U.S. stocks saw a slight increase on Thursday. The July CPI in the United States came in lower than expected, indicating controlled inflation and leading the market to speculate that the Federal Reserve is unlikely to raise rates in September. However, the President of the San Francisco Federal Reserve noted that “more action” is still needed to achieve inflation goals. 

U.S. Stocks 

Fundamental Analysis: 

Investors on Thursday eagerly awaited the July Consumer Price Index (CPI) inflation data, which revealed that inflation, while below expectations, experienced an acceleration compared to June. 

According to the U.S. Department of Labor, the overall CPI in the U.S. rose by 3.2% year-on-year in July, surpassing the previous 3% and marking the first acceleration since June 2022. Economists surveyed by Dow Jones had expected an average year-on-year increase of 3.3% for July CPI. 

A pre-CPI survey indicated a 13% likelihood of a rate hike during the September Fed meeting and around 35% likelihood for a hike in November. After the CPI data release, these probabilities dropped to 7.5% and 27%, respectively.  

Earnings season for U.S. stocks is winding down. Disney announced an upcoming increase in subscription fees for its ad-free Disney+ service. The company also reported Q3 earnings per share that exceeded expectations. Six Flags reported underwhelming performance. So far, over 90% of S&P 500 companies have released earnings reports, with around 80% beating expectations. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average increased by 52.79 points or 0.15%, closing at 35,176.15 points. 
• Nasdaq Composite rose by 15.97 points or 0.12%, closing at 13,737.99 points. 
• S&P 500 Index gained 1.12 points or 0.03%, closing at 4,468.83 points. 

Hong Kong Stocks 

Fundamental Analysis: 

The Hong Kong stock market started the day with a 71-point jump, briefly extending gains to a high of 19,346, a maximum increase of 98 points. Selling pressure began to emerge, narrowing the Hang Seng Index’s gains. It later fell to a low of 19,052, a maximum drop of 195 points. Alibaba reported results significantly better than expected. 

On the market front, most large tech stocks declined, with NetEase, Inc. (9999.HK), Kuaishou Technology (1024.HK), and Meituan (3690.HK) falling over 2%.  

Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK), and Tencent Holdings Limited (0700.HK) followed suit, while Alibaba Group Holding Limited (9988.HK) Q1 of fiscal year 2024 performance exceeded expectations, resulting in a 2% stock price increase. 

Property stocks experienced a sharp decline, with Country Garden Holdings Company Limited (2007.HK) dropping over 8%, its stock price falling below 1 Hong Kong dollar, and Fantasia Holdings Group Co., Limited (1777.HK) revealing a 56% plunge on its first day of trading since announcing 2022 annual results.  

Automotive stocks showed sluggish performance, with NIO Inc. (9866.HK), XPeng Inc. (9868.HK) and Li Auto Inc. (2015.HK) all falling over 3%.  

The communication sector bucked the trend, with the three major telecom operators experiencing active gains, China Telecom Corporation Limited (0728.HK) and China Mobile Limited (0941.HK) both rising over 2%. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) declined by 0.62%, closing at 19,128.54 points. 
• Hang Seng Tech Index (HSTECH) fell by 1.87%. 
• Hang Seng China Enterprises Index (HSCEI) fell by 1.07%. 

FTSE China A50 Index 

Fundamental Analysis: 

Today, the three major A-share indices in China weakened successively. The pharmaceutical sector gained strength once again, with concepts like CRO, pharmaceutical e-commerce, and COVID-19 treatments leading the gains.  

Telecommunications and real estate sectors performed actively. Meanwhile, the brokerage sector experienced a pullback, with insurance, fintech, gas, and coal leading the declines.  

Among individual stocks, there were more decliners than gainers, with nearly 4,000 stocks falling across both markets. 

In the pharmaceutical sector, Xintiandi, Shijiazhuang Yiling Pharmaceutical, and Wuzhou Pharmaceuticals surged by the daily limit of 20%, while CSPC Pharmaceutical and Duolun Technology surged over 10%.  

The CRO concept continued to attract attention, with Shenogen Pharma surging over 18%, and NotaBio, Boji Medicine, and Ruizhi Medicine following suit. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) fell by 1.19%. 
• Shenzhen Component Index (SZCOMP) fell by 1.24%. 
• ChiNext Index (CHINEXT) fell by 1.23%. 
  
  

Forward-looking Statements    
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.     

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.    

 
Disclaimer    
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.