Apple Unleashes iPhone 16: The Game-Changing Device That Sent Chip Stocks Soaring
- The 3 major indices rebounded and returned to positive territory by about 1.2%.
- Apple's integration of ChatGPT and various features, such as writing messages with artificial intelligence and intelligent image editing functions, available in iOS 18 in October 2024, supports our...
- The upcoming CPI for August 2024, expected to rise 2.6% year-on-year from 2.9% year-on-year last month, may support the Fed's interest rate cut.
Foreign Stocks and Market Analysis
US Stock Market Rebounds
The 3 major indices rebounded and returned to positive territory by about 1.2%. Buybacks in the chip group, such as NVIDIA (NVDA.IT) at plus 3.5% and TSMC (TSM.USA) which added 3.8%, contributed to the growth. Apple (AAPL.USA) also reversed and closed stable in positive territory after the launch of iPhone 16, Apple Watch, and AirPods.
Apple’s integration of ChatGPT and various features, such as writing messages with artificial intelligence and intelligent image editing functions, available in iOS 18 in October 2024, supports our positive outlook on the stock. We believe iPhone 16 will help revive iPhone sales and drive better growth.
Short-Term Market Improvement Expected
We believe the market will improve in the short term. The upcoming CPI for August 2024, expected to rise 2.6% year-on-year from 2.9% year-on-year last month, may support the Fed’s interest rate cut. The market currently weighs in at 71% for a rate cut to 0.25% next week.
Stock Recommendation: ADBE.US
We recommend buying ADBE.US, awaiting the 2nd quarter budget reveal on September 12, 2024. The market expects revenue to grow 12% year-on-year, supported by an increase in membership fees and the addition of the AI feature “Firefly”.
Hong Kong Stock Market Analysis
Hong Kong Stock Market Falls
The Hang Seng Index fell 1.4% yesterday, with Haidilao (6862.HK) and JD.com (9618.HK) under pressure from economic recovery concerns. China’s CPI and PPI for August 2024 were lower than expected, with CPI rising 0.6% year-on-year and PPI falling 1.8% year-on-year.
Market Outlook
We expect the Hong Kong Stock Market to continue falling due to pressure from China’s export and import sales. Data for August 2024 shows that exports could grow 6.6% year-on-year, slowing from July 2024, and imports could grow only 2.3% year-on-year, slowing from 7.2% year-on-year last month.
Our strategy is to wait and see, targeting the index around 17,000 points.
Stock Recommendation: 941.HK
We recommend holding China Mobile (941.HK), a defensive stock. Bloomberg revealed that the company’s third-quarter 24 profits could grow by 8% year-on-year, supported by the company’s plans to continuously reduce CAPEX.