Experience the new innovative investment research assistant and delve into Tuesday’s US pre-market, where the theme has turned to ‘waiting’ – waiting for Wednesday’s release of US inflation data, the central banks’ statements on the path of interest rate cuts, and the gradual unveiling of more uncertainties about the future. As of the time of writing, Dow Jones futures (2412 contract) are down 0.23%, S&P 500 futures are down 0.
02%, and Nasdaq 100 futures are up 0.14%. International gold prices continue to rise, approaching $2,670 per ounce. As the ‘final piece of the puzzle’ before the Federal Reserve’s decision next week, the market estimates Wednesday’s CPI year-over-year growth at 2.7%, and the core CPI year-over-year growth is expected to reach 3.3%. Of course, to prevent the Federal Reserve from cutting interest rates in December, the figure would have to be significantly off.
Along with the Chinese A-shares opening high and closing low on Tuesday, Chinese assets in the US stock market have also adjusted. As of the time of writing, the China Large-Cap ETF (FXI), which rose 8.22% yesterday, fell 3.87% in pre-market trading on Tuesday; the MSCI China ETF (MCHI), which rose 7.76% yesterday, fell over 4%. The more speculative 2x Leveraged CSI 300 ETF (CHAU) fell 8.8% in pre-market trading, and the 3x Leveraged FTSE China ETF fell 11%.
These two funds have attracted attention not only for their more pronounced leveraged gains and losses but also for the ‘mysterious buyer’s’ early of a large number of bullish bets. According to earlier reports from Caixin, there was a massive order of 210,000 contracts for the call options of CHAU expiring on May 16th next year on December 2nd, and for YINN, with a strike price of $27 expiring in January 2026, there were nearly 180,000 contracts bought between November 29th and last week.
On Monday, the paper profit from these hundreds of thousands of contracts alone reached hundreds of millions of dollars. However, it is also clear that the paper profit will be significantly affected when the market opens on Tuesday. More importantly, how these ‘option whales’ will deal with these hundreds of thousands of ‘bullish bets on Chinese assets’ after gaining strong media attention will continue to attract the attention of Chinese investors.
Other news: [EU Investigates Google and Meta’s Secret Advertising Deal] The latest report states that European regulators have asked Google to provide more information about its secret advertising cooperation with Meta. Insiders say that EU Commission officials have been investigating ‘how Google has helped Meta to carry out a secret marketing project’ and have sent organized information to the regulatory body.
[Deutsche Bank: Tesla to Launch Robotaxi Service Next Year] Deutsche Bank analysts said after meeting with Tesla’s Investor Relations Head Travis Axelrod that Tesla still plans to launch a lower-priced car in the first half of next year and other models later this year.
Deutsche Bank has stated that Tesla plans to roll out its Robotaxi service in California and Texas next year.
Oracle’s financial results for the second quarter were below expectations, with both revenue and profit slightly lower than anticipated. The company forecasts a revenue growth of 7%-9% for the current quarter, with a midpoint of nearly $14.3 billion, and adjusted EPS between $1.50 and $1.54, all below market expectations. As of the time of writing, Oracle’s stock price fell by more than 8% before the market opened on Tuesday.
Artificial intelligence stock C3.ai saw a drop of over 6% in its share price before the market opened, after earlier gains that exceeded 10%. Following the release of stronger-than-expected second-quarter financial results, the company raised its full-year performance expectations, reflecting the strong push from AI-related expenditures. C3.ai anticipates revenue for the fiscal year 2025 to be between $378 million and $398 million, an increase from the previous forecast of $370 million to $395 million, surpassing the market’s general expectation of $382.6 million. For the third quarter, C3.ai expects revenue to be between $95.5 million and $100 million, with a midpoint of $98 million, slightly above the market expectation of $97.5 million.
Stellantis and Contemporary Amperex Technology Co., Limited (CATL) are investing over 4 billion euros to build a battery factory in Spain. CATL announced on Tuesday evening that CATL and its subsidiaries, along with subsidiaries of Stellantis and two other entities, signed a joint venture agreement. CATL and Stellantis plan to jointly establish a joint venture in Spain, with each holding a 50% stake, and to construct a joint battery factory in Zaragoza, Aragon, Spain. The battery factory is expected to have a total investment of 4.038 billion euros (approximately 30.9 billion yuan). As of the time of writing, Stellantis’ US stock price rose by more than 1% before the market opened on Tuesday.
AMD has clarified a report from last week, stating that comments from an Amazon Web Services (AWS) executive about not yet seeing strong demand for AMD’s AI accelerators were ‘inaccurate’. The company said, ‘We have a good cooperative relationship with AWS, and this report is not accurate—we are actively cooperating with AWS and end customers in the field of artificial intelligence.’
The Biden administration has confirmed a $6.14 billion support for Micron Technology. The White House released a statement on Tuesday stating that the US Department of Commerce has finally confirmed a grant of over $6.1 billion to memory chip manufacturer Micron Technology.
This funding, exceeding $6.1 billion, will be utilized to support the construction of two semiconductor factories by Micron in Clay, New York.
In a significant development following a week-long manhunt, the suspect in the shocking murder case of the CEO of UnitedHealthcare has been apprehended. According to Pennsylvania State Police, a primary suspect, Luigi Mangione from Maryland, was arrested on Monday. Investigators found a 9mm ghost gun on Mangione, allegedly manufactured by him using a 3D printer. Mangione also had a handwritten three-page letter on him, which revealed his motives and mental state.
Notable events to watch during US stock hours (Beijing time): December 10th, 21:55 – US Redbook’s weekly retail sales year-over-year rate as of December 7th; December 11th, 01:00 – EIA releases its monthly Short-Term Energy Outlook report; 02:00 – OpenAI holds a live product event. To screen for preferred stocks and uncover investment opportunities, click to experience now.