US tech giants, including Tesla (up 10%), Amazon and Meta (both up over 3%), and Microsoft (up 1%), played a key role in boosting the Nasdaq 100 by 1.2% and pushing its annual growth to 41%. Even Apple, despite challenges from Beijing, rallied by 0.7%. This highlights the dominance of these technology giants in the market. The S&P 500 gained 0.7%, while the Dow Jones, with fewer growth stocks, had a more modest increase of +0.25%. In Europe, most markets gained ground, except for Amsterdam, weighed down by ASML and Adyen, emphasizing that tech success isn't universal.

Tesla has experienced significant price fluctuations in the past, with remarkable ups and downs. For instance, its stock surged by 10% recently following an enthusiastic note from Morgan Stanley. The analyst highlighted Tesla's groundbreaking Dojo supercomputer architecture, which is expected to redefine what's possible. Morgan Stanley even anticipates that this could potentially add $500 billion to Tesla's valuation, which is already over $800 billion. And there's more to come – Morgan Stanley has raised its price target from $250 to $400.
 
As for Apple, investors are eagerly anticipating the company's product presentation, especially the iPhone 15, scheduled for around 10:00 a.m. California time. Apple has faced some challenges recently due to Beijing's push for restrictions on iPhone usage in China's political and economic circles. This event provides an opportunity for Apple to regain its momentum, and investors are keenly watching this development.
In China, real estate indexes experienced fluctuations again this morning. The day began with declines, but things took a positive turn when developer Country Garden announced a successful negotiation with creditors to postpone payment on some of its onshore bonds for three years. While not all creditors agreed, this announcement had a positive impact on property values, showing that sometimes even small developments can bring joy.
 
Beyond this corporate news, the macroeconomic landscape is relatively quiet at the beginning of the week. It's akin to the calm before a series of significant announcements set to commence tomorrow with the release of the US August inflation figures. These events will culminate with the ECB's monetary policy decisions on Thursday and the Fed's next week. On a different note, for those intrigued by historical events, Kim Jong Un and his armored train made an entrance into Russia for a summit meeting with Vladimir Putin in Vladivostok. These two leaders, not having met for four years, gathered for what appeared to be an amiable encounter.

Asian and Pacific markets, which had generally started the week on a positive note, were more mixed this morning. Japan gained 0.8%, but India and South Korea lost ground. Australia is up modestly. In China, the recovery in real estate values helped bring Hong Kong and Shanghai indexes back to around equilibrium, but we can't say that they really shone at the end of the day. Europe is slightly falling at -0,15%.

Economic highlights of the day

Another session without any indicators in the United States. In Europe, British employment figures (2:00 a.m.) and the German ZEW financial confidence index (5:00 a.m.) are due. Full agenda here.

The dollar falls slightly to 0.9328 EUR and 0.8018 GBP. The ounce of gold is trading around 1918 USD. Oil is firm, with North Sea Brent at 91.27 USD a barrel and US light crude WTI at 87.48 USD. The yield on 10-year US debt stands at 4.28%. Bitcoin rises to 26,150 USD.

In corporate news:

