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The stock market rally traded near record highs, ignoring Thursday’s pullback. The S&P 500 and the Nasdaq hit all-time highs, while the Dow Jones moves closer. Technological megacaps such as Apple (AAPL) rose, with Amazon.com booming as the Pentagon canceled a $ 10 billion JEDI cloud computing contract for Microsoft (MSFT). Yields on Treasuries fell to new five-month lows, as a crackdown in China on China. Didi Global (DIDI) and other recently listed Chinese companies slammed Chinese stocks. An OPEC + standoff has left traders uncertain about crude oil prices. You’re here (TSLA) has announced a cheaper Model Y for China, as signs indicate it is set to export the crossover to Europe.
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The stock market rally continues
The Dow Jones, S&P 500 and Nasdaq edged up for the week, ignoring Thursday’s brief drop. The S&P 500 hit an all-time high on Friday, while the Nasdaq and Dow set closing records. Large-cap technologies such as Apple (AAPL) and Amazon.com (AMZN) rose sharply, masking some underlying weakness. Treasury yields continued to fall sharply before cutting losses somewhat on Friday. from China Didi Global (DIDI) the crackdown has shaken Chinese stocks.
Repression in China
Chinese stocks listed in New York fell as Beijing stepped up pressure on Didi Global (DIDI) and other recent IPOs. The move has raised more questions about whether Chinese companies will eventually pull out of U.S. stock exchanges amid increased accounting and regulatory oversight. China’s cybersecurity regulator has asked online app stores to remove Didi Chuxing’s ridesharing app. China ordered job search app Kanzhun (BZ) and logistics platform Complete Truck Alliance (YMM), two other new Chinese companies listed in the United States, to stop new user registrations. A new data security law will come into force in China on September 1. Didi, YMM, BZ shares were all sold, while many other Chinese stocks listed in the US were sold amid growing regulatory fears.
OPEC + fails to strike a deal
OPEC + members failed to come to an agreement to increase their production quotas because the group did not give in to the UAE’s demands to recalculate its quota. The UAE also opposes extending the comprehensive deal until the end of 2022. Although a crude oil supply crisis looms as demand rebounds rapidly, but traders see a high risk of various OPEC + members scrambling to increase production. Crude oil fell from six-year highs earlier in the week, but then rebounded.
Pentagon cancels JEDI Cloud contract
The Department of Defense canceled its cloud computing contract called JEDI. Microsoft (MSFT) won the $ 10 billion contract in October 2019, but Amazon (AMZN) challenged it in court, citing interference from the Trump administration. The Pentagon has decided to solicit bids for a new cloud computing services contract called Joint Warfighter Cloud Capability. Amazon has risen sharply to record highs. Microsoft continued to climb, reaching new heights as well.
The next auto manufacturer supply crisis could be even worse
Tesla Model Y exports to Europe
Tesla Model Y deliveries will begin in Europe soon, according to the company’s European website, suggesting that the Shanghai plant will export Model Y crossovers made in China, in addition to existing Model 3 exports. The electric vehicle giant had planned to wait for deliveries of the European Model Y for the Berlin plant, but it is unlikely to open until the end of the year at the earliest. Tesla also unveiled a cheaper, lower-end Model Y for China. Industry data suggests Tesla’s sales increased in June, but second-quarter local sales fell 16% from the first quarter, even as Model Y sales continue to rise.
Stellantis steps up its investments in electric vehicles
Stellantis (STLA) caught up General Motors (GM) and Ford (F), announcing major investments and targets in electric vehicles to move away from gasoline and diesel vehicles. Stellantis, which combines Fiat Chrysler and Peugeot, will spend $ 35.5 billion to develop electric vehicles – including EV versions of Ram trucks, Jeep SUVs, and Dodge muscle cars – through 2025. By 2030, Stellantis aims to achieve 70% of its European sales and 40% of its sales in the United States will be electric, including hybrid electric vehicles. STLA stock fell as the automaker warned of financial headwinds from the electric vehicle switch, but the weekly losses were slight. Its first fully electric trucks would arrive years after their GM and Ford counterparts.
Nio (NIO) plans 4,000 battery exchange stations in China and Europe by 2025, up from around 300 days, amid intensifying competition with Tesla TSLA, the world leader in electric vehicles.
8 stocks close to buying in a resilient rally; Tesla, Virgin Galactic News on tap
News in brief
Taiwan Semiconductor (TSM) reported revenue of Taiwan $ 148.47 billion (US $ 5.3 billion), up 22.8 percent from the previous year. The world’s largest chip foundry sees second-quarter sales in line with analysts’ opinions.
Levi Strauss (LEVI) posted EPS of 23 cents, crushing views to 9 cents and reversing a loss of 48 cents a year earlier. Revenue jumped 156% to $ 1.28 billion, beating slightly. Levi raised his forecast for 2021, citing strong demand for denim in the United States and China. The quarterly dividend also rose 33% to 8 cents per share.
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