The stock market rally traded near record highs and withdrew Thursday’s retreat. The S&P 500 and Nasdaq hit full-time levels as the Dow approached. Technical megacaps such as Apple (AAPL) driven higher, with Amazon.com rising as the Pentagon canceled a $ 10 billion JEDI cloud computing contract for Microsoft (MSFT). Treasury interest rates fell to fresh five-month lows, while a breakdown in China vs. Didi Global (DIDI) and other newly listed Chinese companies slammed Chinese stocks. A dead end from OPEC + left traders unsure of crude oil prices. Tesla (TSLA) announced a cheaper Model Y for China amid signs that it is close to exporting crossovers to Europe.
Stock market rally keeps constant
The Dow Jones, S&P 500 and Nasdaq rose slightly for the week, pulling away Thursday’s brief tumbling. The S&P 500 hit a full-time high on Friday, while the Nasdaq and Dow posted the best closing results. Big-cap technologies such as Apple (AAPL) and Amazon.com (AMZN) rose sharply, masking some underlying weaknesses. State interest rates continued to fall sharply before pairing losses somewhat on Friday. China Didi Global (DIDI) decomposition shook Chinese stocks.
Shares in New York-listed Chinese stocks fell as Beijing intensified pressure Didi Global (DIDI) and other recent public tenders. The move raised several questions about whether Chinese companies will eventually be removed from U.S. stock exchanges amid heightened accounting and regulatory scrutiny. China’s cyber security regulator instructed online app stores to remove Didi Chuxing’s app for driving. China ordered job search app Kanzhun (BZ) and logistics platform Full Truck Alliance (YMM), two other new US listed Chinese companies, to stop new user registrations. A new data security law enters into force on 1 September. Didi shares, YMM, BZ all sold, while many other US listed Chinese shares sold due to growing regulatory fears.
OPEC + does not reach the agreement
OPEC + members failed to agree to increase their production quotas as the group failed to give in to the United Arab Emirates’ demand to recalculate its quota. The United Arab Emirates is also opposed to extending the overall agreement to the end of 2022. While there is a looming crude oil supply knot as demand returns rapidly but traders see a high risk that various OPEC + members are encrypting to increase their production. Crude oil fell from six-year highs to start the week, but then returned.
Pentagon cancels JEDI Cloud Contract
The Department of Defense canceled its lawsuit-snarrled cloud-computing contract known as JEDI. Microsoft (MSFT) won that $ 10 billion contract in October 2019, however Amazon (AMZN) challenged it in court, claiming interference from the Trump administration. The Pentagon has decided to bid on a new contract for cloud computing services called Joint Warfighter Cloud Capability. Amazon rose sharply to record highs. Microsoft continued to climb and also hit new heights.
Car manufacturers’ next supply crisis could be even worse
Tesla Model Y exports to Europe
Tesla Model Y deliveries will soon begin in Europe, according to the company’s European website, suggesting that the Shanghai plant will export Model Y crossovers made in China in addition to current Model 3 exports. The EV giant had planned to wait for European Model Y deliveries to the factory in Berlin, but it will probably not open until the end of the year at the earliest. Tesla also unveiled a cheaper model Y with lower range to China. Industry information suggested that Tesla sales increased in June, but local sales in the 2nd quarter fell by 16% compared to the 1st quarter, even with Model Y sales still increasing.
Stellantis intensifies EV investments
Stellantis (STLA) obtained General Motors (GM) and Ford (F), which announces major EV investments and targets in a shift away from gas and diesel cars. 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 – by 2025. By 2030, Stellantis seeks to have 70 % of its European sales and 40% of its US sales are electric, including hybrid electric cars. The STLA stock fell as the automaker warned of economic headwinds from the EV shift, but weekly losses were light. Its first fully electric trucks arrive years after colleagues from GM and Ford.
Nio (NIO) plans 4,000 battery replacement stations in China and Europe by 2025, up from about 300 days, amid intensified competition with Tesla TSLA, the global EV leader.
8 stocks near buy in resistant rally; Tesla, Virgin Galactic News On Tap
News in brief
Taiwan Semiconductor (TSM) reported revenue in June of $ 148.47 billion ($ 5.3 billion), an increase of 22.8% year-over-year. The world’s largest chip foundry sees 2nd quarter sales in line with analysts’ views.
Levi Strauss (LEVI) posted EPS at 23 cents, shattered impressions at 9 cents and reversed a loss of 48 percent the year before. Revenue jumped 156% to $ 1.28 billion, modest beat. Levi raised 2021 forecasts citing strong denim demand in the US and China. Also hiccuped quarterly yield of 33% to 8 cents per. Shares.
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