Wall Street consolidates further this Friday, the day after a delicate session marked by a correction by Nvidia after the Juneteenth break. The S&P 500 lost 0.21% to 5,461 pts and the Nasdaq 0.27% to 17,674 pts, while Nvidia still stumbled by more than 3%. The Dow Jones advanced 0.18% to 39,205 pts. Remember that Four Witches Day corresponds to the expiration of four types of derivative products, which can increase volatility.
On the Nymex, a barrel of WTI crude gained 0.4% to $81.6. An ounce of gold dropped 0.8% to $2,348. The dollar index is up 0.2% against a basket of reference currencies.
Microsoft gains another 0.4% and returns to the world’s largest capitalization since yesterday, weighing 3,320 billion dollars, ahead of Apple (+0.7%) and its 3,240 billion dollars, then Nvidia (-3.3%) which demotes to third place with 3.110 billion capitalization, or 300 billion dollars less than yesterday at the opening.
Remember that Nvidia overtook Microsoft on Tuesday, briefly becoming the world’s largest capitalization. The three groups remain neck and neck and the ranking could further evolve in the coming days, Microsoft, Nvidia and Apple all three now displaying undeniable arguments in the race for artificial intelligence – which for the moment seems the only concern of the markets.
US stock markets were closed the day before yesterday to observe ‘Juneteenth’, for the third time in history. Thus, the New York Stock Exchange (NYSE) and the Nasdaq were closed this June 19, in observation of the new federal holiday, adding to the list of market holidays which also includes Thanksgiving Day and Christmas Day , Martin Luther King, Jr. Day, Washington’s Birthday, Memorial Day (…).
The Fed last week kept its key rate in the range of 5.25 to 5.50%, at a 23-year high, in order to maintain continued pressure on the economy and curb inflation. The bank released projections showing a median forecast of 19 U.S. central bankers calling for just one rate cut this year.
The preliminary composite PMI index for June 2024 stood at 54.6, compared to the FactSet consensus of 53.4 and 54.8 a month before. The manufacturing index came out at 51.7 against 51 consensus. The services index came in at 55.1, compared to economists’ average forecast of 53.5.
According to the NAR this Friday, resales of existing homes in the United States for the month of May 2024 stood at a rate of 4.11 million, compared to 4.07 million consensus and 4.14 million a month before. They therefore fell by 0.7% from one month to the next and by 2.8% from one year.
The Conference Board’s American leading indicators index for the month of May 2024 fell 0.5% month-on-month, compared to -0.3% consensus and -0.6% one month. previously.
Elsewhere in the world, the Eurozone’s preliminary composite PMI for June came in at 50.8 versus the consensus 52.5, while the UK’s CIPS composite index stood at 51. 7 against 53.2 consensus. Also note this morning, British retail sales significantly above expectations for the month of May…
Values
CarMax (+1%), the American retailer of used vehicles, revealed a fall of a third in its profit for its first quarter, with falling margins. Net income was $152 million, or 97 cents per share, compared to $228 million for the corresponding period last year. Revenues fell to $7.1 billion from $7.7 billion a year earlier. The consensus was 94 cents in quarterly earnings per share for $7.2 billion in revenue.
FactSet (+1%), a global digital financial platform and provider of business solutions, published this Friday, for its third fiscal quarter, revenues of $552.7 million, an increase of 4.3% year-on-year, for an operating GAAP margin up 420 basis points to 36.6% and an adjusted margin of 39.4%, up 340 basis points. Adjusted diluted profit increased 15% to $4.37. For the financial year, revenues are expected between $2.18 and $2.19 billion, for an adjusted margin ranging from 37 to 37.5% and adjusted EPS ranging from $16 to $16.4. The consensus was $3.9 quarterly adjusted EPS for $552.7 million in revenue.
American Airlines (stable). The APFA union representing flight attendants has indicated its intention to strike, while negotiations with the air carrier have broken down on various issues.
Gilead Sciences (+4%) benefits from a late-stage study showing that a long-acting injectable treatment from the pharmaceutical group would be more effective in preventing HIV infection in women than its existing daily pill Truvada. “Something like lenacapavir, given only twice a year, could be a prevention choice that would fit much better into many people’s lives,” said Jared Baeten, vice president of clinical development at Gilead, quoted by Reuters.
Boeing (stable) is close to an agreement to buy its former subsidiary Spirit AeroSystems after the troubled airframe supplier made significant progress in its discussions with Airbus to separate their assets, Reuters reported. sources close to the issue.
Amazon (+1%), the American online commerce giant, is reportedly considering a major overhaul of its chronically loss-making Alexa voice assistance service, according to Reuters. It would involve, as you might have guessed, including… conversational artificial intelligence. Reuters mentions an AI with two levels of service and a potential monthly price of around $5 for the premium version. The agency cites sources with knowledge of the subject.
