Wall Street hesitated Monday in a market awaiting new key statistical indicators this week. The S&P 500 lost 0.02% to 5,221 pts, the Dow Jones lost 0.21% to 39,431 pts, while the Nasdaq rose 0.29% to 16,388 pts. The week will be especially marked on the American market by the latest inflation figures and the quarterly results of major retailers… On the Nymex, the barrel of WTI crude is up 1% to $79. The dollar index lost 0.2% against a basket of currencies.
This Monday, economic news remained limited with simply interventions from Loretta Mester, boss of the Cleveland Fed, and the vice-president of the American central bank, Philip Jefferson… The latter, who did not really brought new elements concerning monetary policy, discussed the interest… of clear communication from the Fed and central banks, in order to improve the effectiveness of the policy. At a conference organized by the Cleveland Fed, Jefferson said that while waiting to see more evidence of a return of inflation towards the 2% objective, it was appropriate to maintain rates on their current level. In addition, the resilience of the economy and employment in the United States allows the Fed to focus on achieving this inflation objective.
The Fed is expected to cut rates twice this year, starting in September, according to the majority of economists polled by Reuters, who at the same time significantly raised their inflation forecasts for the second consecutive month. According to the study, nearly two-thirds of the economists surveyed, or 70 out of 108, predict a first reduction in the federal funds rate in September, to a range of 5 to 5.25%. These results come from a survey conducted from May 7 to 13. In the previous survey last month, just over half of economists expected easing in September…
On Tuesday, investors will follow the producer price index for the month of April at 2:30 p.m. (consensus +0.3% compared to the previous month or +2.2% over one year; +0.2% and +2 .3% over one month and one year, excluding food and energy).
On Wednesday, the consumer price index for the month of April will take the spotlight at 2:30 p.m. (consensus +0.4% compared to March and +3.4% over one year; +0.3% and +3, 6% excluding food and energy). At the same time, operators will monitor retail sales for the month of April (consensus +0.4%), as well as the New York Fed’s Empire State manufacturing index for the month of May. Corporate stocks and the US housing market index will be announced at 4 p.m., while the Department of Energy’s weekly report on domestic oil stocks will be revealed at 4:30 p.m. Neel Kashkari, head of the Minneapolis Fed, will also speak on Wednesday evening.
Thursday, the day will be busy again, with housing starts and building permits at 2:30 p.m., weekly unemployment registrations, as well as the Philadelphia Fed’s manufacturing index and even import and export prices. ‘export. Industrial production figures will be announced at 3:15 p.m. by the Fed. Patrick Harker, Loretta Mester and Raphael Bostic from the Fed will speak during the day.
Finally, on Friday, the Conference Board Leading Indicator Index will be followed at 4 p.m.
Corporate news on Wall Street, apart from the numerous expected announcements in the field of artificial intelligence (OpenAI or Alphabet in particular), will be marked by the quarterly results of retailers Walmart and Home Depot, as well as those of Cisco. .
Values
Microsoft (-0.2%) hesitates before the OpenAI announcements, while Alphabet gives up more than 2%. The AI startup behind ChatGPT was expected to present updates today regarding the flagship chatbot and GPT-4. Its CEO Sam Altman clarified on X that it is “not gpt-5, not a search engine, but we have been working hard on new things that we think people will love! is like magic to me.”
Apple (+1.7%) is about to include OpenAI’s ChatGPT in iOS 18 for iPhone, Bloomberg reported. The move is part of Apple’s efforts to add AI features to its devices. The Californian group from Cupertino, formerly the world’s largest market capitalization, also had discussions with Google (Alphabet (+0.2%)) on the use of Gemini, recalls Bloomberg. So, people familiar with the matter say that Apple and OpenAI are finalizing the terms of a deal that will include ChatGPT features in the next iPhone operating system. Bloomberg’s sources affirm that Apple’s discussions on granting a Gemini license to Google are also continuing… The New York Times reported that on the occasion of its global conference of developers on June 10, Apple reportedly intends to position Siri as a more private version of OpenAI’s ChatGPT…
OpenAI, the AI startup supported by Microsoft, is also working on an AI voice assistant, according to The Information… People with knowledge of the new AI have indicated that the company is preparing to present technology which – using superior logical reasoning than its current products – would speak with people through oral and visual communication and recognize objects and images. A source told The Information that the technology could be previewed at the company’s May 13 event, partly in an effort to put OpenAI ahead of Google’s AI announcements expected later in the year. the week.
