilly's (LLY.US) Q2 performance that exceeded expectations.

Eli Lilly (LLY.US) reported better-than-expected second-quarter results before the market opened on Wednesday, driven primarily by strong sales of its injectable GLP-1 medications and the newly launched oral weight loss drug Foundayo.

Selection of A-share Announcements | BeOne Medicines Ltd. (688235.SH) announces its performance! Net profit surges 627% in the first half of the year.

Yushu Technology (688836.SH) announced on August 5 that its online roadshow for the initial public offering of stocks and listing on the Sci-Tech Innovation Board will be held on August 7, 2026, from 14:00 to 17:00.

The U.S. Treasury is scheduled to hold a $58 billion auction of 3-year Treasury bonds on August 11; a $42 billion auction of 10-year Treasury bonds on August 12; and a $25 billion auction of 30-year Treasury bonds on August 13.

MiniMax has been included in the Hong Kong Stock Connect, rising over 10% today.

On August 5th, the list of Chinese stocks accessible via the Hong Kong Stock Connect was adjusted, with multiple stocks including MiniMax being added, effective from the 6th. By the close of trading on the 5th, MiniMax's Hong Kong stock had risen by over 10%. This week, MiniMax released its next-generation general-purpose multimodal generative model, MiniMax H3, which ranked first in the Artificial Analysis video editing evaluation list and the Arena image-to-video ranking.

Preview of US Stock Market | All three major stock index futures rise, oil prices rebound slightly, and SpaceX plummets after earnings.

On August 5th (Wednesday) before the US stock market opened, the three major US stock index futures all rose.

Memory shortages may persist until 2027! Samsung, SK Hynix, and Micron's production capacity sold out in advance.

According to a report by technology media on Tuesday, the tight supply of memory chips is expected to continue until 2027. Industry insiders revealed that the three major memory manufacturers have essentially completed negotiations regarding next year's production capacity allocation.

The 30-year fixed mortgage rate in the U.S. has risen to a one-year high.

Mortgage rates in the United States rose to their highest level in a year last week, further dampening the already weak demand for home loans in the housing market. Data released on Wednesday showed that for the week ending July 31, the 30-year fixed mortgage rate increased by 5 basis points, reaching 6.81%. The rates had fallen to their lowest level since 2022 just before the outbreak of the Iran conflict in late February. Since then, rates have continued to rise as the conflict pushed up energy prices and heightened inflation concerns. The result of this change has been a weakening in loan demand. The Mortgage Bankers Association (MBA) reported that the home purchase mortgage application index fell by 3.6% from the previous week, reaching its lowest level in five months; the refinancing index also decreased by 1.9%, hitting its lowest level since mid-2025.

European traditional tech stocks rise against the trend, surprising winners of the AI era in the earnings season.

The wave of AI was initially seen as a new opportunity for model developers, but recent financial reports indicate that a group of large, established technology companies in Europe is rising against the trend and becoming the actual beneficiaries of the artificial intelligence dividend.

The ambiguous statement from Waller has triggered a trust crisis for the Federal Reserve, while major banks like Barclays and HSBC are backing inflation-protected bonds.

Top international investment banks such as Barclays and HSBC have expressed their optimism regarding the allocation value of U.S. inflation-protected bonds.

SanDisk (SNDK.US) has seen two consecutive increases after a sharp decline; can the earnings report confirm the resurgence of AI storage?

Learning from history, the sharp decline in SanDisk's stock price after the earnings report seems to provide a great opportunity for bargain hunters.

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