global macro

• The three major U.S. stock index futures were collectively lower before the market on Tuesday

• European markets fell broadly

• Fed’s Bostic: After raising interest rates by 50 basis points for two consecutive months, the FOMC may “slam the brakes” in September

On Monday, Federal Reserve Bank of Atlanta President Raphael Bostic said policymakers could raise interest rates by 50 basis points at each of the next two meetings. Rate hikes were suspended in September.

• U.S. stock put option ratio soars to 2-year high! Is the U.S. stock market a “smoke bomb” rebound on Monday?

All three major U.S. stock indexes closed higher on Monday, with the Dow rising more than 600 points for the first time in more than two weeks. But key indicators in the options trading market suggested the “selling wave” was not over yet. Media reports say that a key signal in the options market, the need to hedge against losses from holding stocks has continued to grow recently. Statistics related to this demand show that seven consecutive weeks of corrections have not dampened traders’ allocation preference to hedge against declines. In fact, the put to call contract ratio for individual CBOE stocks rose to its highest level since March 2020.

• In addition to repurchasing U.S. stocks, executives are aggressively buying their own stocks, do you want to follow?

Institutional data shows that in May this year, more than 1,100 executives of listed companies bought shares of their own companies, and the ratio of insiders buying and selling shares rose from 0.43 in April to 1.04, which is expected to be the first time since March 2020 that the ratio of buying and selling shares exceeded 1 month. Among them, public company executives, including Starbucks interim CEO Howard Schultz and Intel CEO Patrick, bought their own shares during the market rout.

• Cash is king! Investment tycoon Gartman: The bear market of US stocks is expected to last for several months, and it is recommended to sell short on rallies

Dennis Gartman, a well-known investor known as the “King of Commodities”, believes that the bear market in the U.S. stock market began at the beginning of this year and will continue for several months. He advised investors who are “crazy for the dip” to take advantage of any rebound during a bear market to sell stocks. Currently, he has “about 25% cash” in his personal portfolio.

• The net worth of the world’s 50 richest people has evaporated by more than 500 billion US dollars this year, and Musk has lost the most

The 50 richest people, including Musk, Bezos, Bill Gates and Buffett, lost a combined $563 billion in net worth this year through May 22, according to the Bloomberg Billionaires Index. Among them, Musk lost $69.1 billion on the books this year, ranking first among the top 50 billionaires.

• Saudi Aramco CEO warns: Energy transition leads to reduced investment, global oil supply is severely constrained

On Monday, local time, the chief executive of Saudi state oil giant Saudi Aramco said that the world is facing a severe oil supply crunch, and most companies are under pressure to transition to green energy and are afraid to invest in the fossil fuel industry. He also added that he is sticking to his goal of expanding capacity to 13 million barrels by 2027, despite calls from some companies to speed up extraction.

hot news

• Snap plummeted more than 32% before the market, CEO warned that the financial report will be less than expected and plans to slow down recruitment

Snap Inc (SNAP.US) issued a profit warning on Monday and said it intends to slow the pace of hiring and spending. This shows that social media companies are making more adjustments to adapt to the changing landscape of the digital advertising market. The company said it was grappling with a slew of issues, such as rising inflation, changes to Apple’s privacy policy, the impact of the war in Ukraine, and more. “In the current macro environment, there are a number of issues to deal with,” Snap Chief Executive Evan Spiegel told a JPMorgan conference on Monday. He said the market environment has deteriorated and deteriorated since Snap issued its guidance for the quarter. The extent is more severe than expected, and the speed is faster than expected. Snap shares tumbled nearly 30% in premarket trading on Tuesday.

• Vice President of Qualcomm: The WiFi7 chip has been shipped, and mass production is expected next year

Rahul Patel, senior vice president and general manager of the connection, cloud and network department of Qualcomm (QCOM.US)$ , said that the WiFi7 chip has begun to be shipped at this stage, and due to the higher-than-expected networking demand, he is optimistic about the overall growth of WiFi7 next year or the year after. The market penetration rate will reach more than 10%. Rahul Patel pointed out that WiFi7 has the characteristics of low latency and high transmission capacity, which can greatly improve the performance of networking. It is very important for various experiences in the future. At present, the WiFi 7 chip has been shipped to customers. Mass production will fall next year.

