U.S. Stock Market Soars As Microsoft Reports Strong Earnings After Hours

The U.S. stock market saw gains on Tuesday, rebounding after four consecutive days of decline for the Dow Jones Industrial Average.

The 10-year U.S. Treasury yield saw a minor decrease. Companies like Coca-Cola and Microsoft delivered strong earnings reports.

In the midst of earnings season, Coca-Cola exceeded expectations in both revenue and profit. Audio streaming giant Spotify also outperformed in its third-quarter results.

General Motors reported better-than-expected third-quarter earnings. However, due to a significant strike by the United Auto Workers (UAW), which increased their costs, the company withdrew its full-year earnings outlook.

U.S. Stocks

Fundamental Analysis:

Large tech companies generally saw gains, with Tesla up over 2%, Nvidia and Netflix up over 1%.

Leading sectors included metal materials, shipping, and renewable energy, with New Era Energy rising nearly 7%, Golden Ocean Group up over 6%, Newcore Steel up over 4%, and BHP and Vale up over 3%.

Microsoft and Google’s parent company, Alphabet, released their earnings after hours. Microsoft’s first-quarter revenue exceeded expectations, leading to a nearly 6% increase in after-hours stock prices.

Alphabet’s cloud business revenue fell short of expectations, causing a more than 6% decline in after-hours stock prices.

Snap’s stock price briefly surged by 24% after exceeding third-quarter revenue expectations, with its daily active user count meeting expectations.

Chinese concept stocks performed well, with the Nasdaq China Golden Dragon Index rising by 3.98%. Xpeng Motors saw gains of over 10%, while NIO and Bilibili rose over 7%.

Tencent Music, iQiyi, and NetEase experienced over 5% gains, while Manbang and Pinduoduo rose by approximately 4%.

Futu Holdings and Baidu saw gains exceeding 3%, while Alibaba rose over 2% and JD.com increased over 1%. Vipshop saw a slight increase.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones Industrial Average rose by 204.97 points, a 0.62% increase, closing at 33,141.38 points.
  • Nasdaq Composite Index (Nasdaq) rose by 121.55 points, a 0.93% increase, closing at 13,139.87 points.
  • S&P 500 Index rose by 30.64 points, a 0.17% increase, closing at 4,247.68 points.

Hong Kong Stocks

All three major indices in the Hong Kong stock market saw gains.

Tech stocks like Bilibili and NetEase rose over 5%, while JD Group, Alibaba, and Meituan increased over 3%.

Emerging electric vehicle companies, including NIO and Xpeng Motors, collectively saw a rise of nearly 6%.

However, oil-related stocks experienced losses, with China Petroleum & Chemical Corporation falling over 4%, and communication stocks led the decliners, with China Unicom falling over 7%.

Large infrastructure stocks benefited from the favorable conditions created by the issuance of 1 trillion yuan in government bonds.

ShanShui Cement rose by nearly 12%, China National Heavy Duty Truck Group rose by nearly 7%, and China Railway Construction Corporation saw gains of nearly 4%.

It was announced that China would issue an additional 1 trillion yuan in government bonds in the fourth quarter of this year, specifically designated for disaster recovery, reconstruction, and enhancing the country’s resilience to natural disasters.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 1.18%, closing at 17,191.59 points.
  • Hang Seng Tech Index (HSTECH) rose by 2.89%, closing at 3,727.39 points.
  • Hang Seng China Enterprises Index (HSCEI) rose by 1.53%, closing at 5,887.91 points.

FTSE China A50 Index

Fundamental Analysis:

The issuance of 1 trillion yuan in government bonds stimulated the A-shares market, resulting in a positive opening for the three major indices.

The Shanghai Composite and Shenzhen Component Indices rose slightly after an initial increase, while the ChiNext Index showed a weak performance.

In terms of industry sectors, cement and construction materials, engineering consulting services, engineering construction, complete automobile manufacturing, and the steel industry saw notable gains.

In contrast, sectors such as beauty and healthcare, securities, photovoltaic equipment, electronic chemicals, and insurance experienced declines.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.51%, closing at 2,977.28 points.
  • Shenzhen Component Index (SZCOMP) rose by 0.61%, closing at 9,541.28 points.
  • ChiNext Index (CHINEXT) fell by 0.54%, closing at 1,870.71 points.
  • SSE STAR Market 50 Index (SSE50) rose by 0.01%, closing at 850.73 points.

Forward-looking Statements   
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Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.    

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.   

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