[E-Daily Reporter Kim Kyung-eun ] On the 6th (local time), the three major U.S. stock indices in New York all rose as the artificial intelligence (AI) semiconductor sector rebounded. With the two-day losing streak now halted, all eyes are on whether this positive momentum will extend to the domestic stock market. In particular, SamsungElectronics’ announcement of its second-quarter results—which marked its best-ever performance—is expected to boost market sentiment. The following are news items to watch before the market opens on the 7th.

◇New York Stock Market Rises Across the Board on Semiconductor Rebound

- On the New York Stock Exchange, the Dow Jones Industrial Average closed at 53,055.91, up 155.84 points (0.29%) from the previous session. This marks the first time the Dow has surpassed 53,000.

- The S&P 500 index closed at 7,537.43, up 54.19 points (0.72%) from the previous session, while the tech-heavy Nasdaq Composite Index closed at 26,121.16, up 288.49 points (1.12%).

-In particular, bargain-hunting buying emerged in the AI semiconductor sector. The Philadelphia Semiconductor Index rebounded 2.2%, halting a two-day losing streak.

- Broadcom rose about 3.7% on news that it would extend its partnership with Apple through 2031. AMD (6.6%) and Teradyne (2.8%) also rose after Goldman Sachs significantly raised their target prices.

-Economic indicators also boosted investor sentiment. The U.S. Institute for Supply Management (ISM) reported that the June Services Purchasing Managers’ Index (PMI) came in at 54.0, in line with market expectations.

◇SamsungElectronics Reports 89 Trillion Won in Q2 Operating Profit… More Than Double Last Year’s Figure

-SamsungElectronics(005930)announced that its preliminary operating profit for the second quarter of this year was 89.004 trillion won, an increase of 1,810.3% compared to the same period last year. Revenue rose 129.3% year-over-year to 171 trillion won.

- The company has posted record-high earnings for three consecutive quarters and achieved operating profit in this single quarter alone that is more than double last year’s total.

- Although results by business unit were not disclosed, it is believed that the Device Solutions (DS) division, which handles the semiconductor business, accounted for the majority of the company’s operating profit. This was driven by the semiconductor supply shortage and the intensifying uptrend in memory prices.

◇Canada Awards Submarine Contract to Germany’s TKMS… Hanwha Ocean Suffers Setback

- Hanwha Ocean(042660). suffered a setback in Canada’s Next-Generation Submarine Procurement Program (CPSP).

-Canadian Prime Minister Mark Carney announced today at the Halifax Naval Base in Nova Scotia that Germany’s ThyssenKrupp Marine Systems (TKMS) had been selected as the preferred bidder for the CPSP project. However, he added that Canada reserves the right to begin negotiations with Hanwha Ocean, the runner-up, should talks with TKMS break down.

-The CPSP is a project to build up to 12 diesel submarines to replace the four Victoria-class submarines scheduled for decommissioning in the mid-2030s. Including maintenance, repair, and operating costs over 30 years, the project is estimated to total 60 trillion won.
-In a statement, Hanwha Ocean said, “We will thoroughly analyze the challenges identified through this bidding process, devise concrete alternatives, and ensure that ‘K-Marine Defense’ finds a way to make even greater strides in the global market.”

◇Microsoft to Cut 4,800 Jobs… “AI Is Changing the Way We Work”

-Microsoft (MS) is embarking on a large-scale restructuring, cutting 4,800 jobs—equivalent to 2.1% of its global workforce. Amy Coleman, Microsoft’s Chief People Officer (CPO), announced the plan.

- CPO Coleman noted, “The roles eliminated today are not being replaced by AI,” but added, “At the same time, it is clear that AI is changing the way we work.”

- The layoffs are primarily concentrated in the gaming division, including Xbox. Asha Sharma, the newly appointed head of the Xbox division, revealed in a separate announcement that 3,200 of those affected are from the gaming division and that 1,600 employees have already been notified of their layoffs.

- Sharma explained the rationale behind the restructuring, stating, “Our business is not healthy today. We are operating with profit margins 3 to 10 times lower than those of similar platforms and companies.”

◇ NATO Secretary General: “Plans to Announce New Defense Contracts Worth Tens of Billions of Dollars”

- Mark Rutter, Secretary General of the North Atlantic Treaty Organization (NATO), announced that he plans to announce large-scale new defense industry contracts on the 7th, the first day of the NATO summit being held in Ankara, the capital of Türkiye.

-Speaking at a press conference in Ankara that day, Secretary General Rutter said, “We will announce new contracts worth tens of billions of dollars to provide the key equipment necessary for deterrence and defense.”

-At the NATO summit held in The Hague, Netherlands, last June, NATO member states agreed to spend 5% of their gross domestic product (GDP) on defense by 2035, as requested by U.S. President Donald Trump.

- Secretary General Rüter noted, “There has already been significant progress toward achieving the 5% spending target,” adding, “We expect each country to present clear, concrete, and credible plans at the summit to meet the 5% target.”

◇As the Strait of Hormuz situation normalizes… Saudi Arabia offers discounts on crude oil for the first time in six years

-Saudi Arabia has begun offering discounts on the price of its flagship crude oil grade for the Asian market for the first time in six years.

-According to Bloomberg, Saudi state-owned Aramco, in its price list released today, lowered the price of Arab Light crude for August delivery by $11 per barrel, setting it at a level $1.50 below the average of Oman and Dubai crude—the regional benchmarks.

-Arab Light accounts for the largest share of Saudi crude oil exports. Most refining facilities in South Korea, Japan, and China are designed to process this grade.

- This discount on the grade represents the largest monthly price cut since 2000. It is the third-largest on record, following those in 2015 and 2020.

-This is attributed to a surge in supply as Gulf oil-producing nations resumed crude oil shipments through the Strait of Hormuz following the signing of a provisional peace agreement between the U.S. and Iran.

◇Average Growth Forecast for South Korea by Overseas Investment Banks Hits 3% for the First Time This Year

-The average economic growth forecast for South Korea this year by major foreign investment banks (IBs) has reached the 3% range for the first time. This is attributed to continued strong exports, particularly in semiconductors.

-According to the International Finance Center on the 7th, the average forecast for South Korea’s real gross domestic product (GDP) growth this year, as presented by eight major investment banks as of the end of June, stood at 3.0%. This represents a 0.2 percentage point increase from 2.8% at the end of May. This marks the first time the average growth forecast by major investment banks for South Korea has reached the 3% range.

-J.P. Morgan revised its forecast from 3.0% last month to 3.7%, marking the largest upward adjustment in a single month. Citibank also raised its forecast from 3.0% to 3.5%.