Wall Street consolidated its positions on Tuesday, with the Dow Jones reaching new all-time highs. The results announcements were quite mixed. In addition, operators have taken note of good employment figures, which complicate (a little) the work of the Fed… The S&P 500 lost 0.06% to 4,925 pts. The Dow Jones gained 0.35% to 38,467 pts, while the Nasdaq dropped 0.76% to 15,510 pts. The news will be provided this week, with the Fed meeting, a new battery of economic statistics, as well as the financial results of several large capitalizations… Among the “Magnificent Seven”, five of them publish this week their accounts, namely Apple, Alphabet, Amazon, Meta and Microsoft.
Note that this week, the results announcements will concern around 40% of the capitalization of the S&P 500, including the two heavyweights worth 3,000 billion dollars, Apple and Microsoft.
In economic news, the S&P Case-Shiller “20-City” index adjusted for the 20 main metropolitan areas increased by 0.1% compared to the previous month. However, it fell by 0.2% on an unadjusted basis. The FHFA index marks a 0.3% month-over-month increase.
The Conference Board’s U.S. Consumer Confidence Index for January 2024 came in at 114.8, compared to a FactSet consensus of 113 and a revised reading of 108 for the prior month.
The resistance of the American job market is confirmed… The JOLTS report from the American Department of Labor concerning job openings for the month of December showed 9.03 million openings, compared to 8.71 million FactSet consensus and 8.92 million a month before, in revised reading.
On Wednesday, investors will closely watch ADP’s U.S. private employment report, the employment cost index, the Chicago PMI and the weekly U.S. domestic oil inventory report, but it’s especially the Fed meeting which will attract attention in the evening. According to the FedWatch tool, the probability that the Fed will leave its rates unchanged between 5.25 and 5.50% is 98%, but it is above all the vocabulary of Jerome Powell’s Fed which will decide the direction of the rates. markets. Investors are indeed hoping for a rate cut in March or May. The probability of a quarter-point cut in the fed funds rate on March 20 is 39% according to FedWatch…
On Thursday, operators will follow the Challenger, Gray & Christmas study on layoff announcements in the United States, weekly unemployment claims, figures for non-agricultural productivity and unit labor costs, and the final manufacturing PMI index. , the manufacturing ISM and construction spending. Finally, on Friday, the monthly government report on the employment situation for the month of January, the consumer sentiment index from the University of Michigan and industrial orders will be in the news.
As for quarterly financial releases on Wall Street, Mastercard, Thermo Fisher Scientific, Boeing, Automatic Data Processing, Boston Scientific, Phillips 66, Roper, Hess, Otis, Nasdaq Inc and Rockwell Automation will announce their pre-market accounts on Wednesday, while that Qualcomm or Metlife will be involved after the market.
On Thursday, Merck, Honeywell, Eaton, Ferrari, Illinois Tool Works, Altria, Becton, Dickinson, Parker-Hannifin, Royal Caribbean Cruises, Cardinal Health, Sirius giants Apple, Amazon and Meta Platforms will publish after the close.
On the Nymex, a barrel of WTI crude gained 0.5% to $77.70. The dollar index changes little against a basket of reference currencies. On the bond markets, the yield on the 2-year T-Bond is 4.37%, compared to 4.1% on the 10-year bond and around 4.32% on the 30-year bond.
Values
Nucor (+6.9%), the American steelmaker announced a decline in its fourth quarter profit with the decline in prices and volumes. Revenues were 7.7 billion dollars compared to 8.7 billion a year before, while net profit represented 785 million dollars or $3.16 per share, compared to 1.26 billion a year before.
Super Micro Computer (+3.5%) is benefiting from the current euphoria surrounding the artificial intelligence sector. The San Jose, California-based server and data center specialist, which counts NASA among its clients, announced sales of $3.66 billion for the second fiscal quarter, compared to $2.12 billion for the previous quarter and 1 .80 billion a year before. Net profit reached $296 million, compared to $157 million in the first fiscal quarter and $176 million a year earlier. Diluted EPS was $5.10 compared to $3.14 a year earlier. The group is raising its annual guidance and targeting revenues of 14.3 to 14.7 billion dollars… compared to 10-11 billion previously.
Whirlpool, the designer of household appliances, corrects by 6.6% following annual forecasts below expectations… For its fourth fiscal quarter just ended, the group posted sales growth of 3.4%. Adjusted earnings per share for the year ended were $16.16. For fiscal 2024, it is expected between $13 and $15, while free cash flow is anticipated between $550 and $650 million.
Celestica (+1.6%), the electronics producer beat expectations for its fourth quarter, posting adjusted earnings per share of 76 cents compared to a consensus of 68 cents. A year earlier, it was 56 cents. Quarterly revenues were $2.14 billion, 3% more than expected, compared to $2.04 billion a year earlier. For its first fiscal quarter just started, the group posted revenues ranging from $2.025 billion to $2.175 billion, as well as adjusted EPS ranging from 67 to 77 cents.