Reuters even believed that OpenAI planned to announce a competitor to Google in Internet search today! Bloomberg and The Information previously reported that OpenAI was working on such a search product to compete with Google and AI search startup Perplexity. However, according to Sam Altman’s message on the social network X, the supposed search engine would not be presented today…
Microsoft will invest 4 billion euros in the development of cloud and AI infrastructure, in AI training and the acceleration of French startups, with the ambition to train one million people and support 2,500 French startups by 2027! For the Redmond IT giant, this is the most important investment in France to date. It aims to accelerate AI adoption, skills and innovation. “This major investment reflects our commitment to supporting, over the long term, digital innovation and economic growth in France. We will build an excellent cloud and AI infrastructure, support the rise in AI skills of the French, and accelerate the development of French startups who use our technology with complete confidence”, launched Brad Smith, Vice Chairman of the Board of Directors and President of Microsoft.
Thus, as part of the “Choose France” summit, Microsoft, present in France for 41 years, announced its largest investment to date in the country. This investment program aims to accelerate the adoption of artificial intelligence and cloud technologies, to increase the country’s competitiveness by encouraging the development of the French digital ecosystem and to create long-term opportunities for the French economy and job market. “With these investments, Microsoft directly contributes to France’s national strategy for AI and aligns with the recent recommendations of the French Commission for Artificial Intelligence, in order to position France as a leader in its development and use”, insists Microsoft… The announcement of this investment in France is part of the series of Principles of access to AI that the software group recently defined. They aim to encourage innovation and create the conditions for healthy competition within the AI economy. These principles commit Microsoft, “whose role and responsibility, as a leader in AI, are growing”.
Amazon (-0.5%) reported an investment plan in France of more than 1.2 billion euros. The American online commerce giant could thus create more than 3,000 permanent positions. These are investments in logistics and cloud infrastructure (AWS).
Intel (+2.2%) According to the Wall Street Journal, the group is in advanced discussions with Apollo Global Management with a view to building a chip factory in Ireland for which the investment firm would commit more than 11 billion dollars.
Arm (+0.1%) will launch AI chips with mass production expected by fall 2025, according to Japanese business daily Nikkei. Apparently citing sources, the Nikkei reports that the British chip designer, recently introduced to Wall Street, would create an AI chip division and target a prototype by next spring. Mass production would be carried out by contract manufacturers, likely including TSMC with whom SoftBank is already in talks to secure capacity. The Nikkei reports that Arm would be responsible for initial development costs, but that SoftBank would contribute an unspecified portion of what is expected to amount to hundreds of billions of yen. Once mass production begins, the AI chip business could be split under SoftBank’s control.
GameStop, which has already just recovered more than 70% in one month on Wall Street, soars by another 74%! The stock even more than doubled at the start of the session before losing a little ground… The Reuters agency attributes today’s increase to the first message in three years on the social network X, formerly Twitter, from Keith Gill, better known to small American shareholders as “Roaring Kitty”. His online messages and videos helped trigger a frenzy of transactions on the video game distributor’s stock in 2021. Enough to visibly awaken those nostalgic for the euphoric period of ‘meme stocks’… AMC, for its part, gains more by 78%!
Tencent Music Entertainment (+2%), the Chinese leader in online music and audio entertainment, announced revenues totaling approximately $937 million (consensus $918 million) for its first quarter ended at the end of March 2024, down with the decline revenue from social entertainment services. The group nevertheless claims strong growth in revenues from online music services. Music subscription revenues increased by 39%, reaching the equivalent of $501 million, with the number of paying subscribers increasing by more than 20% to 113.5 million. Quarterly net profit increased by more than 27%, representing the equivalent of $212 million. Adjusted net income was $251 million. ADS-adjusted earnings were about 15 cents, compared to the consensus estimate of 14 cents.
Tesla (+2.7%). According to the Wall Street Journal, the Biden administration could announce a near quadrupling of customs tariffs applying to Chinese electric vehicles. The US administration is reportedly preparing for such an announcement this week. Increased customs taxes would also be on the agenda for other products from China. “The Biden administration is preparing to increase tariffs on clean energy products from China in the coming days, with the tax on Chinese electric vehicles expected to nearly quadruple,” according to people familiar with the matter cited by the WSJ.
