Wall Street rebounded on Wednesday, awaiting US GDP and inflation figures to be released later this week. The S&P 500 rose 0.86% to 5,248 pts, the Dow Jones rose 1.22% to 39,760 pts and the Nasdaq +0.51% to 16,399 pts. The week will be short, with Wall Street closed on Friday, but will include numerous interventions from Fed officials, as well as some notable statistics. Jerome Powell, head of the Fed, will speak on Friday…
On the Nymex, a barrel of WTI crude lost 0.1% to $81.85. An ounce of gold gained 0.6% to $2,195. The dollar index advances 0.1% against a basket of currencies. Bitcoin stands at $70,000.
Durable goods orders in the United States for the month of February 2024 increased by 1.4% compared to the previous month, compared to +1% market consensus and -6.9% in revised reading, one month Before. Excluding transport, orders increased by 0.5% compared to the previous month, against +0.6% consensus and -0.4% for the revised reading for the month of January… Operators were also monitoring the price indices. prices of S&P Case-Shiller and FHFA homes (+0.1% for the January adjusted Case-Shiller ’20 City’ compared to the previous month and +6.6% year-on-year excluding adjustment; +6.3% on one year for the FHFA index). The Richmond Fed’s regional manufacturing index for the month of March 2024 stood at -11, compared to -5 a month before and -4 of the market consensus. The American consumer confidence index measured by the Conference Board for the month of March stood at 104.7, against a FactSet consensus of 107 and a level of 104.8 a month earlier, in revised reading.
Oil prices remain firm despite the announcement of a sharp increase in crude reserves in the United States last week. According to the US Department of Energy, domestic crude stocks, excluding strategic reserves, increased by 3.2 million barrels in the week ended March 22, to 448.2 million barrels. The consensus was for a drop of 0.7 mb. Gasoline stocks increased by 1.3 mb (-1.7 mb expected), and those of distilled products decreased by 1.2 million barrels (+0.5 mb expected).
Thursday, the news will be particularly busy, with the final figures for US GDP for the fourth quarter (FactSet consensus at a rate of +3.3%, against +3.2% previously estimated), weekly unemployment claims for the week closed March 23, the Chicago Manufacturing PMI, the University of Michigan U.S. Consumer Sentiment Index, the Home Sales Promises Index, and the Kansas City Fed Manufacturing Index .
Finally, on Friday, investors will monitor the inflation index (+2.8% FactSet consensus on the index adjusted year-on-year) as part of the publication of the report on household income and spending. The balance of international trade in goods will also be revealed. Jerome Powell will also liven up the day… Wall Street will nevertheless be closed on Friday for Good Friday – but then open for Easter Monday.
While the S&P 500 has gained around 10% this year, some strategists, such as those at JP Morgan and Morgan Stanley, are more cautious and believe that high valuations will be difficult to justify if they are not accompanied by a significant improvement in prices. business profits. The first quarter financial publication season will begin in around two weeks and will therefore be of major importance, while euphoria in the artificial intelligence segment and expectations of rate cuts have supported the markets for the time being. …
Values
Apple (+2.1%) announced that it will host its annual Worldwide Developers Conference (WWDC) from June 10-14, 2024. Developers and students will have the opportunity to celebrate in person at a special event at Apple Park on opening day. WWDC24 will highlight the latest advances in iOS, iPadOS, macOS, watchOS, tvOS and visionOS, indicates the Californian group. As part of Apple’s ongoing commitment to helping developers improve their apps and games, the event will also provide developers with unique access to Apple experts, as well as an overview of new tools, frameworks and features. “We’re excited to meet developers from around the world for an extraordinary week of technology and community at WWDC24,” said Susan Prescott, Apple’s vice president of Worldwide Developer Relations.
