New York Stock Market Closes Slightly Higher on Strong Google Earnings... Korea-U.S. Industry Ministers to Hold Trade Talks Today [Morning Briefing]

◆ New York Stock Market Closes Slightly Higher on Strong Google Earnings... S&P 500 and Nasdaq Hit Record Highs

The New York stock market ended modestly higher on the 24th local time, buoyed by strong earnings from Alphabet, Google's parent company. On this day, the S&P 500 index closed at 6,363.35, up 0.07% from the previous session, while the tech-heavy Nasdaq index finished at 21,057.96, up 0.18%. The Dow Jones Industrial Average ended at 44,693.91, down 0.70% from the previous close. The S&P 500 set a new record high for the fourth consecutive session, and the Nasdaq also broke its previous all-time high for the second day in a row.

Alphabet, Google's parent company, which announced its second-quarter results the previous day, was confirmed to have maintained solid growth led by AI despite challenges from AI chatbots like ChatGPT, rising 1% and fueling optimism about upcoming tech stock earnings reports. However, IBM, which had also reported its results the previous day, plunged 7.62% as its third-quarter earnings outlook failed to meet investors' expectations, despite strong Q2 results. IBM's sharp decline was the primary reason for the Dow's drop. Tesla plunged 8.20% following CEO Elon Musk's remarks that the company could face tough times due to the Trump administration's elimination of electric vehicle purchase subsidies (tax credits).

◆ U.S. Commerce Secretary: "Korea, Likely Upset Over U.S.-Japan Trade Deal…Really Wants a Breakthrough"

The Korean government will hold trade talks with U.S. Secretary of Commerce Howard Lutnick on the 24th local time, after the scheduled 2+2 economic/trade ministerial meeting with the U.S. was postponed due to scheduling issues of U.S. Treasury Secretary Scott Besant. In a CNBC interview, Lutnick commented, "Like Europe, Korea really, really wants to conclude negotiations. And you could hear expletives from Korea when reading about the Japan agreement because Korea and Japan are wary of each other." He added, "So you can imagine what Korea was thinking when it saw Japan conclude a deal: probably 'Oh, what now?' Of course, Korea will come to my office today for talks." According to government officials, Minister of Trade, Industry, and Energy Kim Jeong-gwan and Deputy Minister for Trade Yeo Han-gu are scheduled to meet with Lutnick at the Department of Commerce in Washington, D.C. Considering Lutnick's remarks, it is evident that the U.S. recognizes Korea and Japan are competing in their trade negotiations with Washington.

◆ Government and Medical Community Convene First Council Meeting on Resident Return

A public-private council to discuss the return of medical residents who left hospitals in protest of increased medical school quotas last February will begin operations on the 25th. According to the Ministry of Health and Welfare, Lee Hyung-hoon, the Second Vice Minister, will host the council’s inaugural meeting with the medical community at the Plaza Hotel in central Seoul at 10:30 AM for about 90 minutes, discussing operational plans and schedules. A ministry official said, "As this is the first meeting, discussions will focus more on how and when to operate the council rather than concrete agenda items." With the regular recruitment announcement for residents expected soon, specific measures for residents who resigned to return to their training hospitals may also be discussed. Regular recruitment announcements typically take place around the end of July. The ministry added, "Preparations are underway, but the timeline may be flexible depending on negotiations with medical students and residents." The emergency committee of KIRA (Korean Intern Resident Association) publicly listed three key demands: △ Formation of a practitioner-centered body to review the Yoon Seok-yeol administration's essential medical policy package, △ Improvement of resident training environments and continuity, and △ Establishment of a committee to ease legal burdens for medical accidents.

◆ Cigarette Hoarding with Consumption Coupons... Calls for Item Restrictions

With the nationwide 'livelihood recovery consumption coupons' given to boost the economy, cases of bulk cigarette purchases have increased, raising concerns about whether there should be item restrictions. As consumption coupons are not accepted at large supermarkets, citizens flock to convenience and neighborhood stores, where cigarette inquiries are constant. On online communities and social media, photos have quickly circulated showing someone buying 15 packs of cigarettes with the coupon, nicknamed the "livelihood support despair version." Some smokers even joke about it as a "smoking support fund." During the 2020 COVID-19 emergency relief payment, cigarette sales also surged. With a margin rate of about 5％—much lower than general goods (20~30％)—cigarettes have long been seen as an unprofitable item for small retailers. When selling a pack of ₩4,500 cigarettes, a store owner nets barely ₩200. Experts point out that cigarettes are easy to store and can later be exchanged for cash.

◆ Hot and Sunny Nationwide... Daytime Highs Up to 37°C

On Friday the 25th, most of the country will see clear skies, with the maximum perceived temperatures reaching around 35°C, making it extremely hot. As of 5 AM, the temperatures were: Seoul 25.9°C, Incheon 25.6°C, Suwon 24.1°C, Chuncheon 23.0°C, Gangneung 27.0°C, Cheongju 26.1°C, Daejeon 25.4°C, Jeonju 25.2°C, Gwangju 25.9°C, Jeju 27.1°C, Daegu 23.5°C, Busan 26.9°C, Ulsan 24.1°C, Changwon 25.7°C. The highest temperatures during the day are forecast to be 31~37°C. Many coastal and urban areas will experience tropical nights. Air quality will be 'good' to 'moderate' due to smooth atmospheric diffusion. Be cautious of dense fog around the west and south coasts and inland until the morning for traffic safety.

Kim Ye-rang, Hankyung.com reporter yesrang@hankyung.com