U.S. stocks showed mixed performance on Thursday, with the Dow Jones Industrial Average rising for the ninth consecutive trading day, marking its longest continuous upward streak since 2017.  

However, the Nasdaq Composite index fell over 2% due to significant declines in both Netflix and Tesla stocks.   

Last week, initial jobless claims in the U.S. reached a two-month low. 

U.S. Stocks 

Fundamental Analysis: 

The tech sector’s decline heavily impacted Nasdaq’s substantial drop. Netflix closed 8.4% lower after announcing second-quarter revenue of $8.19 billion, falling short of the market’s $8.3 billion expectations.  

Tesla’s stock plummeted 9.7%, with the company’s second-quarter gross margin reaching its lowest level in three years, at 18.2%. Furthermore, CEO Elon Musk and other executives expressed that car production speed in the third quarter would slow down due to factory improvements.  

On the positive side, Johnson & Johnson, a component of the DJIA, surged more than 6% after announcing earnings and revenue above analysts’ expectations, leading to an upward revision of its full-year performance outlook.  

Travelers Insurance Company, American Airlines, and Blackstone Group are among the companies set to report earnings on Thursday. 

Of all the S&P 500 companies that have reported earnings so far, 77% have exceeded expectations. The strong corporate earnings growth has fueled optimism for a soft landing in the economy. 

Technical Analysis:    

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average rose 163.97 points, or 0.47%, closing at 35,225.18. 
• Nasdaq Composite index fell 294.71 points, or 2.05%, closing at 14,063.31. 
• S&P 500 index declined 30.85 points, or 0.68%, closing at 4,534.87. 
  
  

Hong Kong Stocks 

Fundamental Analysis: 

Hong Kong stocks experienced an early surge followed by a retreat. In the morning, the Hang Seng Index slightly opened lower by less than 10 points but extended its decline to as low as 18,886 points, with a maximum drop of 41 points. The index later stabilized and rebounded, surpassing the 19,000 level, reaching a high of 19,169 points with a maximum gain of 241 points. 

In the market, large tech stocks collectively surged, with Tencent Holdings Limited (0700.HK) rising nearly 5%, while Xiaomi Corporation (1810.HK), JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK), and Meituan (3690.HK) all gained over 1%. Tencent and Baidu followed the uptrend.  

The National Development and Reform Commission and other departments issued several measures to promote electronic product consumption, leading to a strong performance in the consumer electronics sector, while some property stocks showed active gains.  

However, Apple concept stocks continued their downward trend from the previous day, with Sunny Optical Technology (Group) Company Limited (2382.HK), which plummeted over 13% yesterday, experiencing further declines. 

Technical Analysis: 

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index rose 0.72%, closing at 19,064.85. 
• Hang Seng Tech Index rose 1.09%. 
• Hang Seng China Enterprises Index rose 0.77%. 
  
  

FTSE China A50 Index 

Fundamental Analysis: 

The A-share market’s three major indices opened lower today, and during the first hour of trading, the market gradually rebounded, with all three indices turning positive.  

The ChiNext Index even briefly rose more than 1%, but later, the A-share market experienced further fluctuations.  

The combined turnover of the Shanghai and Shenzhen stock markets amounted to 435.12 billion yuan, and net purchases from Northbound funds were 4.774 billion yuan.  

In the A-share market, 24 stocks hit the daily limit up (including ST stocks), while five stocks hit the daily limit down. 

In terms of industry performance, real estate services, food and beverages, wine, medical services, and real estate development showed stronger gains, while power equipment, electric motors, education, electric grid equipment, and energy metals experienced declines.  

In terms of themes, the dairy industry, grain concepts, liquor, beer concepts, and biotechnology vaccines were active performers. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index rose 0.04%, closing at 3,170.94. 
• Shenzhen Component Index rose 0.04%, closing at 10,820.88. 
• ChiNext Index rose 0.39%, closing at 2,163.96. 
• STAR Market 50 Index fell 0.49%, closing at 956.39. 
  
  

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