Overnight U.S. Stocks | Three Major Indices Closed Higher, U.S. January PPI Exceeded Expectations, Apploving Soared 24%

According to Zhitong Finance, on Wednesday, the three major U.S. stock indices closed higher. Tesla (TSLA.US) led the star tech stocks, with the "AI super bull stock" Apploving (APP.US) soaring over 24%. Chinese concept stocks had mixed results, with the Nasdaq Golden Dragon Index rising 1.20%. Gold increased by nearly 1%. The U.S. dollar index fell by 0.83%. Oil prices declined for two consecutive days.

[U.S. Stocks] As of the close, the Dow Jones Industrial Average rose 342.87 points, an increase of 0.77%, closing at 44,711.43 points; the Nasdaq Composite rose 295.69 points, an increase of 1.50%, closing at 19,945.64 points; the S&P 500 index rose 63.10 points, an increase of 1.04%, closing at 6,115.07 points. Most star tech stocks rose, with Intel (INTC.US) up over 7%, Tesla (TSLA.US) up nearly 6%, Nvidia (NVDA.US) up over 3%, while TSMC (TSM.US) fell over 2%. Boosted by the latest earnings exceeding expectations, the "AI super bull stock" Apploving surged over 24%, and Robinhood (HOOD.US) rose over 14%. Chinese concept stocks had mixed results. The Nasdaq Golden Dragon Index rose 1.20%, with Zhihu (ZH.US) up nearly 11%, and Baidu (BIDU.US) up over 3%.

[European Stocks] The German DAX 30 index rose 463.99 points, an increase of 2.09%, closing at 22,612.02 points; the UK FTSE 100 index fell 42.72 points, a decrease of 0.49%, closing at 8,764.72 points; the French CAC 40 index rose 121.92 points, an increase of 1.52%, closing at 8,164.11 points; the Euro Stoxx 50 index rose 92.70 points, an increase of 1.71%, closing at 5,498.35 points; the Spanish IBEX 35 index rose 24.80 points, an increase of 0.19%, closing at 12,936.30 points; the Italian FTSE MIB index rose 376.86 points, an increase of 1.00%, closing at 37,908.05 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index rose 1.26%, the South Korean KOSPI index rose 1.36%, and the Indonesian Composite Index fell 0.48%.

[Cryptocurrency] Bitcoin fell 1.44%, trading at $96,481 per coin. Ethereum fell 2.4%, trading at $2,670.8 per coin.

[Gold] Spot gold rose 0.83% to $2,928.48 per ounce; COMEX gold futures rose nearly 1% to $2,957.20 per ounce.

[Oil] WTI March crude oil futures closed down $0.08, a decrease of 0.11%, at $71.29 per barrel. Brent April crude oil futures closed down $0.16, a decrease of 0.21%, at $75.02 per barrel.

[U.S. Dollar] The U.S. dollar index, which measures the dollar against six major currencies, fell 0.83% to 107.04.

[Macroeconomic News]

U.S. January PPI exceeded expectations, but PCE-related component prices rose moderately. Due to rising food and energy prices, the U.S. January PPI year-on-year rose to 3.5%, the highest since February 2023, and above both the expected and previous values (both at 3.3%) In January, the core PPI in the United States increased by 3.6% year-on-year, higher than the expected value of 3.3% and the previous value of 3.5%. This indicates that inflationary pressures still exist before the tariffs imposed by the Trump administration. Analysts state that the PPI data further confirms the hot CPI and low unemployment claims figures, suggesting that the likelihood of the Federal Reserve cutting interest rates in the short term is low. However, due to the weak performance of the PPI components—financial and healthcare services, which make up the Fed's preferred Personal Consumption Expenditures (PCE) price index—in January, some analysts expect that the month-on-month increase in core PCE for January will be much lower than that of CPI.

Trump signs presidential memorandum proposing reciprocal tariffs. On February 13 local time, Trump signed a presidential memorandum proposing to impose reciprocal tariffs. According to reports, the new reciprocal tariff measures will be based on a series of trade measures taken by countries trading with the United States, including the level of tariffs imposed by other countries on the U.S., subsidies provided to domestic industries, exchange rates, and any actions deemed unfair by the U.S. Trump stated that practices of shipping goods through other countries to evade tariffs would not be accepted. Analysis shows that the reciprocal tariffs announced by Trump will not be imposed immediately, but the signing of the relevant memorandum will initiate the process for the Trump administration to formulate related tariffs. White House officials indicated that Trump hopes to take swift action and suggested that it would take "weeks" rather than "months" to implement the tariff measures.

