Daily Investment Strategy
Hang Seng Index fell 166 points on Tuesday
HSI fell 166 pts or 0.9% to 17,469. HSTI fell 65 pts or 1.8% to 3,545. HSCEI fell 59 pts or 0.9% to 6,194. Market turnover reached $85.8 billion.
S&P 500 closes lower as tech giants report earnings
The S&P 500 ended lower on Tuesday, with markets trading cautiously ahead of quarterly results from major technology companies. The Dow Jones Industrial Average fell 57 points, or 0.1%, the S&P 500 fell 0.2% and the Nasdaq Composite fell 0.1%. Coca-Cola Co shares edged higher after the soft drinks giant raised its annual organic sales and profit forecast, signaling strong demand for its drinks in the U.S. and internationally. GE Aerospace shares rose more than 6% as the industrial giant raised its annual profit forecast on strong demand for after-sales services, including jet engine parts. General Motors shares fell more than 6% after the company said it would “indefinitely suspending” work on Origin, the autonomous vehicle being developed by its self-driving subsidiary. United Parcel Service shares plunged more than 13% after the company reported disappointing second-quarter earnings amid weak domestic revenue.
Wall Street continues to evaluate latest second-quarter earnings
Nasdaq futures were lower after tech giants Alphabet and Tesla reported second-quarter results. Alphabet's second-quarter earnings were in line with analysts' revenue and earnings expectations, but YouTube's advertising revenue fell short of expectations. Tesla reported lower-than-expected second-quarter profit, weighed down by lower profit margins and lower electric vehicle sales. More companies are set to report results this week, with about a quarter of the companies in the S&P 500 set to report this week.
Hong Kong Stock Connect had a net inflow of HK0.09bn on Tuesday of which Tencent (700) had the largest net inflow, reaching HK$0.43bn; followed by ICBC (1398). Tracker Fund (2800) recorded the largest net outflow at HK$1.66n, followed by Zijin Mining (2899).
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