  • Oracle fell by 9.2% in pre-market trading, having announced on Monday evening that it expected sales for the current quarter to fall short of analysts' expectations, after sales for the previous quarter were already below consensus, against a backdrop of slowing cloud computing spending.
  • Apple is due to unveil its new iPhone 15 range on Tuesday, a launch weighed down by concerns about access to the Chinese market and competition for the world's largest market capitalization.
  • Qualcomm was down 0.7% in pre-market trading, despite the company's announcement that it had signed an agreement to supply Apple with 5G modems until at least 2026, whereas the current agreement was due to expire at the end of the year.
  • Alphabet - Alphabet subsidiary Google is being sued this Tuesday in Washington by the U.S. Department of Justice for failing to comply with competition rules in online search, in a long-awaited trial considered decisive in the battle over the Internet.
  • United Parcel Service gave up around 1% in pre-market trading after the group's CEO, Carol Tomé, gave details of the costs associated with the new wage agreement signed with the Teamsters drivers' union.
  • Westrock and its Irish competitor Smurfit Kappa announced on Tuesday a merger agreement to create the world's largest publicly traded paper and packaging company, valued at nearly $20 billion. WestRock jumped 7% in pre-market trading.
  • Global leasing giant SMBC Aviation Capital announced on Tuesday that it had placed an order with BOEING for 25 737 MAX aircraft at a list price of $3.7 billion to support its growth plans and meet customer demand.
  • Novavax gained 1.2% in after-hours trading, as the company said it was anticipating US approval for updates to its COVID-19 vaccine, for which "tens of millions" of doses have been produced.
  • Block - Berenberg's follow-up rating is "buy", with a target price of $75. 

Analyst recommendations:

  • 3M: Melius Research maintains its hold recommendation with a reduced target price of USD 158.
  • Adobe: RBC Capital maintains its outperform rating with a raised target price of USD 615.
  • Air Products & Chemicals: Alembic Global Advisors maintains its overweight recommendation with a target price raised from USD 350 to USD 355.
  • Block: Baird downgrades to hold from outperform. PT reduced from USD 92 to USD 72.
  • Broadcom: Bernstein maintains its outperform rating and raises the target price from USD 875 to USD 1000.
  • Brown-Forman: Bernstein maintains its market perform recommendation with a target price raised from 73 to USD 76.40.
  • Cardinal Health: Zacks maintains a neutral recommendation with a reduced target price of $93.
  • Danaher: Melius Research maintains its buy recommendation with a reduced target price of USD 306.
  • Dell tech: Bernstein maintains its outperform rating with a target price raised from USD 60 to USD 70.
  • Dupont de Nemours: Melius Research LLC downgrades to hold from buy. PT down 7% to USD 82.
  • Eaton: Melius Research LLC maintains its buy recommendation with a target price raised from 210 to USD 239.
  • Eog resources: Zacks maintains a neutral recommendation with a target price increase from USD 137 to USD 141.
  • Etsy: Loop Capital Markets maintains a hold recommendation on the stock with a reduced target price of USD 70.
  • Evergy: Wolfe Research maintains its outperform rating on the stock.
  • Factset research: Zacks maintains a neutral recommendation with a reduced target price of $460.
  • General Mills: Zacks maintains a neutral recommendation with a reduced target price from USD 77 to USD 70.
  • Honeywell: Melius Research maintains a buy recommendation with a reduced target price of USD 226.
  • Kenvue: Deutsche Bank maintains its hold recommendation with a target price of USD 27.
  • Microsoft: Zacks maintains a neutral recommendation with a revised target price of USD 351.
  • Newmont: Raymond James maintains its outperform rating with a reduced target price of USD 59.
  • Oracle: Citi maintains a neutral recommendation with a target price raised from USD 121 to USD 138.
  • Parker Hannifin: Melius Research maintains a buy recommendation with a reduced target price of USD 534.
  • Qualcomm: Morningstar maintains a hold recommendation for the stock with a target price of USD 140.
  • Regions financial: Odeon Capital Group maintains a buy recommendation with a reduced target price of USD 19.50.
  • Rockwell: Melius Research maintains a buy recommendation with a slightly reduced target price of USD 347.
  • Trane: Melius Research maintains its buy recommendation with a target price increase from USD 247 to USD 255.
  • Truist financial: Zacks downgrades to underperform from hold. PT reduced from USD 27 to USD 25.50.
  • Ventas: Scotiabank maintains its sector perform recommendation with a reduced target price from 49 to USD 48.
  • Welltower: Scotiabank maintains its sector outperform recommendation with a reduced target price of USD 94.
  • W.W Grainger: Melius Research maintains a hold recommendation with a revised target price of USD 879.