Dalio issues stern warning: The U.S. must immediately cut debt, or the economy will face a "heart attack" crisis. Dalio has issued a new warning about the U.S. economy, stating that if Trump does not significantly reduce debt, there will be terrible consequences. Dalio stated that Trump should commit to reducing the U.S. budget deficit from 7.5% of GDP to 3%; if no action is taken, the U.S. may face a "heart attack" in the bond market. Dalio's warning highlights the seriousness of the U.S. debt issue, as the total U.S. national debt has continued to rise in recent years, reaching approximately $36.22 trillion as of February 11. Additionally, he believes there is a risk of a "debt death spiral" in the private credit sector.

【Individual Stock News】

Rumor has it that the U.S. is pushing for a joint venture between Intel and TSMC! A supply chain rumor has sparked heated discussions— the U.S. government may intervene significantly to persuade Intel and TSMC to reach a joint venture agreement. This manufacturing strategy shift could reshape the competitive landscape of the semiconductor industry. Baird analyst Tristan Gerra cited "discussions from the Asian supply chain" in a report, stating that the U.S. government is involved in the following matters: TSMC will send engineers to Intel's 3nm/2nm wafer fabs, utilizing TSMC's expertise to ensure the feasibility of Intel's fabs and subsequent manufacturing projects. Intel's fabs may be split into a new entity jointly owned by TSMC and Intel, operated by TSMC. The new entity may receive funding under the U.S. CHIPS Act.

Despite Trump's opposition, Nippon Steel still plans to acquire U.S. Steel (X.US). According to informed sources, Nippon Steel's plan to acquire U.S. Steel and convert it into a wholly-owned subsidiary will remain unchanged, and it is expected to inform the U.S. government Despite opposition from U.S. President Trump regarding the acquisition, Nippon Steel currently has no plans to compromise. Takahiro Mori, Vice Chairman of Nippon Steel, is expected to inform U.S. officials that the company will stick to its original acquisition plan.

Honda (HMC.US) and Nissan abandon merger talks, commit to cooperation. Nissan Motor and Honda Motor have officially terminated merger talks, quickly ending a partnership that could have created one of the world's largest automakers. Although the plan to merge the two brands under a holding company has been scrapped, the two companies stated on Thursday that they will continue to maintain a strategic partnership with Mitsubishi Motors and collaborate on internal development in areas such as batteries, autonomous driving, software, and electric vehicle technology.

Airbnb (ABNB.US) Q4 performance exceeds expectations. The financial report shows that Airbnb's Q4 revenue increased by 12% year-on-year to $2.48 billion, better than analysts' expectations of $2.42 billion; earnings per share were $0.73, exceeding analysts' expectations of $0.59. The total booking value was $17.6 billion. The company stated that it expects to continue building on the progress made last year as travel demand remains stable. The company anticipates Q1 2025 revenue to be between $2.23 billion and $2.27 billion, while analysts expect $2.29 billion. As of the time of writing, Airbnb's stock rose over 15% in after-hours trading on Thursday.

Roku (ROKU.US) Q4 revenue increased by 25%, net loss significantly narrowed. The financial report shows that Roku's Q4 revenue increased by 25% year-on-year to $1.2 billion, better than analysts' expectations of $1.15 billion; the net loss was $35.5 million, significantly narrowed from a net loss of $78.3 million in the same period last year, and lower than analysts' expectations of a net loss of $59.7 million. Q4 user numbers and revenue per user both increased. The company expects Q1 2025 revenue to be $1.01 billion, with a net loss of $40 million; it anticipates full-year revenue of $4.61 billion. As of the time of writing, Roku's stock rose nearly 12% in after-hours trading on Thursday.

GameStop (GME.US) considers investing in Bitcoin and other cryptocurrencies. According to reports citing informed sources, GameStop is considering investing in Bitcoin and other types of cryptocurrencies. As of the time of writing, GameStop's stock rose nearly 6% in after-hours trading on Thursday.

【Major Ratings】

Cantor Fitzgerald: CVS Health (CVS.US) shows signs of improved earnings, rating upgraded from "Neutral" to "Outperform," target price raised to $71.

Wells Fargo: Huge AI investments drag down earnings, maintaining "Hold" rating on Alphabet (GOOGL.US), target price lowered from $190 to $184