Sanmina (+28.2%!), the Californian group active in integrated production solutions is on fire! The group has just revealed a solid first fiscal quarter, marked by revenues of $1.87 billion and an adjusted operating margin of 5.5%. Adjusted earnings per share were $1.30. Cash flow from operations was $126 million. For its second quarter, Sanmina anticipates revenues ranging from $1.825 billion to $1.925 billion, while adjusted EPS is anticipated between $1.20 and $1.30.
Danaher (+4.7%), the conglomerate active in life sciences and diagnostics, announced a decline in 2023 annual revenues for this “transformational” year. For the year, net profit stood at $4.2 billion, for diluted EPS of $5.65 and adjusted EPS of $7.58. Revenues fell 10.5% to $23.9 billion. Adjusted free cash flow reached 5.1 billion. The group forecasts adjusted revenues down to low single digits for 2024.
HCA Healthcare (+5.2%). The American hospital giant announced revenues totaling $17.3 billion for the fourth fiscal quarter, net profit group share of $1.61 billion and diluted earnings per share of $5.93. Adjusted Ebitda was 3.62 billion. Cash flow from operational activities reached 2.67 billion over the period. Over the entire financial year, revenues totaled nearly $65 billion, while adjusted Ebitda climbed to 12.73 billion compared to 12.07 billion a year earlier.
Pfizer (-1.6%), the American pharmaceutical giant, announced for its fourth fiscal quarter revenues down sharply by… 41% to $14.25 billion, a net loss of $3.37 billion , but slightly positive adjusted earnings per share of 10 cents. A year earlier, adjusted EPS stood at $1.14. Analysts expected an adjusted loss per share on $14.43 billion in quarterly revenue. Pfizer still anticipates annual revenues ranging from $58.5 billion to $61.5 billion in 2024, for adjusted earnings per share ranging from $2.05 to $2.25.
UPS (-5.7%), the delivery giant stumbles on Wall Street after announcing disappointing quarterly revenues. In the fourth quarter, the group generated adjusted earnings per share of $2.47 compared to a consensus of $2.46, while its revenues reached $24.9 billion, close to a consensus of $2.46. 25.4 billion. A year earlier, consolidated revenues stood at $27 billion and adjusted EPS stood at $3.62. The adjusted operating margin for the quarter ended was 11.2%. The group declared a quarterly dividend of $1.63, a slight increase. Forecasts are also mixed, with the group considering revenues ranging from $92 to $94.5 billion, compared to a consensus of $95.6 billion… UPS also intends to cut 12,000 jobs and explore strategic options regarding the Coyote business.
Marathon Petroleum (+6%) announced for its fourth quarter a net profit of $1.5 billion or $3.84 per share, as well as an adjusted profit of $3.98 per share. Net profit for the year reached $9.7 billion. In refining and marketing, adjusted Ebitda was $2.2 billion in the fourth quarter. The midstream segment posted an increase in adjusted Ebitda to $1.6 billion.
General Motors (+7.8%), the Detroit automaker, is taking off on Wall Street. The group posted fourth-quarter revenues and profits above expectations, and also delivers reassuring prospects, while admitting the slowdown in electric automobiles. The manufacturer expects for 2024 adjusted earnings before taxes ranging from 12 to 14 billion dollars, compared to 12.4 billion in 2023. Adjusted earnings per share are expected between $8.50 and $9.50, compared to $7. $68 for the closed financial year. In the fourth quarter of 2023 alone, the group’s net profit increased by 5% to 2.1 billion, while revenues totaled 43 billion. Adjusted quarterly profit before tax fell by half to 1.8 billion. Finally, spending on the Cruise unit will be reduced by a billion.
Corning (+6.9%) posted sales of $3 billion in the fourth fiscal quarter, down 6% sequentially. Adjusted sales were $3.3 billion, down 5% sequentially. GAAP earnings per share were negative 5 cents, while adjusted EPS was 39 cents. Annual GAAP sales were $12.6 billion, down 11%, while adjusted revenue declined 8% to $13.6 billion. Annual adjusted EPS stood at $1.70. First-quarter adjusted sales are expected at $3.1 billion, for adjusted EPS of 32-38 cents.
PulteGroup (-0.5%%), the American real estate developer announced for its fourth quarter 2023 earnings per share of $3.28, net new orders up sharply by 57% to 6,214 units, as well as revenues of home sales of $4.2 billion for 7,615 homes. The gross margin on housing sales reached 28.9%. The group reports a unit backlog of 12,146 houses, worth $7.3 billion.
Sysco (+7.5%) announced for the second fiscal quarter ended at the end of December 2023 sales growth of 3.7%, a gross margin up 4.9% to $3.5 billion and an improved Ebitda of… 83% to 914 million dollars. Adjusted Ebitda increased by 11.6% to 927 million. Adjusted earnings per share rose 11% to 89 cents. The group also maintains its forecasts for the 2024 fiscal year in terms of revenue and profit growth…