• Another retail storm? Best Buy’s Q1 net profit plummeted 43% year-on-year, and its stock price fell about 2% before the market

Best Buy (BBY.US) reported first-quarter revenue of $10.65 billion, compared with market estimates of $10.41 billion. Adjusted earnings per share were $1.57 in the first quarter, compared with the consensus estimate of $1.60. The stock rose about 2% in premarket trading. Best Buy said it now expects full-year revenue to be in the range of $48.3 billion to $49.9 billion, down from an earlier estimate of $49.3 billion to $50.8 billion. Same-store sales will fall 3% to 6%, the company said, a bigger drop than the 1% to 4% decline it had expected.

Focus on Chinese concept stocks

• Most of the popular Chinese concept stocks fell before the market, and NetEase bucked the market and rose by more than 4%

• NetEase’s revenue in the first quarter was 23.56 billion yuan, a year-on-year increase of 14.8%

$NetEase (NTES.US)$ The revenue in the first quarter was 23.56 billion yuan, a year-on-year increase of 14.8%; under non-GAAP, the net profit attributable to the company’s shareholders was 5.1 billion yuan. The net income of online game services was 17.3 billion yuan, a year-on-year increase of 15.3%; the net income of NetEase Cloud Music was 2.1 billion yuan, a year-on-year increase of 38.6%.

• NetEase Youdao’s net income in the first quarter was 1.2 billion yuan, a year-on-year increase of 26.6%

On the afternoon of May 24, $Youdao (DAO.US)$ released its first quarter 2022 financial report. According to the financial report, the company’s first-quarter net income was 1.2 billion yuan, a year-on-year increase of 26.6%; the net loss from continuing operations attributable to Youdao common stockholders was 95.4 million yuan (15.1 million US dollars), compared with a net loss of 219.3 million yuan in the same period last year. . On a non-GAAP basis, net loss from continuing operations attributable to Youdao common stockholders was 70.9 million yuan ($11.2 million), compared with a net loss of 204.8 million yuan a year earlier.

• Ruixing Coffee rose more than 5% before the market, announced the first quarter financial report of 2022: total net income of 2.4 billion yuan, an increase of 89.5% year-on-year

The official website of Luckin Coffee (LKNCY.US)$ announced its unaudited financial results for the first quarter of 2022 on May 24. The total net income of Luckin Coffee in the first quarter was RMB 2,404.6 million, an increase of 89.5% from RMB 1,268.7 million in the same period in 2021. The revenue of self-operated stores was 1.7147 billion yuan, a year-on-year increase of 66.2%; the revenue of affiliated stores was 549.3 million yuan, a year-on-year increase of 239.3%. In the first quarter, Luckin Coffee added a net 556 stores, an increase of 9.2% from the previous quarter. As of the end of the first quarter, the number of Luckin Coffee stores was 6,580, including 4,675 self-operated stores and 1,905 affiliated stores. In the first quarter, the average number of monthly transaction users of Luckin Coffee was 16 million, an increase of 83% year-on-year.

• Yixian e-commerce Q1 financial report released: skin care business increased by more than 68% year-on-year, and net loss narrowed year-on-year

On May 24, Perfect Diary’s parent company, Yixian E-Commerce (YSG.US), released its first quarterly 2022 performance report. According to the announcement, Yixian e-commerce achieved revenue of 891 million yuan in the first quarter, of which the skin care business increased by 68.4% year-on-year, higher than the overall beauty market. Gross profit margin further increased to 69%, a quarter-on-quarter increase of 4 percentage points. Facing the complex market environment, Yixian E-commerce, on the basis of the strategy of multi-brand and emphasis on research and development, began to emphasize the transformation of efficiency, from “seeking speed” development to “high-quality” development, by controlling operating expenses and improving ROI, etc. In terms of measures, we will steadily promote “fat reduction and muscle gain”. Benefiting from this, operating costs fell by 30.9% year-on-year, and the adjusted net loss in the first quarter was reduced to 156 million yuan, a year-on-year decrease of 33.6%.

Top 20 U.S. stocks by pre-market turnover

US Macro Calendar Reminder:

May 24

21:45 US May Markit manufacturing PMI initial value

22:00 US April new home sales total annualized, US May Richmond Fed manufacturing index

May 25

00:20 Fed Chair Powell delivers welcome speech via pre-recorded video at an economic meeting

04:30 API crude oil inventories from the United States to the week of May 20

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