Wall Street consolidates further before the market this Friday, the day after a delicate session marked by a correction by Nvidia after the Juneteenth break. The S&P 500, the Nasdaq and the Dow Jones lost 0.2% in pre-session, while Nvidia weakened, leaving the place of first capitalization to Microsoft. Remember that Four Witches Day corresponds to the expiration of four types of derivative products, which can increase volatility.
Microsoft ended the session yesterday down 0.14% for a market capitalization of $3.310 billion, moving back ahead of Nvidia which at the same time lost 3.54% to $130.78 – after a peak of $140. $76 at the start of the day. Nvidia capitalizes around $3,220 billion, compared to more than $3,400 billion at its historic peak at the start of the day yesterday. Apple displays a comparable stock market value, at 3.220 billion, after a decline of 2.15% yesterday.
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 (…).
In economic news yesterday Thursday, housing starts in the United States for the month of May 2024 stood at 1.277 million (-5.5%), compared to 1.39 million consensus and around 1.352 million a months earlier. Building permits numbered 1.386 million, compared to 1.45 million consensus and 1.44 million in April.
Weekly unemployment registrations for the week ending June 15 stood at 238,000, compared to a consensus of 235,000 and a revised level of 243,000 a week earlier.
The Philadelphia Fed manufacturing index for June was +1.3, compared to a FactSet consensus of +4.8 and a level of +4.5 a month before. The index therefore signals a very weak expansion of manufacturing activity in the region considered.
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.
This Friday, for Four Witches Day, operators will follow the American flash composite PMI index for the month of June (3:45 p.m., consensus 51 for the manufacturing index, 53.5 for services and 53.4 for the composite), resales of existing homes (4 p.m., consensus 4.07 million for the month of May), as well as the Conference Board leading indicator index (4 p.m., consensus -0.3% compared to the previous month).
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…
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CarMax, 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, a global financial digital platform and enterprise solutions provider, reported revenues of $552.7 million for its fiscal third quarter on Friday, an increase of 4.3% year-over-year, for an operating GAAP margin up 420 basis points to 36.6% and an adjusted margin of 39.4% growing 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. 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 is benefiting from a late-stage study showing that the pharmaceutical group’s long-acting injectable treatment 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 is reportedly close to a deal to buy its former subsidiary Spirit AeroSystems after the troubled airframe supplier made significant progress in its asset separation talks with Airbus, sources close to the company told Reuters. of the question.
Amazon, 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.
