U.S. Stocks See Collective Gains With Pinduoduo Up Over 18%

The U.S. stocks saw marginal gains on Tuesday, continuing the strong performance since November.

Two hawkish Federal Reserve officials hinted at supporting a temporary hold on rate hikes in December, reinforcing the market’s belief that the Fed has concluded its interest rate increase.

September’s S&P CoreLogic Case-Shiller Home Price Index surged for eight consecutive months, reaching an all-time high, while November’s consumer confidence index declined for the third consecutive month.

On Tuesday, U.S. Treasury yields continued to decline with the 10-year Treasury yield dropping by 5 basis points to 4.338%.

U.S. Stocks

Fundamental Analysis:

Most major tech stocks rallied; Tesla surged by over 4%, while Microsoft and Meta gained over 1%.

Precious metals and automotive manufacturing led the gains, with Gold Resource up by over 13%, Kinross Gold by over 9%, and Newman Mining by over 6%.

Lucid and Rivian also soared by over 5% and 4%, respectively.

Conversely, highway transportation and semiconductor material equipment declined, with Daqo New Energy falling by over 3% and XPO dropping by nearly 3%.

Chinese concept stocks showed mixed movements; the Nasdaq Golden Dragon China Index dropped by 0.33%.

Pinduoduo surged over 18%, reporting a 94% year-over-year increase in third-quarter revenue, far exceeding expectations and setting a new historical high. Adjusted net profit soared by 37% to 17 billion RMB.

Vipshop and Li Auto surged over 1%, while XPeng, Nio, and Manbang experienced slight increases.

Baidu fell by over 3%, and Bilibili and Weibo dropped by over 2%. Futu Holdings, iQIYI, and Alibaba declined by over 1%, and JD.com and Netease experienced slight declines.

Technical Analysis:   

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

Market Trends:

  • Dow rose by 83.51 points, a 0.24% increase, closing at 35,416.98 points.
  • Nasdaq increased by 40.73 points, a 0.29% rise, closing at 14,281.76 points.
  • S&P 500 Index gained 4.46 points, a 0.10% increase, closing at 4,554.89 points.

Hong Kong Stock Market

In the market, core tech stocks generally declined.

Baidu Group dropped by nearly 4%, Alibaba by around 3%, and JD.com by over 1%. Kuaishou, however, rose by nearly 1%.

Real estate stocks led the decline, with China Evergrande plunging by over 9%.

Automotive stocks collectively dropped, with Leapmotor plummeting over 3%. The catering sector also struggled, with Haidilao dropping by over 5%.

Meituan slumped by 11% after releasing its 2023 third-quarter financial report on November 28th, with revenues reaching 76.5 billion RMB, a 22.1% year-on-year growth.

Net profit surged to 3.593 billion RMB, a 195.3% increase, while adjusted net profit reached 5.727 billion RMB, a 62.4% growth.

Goldman Sachs predicted Meituan’s weak fourth-quarter operating margin, expecting the EBIT margin from in-store, hotel, and tourism businesses to drop from 35% to 28%.

Additionally, on November 29th, Meituan announced its plan to repurchase company shares in the public market, not exceeding $1 billion starting from December 1, 2023.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) declined by 1.98%, closing at 17,010.01 points.
  • Hang Seng Tech Index (HSTECH) dropped by 1.99%, closing at 3,920.97 points.
  • Hang Seng China Enterprises Index (HSCEI) fell by 2.20%, closing at 5,826.28 points.

FTSE China A50 Index

Fundamental Analysis:

On November 29th, A-share indices opened low and continued to weaken after the market opened, with the ChiNext Index showing relatively larger declines.

The CSI 50 Index opened high but consistently declined, plummeting by nearly 4%.

Precious metals, coal industries, electrical machinery, non-metallic materials, and electronic chemicals were among the top gainers.

Insurance, engineering consulting services, automotive services, real estate development, and engineering machinery experienced declines.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell by 0.27%, closing at 3,030.39 points.
  • Shenzhen Component Index (SZCOMP) dropped by 0.49%, closing at 9,784.94 points.
  • ChiNext Index (CHINEXT) declined by 0.5%, closing at 1,928.69 points.
  • SSE STAR Market 50 Index (SSE50) dropped by 0.61%, closing at 866.57 points.

Forward-looking Statements   
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