The conference comes as rumors are rife regarding the Apple group’s discussions with various stakeholders in the field of artificial intelligence. So, significant changes could be made in this direction to iOS. Investors are impatiently awaiting updates from Apple regarding artificial intelligence, while the Cupertino group has not yet discussed the integration of new AI technologies into its devices. Apple has also lost its rank as the world’s largest market capitalization, dethroned by Microsoft (stable), whose offensive in generative AI with OpenAI has won over the markets. Nvidia (-2.5%) is also getting closer to Apple in terms of market valuation, its AI chips being almost essential for the moment…
Apple plans to use AI technology such as Google’s Gemini for a chatbot within its operating systems, while the iPhone maker’s AI engine will handle more behind-the-scenes tasks in the new software, Bloomberg reported, as picked up by Reuters. Apple is also reportedly considering making the iPhone’s home screen more customizable in iOS 18, which could mark the biggest update to the iPhone’s operating system in years, Reuters adds. At last year’s conference, Apple unveiled the Vision Pro mixed reality headset…
Robinhood (+3.7%) is climbing on Wall Street, as the online broker known for its commission-free trading will offer a credit card to American consumers in a bid to become a broader financial services company. The Robinhood Gold Card will be offered exclusively to members of the company’s subscription-based Gold program. It will have no annual costs or foreign transaction fees. The card offers 3% cash back on all purchase categories. “Our goal is to penetrate this market in a significant way,” CEO Vlad Tenev said, as quoted by Bloomberg. “We don’t want to just roll out a credit card that our customers will adopt. We want to roll out a product that can lead the industry and move it forward.”
GameStop drops 15%. The video and electronic game distribution chain missed consensus for its fiscal fourth quarter, posting revenue of $1.79 billion, compared to a consensus of $2.05 billion and a level of $2.23 billion. dollars a year earlier. Adjusted earnings per share were 22 cents, compared to the market consensus of 29 cents and 16 cents a year earlier. The group said it had cut positions to reduce expenses amid increased competition from online commerce and uncertain consumption. Quarterly spending declined 21% to $357 million. Cost control or not, it nevertheless appears that GameStop is facing increasing difficulties due to its physical distribution model.
Adobe (-0.6%), the American software group confirmed its 2024 financial estimates, expecting adjusted earnings per share ranging from $17.60 to $18, against a FactSet consensus of $18.01. During its analyst day, the group also maintained its revenue guidance ranging from $21.30 billion to $21.50 billion. The FactSet consensus was 21.47 billion. The GAAP tax rate is expected to be around 20.5%, while the non-GAAP tax rate is expected to be 18.5%. GAAP earnings per share are expected between $11.26 and $11.66.
Cintas (+8.2%), the American specialist in the production of uniforms, safety and hygiene equipment, is gaining ground before the market on Wall Street following its publication of the third fiscal quarter. In this quarter ended at the end of February, the group achieved revenues of 2.41 billion dollars, compared to 2.19 billion a year before. Organic growth was 7.7%. Net profit was $397.6 million, compared to $325.8 million a year earlier. The group is raising its annual guidance, now expecting revenues of $9.57 to $9.60 billion and diluted EPS ranging from $14.80 to $15.
Carnival (+0.9%), the group has just raised its annual profit forecasts, counting on record demand and higher prices. It must be said that the group is experiencing a historic level of orders. Josh Weinstein, the group’s chief executive, reflects on a fantastic start to the year. First quarter revenues climbed to an all-time high of $5.41 billion, while orders for the rest of the year remain record high with customer deposits at $7 billion. The operator expects adjusted earnings per share of 98 cents for 2024, compared to previous guidance of 93 cents and a consensus of $1. Over the closed quarter, cash flow from operations was 1.8 billion, while operating profit stood at 276 million.
Merck (+4.9%). The FDA has just approved its Winrevair treatment for adults suffering from pulmonary arterial hypertension, a condition affecting 40,000 people in the United States. “Pulmonary hypertension is a rare, progressive and potentially fatal disease in which the blood vessels in the lungs thicken and narrow, causing significant strain on the heart,” said Dr. Marc Humbert, professor of medicine and director of the Reference Center for Pulmonary Hypertension at Paris-Saclay University and researcher on the Phase 3 STELLAR study.
